-----BEGIN PRIVACY-ENHANCED MESSAGE-----
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UNITED
STATES FORM 8-K CURRENT
REPORT Pursuant to Section 13 OR 15(d) of Date of Report
(Date of earliest event reported) January 31,
2006
SunTrust
Banks, Inc.
Registrant’s
telephone number, including area code (404)
588-7711
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below): Item 2.02 Results of Operations and
Financial Condition. Item 7.01 Regulation FD
Disclosure. Representatives of SunTrust Banks, Inc. (the
‘‘Registrant’’) are scheduled to make a
presentation to analysts at a financial services conference held by
Citigroup in New York, New York on Tuesday, January 31,
2006 at approximately 11:30 a.m. Eastern Time. A copy of the slide
package to be used by the Registrant at this conference is being
furnished as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated by reference into Item 2.02 and Item 7.01 of this Current
Report on Form 8-K. Such slide package will also be available on the
Registrant’s web site at www.suntrust.com. Information contained
on the Registrant’s website is expressly not incorporated by
reference into this Current Report on Form 8-K. The information
in the preceding paragraph, as well as Exhibit 99.1, shall not be
deemed ‘‘filed’’ for purposes of Section 18
of the Securities Exchange Act of 1934 (the ‘‘Exchange
Act’’), or otherwise subject to the liabilities of that
section. It may only be incorporated by reference in another filing
under the Exchange Act or Securities Act of 1933 if such subsequent
filing specifically references this Current Report on Form
8-K. Item 9.01 Financial Statements and Exhibits. (d) Exhibits 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.
Mark
Chancy
Chief
Financial Officer
Citigroup
Financial Services Conference
January
2006
1
This
presentation contains forward-looking statements within the meaning of the
Private Securities Litigation
This
presentation includes some non-GAAP measures to describe SunTrusts
performance. The
2
SunTrust
Overview
7th
largest commercial banking
We
believe the National Commerce
1,657
full service branches including
2005-2010
SunTrust
Branches
National
Commerce Branches
1
1
Source: SNL Financial. Note: the data reflects the 25 U.S. banks and
thrifts by assets as
3
SunTrust
Transformation
2005
and beyond
1998/99
Focused
on
Implemented
Implemented
sales
Placed
highest
Established
high
Introduced
Aligned
top
Intensified
Extended
Collapsed
28
Streamlined
Implemented
Created
Enhanced
One
Take
the
Profit
Sales
Culture
4
Operating
Model Differentiation
LOBs
design
business and
Geographic
partners are led by
Our
specialty
businesses
that
Focused
on delivering the
Key
to SunTrusts on-going
Mid-Atlantic
Carolinas
Central
Florida
5
Invested
in, and optimized
,
2005
LOB Accomplishments
Streamlined
consumer
New
personal checking account sales
Successful
CD campaign helped drive
Key
Initiatives
Results1
1 Includes
only legacy SunTrust data for 2005 as compared to 2004. New account sales
include both legacy SunTrust and NCF.
New
business checking account sales
New
business banking loan production
Business
banking deposits up 15%
New
Home Equity production
Improvements
have increased speed
Opened
75
branches
Upgraded
ATMs
Enhanced
Online Banking
Built
a world
class Home
Launched
products and
Retail
Loans
+10%
Deposits +7%
Execution1
6
Independent
research results through
Hold
a #1
or #2 ranking for lead
From
2000 to 2004 increased
lead
Accelerated
speed new products are
Capital
Markets fees up 64%
Wealth
& Investment Management
2005
LOB Accomplishments
Key
Initiatives
Adopted
sales
Sustained
market share
Implemented
Treasury
Commercial
¹
Includes only legacy SunTrust data for
2005 as compared to 2004.
Loans +9%
Deposits +9%
Results1
Execution1
7
2005
LOB Accomplishments
Drove
the cross-sell of
Invested
in Debt
Focused
initiative to
Delivered
best
in
Capital
Markets Revenue cross-sold to:
Corporate
Banking clients = $192 MM, up
Commercial
clients = $61 MM, up $23 MM or
Wealth
& Investment Management clients =
Increased
product specialists
Debt
Capital Markets Revenue = $322 MM,
Corporate
Bankings economic
profit
for
Non-accrual
loans = $15 MM, down
$40
Net
charge-offs = $15 MM, down $2 MM or
Corporate
and Investment Banking
Key
Initiatives
Loans
+11%
Deposits +4%
1 Includes
only legacy SunTrust data for 2005 as compared to 2004.
Results1
Execution1
8
2005 LOB Accomplishments
Rolled
out and implemented
Continued
to ensure our
Implemented
initiatives which
Integrated
NCF and First
Institutional
new trust business
Capital
Markets referral $ up
Discretionary
assets under
Brokerage
assets increased
Personal
Trust retention
Wealth
& Investment Management
Key
Initiatives
¹
Includes only legacy SunTrust data for 2005 as compared to 2004.
Loans
+14%
Deposits +15%
Results1
Execution1
9
Total
cross-sold products up
2005 LOB Accomplishments
Grow
Market Share
Grow
purchase originations
Increased
the
size of the
Opened
51 new offices to
Strong
emphasis
on Mortgage
Focused
on home equity,
Over
$66 billion in total
Over
$40 billion in purchase
$45
billion in total closings, up
Over
$26 billion in purchase
Key
Initiatives
Mortgage
Loans
+31%
¹
Includes only legacy SunTrust data for 2005 as compared to 2004.
Results1
Execution1
10
360
o
Relationship Focus
Retail
referred
$3.7 billion in
closed
Commercial
generated
$61.9 million in
Mortgage
cross-sold
nearly 97,000
total
Wealth
& Investment Management
Cross-LOB
Referrals Driving Revenue Growth
1
STI
legacy only vs 2004.
2
Includes NCF.
CIB
Wealth
&
Invest
Mgmt
Retail
Cmml
Mortgage
SunTrust
Customer
2005
11
Initiatives
Driving Improved Results
Operating
Model Well
Sales
Culture Firmly in
Sales,
Cross-sales and
Improved Financial Results
12
1
Deposits = Consumer and Commercial Deposits.
Loan
and Deposit Growth 1
($
in millions)
13
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.
Net
Interest Margin Trend
Net
interest margin has been relatively stable over a two-year
horizon
14
Net
Interest Margin Compared to Peers
* Peers
include Amsouth, Bank of America, BB&T, Comerica, Fifth Third, First
Horizon, Keycorp, M&T Bank, Mellon, National City, Northern Trust, PNC,
Source:
SNL Financial
Relatively
stable NIM over the two-year horizon has brought SunTrust closer to the peer
group
15
NCOs/Average
Loans Compared to Peers
* Peers
include AmSouth, Bank of America, BB&T, Comerica, Fifth Third, First
Horizon, Keycorp, M&T Bank, Mellon, National City, Northern Trust, PNC,
Regions,
Source:
SNL Financial
Net
charge-offs continue to compare favorably vs. peer group average
Change
in bankruptcy
16
Fee
Income Growth
Deposits
and Other Fees
Trust
and Investment Mgmt.
Broker
Dealer Revenue
Other
Noninterest Income
Noninterest
Income
($
in thousands)
$1,439,779
673,720
567,438
450,394
$3,131,331
$1,403,103
635,197
599,155
354,375
$2,991,830
$36,676
38,523
(31,717)
96,019
$139,501
2005
$
Growth
2004
(Estimated
Historical
Combined)
3%
6%
(5)%
27%
5%
%
Growth
4 Noninterest
Income excludes securities gains/(losses) and net gain on sale of RCM
assets.
1
2
4
2 Includes
retail investment services, investment banking income and trading account
profits and commissions.
1 Includes
service charges on deposits, card fees and other charges and fees.
Total
noninterest income increased 5% over 2004
3 The
increase in other noninterest income was largely driven by an increase in
mortgage related fees.
3
17
1 Based
on estimated historical combined numbers.
2 SunTrust
presents total revenue excluding realized securities gains/losses and the net
gain on sale of RCM assets for 2005.
3
Core expense growth excludes merger related expenses, amortization of
intangibles and impairment charge on Affordable Housing Properties.
Operating
Leverage
Core
Expense Growth
Core
Revenue Growth
4
6%
2
Annual
Growth Trends
15
15%
3
Concerted
effort to improve operating leverage is paying off
2004
2005
6
4%
2003
1
7
3%
2002
Achieved
Positive
18
Excluding
merger related expenses and the impact of net gain on sale of RCM aasets for
2005.
Focus
on Efficiency
Positive
operating leverage drove operating efficiency ratio improvement over 2004
19
1 EPS
as originally reported and adjusted for stock splits. There are no
adjustments for merger pooling.
2 CAGR
based on GAAP EPS excluding merger-related charges.
GAAP
EPS
EPS
(1)
Reduction
in EPS due to merger-related charges
CAGR
(2)
= 10.0%
CAGR
(2)
= (0.6)%
CAGR
(2)
= 9.0%
EPS
Growth Back on Track in 2005
EPS
growth back in line with the long-term trend despite the dilution effect from
the NCF merger
20
Improving
EPS Trends 1
Strong
operating trends translating into quarterly EPS growth despite
dilution
1 EPS
excludes after-tax merger expense. Reconcilement of reported EPS to
operating EPS is contained in the appendix.
1.37
The
impact of net gain on sale of RCM assets
21
Line
of Business Goals
Leverage
merger to capture
market share
Grow
branch network, emphasis
on in-store
Improve
partnership
between business banking
Capitalize
on
Make
significant
GOALS
Continue
to enhance
Invest
in
developing
new
Aggressively
expand
and
Integrate
successful private
Integrate
Alexander Key and
Partner
with Retail to
Continue
to
22
Long
Term Growth Initiatives
23
SunTrust
Today
Our
foundation is
firmly in
place:
Fully
functioning operating model with clear allocation of responsibilities
Key
components of sales organization in place: frequent sales meetings,
We
have clear
strategy
and focused
initiatives to
drive performance:
Deliver
Big Bank capabilities with local decision making and
Focus
on customer acquisition and retention
Drive
cross-LOB referrals
Key
initiatives
are generating tangible
results
Capitalizing
on opportunities provided
by the National
Commerce
24
25
APPENDIX
26
Average
Loan Growth
Commercial
Mortgages
RE
Commercial and Construction
Real
Estate Equity
Consumer
Other
Total
Loans
($
in millions)
$774
7,432
4,338
2,052
(1,032)
126
$13,690
$32,223
22,461
18,602
11,016
15,369
467
$100,138
$32,997
29,893
22,940
13,068
14,337
593
$113,828
2.4%
33.1%
23.3%
18.6%
(6.7)%
27.0%
13.7%
4Q
2005
$
Growth
4Q
2004
%
Growth
27
Average
Consumer and Commercial Deposit Growth
DDA
NOW
MMA
Savings
Consumer
Time
Total
Consumer and
$511
70
1,291
(2,666)
5,451
$4,657
$24,182
16,941
24,507
8,139
16,832
$90,601
$24,693
17,011
25,798
5,473
22,282
$95,257
2.1%
0.4%
5.3%
(32.8)%
32.4%
5.1%
($
in millions)
4Q
2005
$
Growth
4Q
2004
%
Growth
28
Net
Charge-offs
Net
Charge-offs to Avg.
NPAs
NPAs
to
Allowance
for loan
Allowance
to Non-
Allowance
to Charge-
4Q
2005
4Q
2004
3Q
2005
$76,711
0.27%
$362,737
0.32%
$1,029,855
312.4%
3.4
$49,853
0.17%
$334,215
0.29%
$1,028,128
346.9%
5.2
$53,893
0.21%
$410,658
0.40%
$1,050,024
281.3%
4.9
$35,384
0.13%
$380,303
0.35%
$1,036,173
296.7%
7.3
2Q
2005
($
in thousands)
1Q
2005
$36,834
0.14%
$392,345
0.37%
$1,023,746
286.7%
6.9
Strong
Credit Quality
29
SunTrust
Banks, Inc. and Subsidiaries SunTrust Banks, Inc. and
Subsidiaries SunTrust Banks, Inc. and
Subsidiaries SunTrust Banks, Inc. and
Subsidiaries The year-to-date 2004
figures represent SunTrust and NCF on a historical combined
basis. See next page for a reconcilement of these
historical combined amounts. SunTrust Banks, Inc. and
Subsidiaries
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
The
Securities Exchange Act of 1934
(Exact
name of registrant as specified in its
charter)
Georgia
001-08918
58-1575035
(State
or other jurisdiction
of incorporation)(Commission
File Number)(IRS Employer
Identification
No.)
303
Peachtree St., N.E., Atlanta,
Georgia
30308
(Address of principal
executive
offices)
(Zip Code)
(Former
name or former address, if changed since last
report)
Written communications pursuant to Rule 425
under the Securities Act (17 CFR
230.425)
Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
99.1
Slide
package to be presented on January 31, 2006 (Furnished
with the Commission as a part of this Current Report on Form
8-K).
SUNTRUST BANKS,
INC.
(Registrant)
Date:
January 31, 2006
By:
/s/ Raymond
Fortin
Raymond
Fortin
Corporate Executive Vice
President and
General
Counsel
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, SunTrusts plans, objectives,
expectations and intentions and
other statements that are not historical
facts. Such statements are based upon the current beliefs and
expectations of SunTrusts 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
SunTrusts results to differ materially from those described in the
forward-looking statements
can be found in SunTrusts 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 Commissions 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.
reconciliation of those measures to GAAP
measures can be found in the appendix of this presentation, as
well as in
SunTrusts earnings press releases, which can be found on SunTrusts
website in the news section
of the investor relations pages.
organization in the U.S. with $180
billion
in assets
transaction made the Best Footprint
in Banking even better
in-store branches and nearly 2,800
ATMs
Projected
Weighted
Average
Population
Growth
of December 31,
2005. Weighted average population growth is based on MSA deposits
pro forma for pending and completed acquisitions.
efficiency,
ability to
deliver
common
customer
experience
series of
operational
initiatives and
common
systems
platform
strategy referred to
as S3 +
E2 =
Selling,
Serving, Sustaining
client relationships
through
Excellence
in Execution
priority on sales,
cross LOB referrals
& client
retention
performance
standards for LOBs
and geographic
units
new
geographic
structure and
operating
model
talent to key
leadership
positions
local market,
client and
sales focus
footprint into
key growth
markets with
Crestar
merger
bank
charters
functional
organization
new revenue
initiatives in
key
businesses
process
efficiencies
and
consistency
in key
business
lines
Franchise
Bank
Lead
Acceleration
Transformation
product strategies
with direct
feedback from the geographic
partners
regional leaders who have solid
line reporting relationships
with the local Retail,
Commercial and
Wealth &
Investment Management
heads. They
are
empowered to
deliver services, products and
pricing to local customers
are centrally managed
effectively
use this same
geographic power in
our
footprint (e.g., mortgage)
whole institution to
customers
on an integrated basis
success
the
Retail
Delivery
Networks
products and
increased
the focus on service quality
at branch locations
up 21%
a 157%
increase in new CD/IRA
accounts
up 53%
up 23%
and loans up 9%
increased 31%
31%
Equity Business
and
invested in technology and
process improvements
initiatives to enhance
the
business banking
client
experience
2004:
relationships
among companies with
$5MM - $250MM in revenue in 80%
of the
Companys geographic
markets
relationships by 60% in
the middle
market commercial segment
rolled out to market
fees up 17%
management process
and installed new
technology to
support the
operating model
gains
through our strategy
of relationship planning
and use of strategic
reviews for key client
segments
Management
product,
sales and service
enhancements
Capital Markets products
to the Commercial,
Wealth & Investment
Management and
Corporate Banking client
bases
Capital Markets
product capabilities,
both new and existing
enhance risk adjusted
returns of
corporate
clients
class
credit
performance
$31 MM or
19%
64%
$17 MM, up $8 MM or 99%
up $53 MM or 20%
2005 increased
14%
MM or 73%.
Represents 0.1% of total loans
12%. Net charge-off ratio
was 0.10%
new client management
operating
model in
Private
Wealth Management
offerings
of products and
services exceeds
those of
our competitors
increased
penetration
into
existing STI client base
Mercantile into business units,
expanding
opportunities for
cross selling
up 31%
176%
management increased 7%
12/31/05
over 12/31/04
27%
12/31/05
over 12/31/04
improved by 15%
172%,
an increase of over
61,000 products sold
over the
same period in 2004
faster than peer average
mortgage
sales force
expand
national footprint to
176 total Retail offices and 19
total Wholesale offices
cross-sell program
deposit, credit/debit card
and other consumer
products
applications, up 45%
over 2004
applications, up 51%
49%
over 2004
closings, up 54%
Mortgages up over 52%, and made
80,000
referrals to Wealth & Investment
Management
1
Capital Markets fees up 67%2
products up 172%1
made
28,000 referrals to Retail 2
Established
Place
Retention Initiatives
Producing Meaningful
Impact
Regions, US Bancorp, Wachovia and Wells
Fargo. Numbers presented for peers are averages.
US Bancorp, Wachovia and Wells
Fargo. Numbers presented for peers are averages.
laws in Q4 negatively
impacted peer group,
but had
insignificant
effect on SunTrust
Operating Leverage
opportunities
and other LOBs
to ensure proper client
segmentation, enhance service and improve
retention
opportunities in legacy
NCF footprint
to grow
diversified commercial, auto
dealer, middle market and
institutional/government
segments
investments in Treasury
Management products,
sales and
service to
capture emerging
opportunities in the
payments business
capital markets sales
into
Commercial and Wealth &
Investment Management client
base
and existing Debt Capital
Market product
capabilities
retain
share of emerging wealth
segments
banking units into private wealth
management for a
more
comprehensive
approach
SunTrust Securities into SunTrust
Investment Services
to
leverage
broker platform and
achieve
efficiencies
improve
penetration
strengthen
product offerings
and
distribution
capabilities
sales and referral goals and linked incentives
responsiveness
Financial
merger
Commercial Deposits
Loans
Loans/OREO/Other repo
losses
performing loans
offs (Years Coverage)
RECONCILEMENT OF NON-GAAP
MEASURES
APPENDIX A
(Dollars in
thousands)
Three
Months Ended
Twelve Months
Ended
December
31
2005September 30
2005June
30
2005March 31
2005December
31
2004December
31
2005
2004
NON-GAAP
MEASURES
PRESENTED
Net
income
$
513,806
$
510,774
$
465,700
$
492,294
$
455,729
$
1,982,574
$
1,572,901
Securities
(gains)/losses, net of
tax
(372
)
1,283
17
3,509
12,595
4,436
27,099
Net
income excluding securities gains and
losses
513,434
512,057
465,717
495,803
468,324
1,987,010
1,600,000
The
Coca-Cola Company dividend, net of
tax
(12,027
)
(12,028
)
(12,027
)
(12,028
)
(10,739
)
(48,112
)
(42,957
)
Net
income excluding securities (gains)/losses and The Coca-Cola Company
dividend
$
501,407
$
500,029
$
453,690
$
483,775
$
457,585
$
1,938,898
$
1,557,043
Total
average
assets
$
175,769,140
$
169,933,960
$
165,253,589
$
161,218,222
$
156,570,092
$
168,088,771
$
133,754,293
Average
net unrealized securities
gains
(1,871,230
)
(2,102,257
)
(1,791,566
)
(2,032,787
)
(2,056,737
)
(1,949,436
)
(2,372,246
)
Average
assets less net unrealized securities
gains
$
173,897,910
$
167,831,703
$
163,462,023
$
159,185,435
$
154,513,355
$
166,139,335
$
131,382,047
Total
average
equity
$
16,875,645
$
16,822,919
$
16,275,567
$
16,119,430
$
15,818,968
$
16,526,282
$
11,469,482
Average
accumulated other comprehensive
income
(1,126,701
)
(1,331,103
)
(1,139,477
)
(1,285,278
)
(1,304,553
)
(1,220,508
)
(1,517,227
)
Total
average realized
equity
$
15,748,944
$
15,491,816
$
15,136,090
$
14,834,152
$
14,514,415
$
15,305,774
$
9,952,255
Return
on average total
assets
1.16
%
1.19
%
1.13
%
1.24
%
1.16
%
1.18
%
1.18
%
Impact
of excluding net realized and unrealized securities gains/losses and
The Coca-Cola Company
dividend
(0.02
)
(0.01
)
(0.02
)
(0.01
)
0.02
(0.01
)
0.01
Return
on average total assets less net unrealized securities
gains1
1.14
%
1.18
%
1.11
%
1.23
%
1.18
%
1.17
%
1.19
%
Return
on average total shareholders'
equity
12.08
%
12.05
%
11.48
%
12.39
%
11.46
%
12.00
%
13.71
%
Impact
of excluding net realized and unrealized securities gains/ losses and
The Coca-Cola Company
dividend
0.55
0.76
0.54
0.84
1.08
0.67
1.94
Return
on average realized shareholders'
equity2
12.63
%
12.81
%
12.02
%
13.23
%
12.54
%
12.67
%
15.65
%
Noninterest
income
$
790,437
$
832,398
$
770,909
$
753,814
$
759,003
$
3,147,558
$
2,604,446
Securities
(gains)/losses
(600
)
2,069
27
5,659
19,377
7,155
41,691
Gain
on sale of RCM assets, net of related
expenses
—
(3,508
)
—
(19,874
)
—
(23,382
)
—
Total
noninterest income excluding securities (gains)/losses and net gain on
sale of RCM
assets3
$
789,837
$
830,959
$
770,936
$
739,599
$
778,380
$
3,131,331
$
2,646,137
Net
interest
income
$
1,187,036
$
1,156,661
$
1,123,709
$
1,111,560
$
1,084,204
$
4,578,966
$
3,685,155
FTE
adjustment
20,025
19,081
18,720
17,666
16,684
75,492
58,398
Net
interest income — FTE
1,207,061
1,175,742
1,142,429
1,129,226
1,100,888
4,654,458
3,743,553
Noninterest
income
790,437
832,398
770,909
753,814
759,003
3,147,558
2,604,446
Total
revenue
1,997,498
2,008,140
1,913,338
1,883,040
1,859,891
7,802,016
6,347,999
Securities
(gains)/losses
(600
)
2,069
27
5,659
19,377
7,155
41,691
Gain
on sale of RCM assets, net of related
expenses
—
(3,508
)
—
(19,874
)
—
(23,382
)
—
Total
revenue excluding securities (gains)/losses and net gain on sale of RCM
assets3
$
1,996,898
$
2,006,701
$
1,913,365
$
1,868,825
$
1,879,268
$
7,785,789
$
6,389,690
Three
Months
Ended
December
31
2005September 30
2005%4
ChangeDecember 31
2005December 31
2004%
Change
AVERAGE LOW COST CONSUMER AND COMMERCIAL
DEPOSIT
RECONCILEMENT
Noninterest
bearing
deposits
$
24,693,026
$
24,521,452
0.7
$
24,693,026
$
24,181,729
2.1
NOW
accounts
17,011,346
16,853,139
0.9
17,011,346
16,940,751
0.4
Savings
5,472,928
5,865,099
(6.7
)
5,472,928
8,139,263
(32.8
)
Total
average low cost consumer and commercial
deposits
$
47,177,300
$
47,239,690
(0.1
)
$
47,177,300
$
49,261,743
(4.2
)
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/losses and the
net gain on the sale of RCM assets. The Company believes total
noninterest income and total revenue without securities gains/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.
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A,
continued
(Dollars in
thousands)
Three
Months Ended
Twelve Months
Ended
December
31
2005September 30
2005December
31
2004December 31
2005December
31
2004
SELECTED NON-GAAP MEASURES PRESENTED
1
Net
income
$
513,806
$
510,774
$
455,729
$
1,982,574
$
1,572,901
Merger
expense, net of
tax
4,053
7,505
18,461
61,158
18,461
Net
income excluding merger
expense
517,859
518,279
474,190
2,043,732
1,591,362
Net
gain on sale of RCM assets, net of
tax
—
(2,175
)
—
(14,497
)
—
Net
income excluding merger expense and net gain on sale of RCM
assets
$
517,859
$
516,104
$
474,190
$
2,029,235
$
1,591,362
Diluted
earnings per
share
$
1.41
$
1.40
$
1.26
$
5.45
$
5.19
Impact
of excluding merger
expense
0.02
0.02
0.05
0.17
0.06
Diluted
earnings per share excluding merger
expense
1.43
1.42
1.31
5.62
5.25
Impact
of net gain on sale of RCM
assets
—
—
—
(0.04
)
—
Diluted
earnings per share excluding merger expense and net gain on sale of RCM
assets
$
1.43
$
1.42
$
1.31
$
5.58
$
5.25
Total
revenue
$
1,997,498
$
2,008,140
$
1,859,891
$
7,802,016
$
6,347,999
Securities
(gains)/losses
(600
)
2,069
19,377
7,155
41,691
Net
gain on sale of RCM
assets
—
(3,508
)
—
(23,382
)
—
Total
revenue excluding securities (gains)/losses and net gain on sale of RCM
assets
$
1,996,898
$
2,006,701
$
1,879,268
$
7,785,789
$
6,389,690
Noninterest
income
$
790,437
$
832,398
$
759,003
$
3,147,558
$
2,604,446
Net
gain on sale of RCM
assets
—
(3,508
)
—
(23,382
)
—
Noninterest
income excluding net gain on sale of RCM
assets
$
790,437
$
828,890
$
759,003
$
3,124,176
$
2,604,446
Noninterest
expense
$
1,206,927
$
1,177,071
$
1,148,992
$
4,690,729
$
3,897,038
Merger
expense
(6,538
)
(12,104
)
(28,401
)
(98,642
)
(28,401
)
Noninterest
expense excluding merger
expense
$
1,200,389
$
1,164,967
$
1,120,591
$
4,592,087
$
3,868,637
Efficiency
ratio
60.42
%
58.62
%
61.78
%
60.12
%
61.39
%
Impact
of excluding merger
expense
(0.33
)
(0.61
)
(1.53
)
(1.26
)
(0.45
)
Efficiency
ratio excluding merger
expense
60.09
58.01
60.25
58.86
60.94
Impact
of net gain on sale of RCM
assets
—
0.10
—
0.17
—
Efficiency
ratio excluding merger expense and net gain on sale of RCM
assets
60.09
%
58.11
%
60.25
%
59.03
%
60.94
%
Return
on average total
assets
1.16
%
1.19
%
1.16
%
1.18
%
1.18
%
Impact
of excluding merger
expense
0.01
0.02
0.04
0.04
0.01
Return
on average total assets excluding merger expense
2
1.17
%
1.21
%
1.20
%
1.22
%
1.19
%
Return
on average total shareholders'
equity
12.08
%
12.05
%
11.46
%
12.00
%
13.71
%
Impact
of excluding merger
expense
0.09
0.17
0.47
0.37
0.16
Return
on average total shareholders' equity excluding merger expense
3
12.17
%
12.22
%
11.93
%
12.37
%
13.87
%
1
SunTrust
presents selected financial data on a basis that excludes merger
expense, which represent incremental costs to integrate the operations
of National Commerce Financial (‘‘NCF’’).
The Company also presents selected financial data that 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 net income excluding merger expense by average
total assets.
3
Computed by dividing
annualized net income excluding merger expense by average total
shareholders' equity.
QUARTER-TO-QUARTER COMPARISON —
ACTUAL
APPENDIX
B
Three
Months
Ended
December
31
2005September 30
2005Increase/
(Decrease)Sequential
Annualized1
%December 31
2005December 31
2004Increase/
(Decrease)
Amount
%
Amount
%
STATEMENTS
OF INCOME (Dollars in
thousands)
NET
INTEREST
INCOME
$
1,187,036
$
1,156,661
$
30,375
2.6
%
10.5
%
$
1,187,036
$
1,084,204
$
102,832
9.5
%
Provision
for loan
losses
48,126
70,393
(22,267
)
(31.6
)
NM
48,126
37,099
11,027
29.7
NET
INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES
1,138,910
1,086,268
52,642
4.8
19.4
1,138,910
1,047,105
91,805
8.8
NONINTEREST
INCOME
Deposit
and other fees
2
369,987
368,613
1,374
0.4
1.5
369,987
356,777
13,210
3.7
Trust
and investment management
income
172,900
168,802
4,098
2.4
9.7
172,900
160,526
12,374
7.7
Broker
/ dealer
revenue3
132,909
147,184
(14,275
)
(9.7
)
(38.8
)
132,909
158,888
(25,979
)
(16.4
)
Other
noninterest
income
114,041
146,360
(32,319
)
(22.1
)
(88.3
)
114,041
102,189
11,852
11.6
Noninterest
income before securities gains/(losses) and net gain on sale of RCM
assets
4
789,837
830,959
(41,122
)
(4.9
)
(19.8
)
789,837
778,380
11,457
1.5
Gain
on sale of RCM assets, net of related
expenses
—
3,508
(3,508
)
(100.0
)
NM
—
—
—
—
Noninterest
income before securities
gains/(losses)
789,837
834,467
(44,630
)
(5.3
)
(21.4
)
789,837
778,380
11,457
1.5
Securities
gains/(losses)
600
(2,069
)
2,669
(129.0
)
NM
600
(19,377
)
19,977
(103.1
)
Total
noninterest
income
790,437
832,398
(41,961
)
(5.0
)
(20.2
)
790,437
759,003
31,434
4.1
NONINTEREST
EXPENSE
Personnel
expense
643,801
632,333
11,468
1.8
7.3
643,801
612,861
30,940
5.0
Net
occupancy
expense
83,217
79,519
3,698
4.7
18.6
83,217
78,218
4,999
6.4
Outside
processing and
software
92,305
92,952
(647
)
(0.7
)
(2.8
)
92,305
81,368
10,937
13.4
Equipment
expense
49,494
50,083
(589
)
(1.2
)
(4.7
)
49,494
50,765
(1,271
)
(2.5
)
Marketing
and customer
development
50,133
38,651
11,482
29.7
NM
50,133
34,389
15,744
45.8
Other
noninterest
expense
245,197
216,020
29,177
13.5
54.0
245,197
231,231
13,966
6.0
Noninterest
expense before Affordable Housing impairment charge, amortization of
intangible assets and merger
expense5
1,164,147
1,109,558
54,589
4.9
19.7
1,164,147
1,088,832
75,315
6.9
Impairment
charge on Affordable Housing
Properties
8,050
25,672
(17,622
)
(68.6
)
NM
8,050
—
8,050
100.0
Amortization
of intangible
assets
28,192
29,737
(1,545
)
(5.2
)
(20.8
)
28,192
31,759
(3,567
)
(11.2
)
Merger
expense
6,538
12,104
(5,566
)
(46.0
)
NM
6,538
28,401
(21,863
)
(77.0
)
Total
noninterest
expense
1,206,927
1,177,071
29,856
2.5
10.1
1,206,927
1,148,992
57,935
5.0
INCOME
BEFORE INCOME
TAXES
722,420
741,595
(19,175
)
(2.6
)
(10.3
)
722,420
657,116
65,304
9.9
Provision
for income
taxes
208,614
230,821
(22,207
)
(9.6
)
(38.5
)
208,614
201,387
7,227
3.6
NET
INCOME
513,806
510,774
3,032
0.6
2.4
513,806
455,729
58,077
12.7
Merger
expense, net of
tax
4,053
7,505
(3,452
)
(46.0
)
NM
4,053
18,461
(14,408
)
(78.0
)
NET
INCOME EXCLUDING MERGER
EXPENSE
517,859
518,279
(420
)
(0.1
)
(0.3
)
517,859
474,190
43,669
9.2
Net
gain on sale of RCM assets, net of
tax
—
(2,175
)
2,175
(100.0
)
NM
—
—
—
—
NET
INCOME EXCLUDING MERGER EXPENSE AND NET GAIN ON SALE OF RCM
ASSETS
$
517,859
$
516,104
$
1,755
0.3
%
1.4
%
$
517,859
$
474,190
$
43,669
9.2
%
REVENUE
(Dollars in
thousands)
Net
interest
income
$
1,187,036
$
1,156,661
$
30,375
2.6
%
10.5
%
$
1,187,036
$
1,084,204
$
102,832
9.5
%
FTE
adjustment
20,025
19,081
944
4.9
19.8
20,025
16,684
3,341
20.0
Net
interest income —
FTE
1,207,061
1,175,742
31,319
2.7
10.7
1,207,061
1,100,888
106,173
9.6
Three
Months
Ended
December
31
2005September 30
2005Increase/
(Decrease)Sequential
Annualized1
%December 31
2005December 31
2004Increase/
(Decrease)
Amount
%
Amount
%
Noninterest
income
790,437
832,398
(41,961
)
(5.0
)
(20.2
)
790,437
759,003
31,434
4.1
Total
revenue
1,997,498
2,008,140
(10,642
)
(0.5
)
(2.1
)
1,997,498
1,859,891
137,607
7.4
Securities
(gains)/losses
(600
)
2,069
(2,669
)
(129.0
)
NM
(600
)
19,377
(19,977
)
(103.1
)
Net
gain on sale of RCM
assets
—
(3,508
)
3,508
(100.0
)
NM
—
—
—
—
Total
revenue excluding securities gains/losses and net gain on sale of RCM
assets
$
1,996,898
$
2,006,701
($9,803
)
(0.5
)%
(2.0
)%
$
1,996,898
$
1,879,268
$
117,630
6.3
%
SELECTED
AVERAGE BALANCES (Dollars in
millions)
Average
Loans6
Commercial
$
33,080
$
32,713
$
367
1.1
%
4.5
%
$
33,080
$
32,343
$
737
2.3
%
Real
estate 1-4
family
30,014
28,366
1,648
5.8
23.2
30,014
22,535
7,479
33.2
Real
estate commercial and
construction
23,021
22,484
537
2.4
9.5
23,021
18,660
4,361
23.4
Real
estate
equity
13,068
12,649
419
3.3
13.2
13,068
11,016
2,052
18.6
Consumer 7
14,373
14,382
(9
)
(0.1
)
(0.3
)
14,373
15,390
(1,017
)
(6.6
)
Credit
cards
272
224
48
21.4
85.4
272
193
79
41.1
Total
loans
$
113,828
$
110,818
$
3,010
2.7
%
10.9
%
$
113,828
$
100,137
$
13,691
13.7
%
Average
deposits
Noninterest
bearing
deposits
$
24,693
$
24,522
$
171
0.7
%
2.8
%
$
24,693
$
24,182
$
511
2.1
%
NOW
accounts
17,011
16,853
158
0.9
3.8
17,011
16,941
70
0.4
Money
market
accounts
25,798
26,300
(502
)
(1.9
)
(7.6
)
25,798
24,507
1,291
5.3
Savings
5,473
5,865
(392
)
(6.7
)
(26.7
)
5,473
8,139
(2,666
)
(32.8
)
Consumer
and other
time
22,282
20,536
1,746
8.5
34.0
22,282
16,832
5,450
32.4
Total
consumer and commercial
deposits
95,257
94,076
1,181
1.3
5.0
95,257
90,601
4,656
5.1
Brokered
and foreign
deposits
21,010
17,969
3,041
16.9
67.7
21,010
10,671
10,339
96.9
Total
deposits
$
116,267
$
112,045
$
4,222
3.8
%
15.1
%
$
116,267
$
101,272
$
14,995
14.8
%
SELECTED
CREDIT DATA (Dollars in
thousands)
Nonaccrual
loans
$
271,974
$
307,788
($35,814
)
(11.6
)%
(46.5
)%
$
271,974
$
354,241
($82,267
)
(23.2
)%
Restructured
loans
24,399
21,876
2,523
11.5
46.1
24,399
19,049
5,350
28.1
Total
nonperforming
loans
296,373
329,664
(33,291
)
(10.1
)
(40.4
)
296,373
373,290
(76,917
)
(20.6
)
Other
real estate owned
(OREO)
30,682
26,013
4,669
18.0
71.8
30,682
28,619
2,063
7.2
Other
repossessed
assets
7,160
7,060
100
1.4
5.6
7,160
8,749
(1,589
)
(18.2
)
Total
nonperforming
assets
$
334,215
$
362,737
($28,522
)
(7.9
)%
(31.5
)%
$
334,215
410,658
($76,443
)
(18.6
)%
Allowance
for loan and lease
losses
$
1,028,128
$
1,029,855
($1,727
)
(0.2
)%
(0.7
)%
$
1,028,128
$
1,050,024
($21,896
)
(2.1
)%
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
fees 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 gains/(losses) and net gain on the
sale of RCM assets. The Company believes noninterest income before
securities gains/(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.
YEAR-TO-YEAR COMPARISON — HISTORICAL COMBINED
GROWTH
APPENDIX B, continued
HISTORICAL
COMBINED
Twelve Months
Ended
December
31
Increase/(Decrease)
2005
2004
Amount
%
STATEMENTS
OF INCOME (Dollars in
thousands)
NET
INTEREST
INCOME
$
4,578,966
$
4,265,027
$
313,939
7.4
%
Provision
for loan
losses
176,886
179,514
(2,628
)
(1.5
)
NET
INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES
4,402,080
4,085,513
316,567
7.7
NONINTEREST
INCOME
Deposit
and other fees
1
1,439,779
1,403,103
36,676
2.6
Trust
and investment management
income
673,720
635,197
38,523
6.1
Broker
/ dealer revenue
2
567,438
599,155
(31,717
)
(5.3
)
Other
noninterest
income
450,394
354,375
96,019
27.1
Noninterest
income before securities gains/(losses) and net gain on sale of RCM
assets
3
3,131,331
2,991,830
139,501
4.7
Gain
on sale of RCM assets, net of related
expenses
23,382
—
23,382
100.0
Noninterest
income before securities
gains/(losses)
3,154,713
2,991,830
162,883
5.4
Securities
losses
(7,155
)
(29,079
)
21,924
(75.4
)
Total
noninterest
income
3,147,558
2,962,751
184,807
6.2
NONINTEREST
EXPENSE
Personnel
expense
2,534,211
2,402,832
131,379
5.5
Net
occupancy
expense
312,070
308,401
3,669
1.2
Outside
processing and
software
357,387
306,713
50,674
16.5
Equipment
expense
204,038
206,921
(2,883
)
(1.4
)
Marketing
and customer
development
156,711
138,400
18,311
13.2
Other
noninterest
expense
874,984
905,595
(30,611
)
(3.4
)
Noninterest
expense before Affordable Housing impairment charge, amortization of
intangible assets and merger expense
4
4,439,401
4,268,862
170,539
4.0
Impairment
charge on Affordable Housing
Properties
33,722
9,001
24,721
274.6
Amortization
of intangible
assets
118,964
116,661
2,303
2.0
Merger
expense
98,642
28,401
70,241
247.3
Total
noninterest
expense
4,690,729
4,422,925
267,804
6.1
INCOME
BEFORE INCOME
TAXES
2,858,909
2,625,339
233,570
8.9
Provision
for income
taxes
876,335
809,466
66,869
8.3
NET
INCOME
1,982,574
1,815,873
166,701
9.2
Merger
expense, net of
tax
61,158
18,461
42,697
231.3
NET
INCOME EXCLUDING MERGER
EXPENSE
2,043,732
1,834,334
209,398
11.4
Net
gain on sale of RCM assets, net of
tax
(14,497
)
—
(14,497
)
(100.0
)
NET
INCOME EXCLUDING MERGER EXPENSE AND NET GAIN ON SALE OF RCM
ASSETS
$
2,029,235
$
1,834,334
$
194,901
10.6
%
REVENUE
(Dollars in
thousands)
Net
interest
income
$
4,578,966
$
4,265,027
$
313,939
7.4
%
FTE
adjustment 5
75,492
65,125
10,367
15.9
HISTORICAL
COMBINED
Twelve Months
Ended
December
31
Increase/(Decrease)
2005
2004
Amount
%
Net interest income —
FTE
4,654,458
4,330,152
324,306
7.5
Noninterest
income
3,147,558
2,962,751
184,807
6.2
Total
revenue
7,802,016
7,292,903
509,113
7.0
Securities
losses
7,155
29,079
(21,924
)
(75.4
)
Net
gain on sale of RCM
assets
(23,382
)
—
(23,382
)
(100.0
)
Total
revenue excluding securities
gains/losses
and
net gain on sale of RCM
assets
$
7,785,789
$
7,321,982
$
463,807
6.3
%
Noninterest
expense
$
4,690,729
$
4,422,925
$
267,804
6.1
%
Merger
expense
(98,642
)
(28,401
)
(70,241
)
247.3
Noninterest
expense excluding merger
expense
$
4,592,087
$
4,394,524
$
197,563
4.5
%
Efficiency
ratio
60.12
%
60.65
%
(0.53
)
(0.9
)%
Impact
of excluding merger
expense
(1.26
)
(0.39
)
(0.87
)
224.7
Efficiency
ratio excluding merger
expense
58.86
%
60.26
%
(1.40
)
(2.3
)%
SELECTED
AVERAGE BALANCES (Dollars in
millions)
Average
Loans6
Commercial
$
32,935
$
32,147
$
788
2.5
%
Real
estate 1-4
family
27,092
20,847
6,245
30.0
Real
estate commercial and
construction
21,567
18,081
3,486
19.3
Real
estate
equity
12,361
9,916
2,445
24.7
Consumer 7
14,560
15,358
(798
)
(5.2
)
Credit
cards
227
172
55
32.1
Total
loans
$
108,742
$
96,521
$
12,221
12.7
%
Average
deposits
Noninterest
bearing
deposits
$
24,315
$
23,033
$
1,282
5.6
%
NOW
accounts
17,214
15,468
1,746
11.3
Money
market
accounts
25,589
24,249
1,340
5.5
Savings
6,320
8,497
(2,177
)
(25.6
)
Consumer
and other
time
19,917
15,840
4,077
25.7
Total
consumer and commercial
deposits
93,355
87,087
6,268
7.2
Brokered
and foreign
deposits
17,052
11,855
5,197
43.8
Total
deposits
$
110,407
$
98,942
$
11,465
11.5
%
1
Includes
service charges on deposits, card fees 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 gains/(losses) and net gain on the
sale of RCM assets. The Company believes noninterest income before
securities gains/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 $13.1 million from the year ended 2004
to conform to SunTrust
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.
SUNTRUST / NCF — SELECTED HISTORICAL FINANCIAL
DATA
APPENDIX B,
continued
Twelve
Months Ended
December 31,
2004
SunTrust
NCF
Historical
Combined
STATEMENTS OF INCOME (Dollars in
thousands)
NET
INTEREST
INCOME
$
3,685,155
$
579,872
$
4,265,027
Provision
for loan
losses
135,537
43,977
179,514
NET
INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES
3,549,618
535,895
4,085,513
NONINTEREST
INCOME
Deposit and other
fees
1
1,243,955
159,148
1,403,103
Trust
and investment management
income
586,783
48,414
635,197
Broker
/ dealer revenue
2
527,340
71,815
599,155
Other
noninterest
income
288,059
66,316
354,375
Noninterest
income before securities
gains/(losses)
2,646,137
345,693
2,991,830
Securities
gains/(losses)
(41,691
)
12,612
(29,079
)
Total
noninterest
income
2,604,446
358,305
2,962,751
NONINTEREST
EXPENSE
Personnel
expense
2,168,313
234,519
2,402,832
Net
occupancy
expense
268,248
40,153
308,401
Outside
processing and
software
286,270
20,443
306,713
Equipment
expense
184,865
22,056
206,921
Marketing
and customer
development
128,291
10,109
138,400
Other
noninterest
expense
746,067
159,528
905,595
Noninterest
expense before Affordable Housing impairment charge, amortization of
intangible assets and merger
expense
3,782,054
486,808
4,268,862
Impairment
charge on Affordable Housing
Properties
9,001
—
9,001
Amortization
of intangible
assets
77,582
39,079
116,661
Merger
expense
28,401
—
28,401
Total
noninterest
expense
3,897,038
525,887
4,422,925
INCOME
BEFORE INCOME
TAXES
2,257,026
368,313
2,625,339
Provision
for income
taxes
684,125
125,341
809,466
NET
INCOME
$
1,572,901
$
242,972
$
1,815,873
REVENUE
(Dollars in
thousands)
Net
interest
income
$
3,685,155
$
579,872
$
4,265,027
FTE
adjustment
3
58,398
6,727
65,125
Net
interest income —
FTE
3,743,553
586,599
4,330,152
Noninterest
income
2,604,446
358,305
2,962,751
Total
revenue
6,347,999
944,904
7,292,903
Securities
(gains)/losses
41,691
(12,612
)
29,079
Total
revenue excluding securities
gains/losses
$
6,389,690
$
932,292
$
7,321,982
Twelve
Months Ended
December 31,
2004
SunTrust
NCF
Historical
Combined
Noninterest
expense
$
3,897,038
$
525,887
$
4,422,925
Merger
expense
(28,401
)
—
(28,401
)
Noninterest
expense excluding merger
expense
$
3,868,637
$
525,887
$
4,394,524
Efficiency
ratio
61.39
%
55.66
%
60.65
%
Impact
of excluding merger
expense
(0.45
)
—
(0.39
)
Efficiency
ratio excluding merger
expense
60.94
%
55.66
%
60.26
%
SELECTED
AVERAGE BALANCES (Dollars in
millions)
Average
Loans4
Commercial
$
29,070
$
3,077
$
32,147
Real
estate 1-4
family
20,048
799
20,847
Real
estate commercial and
construction
15,213
2,868
18,081
Real
estate
equity
8,503
1,413
9,916
Consumer
5
13,220
2,138
15,358
Credit
cards
160
12
172
Total
loans
$
86,214
$
10,307
$
96,521
Average
deposits
Noninterest
bearing
deposits
$
21,047
$
1,986
$
23,033
NOW
accounts
13,778
1,690
15,468
Money
market
accounts
22,865
1,384
24,249
Savings
7,225
1,272
8,497
Consumer
and other
time
12,177
3,663
15,840
Total
consumer and commercial
deposits
77,092
9,995
87,087
Brokered
and foreign
deposits
10,041
1,814
11,855
Total
deposits
$
87,133
$
11,809
$
98,942
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 $13.1 million from the year ended 2004
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.
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