EX-99.1 2 file002.htm SLIDE PACKAGE

L. Phillip Humann

Chairman and Chief Executive Officer

BancAnalysts Association of Boston Conference   

November 2005

1



This presentation contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995.  Such statements include, but are not limited to, statements about the benefits of the
merger between SunTrust Banks, Inc. (“SunTrust”) and National Commerce Financial Corporation (“NCF”),
including future financial and operating results, SunTrust’s plans, objectives, expectations and intentions and
other statements that are not historical facts.  Such statements are based upon the current beliefs and
expectations of SunTrust’s management and are subject to significant risks and uncertainties.  Actual results
may differ from those set forth in the forward-looking statements.  The following factors, among others, could
cause actual results to differ from those set forth in the forward-looking statements: the risk that the cost
savings and any revenue synergies from the merger may not be fully realized or may take longer to realize
than expected; disruption from the merger making it more difficult to maintain relationships with clients,
employees or suppliers; increased competition and its effects on pricing, spending, third-party relationships
and revenues; the risk of new and changing regulation in the U.S. and internationally.  Additional factors that
could cause SunTrust’s results to differ materially from those described in the forward-looking statements
can be found SunTrust’s 2004 Annual Report on Form 10-K, and in the Quarterly Reports on Form 10-Q and
10-Q/A of SunTrust and NCF filed with the Securities and Exchange Commission and available at the
Securities and Exchange Commission’s internet site (http://www.sec.gov).  The forward-looking statements
in this presentation speak only as of the date of the filing, and SunTrust does not assume any obligation to
update the forward-looking statements or to update the reasons why actual results could differ from those
contained in the forward-looking statements.
  

This presentation includes some non-GAAP measures to describe SunTrust’s performance.  The
reconciliation of those measures to GAAP measures can be found in in the appendix of this presentation, as
well as in SunTrust’s earnings press release, which can be found on SunTrust’s website in the news section
of the investor relations pages.

2



SunTrust Overview

         
        
        

            
                  
              

                  
               
                                 

8.4%

4.8%

SunTrust

National Average

2003-2008
Projected
Weighted Average
Population Growth

SunTrust Branches

National Commerce Branches

1

1

7   largest commercial banking
organization in the U.S. with $172
billion in assets

We believe the National Commerce
transaction makes the “Best
Footprint in Banking” even better

1,647 full service branches
including in-store branches and
over 2,700 ATMs

Source: SNL Financial.  Note: the data reflects the 25 U.S. banks and thrifts by assets
as of December 31, 2004.  Weighted average population growth is based on MSA
deposits pro forma for pending and completed acquisitions.

3

th



SunTrust Transformation

2005

1998/99

      
      
      
     
      
      
        

        
     
        
      
     
        
         

     
      
      
      
      
      
      

      
      
      
         

      
      
     
        

      
      
     
     
   
      

      
      
      
        

        
           
      
           

      
      
      
      
      
            

      
      
        

     
      
        

   
     
      

                  

         
      
        
   
   
   

Enhanced
Franchise

One
Bank

Take the
Lead

Profit
Acceleration

Sales Culture
Transformation

Extended
footprint into
key growth
markets with
Crestar
merger

Collapsed 28
bank
charters

Streamlined
functional
organization

Focused on
efficiency,
ability to
deliver
common  
customer
experience

Implemented
series of
operational
initiatives and
common
systems
platform

Intensified
local market,
client and
sales focus

Aligned top
talent to key
leadership
positions

Introduced
new
geographic
structure and
operating
model

Implemented
new revenue
initiatives in
key
businesses

Created
process
efficiencies
and
consistency
in key
business
lines

Established high
performance
standards for LOBs
and geographic units

Placed highest priority
on sales, cross LOB
referrals & client
retention

Implemented sales
strategy referred to
as S3 + E2 = Selling,
Serving, Sustaining
client relationships
through Excellence
in Execution

4



Operating Model Differentiation

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

5

LOBs design business and

product strategies with direct

feedback from the line

Geographic partners are

empowered to deliver services,

products and pricing to local

customers

Our specialty businesses that

are centrally managed effectively

use this same geographic power

in our footprint (e.g., mortgage)

Focused on delivering the whole

institution to customers on an

integrated basis

Key to SunTrust’s on-going

success





2005 LOB Accomplishments

   

  


Key Initiatives

Results1

1

New business checking accounts up 55%

New business banking loan production up 33%

Outstanding business banking deposits up 16%
and loans up 9%

New Direct Home Equity production increased 29%

Improvements have increased speed 31%

New deposit account sales through the call center up 61%

Check card sales through the call center up 44%

                                                           Retail

New personal checking accounts up 15%

Successful CD campaign helped drive a 199%
increase in new CD/IRA accounts

Streamline consumer products and
increase the focus on service quality at
branch locations

Launch products and initiatives to
enhance the business banking client
experience

Build a world class Home Equity
Business and invest in technology and
process improvements

Enhanced our referral & sales processes
as well as advertising to drive more
sales opportunities through the call
center

Includes only legacy SunTrust data for the first nine months of 2005 as compared to the first nine months of 2004. New accounts include both   
legacy SunTrust and NCF

6



        

      
            
        
         

           
            
                  

   
      

     

      

      

     
         

2005 LOB Accomplishments

Results1

Key Initiatives

      
      
      
         

      
      
      
        

        
         
                     

Commercial

1 Includes only legacy SunTrust data for the first nine months of 2005 as compared to the first nine months of 2004

Adopted sales management
process and installed new
technology to support the
operating model

Sustain market share gains through
our strategy of relationship
planning and use of strategic
reviews for key client segments

Implement Treasury Management
product, sales and service
enhancements

    Hold a #1 or #2 ranking for lead
relationships among companies with
$5MM - $250MM in revenue in 80% of
the Company’s geographic markets

   From 2000 to 2004 increased lead
relationships by 60% in the middle
market commercial segment

Deposits up 11%

Loans up 9%

Capital Markets fees up 79%

Wealth and Investment Management fees up
41%

Accelerated speed new products are rolled
out to market

7

Independent research results through 2004:



2005 LOB Accomplishments

      
         
        
         

            
        
        

        
      

      
         

            
      
         

            
      

Increased product specialists

Debt Capital Markets Revenue = $229MM, up
$52MM or 30%

Corporate Banking’s twelve month trailing RAROC
has increased 1.7%

Corporate and Investment Banking

Results1

Key Initiatives

1 Includes only legacy SunTrust data for the first nine months of 2005 as compared to the first nine months of 2004

Drive the cross-sell of Capital
Markets products to the Commercial
and Wealth & Investment
Management LOBs

Invest in Debt Capital Markets
product capabilities, both new and
existing

Focused initiative to enhance risk
adjusted returns of corporate
clients

Deliver ‘best in class’ credit   
performance

Capital Markets Revenue cross-sold to the
Commercial and Wealth & Investment Management
LOB’s = $60MM, up $27MM or 84%

Corporate Banking total new business revenue up
19%

         

   

         

   

Criticized loans = $205.3MM, down $93.8MM or
31%.  Represents 1.3% of total loans

Non-accrual loans = $31.1MM, down $32.2MM or
51%. Represents 0.2% of total loans

         

   

         

   

8



2005 LOB Accomplishments








Results1

Wealth and Investment Management

Key Initiatives

1 Includes only legacy SunTrust data for the first nine months of 2005 as compared to the first nine months of 2004  

Rolled out and implemented new client
management operating model in Private
Wealth Management

Continue to ensure our offerings of
products and services exceeds those of
our competitors

Implemented initiatives which increased
penetration into existing STI client base

Integrated NCF and First Mercantile into
business units, expanding opportunities
for cross selling

Loans up 13%

Deposits up 18%

Institutional new trust business up 56%

Capital Markets referral $ up 175%

Discretionary assets under management
increased 12% 9/30/05 over 9/30/04

Brokerage assets increased 20% 9/30/05
over 9/30/04

Personal Trust retention improved by 14%

9



2005 LOB Accomplishments

  











  


Key Initiatives

Results1

Total booked products up 69%, an
increase of 28,000 products sold over
the same period in 2004

Mortgage

1 Includes only legacy SunTrust data for the first nine months of 2005 as compared to the first nine months of 2004

Grow Market Share

Grow purchase originations faster
than peer average

Increased the size of the mortgage
sales force

Opened 30 new offices to expand
national footprint to 157 total
Retail offices and 17 total
Wholesale offices

Strong emphasis on Mortgage
cross-sell  program

Focused on home equity,
deposit, credit/debit card and
other consumer products

Over $51 billion in total applications, up  
44% over the same period in 2004

Nearly $31 billion in purchase
applications, up 49%

Over $32 billion in total closings, up 46%

Over $19 billion in purchase closings,
up 51%

10



360o Relationship Focus






Cross-LOB Referrals Driving Revenue Growth

1 STI legacy only vs September YTD last year

2 Includes NCF

Commercial generated $46 million in Capital Markets fees – up 74%2

CIB

Wlth

and

Invest.

Man.

Retail

Cmml

Mortgage

SunTrust

Customer

September 2005 YTD

Retail referred $2.7 billion in closed
Mortgages – up over 51%1

Retail made 59,000 qualified referrals to
Wealth and Investment Management1

Wealth and Investment Management
made 21,000 referrals to Retail 2

Commercial produced $3.1 million in
fees to Institutional Wealth and
Investment Management -  up 41% 2

Over 67,000 total products sold by Mortgage – up 69%1

11



New Personal Checking Sales

New Business Checking Sales

New Direct Home Equity Production     
New Business Banking Loan Production

Deposit Outstandings

Loan Outstandings

Capital Market Fees

Debt Capital Markets Revenue

CIB New Business Revenue

Institutional New Trust Business

Deposit Outstandings

Loan Outstandings

Purchase Mortgage Closings

# of Total Products Cross-Sold

New Check Cards

New Deposit Accounts

% Increase

Retail

SunTrust Call
Center

Wealth &
Investment
Management

CIB

Mortgage

2005 YTD Sales Results 1  

Commercial

15%

55%

29%

33%

11%

9%

79%

30%

19%

56%

18%

13%

51%

62%

44%

61%

1 Includes only legacy SunTrust data for the first nine months of 2005 as compared to the first nine months of 2004 (checking sales include both STI and NCF)

12



98,085

100,137

103,216

106,967

110,818

87,878

90,601

90,968

93,065

94,076

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

3Q 04

4Q 04

1Q 05

2Q 05

3Q 05

Average Loans: 13% YOY Growth

Average Deposits: 7% YOY Growth

1 Deposits = Consumer and Commercial Deposits

2  3Q 04 is reported on an estimated historical combined basis

Loan and Deposit Growth 1

($ in millions)

2

13



3.12%

2.98%

3.09%

3.13%

3.13%

3.11%

3.12%

3.21%

3.16%

1.5%

1.7%

1.9%

2.1%

2.3%

2.5%

2.7%

2.9%

3.1%

3.3%

3.5%

3Q 03

4Q 03

1Q 04

2Q 04

3Q 04

4Q 04

1Q 05

2Q 05

3Q 05

3.25%

1

1 NCF added 9 b.p., organic margin improved 1 b.p. from 3Q 04.

2

3.21%

2 Day count added 4 b.p., organic margin was flat from 4Q 04.

14.

Net Interest Margin Trend

Net interest margin has been relatively stable to improving over a two-year horizon

14



Net Interest Margin Compared to Peers

*   

   Source: SNL Financial

Stable to improving NIM over the two-year horizon has brought SunTrust closer to the peer group
average

2.50

2.70

2.90

3.10

3.30

3.50

3.70

3Q 03

4Q 03

1Q 04

2Q 04

3Q 04

4Q 04

1Q 05

2Q 05

3Q 05

SunTrust

Peer Average*

Peers include Amsouth, Bank of America, BB&T, Comerica, Fifth Third, First Horizon, Keycorp, M&T Bank, Mellon, National City, Northern Trust, PNC,
Regions, US Bancorp, Wachovia and Wells Fargo.  Numbers presented for peers are averages

15



NCOs/Average Loans Compared to Peers

*     

   Source: SNL Financial

Net charge-offs continue to compare favorably vs. peer group average

3Q 03

4Q 03

1Q 04

2Q 04

3Q 04

4Q 04

1Q 05

2Q 05

3Q 05

0.00

0.10

0.20

0.30

0.40

0.50

0.60

SunTrust Banks, Inc.

Peer Average*

Peers include AmSouth, Bank of America, BB&T, Comerica, Fifth Third, First Horizon, Keycorp, M&T Bank, Mellon, National City, Northern Trust, PNC,
Regions, US Bancorp, Wachovia and Wells Fargo.  Numbers presented for peers are averages

16



Trust and Investment Mgmt.

Broker Dealer Revenue

Deposits and Other Fees

Other Noninterest Income

Noninterest Income

($ in millions)

$168,802

147,184

368,613

146,360

$830,959

$167,503

138,149

357,545

107,739

$770,936

$1,299

9,035

11,068

38,621

$60,023

3.1%

26.2%

12.4%

143.2%

31.1%

3Q 2005

Growth

2Q 2005

Sequential
Annualized
Growth Rate

0.8%

  6.5%

3.1%

35.8%

7.8%

Growth

Rate

Noninterest Income excludes securities (losses)/gains and net gain on sale of RCM assets.

1

2

Increase in other noninterest income mainly attributable to mortgage production income.

Total noninterest income increased 31% on a sequential annualized basis

Fee Income Growth

1

2

17



Based on estimated historical combined numbers

Improvement in Operating Leverage

Expense Growth

Revenue Growth

Core Revenue Growth

6%

   flat

  7

2

Sequential Annualized Growth Trends

  5%

(4)

(2)

3

Concerted effort to improve operating leverage is paying off

1Q 05

4Q 04

  6%

   4

   10

2Q 05

1

  20%

     8

     20

3Q 05

SunTrust presents total revenue excluding realized securities gains/losses (and the net gain on sale of RCM assets for 1Q 05);  the Company
believes total revenue without securities gains/losses and without the net gain on sale of RCM assets is more indicative of the Company’s
performance because this isolates income that is primarily customer relationship and customer transaction driven

Expense growth excludes merger related expenses and amortization of intangibles (and impairment charge on Affordable Housing Properties in
3Q 05)

1

2

3

18



1 Excluding merger related expenses (and the impact of net gain on sale of RCM assets for 1Q 05.

1

1

1

1

Focus on Efficiency

Positive operating leverage driving operating efficiency ratio improvement

61.12

61.78

60.25

60.22

59.48

61.30

58.46

58.62

58.01

20

25

30

35

40

45

50

55

60

65

70

3Q 04

4Q 04

1Q 05

2Q 05

3Q 05

19



EPS Growth Back on Track in 2004

4.73

5.19

0.06

4.66

4.72

4.30

4.13

3.04

3.13

2.87

2.56

2.32

1.89

1.64

1.45

1.38

1.31

1.19

1.09

.93

.84

0.09

0.10

0.37

0.14

0.07

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

EPS 1

1 EPS as originally reported and adjusted for stock splits.  There are no adjustments for merger pooling

2 CAGR and growth based on GAAP EPS excluding merger-related charges

GAAP EPS

Reduction in EPS due to merger-related charges

CAGR 2 = 10.1%

CAGR 2 = (0.6)%

Growth 2 = 11.0%

20



Improving Operating EPS Trends 1

Strong operating trends translating into quarterly EPS growth despite fluctuating provision
expense trends

1 Operating EPS excludes the after-tax impact of merger expenses.  Reconcilement of reported EPS to operating EPS is contained in the appendix

1.18

1.21

1.28

1.36

1.30

1.31

1.40

1.37

1.42

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

1.40

3Q 03

4Q 03

1Q 04

2Q 04

3Q 04

4Q 04

1Q 05

2Q 05

3Q 05

21



Line of Business Goals

               

              
            
            
        

      

GOALS

     
     
      
      

         
      
            

            
      
        

               
      
         
            


      

      
      

      
         
      

Aggressively expand and retain
share of emerging wealth segments

Integrate successful private
banking units into private
wealth management for a more
comprehensive approach

Integrate Alexander Key and SunTrust
Securities into SunTrust Investment
Services to leverage broker
platform and achieve efficiencies

         

Partner with Retail to
improve penetration

Continue to strengthen
product offerings and
distribution
capabilities

           

Leverage merger to capture market share

Grow branch network, emphasis on in-store
opportunities

Improve partnership between business banking and other
LOBs to ensure proper client segmentation, enhance
service and improve retention

   

   

Continue to enhance capital
markets sales into Commercial
and Wealth & Investment
Management client base

Invest in developing new and
existing Debt Capital Market
product capabilities

   

Make significant investments
in Treasury Management
products, sales and
service to capture
emerging opportunities
in the payments
business

Capitalize on opportunities in
legacy NCF footprint to
grow diversified
commercial, auto dealer,
middle market and
institutional/government
segments

      

22



Long Term Growth Initiatives

8

-

10%

SunTrust

8

-

10%

8

-

10%

9

-

11%

12

-

14%

8

-

10%

Retail

Commercial

Corporate and Investment

Banking

Wealth & Investment

Management

Mortgage

Long Term Growth

Rate Target

Business Line

8

-

10%

SunTrust

8

-

10%

8

-

10%

9

-

11%

12

-

14%

8

-

10%

Retail

Commercial

Corporate and Investment

Banking

Wealth & Investment

Management

Mortgage

Long Term Growth

Rate Target

Business Line

23



NCF Merger on Track






   

   


  


SunTrust announced the National Commerce Financial merger in May 2004, the transaction
was completed on Oct. 1, 2004 - systems successfully converted and enhanced product
capabilities in place

Cost saves are ahead of the original estimate of $76MM; now projecting $97MM for 2005,
one-time merger expenses are on track to be $121MM, $4 MM better than the original
estimate

Key components of our sales organization are in place – sales leadership model, weekly
sales meetings, sales training, sales and referral goals, incentives and recognition

Customer retention remains a top priority  

115,000 client calls completed by relationship managers across the footprint

Reached 100% of key customers – Retail, Wealth & Investment Management,
Commercial and Treasury Management

Companywide retention metrics are being tracked monthly

Based on third party research, retention results to date indicate the Company is exceeding
prior average industry merger experience

24



SunTrust Today

Our foundation is firmly in place:

Fully functioning operating model with clear allocation of responsibilities

Key components of sales organization in place:  weekly sales meetings,
sales and referral goals and linked incentives

We have clear strategy and focused initiatives to drive performance:

Deliver “Big Bank” capabilities with local decision making and
responsiveness

Focus on customer acquisition and retention

Drive cross-LOB referrals

Key initiatives are generating tangible results

Capitalizing on opportunities provided by the National Commerce
Financial merger

25



APPENDIX

26



Average Loan Growth                               

Mortgages

RE Construction

                                

RE Equity

RE Commercial

Commercial

Business Credit Card

Consumer - Direct

Consumer - Indirect

Nonaccrual

Total Loans

2Q 2005

As Adjusted

      

($ in millions)

$1,497.6

553.3

618.3

(170.3)

971.0

10.4

236.0

121.3

14.1

$3,851.7

$26,752.9

8,962.4

12,030.3

13,042.3

31,630.7

213.1

4,937.0

9,058.5

339.5

$106,966.7

$28,250.5

9,515.7

12,648.6

12,872.0

32,601.7

223.5

5,173.0

9,179.8

353.6

$110,818.4

3Q 2005

22.4%

24.7%

20.6%

(5.2)%

12.3%

19.5%

19.1%

5.4%

16.6%

   14.4%

1 As a result of the NCF systems conversion on April 22, 2005, SunTrust presents consolidated average balances on an adjusted basis for both loans and deposits.  
The Company believes these adjusted measures provide a better comparison between reporting periods and are more indicative of true loan and deposit
fluctuations.  The adjustments represent reclassifications due to account mapping changes resulting from the systems conversion.

Adjusted

Growth

Adjusted

Sequential

Annualized

Growth Rate

5.6%

6.2%

5.1%

(1.3)%

3.1%

4.9%

4.8%

1.3%

4.2%

3.6%

Adjusted

Growth Rate

1

Driven by targeted sales initiatives

27



Average Consumer and Commercial Deposit Growth

DDA

NOW

MMA

Savings

Consumer Time

Other Time

Total Consumer and
Commercial Deposits

2Q 2005

As Adjusted

      

($ in millions)

$196.7

(661.9)

621.4

(381.5)

862.8

373.7

$1,011.2

$24,324.7

17,515.0

25,678.3

6,246.6

11,556.5

7,743.4

$93,064.5

$24,521.4

16,853.1

26,299.7

5,865.1

12,419.3

8,117.1

$94,075.7

3Q 2005

3.2%

(15.1)%

9.7%

(24.4)%

29.9%

19.3%

4.3%

1 As a result of the NCF systems conversion on April 22, 2005, SunTrust presents consolidated average balances on an adjusted basis for both loans and deposits.  
The Company believes these adjusted measures provide a better comparison between reporting periods and are more indicative of true loan and deposit
fluctuations.  The adjustments represent reclassifications due to account mapping changes resulting from the systems conversion.

Adjusted

Growth

Adjusted

Sequential

Annualized

Growth Rate

0.8%

(3.8)%

2.4%

(6.1)%

7.5%

4.8%

1.1%

Adjusted

Growth Rate

1

Driven by targeted sales initiatives

28



Strong Credit Quality

Net Charge-offs

Net Charge-offs to Avg.
Loans

NPAs

NPAs to
Loans/OREO/Other repo

Allowance for loan
losses

Allowance to Non-
performing loans

Allowance to Charge-
offs (Years Coverage)

3Q 2004

4Q 2004

3Q 2005

$76,711

0.27%

$362,737

0.32%

$1,029,855

312.4%

3.4

$51,043

0.24%

$304,216

0.36%

$892,974

315.7%

4.4

$53,893

0.21%

$410,658

0.40%

$1,050,024

281.3%

4.9

$35,384

0.13%

$380,303

0.35%

$1,036,173

296.7%

7.4

2Q 2005

($ in thousands)

1Q 2005

$36,834

0.14%

$392,345

0.37%

$1,023,746

286.7%

7.0

Excluding the effect of the Delta Airlines charge-off, credit quality trends continue to be better
than historical average

29



SunTrust Banks, Inc. and Subsidiaries
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A
(Dollars in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

September 30
2005

 

June 30
2005

 

March 31
2005

 

December 31
2004

 

September 30
2004

 

September 30

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP MEASURES PRESENTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

510,774

 

$

465,700

 

$

492,294

 

$

455,729

 

$

368,766

 

$

1,468,768

 

$

1,117,172

 

Securities losses, net

 

 

1,283

 

 

17

 

 

3,509

 

 

12,595

 

 

11,825

 

 

4,808

 

 

14,504

 

 

 

 

 

 

 

 

 

 

Net income excluding securities gains and losses

 

 

512,057

 

 

465,717

 

 

495,803

 

 

468,324

 

 

380,591

 

 

1,473,576

 

 

1,131,676

 

The Coca-Cola Company dividend, net of tax

 

 

(12,028

)

 

(12,027

)

 

(12,028

)

 

(10,739

)

 

(10,740

)

 

(36,083

)

 

(32,218

)

 

 

 

 

 

 

 

 

 

Net income excluding securities gains and losses and The Coca-Cola Company dividend

 

$

500,029

 

$

453,690

 

$

483,775

 

$

457,585

 

$

369,851

 

$

1,437,493

 

$

1,099,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets

 

$

169,933,960

 

$

165,253,589

 

$

161,218,222

 

$

156,570,092

 

$

127,127,968

 

$

165,500,517

 

$

126,093,513

 

Average net unrealized securities gains

 

 

(2,102,257

)

 

(1,791,566

)

 

(2,032,787

)

 

(2,056,737

)

 

(2,054,978

)

 

(1,975,791

)

 

(2,478,183

)

 

 

 

 

 

 

 

 

 

Average assets less net unrealized securities gains

 

$

167,831,703

 

$

163,462,023

 

$

159,185,435

 

$

154,513,355

 

$

125,072,990

 

$

163,524,726

 

$

123,615,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average equity

 

$

16,822,919

 

$

16,275,567

 

$

16,119,430

 

$

15,818,968

 

$

9,992,905

 

$

16,408,550

 

$

10,009,069

 

Average accumulated other comprehensive income

 

 

(1,331,103

)

 

(1,139,477

)

 

(1,285,278

)

 

(1,304,553

)

 

(1,318,332

)

 

(1,252,121

)

 

(1,588,635

)

 

 

 

 

 

 

 

 

 

Total average realized equity

 

$

15,491,816

 

$

15,136,090

 

$

14,834,152

 

$

14,514,415

 

$

8,674,573

 

$

15,156,429

 

$

8,420,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

1.19

%

 

1.13

%

 

1.24

%

 

1.16

%

 

1.15

%

 

1.19

%

 

1.18

%

Impact of excluding net realized and unrealized securities gains/losses and The Coca-Cola Company dividend

 

 

(0.01

)

 

(0.02

)

 

(0.01

)

 

0.02

 

 

0.03

 

 

(0.01

)

 

0.01

 

 

 

 

 

 

 

 

 

 

Return on average total assets less net unrealized securities gains 1

 

 

1.18

%

 

1.11

%

 

1.23

%

 

1.18

%

 

1.18

%

 

1.18

%

 

1.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total shareholders’ equity

 

 

12.05

%

 

11.48

%

 

12.39

%

 

11.46

%

 

14.68

%

 

11.97

%

 

14.91

%

Impact of excluding net realized and unrealized securities gains/losses and The Coca-Cola Company dividend

 

 

0.76

 

 

0.54

 

 

0.84

 

 

1.08

 

 

2.28

 

 

0.71

 

 

2.53

 

 

 

 

 

 

 

 

 

 

Return on average realized shareholders’ equity 2

 

 

12.81

%

 

12.02

%

 

13.23

%

 

12.54

%

 

16.96

%

 

12.68

%

 

17.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

$

832,398

 

$

770,909

 

$

753,814

 

$

759,003

 

$

627,692

 

$

2,357,121

 

$

1,845,443

 

Securities losses, net

 

 

2,069

 

 

27

 

 

5,659

 

 

19,377

 

 

18,193

 

 

7,755

 

 

22,314

 

Gain on sale of RCM assets, net of related expenses

 

 

(3,508

)

 

—

 

 

(19,874

)

 

—

 

 

—

 

 

(23,382

)

 

—

 

 

 

 

 

 

 

 

 

 

Total noninterest income excluding securities gains and losses and net gain on sale of RCM assets 3

 

$

830,959

 

$

770,936

 

$

739,599

 

$

778,380

 

$

645,885

 

$

2,341,494

 

$

1,867,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

1,156,661

 

$

1,123,709

 

$

1,111,560

 

$

1,084,204

 

$

876,874

 

$

3,391,930

 

$

2,600,951

 

FTE adjustment

 

 

19,081

 

 

18,720

 

 

17,666

 

 

16,684

 

 

16,821

 

 

55,467

 

 

41,714

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

1,175,742

 

 

1,142,429

 

 

1,129,226

 

 

1,100,888

 

 

893,695

 

 

3,447,397

 

 

2,642,665

 

Noninterest income

 

 

832,398

 

 

770,909

 

 

753,814

 

 

759,003

 

 

627,692

 

 

2,357,121

 

 

1,845,443

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

2,008,140

 

 

1,913,338

 

 

1,883,040

 

 

1,859,891

 

 

1,521,387

 

 

5,804,518

 

 

4,488,108

 

Securities losses, net

 

 

2,069

 

 

27

 

 

5,659

 

 

19,377

 

 

18,193

 

 

7,755

 

 

22,314

 

Gain on sale of RCM assets, net of related expenses

 

 

(3,508

)

 

—

 

 

(19,874

)

 

—

 

 

—

 

 

(23,382

)

 

—

 

 

 

 

 

 

 

 

 

 

Total revenue excluding securities gains and losses and net gain on sale of RCM assets 3

 

$

2,006,701

 

$

1,913,365

 

$

1,868,825

 

$

1,879,268

 

$

1,539,580

 

$

5,788,891

 

$

4,510,422

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

 

 

 

 

 

September 30
2005

 

June 30
2005

 

%4
Change

 

September 30
2005

 

September 30
2004

 

%
Change

 

 

 

 

 

 

 

 

 

AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

$

24,521,452

 

$

24,309,721

 

0.9

 

$

24,521,452

 

$

20,490,191

 

19.7

 

NOW accounts

 

 

16,853,139

 

 

17,519,608

 

(3.8

)

 

16,853,139

 

 

12,999,444

 

29.6

 

Savings

 

 

5,865,099

 

 

6,462,425

 

(9.2

)

 

5,865,099

 

 

7,424,698

 

(21.0

)

 

 

 

 

 

 

 

 

 

 

Total average low cost consumer and commercial deposits

 

$

47,239,690

 

$

48,291,754

 

(2.2

)

$

47,239,690

 

$

40,914,333

 

15.5

 

 

 

 

 

 

 

 

 

 

 



______________

1

SunTrust presents a return on average assets less net unrealized gains on securities. The foregoing numbers reflect primarily adjustments to remove the effects of the Company’s securities portfolio which includes the ownership by the Company of 48.3 million shares of The Coca-Cola Company. The Company uses this information internally to gauge its actual performance in the industry. The Company believes that the return on average assets less the net unrealized securities gains is more indicative of the Company’s return on assets because it more accurately reflects the return on the assets that are related to the Company’s core businesses which are primarily customer relationship and customer transaction driven. The return on average assets less net unrealized gains on securities is computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average assets less net unrealized securities gains.

2

The Company also believes that the return on average realized equity is more indicative of the Company’s return on equity because the excluded equity relates primarily to a long term holding of a specific security. The return on average realized shareholders’ equity is computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average realized shareholders’ equity.

3

SunTrust presents total noninterest income and total revenue excluding realized securities gains and losses and the net gain on the sale of RCM assets. The Company believes total noninterest income and total revenue without securities gains and losses is more indicative of the Company’s performance because it isolates income that is primarily customer relationship and customer transaction driven. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain is more indicative of normalized operations.

4

Multiply by 4 to calculate sequential annualized growth or reductions discussed in the earnings call.

 

A-1


SunTrust Banks, Inc. and Subsidiaries
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A, continued
(Dollars in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

September 30
2005

 

June 30
2005

 

September 30
2005

 

 

 

 

 

 

SELECTED NON-GAAP OPERATING MEASURES AND ADJUSTED OPERATING MEASURES PRESENTED 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

510,774

 

$

465,700

 

$

1,468,768

 

Merger expense, net of tax

 

 

7,505

 

 

33,642

 

 

57,105

 

 

 

 

 

 

Operating net income

 

 

518,279

 

 

499,342

 

 

1,525,873

 

Net gain on sale of RCM assets, net of tax

 

 

(2,175

)

 

—

 

 

(14,497

)

 

 

 

 

 

Adjusted operating net income

 

$

516,104

 

$

499,342

 

$

1,511,376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

1.40

 

$

1.28

 

$

4.04

 

Impact of excluding merger expense

 

 

0.02

 

 

0.09

 

 

0.16

 

 

 

 

 

 

Operating diluted earnings per share

 

 

1.42

 

 

1.37

 

 

4.20

 

Impact of net gain on sale of RCM assets

 

 

—

 

 

—

 

 

(0.04

)

 

 

 

 

 

Adjusted operating diluted earnings per share

 

$

1.42

 

$

1.37

 

$

4.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

2,008,140

 

$

1,913,338

 

$

5,804,518

 

Securities losses, net

 

 

2,069

 

 

27

 

 

7,755

 

Net gain on sale of RCM assets

 

 

(3,508

)

 

—

 

 

(23,382

)

 

 

 

 

 

Adjusted total revenue

 

$

2,006,701

 

$

1,913,365

 

$

5,788,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

$

832,398

 

$

770,909

 

$

2,357,121

 

Net gain on sale of RCM assets

 

 

(3,508

)

 

—

 

 

(23,382

)

 

 

 

 

 

Noninterest income excluding net gain on sale of RCM assets

 

$

828,890

 

$

770,909

 

$

2,333,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

1,177,071

 

$

1,172,825

 

$

3,483,802

 

Merger expense

 

 

(12,104

)

 

(54,262

)

 

(92,104

)

 

 

 

 

 

Noninterest expense excluding merger expense

 

$

1,164,967

 

$

1,118,563

 

$

3,391,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

58.62

%

 

61.30

%

 

60.02

%

Impact of excluding merger expense

 

 

(0.61

)

 

(2.84

)

 

(1.59

)

 

 

 

 

 

Operating efficiency ratio

 

 

58.01

 

 

58.46

 

 

58.43

 

Impact of net gain on sale of RCM assets

 

 

0.10

 

 

—

 

 

0.24

 

 

 

 

 

 

Adjusted operating efficiency ratio

 

 

58.11

%

 

58.46

%

 

58.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

1.19

%

 

1.13

%

 

1.19

%

Impact of excluding merger expense

 

 

0.02

 

 

0.08

 

 

0.04

 

 

 

 

 

 

Operating return on average total assets 2

 

 

1.21

%

 

1.21

%

 

1.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total shareholders’ equity

 

 

12.05

%

 

11.48

%

 

11.97

%

Impact of excluding merger expense

 

 

0.17

 

 

0.83

 

 

0.46

 

 

 

 

 

 

Operating return on average total shareholders’ equity 3

 

 

12.22

%

 

12.31

%

 

12.43

%

 

 

 

 

 

 

 

_____________

1

SunTrust presents selected financial data on an operating basis that excludes merger charges, which represent incremental costs to integrate NCF’s operations. The Company also presents selected financial data on an adjusted operating basis, which further excludes the net gain related to the sale of RCM assets. The Company believes the exclusion of these two measures is more reflective of normalized operations.

2

Computed by dividing annualized operating net income by average total assets.

3

Computed by dividing annualized operating net income by average total shareholders’ equity.

 

A-2


SunTrust Banks, Inc. and Subsidiaries
QUARTER-TO-QUARTER COMPARISON - ACTUAL
APPENDIX B

 

 

 

Three Months Ended

 

 

 

 

 

 

September 30
2005

 

June 30
2005

 

Increase/(Decrease)

 

Sequential Annualized 1
%

 

Amount

 

%

 

 

 

 

 

 

 

STATEMENTS OF INCOME (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

$

1,156,661

 

$

1,123,709

 

$

32,952

 

2.9

%

11.7

 

Provision for loan losses

 

 

70,393

 

 

47,811

 

 

22,582

 

47.2

 

NM

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

 

1,086,268

 

 

1,075,898

 

 

10,370

 

1.0

 

3.9

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit and other fees 2

 

 

368,613

 

 

357,545

 

 

11,068

 

3.1

 

12.4

 

Trust and investment management income

 

 

168,802

 

 

167,503

 

 

1,299

 

0.8

 

3.1

 

Broker / dealer revenue 3

 

 

147,184

 

 

138,149

 

 

9,035

 

6.5

 

26.2

 

Other noninterest income

 

 

146,360

 

 

107,739

 

 

38,621

 

35.8

 

NM

 

 

 

 

 

 

 

 

 

 

Noninterest income before securities losses, net and net gain on sale of RCM assets4

 

 

830,959

 

 

770,936

 

 

60,023

 

7.8

 

31.1

 

Gain on sale of RCM assets, net of related expenses

 

 

3,508

 

 

—

 

 

3,508

 

100.0

 

NM

 

 

 

 

 

 

 

 

 

 

Noninterest income before securities losses, net

 

 

834,467

 

 

770,936

 

 

63,531

 

8.2

 

33.0

 

Securities losses, net

 

 

(2,069

)

 

(27

)

 

(2,042

)

7,563.0

 

NM

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

 

832,398

 

 

770,909

 

 

61,489

 

8.0

 

31.9

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

 

632,333

 

 

623,284

 

 

9,049

 

1.5

 

5.8

 

Net occupancy expense

 

 

79,519

 

 

73,483

 

 

6,036

 

8.2

 

32.9

 

Outside processing and software

 

 

92,952

 

 

89,282

 

 

3,670

 

4.1

 

16.4

 

Equipment expense

 

 

50,083

 

 

51,579

 

 

(1,496

)

(2.9

)

(11.6

)

Marketing and customer development

 

 

38,651

 

 

36,298

 

 

2,353

 

6.5

 

25.9

 

Other noninterest expense

 

 

216,020

 

 

214,819

 

 

1,201

 

0.6

 

2.2

 

 

 

 

 

 

 

 

 

 

Noninterest expense before Affordable Housing impairment charge, amortization of intangible assets and merger expense5

 

 

1,109,558

 

 

1,088,745

 

 

20,813

 

1.9

 

7.6

 

Impairment charge on Affordable Housing Properties

 

 

25,672

 

 

—

 

 

25,672

 

100.0

 

NM

 

Amortization of intangible assets

 

 

29,737

 

 

29,818

 

 

(81

)

(0.3

)

(1.1

)

Merger expense

 

 

12,104

 

 

54,262

 

 

(42,158

)

(77.7

)

NM

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

 

1,177,071

 

 

1,172,825

 

 

4,246

 

0.4

 

1.4

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

741,595

 

 

673,982

 

 

67,613

 

10.0

 

40.1

 

Provision for income taxes

 

 

230,821

 

 

208,282

 

 

22,539

 

10.8

 

43.3

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

510,774

 

 

465,700

 

 

45,074

 

9.7

 

38.7

 

Merger expense, net of tax

 

 

7,505

 

 

33,642

 

 

(26,137

)

(77.7

)

NM

 

 

 

 

 

 

 

 

 

 

OPERATING NET INCOME

 

 

518,279

 

 

499,342

 

 

18,937

 

3.8

 

15.2

 

Net gain on sale of RCM assets, net of tax

 

 

(2,175

)

 

—

 

 

(2,175

)

100.0

 

NM

 

 

 

 

 

 

 

 

 

 

ADJUSTED OPERATING NET INCOME

 

$

516,104

 

$

499,342

 

$

16,762

 

3.4

%

13.4

%

 

 

 

 

 

 

 

 

 

REVENUE (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

1,156,661

 

$

1,123,709

 

$

32,952

 

2.9

%

11.7

%

FTE adjustment

 

 

19,081

 

 

18,720

 

 

361

 

1.9

 

7.7

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

1,175,742

 

 

1,142,429

 

 

33,313

 

2.9

 

11.7

 

Noninterest income

 

 

832,398

 

 

770,909

 

 

61,489

 

8.0

 

31.9

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

2,008,140

 

 

1,913,338

 

 

94,802

 

5.0

 

19.8

 

Securities losses, net

 

 

2,069

 

 

27

 

 

2,042

 

7,563.0

 

NM

 

Net gain on sale of RCM assets

 

 

(3,508

)

 

—

 

 

(3,508

)

100.0

 

NM

 

 

 

 

 

 

 

 

 

 

Total revenue excluding securities gains and losses and net gain on sale of RCM assets

 

$

2,006,701

 

$

1,913,365

 

$

93,336

 

4.9

%

19.5

%

 

 

 

 

 

 

 

 

 

SELECTED AVERAGE BALANCES (Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans6, 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

32,713

 

$

32,508

 

$

205

 

0.6

%

2.5

%

Real estate 1-4 family

 

 

28,366

 

 

26,324

 

 

2,042

 

7.8

 

31.0

 

Real estate commercial and construction

 

 

22,484

 

 

21,496

 

 

988

 

4.6

 

18.4

 

Real estate equity

 

 

12,649

 

 

12,135

 

 

514

 

4.2

 

16.9

 

Consumer 7

 

 

14,382

 

 

14,291

 

 

91

 

0.6

 

2.5

 

Credit cards

 

 

224

 

 

213

 

 

11

 

5.2

 

20.7

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

110,818

 

$

106,967

 

$

3,851

 

3.6

%

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average deposits8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

$

24,522

 

$

24,310

 

$

212

 

0.9

%

3.5

%

NOW accounts

 

 

16,853

 

 

17,520

 

 

(667

)

(3.8

)

(15.2

)

Money market accounts

 

 

26,300

 

 

25,473

 

 

827

 

3.2

 

13.0

 

Savings

 

 

5,865

 

 

6,462

 

 

(597

)

(9.2

)

(37.0

)

Consumer and other time

 

 

20,536

 

 

19,300

 

 

1,236

 

6.4

 

25.6

 

 

 

 

 

 

 

 

 

 

Total consumer and commercial deposits

 

 

94,076

 

 

93,065

 

 

1,011

 

1.1

 

4.3

 

Brokered and foreign deposits

 

 

17,969

 

 

15,709

 

 

2,260

 

14.4

 

57.5

 

 

 

 

 

 

 

 

 

 

Total deposits

 

$

112,045

 

$

108,774

 

$

3,271

 

3.0

%

12.0

%

 

 

 

 

 

 

 

 

 

SELECTED CREDIT DATA (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

307,788

 

$

328,018

 

 

($20,230

)

(6.2

)%

(24.7

)%

Restructured loans

 

 

21,876

 

 

21,236

 

 

640

 

3.0

 

12.1

 

 

 

 

 

 

 

 

 

 

Total nonperforming loans

 

 

329,664

 

 

349,254

 

 

(19,590

)

(5.6

)

(22.4

)

Other real estate owned (OREO)

 

 

26,013

 

 

25,263

 

 

750

 

3.0

 

11.9

 

Other repossessed assets

 

 

7,060

 

 

5,786

 

 

1,274

 

22.0

 

88.1

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

362,737

 

$

380,303

 

 

($17,566

)

(4.6

)%

(18.5

)%

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

$

1,029,855

 

$

1,036,173

 

 

($6,318

)

(0.6

)%

(2.4

)%

 

 

 

 

 

 

 

 

 



______________

1

Multiply percentage change by 4 to calculate sequential annualized change. Any sequential annualized change over 100 percent is labeled as “NM”. Those changes over 100 percent were not considered to be meaningful.

2

Includes service charges on deposits, card and other charges and fees.

3

Includes retail investment services, investment banking income and trading account profits and commissions.

4

SunTrust presents noninterest income before securities (losses)/gains and the net gain on the sale of RCM assets. The Company believes noninterest income before securities gains and losses is more indicative of the Company’s performance because it isolates income that is primarily customer relationship and customer transaction driven. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain provides better comparability and is more indicative of normalized operations.

5

The Company presents noninterest expense before an impairment charge on Affordable Housing Properties, amortization of intangible assets and merger expense. The Company believes the exclusion of these measures provides better comparability and is more reflective of normalized operations.

6

SunTrust’s average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.

7

Includes consumer direct and consumer indirect loans.

8

See Appendix C for the impact of the estimated reclassification adjustments resulting from the April 22, 2005 NCF systems conversion.

 

B-1


SunTrust Banks, Inc. and Subsidiaries
QUARTER-TO-QUARTER COMPARISON - HISTORICAL COMBINED GROWTH
APPENDIX B, continued

The 3rd quarter and year-to-date 2004 figures represent SunTrust and NCF on a historical combined basis.
See page 15 for a reconcilement of these historical combined amounts.

 

 

 

HISTORICAL COMBINED

 

HISTORICAL COMBINED

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

September 30

 

Increase/(Decrease)

 

September 30

 

Increase/(Decrease)

 

 

 

 

 

 

 

 

 

2005

 

2004

 

Amount

 

%

 

2005

 

2004

 

Amount

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENTS OF INCOME (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

$

1,156,661

 

$

1,071,689

 

$

84,972

 

7.9

%

$

3,391,930

 

$

3,180,823

 

$

211,107

 

6.6

%

Provision for loan losses

 

 

70,393

 

 

60,818

 

 

9,575

 

15.7

 

 

128,760

 

 

142,415

 

 

(13,655

)

(9.6

)

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

 

1,086,268

 

 

1,010,871

 

 

75,397

 

7.5

 

 

3,263,170

 

 

3,038,408

 

 

224,762

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit and other fees 1

 

 

368,613

 

 

353,573

 

 

15,040

 

4.3

 

 

1,069,792

 

 

1,046,326

 

 

23,466

 

2.2

 

Trust and investment management income

 

 

168,802

 

 

165,603

 

 

3,199

 

1.9

 

 

500,820

 

 

474,671

 

 

26,149

 

5.5

 

Broker / dealer revenue 2

 

 

147,184

 

 

132,650

 

 

14,534

 

11.0

 

 

434,529

 

 

440,267

 

 

(5,738

)

(1.3

)

Other noninterest income

 

 

146,360

 

 

106,550

 

 

39,810

 

37.4

 

 

336,353

 

 

252,186

 

 

84,167

 

33.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income before securities losses, net and net gain on sale of RCM assets3

 

 

830,959

 

 

758,376

 

 

72,583

 

9.6

 

 

2,341,494

 

 

2,213,450

 

 

128,044

 

5.8

 

Gain on sale of RCM assets, net of related expenses

 

 

3,508

 

 

—

 

 

3,508

 

100.0

 

 

23,382

 

 

—

 

 

23,382

 

100.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income before securities losses, net

 

 

834,467

 

 

758,376

 

 

76,091

 

10.0

 

 

2,364,876

 

 

2,213,450

 

 

151,426

 

6.8

 

Securities losses, net

 

 

(2,069

)

 

(16,565

)

 

14,496

 

(87.5

)

 

(7,755

)

 

(9,702

)

 

1,947

 

(20.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

 

832,398

 

 

741,811

 

 

90,587

 

12.2

 

 

2,357,121

 

 

2,203,748

 

 

153,373

 

7.0

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

 

632,333

 

 

605,325

 

 

27,008

 

4.5

 

 

1,890,410

 

 

1,789,971

 

 

100,439

 

5.6

 

Net occupancy expense

 

 

79,519

 

 

79,875

 

 

(356

)

(0.4

)

 

228,853

 

 

230,183

 

 

(1,330

)

(0.6

)

Outside processing and software

 

 

92,952

 

 

75,449

 

 

17,503

 

23.2

 

 

265,082

 

 

225,345

 

 

39,737

 

17.6

 

Equipment expense

 

 

50,083

 

 

50,904

 

 

(821

)

(1.6

)

 

154,544

 

 

156,156

 

 

(1,612

)

(1.0

)

Marketing and customer development

 

 

38,651

 

 

34,975

 

 

3,676

 

10.5

 

 

106,578

 

 

104,011

 

 

2,567

 

2.5

 

Other noninterest expense

 

 

216,020

 

 

233,692

 

 

(17,672

)

(7.6

)

 

629,787

 

 

674,364

 

 

(44,577

)

(6.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense before Affordable Housing impairment charge, amortization of intangible assets and merger expense4

 

 

1,109,558

 

 

1,080,220

 

 

29,338

 

2.7

 

 

3,275,254

 

 

3,180,030

 

 

95,224

 

3.0

 

Impairment charge on Affordable Housing Properties

 

 

25,672

 

 

9,001

 

 

16,671

 

185.2

 

 

25,672

 

 

9,001

 

 

16,671

 

185.2

 

Amortization of intangible assets

 

 

29,737

 

 

28,132

 

 

1,605

 

5.7

 

 

90,772

 

 

84,902

 

 

5,870

 

6.9

 

Merger expense

 

 

12,104

 

 

—

 

 

12,104

 

100.0

 

 

92,104

 

 

—

 

 

92,104

 

100.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

 

1,177,071

 

 

1,117,353

 

 

59,718

 

5.3

 

 

3,483,802

 

 

3,273,933

 

 

209,869

 

6.4

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

741,595

 

 

635,329

 

 

106,266

 

16.7

 

 

2,136,489

 

 

1,968,223

 

 

168,266

 

8.5

 

Provision for income taxes

 

 

230,821

 

 

198,926

 

 

31,895

 

16.0

 

 

667,721

 

 

608,079

 

 

59,642

 

9.8

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

510,774

 

 

436,403

 

 

74,371

 

17.0

 

 

1,468,768

 

 

1,360,144

 

 

108,624

 

8.0

 

Merger expense, net of tax

 

 

7,505

 

 

—

 

 

7,505

 

100.0

 

 

57,105

 

 

—

 

 

57,105

 

100.0

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING NET INCOME

 

 

518,279

 

 

436,403

 

 

81,876

 

18.8

 

 

1,525,873

 

 

1,360,144

 

 

165,729

 

12.2

 

Net gain on sale of RCM assets, net of tax

 

 

(2,175

)

 

—

 

 

(2,175

)

100.0

 

 

(14,497

)

 

—

 

 

(14,497

)

(100.0

)

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED OPERATING NET INCOME

 

$

516,104

 

$

436,403

 

$

79,701

 

18.3

%

$

1,511,376

 

$

1,360,144

 

$

151,232

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

1,156,661

 

$

1,071,689

 

$

84,972

 

7.9

%

$

3,391,930

 

$

3,180,823

 

$

211,107

 

6.6

%

FTE adjustment 5

 

 

19,081

 

 

19,063

 

 

18

 

0.1

 

 

55,467

 

 

48,441

 

 

7,026

 

14.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

1,175,742

 

 

1,090,752

 

 

84,990

 

7.8

 

 

3,447,397

 

 

3,229,264

 

 

218,133

 

6.8

 

Noninterest income

 

 

832,398

 

 

741,811

 

 

90,587

 

12.2

 

 

2,357,121

 

 

2,203,748

 

 

153,373

 

7.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

2,008,140

 

 

1,832,563

 

 

175,577

 

9.6

 

 

5,804,518

 

 

5,433,012

 

 

371,506

 

6.8

 

Securities losses, net

 

 

2,069

 

 

16,565

 

 

(14,496

)

(87.5

)

 

7,755

 

 

9,702

 

 

(1,947

)

20.1

 

Net gain on sale of RCM assets

 

 

(3,508

)

 

—

 

 

(3,508

)

100.0

 

 

(23,382

)

 

—

 

 

(23,382

)

(100.0

)

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue excluding securities gains and losses and net gain on sale of RCM assets

 

$

2,006,701

 

$

1,849,128

 

$

157,573

 

8.5

%

$

5,788,891

 

$

5,442,714

 

$

346,177

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED AVERAGE BALANCES (Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

32,713

 

$

31,977

 

$

736

 

2.3

%

$

32,903

 

$

32,112

 

$

791

 

2.5

%

Real estate 1-4 family

 

 

28,366

 

 

21,963

 

 

6,403

 

29.2

 

 

26,092

 

 

20,270

 

 

5,822

 

28.7

 

Real estate commercial and construction

 

 

22,484

 

 

18,155

 

 

4,329

 

23.8

 

 

21,084

 

 

17,899

 

 

3,185

 

17.8

 

Real estate equity

 

 

12,649

 

 

10,295

 

 

2,354

 

22.9

 

 

12,123

 

 

9,548

 

 

2,575

 

27.0

 

Consumer 7

 

 

14,382

 

 

15,520

 

 

(1,138

)

(7.3

)

 

14,614

 

 

15,326

 

 

(712

)

(4.6

)

Credit cards

 

 

224

 

 

175

 

 

49

 

28.0

 

 

212

 

 

165

 

 

47

 

28.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

110,818

 

$

98,085

 

$

12,733

 

13.0

%

$

107,028

 

$

95,320

 

$

11,708

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Average deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

$

24,522

 

$

23,239

 

$

1,283

 

5.5

%

$

24,188

 

$

22,650

 

$

1,538

 

6.8

%

NOW accounts

 

 

16,853

 

 

15,335

 

 

1,518

 

9.9

 

 

17,282

 

 

14,974

 

 

2,308

 

15.4

 

Money market accounts

 

 

26,300

 

 

24,211

 

 

2,089

 

8.6

 

 

25,519

 

 

24,163

 

 

1,356

 

5.6

 

Savings

 

 

5,865

 

 

9,099

 

 

(3,234

)

(35.5

)

 

6,605

 

 

8,619

 

 

(2,014

)

(23.4

)

Consumer and other time

 

 

20,536

 

 

15,994

 

 

4,542

 

28.4

 

 

19,120

 

 

15,512

 

 

3,608

 

23.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total consumer and commercial deposits

 

 

94,076

 

 

87,878

 

 

6,198

 

7.1

 

 

92,714

 

 

85,918

 

 

6,796

 

7.9

 

Brokered and foreign deposits

 

 

17,969

 

 

11,496

 

 

6,473

 

56.3

 

 

15,718

 

 

12,255

 

 

3,463

 

28.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

$

112,045

 

$

99,374

 

$

12,671

 

12.8

%

$

108,432

 

$

98,173

 

$

10,259

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CREDIT DATA (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

307,788

 

$

329,340

 

 

($21,552

)

(6.5

)%

 

 

 

 

 

 

 

 

 

 

 

Restructured loans

 

 

21,876

 

 

19,724

 

 

2,152

 

10.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming loans

 

 

329,664

 

 

349,064

 

 

(19,400

)

(5.6

)

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned (OREO)

 

 

26,013

 

 

27,126

 

 

(1,113

)

(4.1

)

 

 

 

 

 

 

 

 

 

 

 

Other repossessed assets

 

 

7,060

 

 

15,082

 

 

(8,021

)

(53.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

362,737

 

$

391,272

 

 

($28,535

)

(7.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

$

1,029,855

 

$

1,067,829

 

 

($37,974

)

(3.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                               

______________

1

Includes service charges on deposits, card and other charges and fees.

2

Includes retail investment services, investment banking income and trading account profits and commissions.

3

SunTrust presents noninterest income before securities (losses)/gains and the net gain on the sale of RCM assets. The Company believes noninterest income before securities gains and losses is more indicative of the Company’s performance because it isolates income that is primarily customer relationship and customer transaction driven. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain provides better comparability and is more indicative of normalized operations.

4

The Company presents noninterest expense before an impairment charge on Affordable Housing Properties, amortization of intangible assets and merger expense. The Company believes the exclusion of these measures provides better comparability and is more reflective of normalized operations.

5

NCF’s FTE adjustments were reduced $4.0 million and $13.1 million from the third quarter and first nine months of 2004, respectively, to conform to SunTrust’s methodology.

6

SunTrust’s average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.

7

Includes consumer direct and consumer indirect loans.


B-2

  


 

SunTrust Banks, Inc. and Subsidiaries
SUNTRUST / NCF - SELECTED HISTORICAL FINANCIAL DATA
APPENDIX B, continued

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

September 30, 2004

 

September 30, 2004

 

 

 

 

 

 

 

SunTrust

 

NCF

 

Historical
Combined

 

SunTrust

 

NCF

 

Historical
Combined

 

 

 

 

 

 

 

 

 

STATEMENTS OF INCOME (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

$

876,874

 

$

194,815

 

$

1,071,689

 

$

2,600,951

 

$

579,872

 

$

3,180,823

 

Provision for loan losses

 

 

41,774

 

 

19,044

 

 

60,818

 

 

98,438

 

 

43,977

 

 

142,415

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

 

835,100

 

 

175,771

 

 

1,010,871

 

 

2,502,513

 

 

535,895

 

 

3,038,408

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit and other fees 1

 

 

298,328

 

 

55,245

 

 

353,573

 

 

887,178

 

 

159,148

 

 

1,046,326

 

Trust and investment management income

 

 

149,673

 

 

15,930

 

 

165,603

 

 

426,257

 

 

48,414

 

 

474,671

 

Broker / dealer revenue 2

 

 

113,308

 

 

19,342

 

 

132,650

 

 

368,452

 

 

71,815

 

 

440,267

 

Other noninterest income

 

 

84,576

 

 

21,974

 

 

106,550

 

 

185,870

 

 

66,316

 

 

252,186

 

 

 

 

 

 

 

 

 

Noninterest income before securities losses, net

 

 

645,885

 

 

112,491

 

 

758,376

 

 

1,867,757

 

 

345,693

 

 

2,213,450

 

Securities losses, net

 

 

(18,193

)

 

1,628

 

 

(16,565

)

 

(22,314

)

 

12,612

 

 

(9,702

)

 

 

 

 

 

 

 

 

Total noninterest income

 

 

627,692

 

 

114,119

 

 

741,811

 

 

1,845,443

 

 

358,305

 

 

2,203,748

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

 

527,734

 

 

77,591

 

 

605,325

 

 

1,555,452

 

 

234,519

 

 

1,789,971

 

Net occupancy expense

 

 

66,542

 

 

13,333

 

 

79,875

 

 

190,030

 

 

40,153

 

 

230,183

 

Outside processing and software

 

 

68,657

 

 

6,792

 

 

75,449

 

 

204,902

 

 

20,443

 

 

225,345

 

Equipment expense

 

 

43,275

 

 

7,629

 

 

50,904

 

 

134,100

 

 

22,056

 

 

156,156

 

Marketing and customer development

 

 

32,028

 

 

2,947

 

 

34,975

 

 

93,902

 

 

10,109

 

 

104,011

 

Other noninterest expense

 

 

167,019

 

 

66,673

 

 

233,692

 

 

514,836

 

 

159,528

 

 

674,364

 

 

 

 

 

 

 

 

 

Noninterest expense before Affordable Housing impairment charge and amortization of intangible assets

 

 

905,255

 

 

174,965

 

 

1,080,220

 

 

2,693,222

 

 

486,808

 

 

3,180,030

 

Impairment charge on Affordable Housing Properties

 

 

9,001

 

 

—

 

 

9,001

 

 

9,001

 

 

—

 

 

9,001

 

Amortization of intangible assets

 

 

15,593

 

 

12,539

 

 

28,132

 

 

45,823

 

 

39,079

 

 

84,902

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

 

929,849

 

 

187,504

 

 

1,117,353

 

 

2,748,046

 

 

525,887

 

 

3,273,933

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

532,943

 

 

102,386

 

 

635,329

 

 

1,599,910

 

 

368,313

 

 

1,968,223

 

Provision for income taxes

 

 

164,177

 

 

34,749

 

 

198,926

 

 

482,738

 

 

125,341

 

 

608,079

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

368,766

 

$

67,637

 

$

436,403

 

$

1,117,172

 

$

242,972

 

$

1,360,144

 

 

 

 

 

 

 

 

 

REVENUE (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

876,874

 

$

194,815

 

$

1,071,689

 

$

2,600,951

 

$

579,872

 

$

3,180,823

 

FTE adjustment 3

 

 

16,821

 

 

2,242

 

 

19,063

 

 

41,714

 

 

6,727

 

 

48,441

 

 

 

 

 

 

 

 

 

Net interest income - FTE

 

 

893,695

 

 

197,057

 

 

1,090,752

 

 

2,642,665

 

 

586,599

 

 

3,229,264

 

Noninterest income

 

 

627,692

 

 

114,119

 

 

741,811

 

 

1,845,443

 

 

358,305

 

 

2,203,748

 

 

 

 

 

 

 

 

 

Total revenue

 

 

1,521,387

 

 

311,176

 

 

1,832,563

 

 

4,488,108

 

 

944,904

 

 

5,433,012

 

Securities losses, net

 

 

18,193

 

 

(1,628

)

 

16,565

 

 

22,314

 

 

(12,612

)

 

9,702

 

 

 

 

 

 

 

 

 

Total revenue excluding securities gains and losses

 

$

1,539,580

 

$

309,548

 

$

1,849,128

 

$

4,510,422

 

$

932,292

 

$

5,442,714

 

 

 

 

 

 

 

 

 

SELECTED AVERAGE BALANCES (Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

27,753

 

$

4,224

 

$

31,977

 

$

27,998

 

$

4,114

 

$

32,112

 

Real estate 1-4 family

 

 

20,798

 

 

1,165

 

 

21,963

 

 

19,202

 

 

1,068

 

 

20,270

 

Real estate commercial and construction

 

 

14,231

 

 

3,924

 

 

18,155

 

 

14,064

 

 

3,835

 

 

17,899

 

Real estate equity

 

 

8,239

 

 

2,056

 

 

10,295

 

 

7,659

 

 

1,889

 

 

9,548

 

Consumer 5

 

 

12,574

 

 

2,946

 

 

15,520

 

 

12,468

 

 

2,858

 

 

15,326

 

Credit cards

 

 

158

 

 

17

 

 

175

 

 

149

 

 

16

 

 

165

 

 

 

 

 

 

 

 

 

Total loans

 

$

83,753

 

$

14,332

 

$

98,085

 

$

81,540

 

$

13,780

 

$

95,320

 

 

 

 

 

 

 

 

 

Average deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

$

20,490

 

$

2,749

 

$

23,239

 

$

19,995

 

$

2,655

 

$

22,650

 

NOW accounts

 

 

13,000

 

 

2,335

 

 

15,335

 

 

12,715

 

 

2,259

 

 

14,974

 

Money market accounts

 

 

22,434

 

 

1,777

 

 

24,211

 

 

22,313

 

 

1,850

 

 

24,163

 

Savings

 

 

7,425

 

 

1,674

 

 

9,099

 

 

6,919

 

 

1,700

 

 

8,619

 

Consumer and other time

 

 

10,773

 

 

5,221

 

 

15,994

 

 

10,614

 

 

4,898

 

 

15,512

 

 

 

 

 

 

 

 

 

Total consumer and commercial deposits

 

 

74,122

 

 

13,756

 

 

87,878

 

 

72,556

 

 

13,362

 

 

85,918

 

Brokered and foreign deposits

 

 

9,341

 

 

2,155

 

 

11,496

 

 

9,830

 

 

2,425

 

 

12,255

 

 

 

 

 

 

 

 

 

Total deposits

 

$

83,463

 

$

15,911

 

$

99,374

 

$

82,386

 

$

15,787

 

$

98,173

 

 

 

 

 

 

 

 

 

SELECTED CREDIT DATA (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

263,127

 

$

66,213

 

$

329,340

 

 

 

 

 

 

 

 

 

 

Restructured loans

 

 

19,724

 

 

—

 

 

19,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming loans

 

 

282,851

 

 

66,213

 

 

349,064

 

 

 

 

 

 

 

 

 

 

Other real estate owned (OREO)

 

 

10,934

 

 

16,192

 

 

27,126

 

 

 

 

 

 

 

 

 

 

Other repossessed assets

 

 

10,431

 

 

4,651

 

 

15,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

304,216

 

$

87,056

 

$

391,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

$

892,974

 

$

174,855

 

$

1,067,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

______________

1

Includes service charges on deposits, card and other charges and fees.

2

Includes retail investment services, investment banking income and trading account profits and commissions.

3

NCF’s FTE adjustments were reduced $4.0 million and $13.1 million from the third quarter and first nine months of 2004, respectively, to conform to SunTrust methodology.

4

SunTrust’s average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.

5

Includes consumer direct and consumer indirect loans.


B-3

 


SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED DAILY AVERAGE BALANCES - ADJUSTED1
APPENDIX C
(Dollars in millions)

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

June 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average
Balances -
Reported

 

Average
Balances -
Reported

 

Estimated
Reclassification

 

As Adjusted

 

Adjusted
Growth

 

Adjusted
Growth Rate

 

Adjusted
Sequential
Annualized
Growth Rate2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate 1-4 family

 

$

28,250.5

 

$

26,224.1

 

$

528.8

 

$

26,752.9

 

$

1,497.6

 

5.6

%

22.4

%

Real estate construction

 

 

9,515.7

 

 

9,196.9

 

 

(234.5

)

 

8,962.4

 

 

553.3

 

6.2

 

24.7

 

Real estate equity

 

 

12,648.6

 

 

12,134.7

 

 

(104.4

)

 

12,030.3

 

 

618.3

 

5.1

 

20.6

 

Real estate commercial

 

 

12,872.0

 

 

12,214.5

 

 

827.8

 

 

13,042.3

 

 

(170.3

)

(1.3

)

(5.2

)

Commercial

 

 

32,601.7

 

 

32,393.4

 

 

(762.7

)

 

31,630.7

 

 

971.0

 

3.1

 

12.3

 

Business credit card

 

 

223.5

 

 

213.1

 

 

—

 

 

213.1

 

 

10.4

 

4.9

 

19.5

 

Consumer - direct

 

 

5,173.0

 

 

5,404.7

 

 

(467.7

)

 

4,937.0

 

 

236.0

 

4.8

 

19.1

 

Consumer - indirect

 

 

9,179.8

 

 

8,861.1

 

 

197.4

 

 

9,058.5

 

 

121.3

 

1.3

 

5.4

 

Nonaccrual and restructured

 

 

353.6

 

 

324.2

 

 

15.3

 

 

339.5

 

 

14.1

 

4.2

 

16.6

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

110,818.4

 

$

106,966.7

 

$ 

—

 

$

106,966.7

 

$

3,851.7

 

3.6

 

14.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

24,521.4

 

$

24,309.7

 

$

15.0

 

$

24,324.7

 

$

196.7

 

0.8

%

3.2

%

NOW accounts

 

 

16,853.1

 

 

17,519.6

 

 

(4.6

)

 

17,515.0

 

 

(661.9

)

(3.8

)

(15.1

)

Money Market accounts

 

 

26,299.7

 

 

25,472.9

 

 

205.4

 

 

25,678.3

 

 

621.4

 

2.4

 

9.7

 

Savings

 

 

5,865.1

 

 

6,462.4

 

 

(215.8

)

 

6,246.6

 

 

(381.5

)

(6.1

)

(24.4

)

Consumer time

 

 

12,419.3

 

 

12,122.0

 

 

(565.5

)

 

11,556.5

 

 

862.8

 

7.5

 

29.9

 

Other time

 

 

8,117.1

 

 

7,177.9

 

 

565.5

 

 

7,743.4

 

 

373.7

 

4.8

 

19.3

 

 

 

 

 

 

 

 

 

 

 

 

Total consumer and commercial deposits

 

 

94,075.7

 

 

93,064.5

 

 

—

 

 

93,064.5

 

 

1,011.2

 

1.1

 

4.3

 

Brokered deposits

 

 

10,940.4

 

 

9,580.3

 

 

—

 

 

9,580.3

 

 

1,360.1

 

14.2

 

56.8

 

Foreign deposits

 

 

7,028.8

 

 

6,128.9

 

 

—

 

 

6,128.9

 

 

899.9

 

14.7

 

58.7

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

$

112,044.9

 

$

108,773.7

 

$ 

—

 

$

108,773.7

 

$

3,271.2

 

3.0

 

12.0

 

 

 

 

 

 

 

 

 

 

 

 

______________

1

As a result of the NCF systems conversion on April 22, 2005, SunTrust presents consolidated average balances on an adjusted basis for both loans and deposits. The Company believes these adjusted measures provide a better comparison between reporting periods and are more indicative of true loan and deposit fluctuations. The adjustments represent reclassifications due to account mapping changes resulting from the systems conversion.

2

Multiply percentage change by 4 to calculate sequential annualized change.


B-4