[GRAPHIC OMITTED]
SUNTRUST
- --------------------------------------------------------------------------------
Contact:
Investors Media
Gary Peacock Barry Koling
(404) 658-4879 (404) 230-5268
For Immediate Release
- ---------------------
January 20, 2005
SUNTRUST REPORTS FOURTH QUARTER AND FULL-YEAR 2004 EARNINGS
Company Says Year Ends on "Encouraging Note;"
National Commerce Merger Adds to Results
ATLANTA-- SunTrust Banks, Inc. (NYSE: STI) today reported net income for the
fourth quarter of 2004 of $455.7 million, up from $342.5 million in the
fourth quarter of 2003. Net income per diluted share was $1.26, up 4% from
the $1.21 per diluted share earned in the fourth quarter of 2003. Operating
income per diluted share was $1.31, up 8% from the fourth quarter of 2003.
Operating income equals net income less the $18.5 million after-tax merger
charges incurred in the fourth quarter associated with SunTrust's acquisition
of National Commerce Financial Corporation, which closed on October 1, 2004.
"SunTrust wound up 2004 the way it began: on an encouraging note," said
L. Phillip Humann, SunTrust Chairman and Chief Executive Officer. "Our fourth
quarter results benefited from a continuation of positive trends from earlier
in the year, notably increasingly robust revenue growth, excellent credit
quality and more effective cost control."
Mr. Humann said strong fee income in the fourth quarter at SunTrust
combined with gains in net interest income that were based, in turn, on net
interest margin improvement plus healthy overall loan growth. In addition, he
noted, results of the former National Commerce Financial Corporation are
reflected in SunTrust's fourth quarter results.
For the quarter, reported return on average total assets (ROA) was
1.16%, and return on average total equity (ROE) was 11.46%. Excluding
realized and unrealized securities gains and losses and dividends from The
Coca-Cola Company, return on average total assets was 2 basis points higher
and return on average total realized equity was 108 basis points higher than
the reported returns. Operating ROA, which excludes merger charges, was 4
basis points higher than the reported return on average total assets and
operating ROE was 47 basis points higher than the average total return on
equity.
-more-
For the full year 2004, the Company reported net income of $1,572.9
million, up from $1,332.3 million earned in 2003. Net income per diluted
share was $5.19, up 10% from the full year 2003. Operating net income per
diluted share was $5.25 for the full year 2004, up 11% from the $4.73 per
diluted share earned in 2003. ROA for the full year 2004 was 1.18% and ROE
was 13.71%. Excluding realized and unrealized securities gains and losses and
dividends from The Coca-Cola Company, return on average assets was 1 basis
point higher and return on average realized equity was 194 basis points
higher than the reported returns. Operating ROA was 1 basis point higher than
reported ROA and operating ROE was 16 basis points higher than reported ROE.
Discussion of Historical Results and Estimated Historical Combined Results
- --------------------------------------------------------------------------
Estimated historical combined information for selected prior quarters
is presented to assist investors in comparing the financial results of the
now-combined SunTrust and National Commerce Financial Corporation as if the
merger had been completed at the beginning of the periods presented. In
management's view, the estimated historical combined financial results allow
investors to better understand the comparative performance and underlying
growth dynamics of the combined Company. For further information regarding
the estimated historical combined financial information, including
reconciliations of certain financial information, please see Appendix B.
Total revenue was $1,859.9 million for the fourth quarter of 2004, up
$398.3 million from the fourth quarter of 2003. On an estimated historical
combined basis, total revenue for the fourth quarter was up 5% from the
fourth quarter of 2003. On an estimated historical combined basis for the
fourth quarter, total revenue excluding securities gains and losses was up 8%
from the fourth quarter of 2003.
Fully taxable net interest income was $1,100.9 million in the fourth
quarter of 2004, up from $877.5 million in the fourth quarter of 2003. On an
estimated historical combined basis for the fourth quarter, fully taxable net
interest income was up 2% from the fourth quarter of 2003. The net interest
margin for the fourth quarter of 2004 was 3.21%, up 10 basis points from the
third quarter of 2004. SunTrust said the improvement in net interest margin
reflected primarily the impact of National Commercial Financial Corporation
in the fourth quarter as well as a continuation of positive margin trends at
legacy SunTrust. For the full year 2004, fully taxable net interest income
was $3,743.6 million, up from $3,365.3 million for 2003.
Average loans for the fourth quarter of 2004 were $100.1 billion, up
from $79.4 billion for the fourth quarter of 2003, and average earning assets
were $136.5 billion, up from $112.7 billion for the fourth quarter of 2003.
On an estimated historical combined basis, average loans for the fourth
quarter were up 8% from the fourth quarter of 2003. SunTrust said loan growth
was "healthy across-the-board, with consumer segments particularly robust,
although still-sluggish demand in the large corporate segment offset strong
growth in the rest of the commercial portfolio."
Average consumer and commercial deposits for the fourth quarter of 2004
were $90.6 billion, up from
-more-
$70.3 billion for the fourth quarter of 2003. On an estimated historical
combined basis, average consumer and commercial deposits for the fourth
quarter were up 8% from the fourth quarter of 2003.
Total noninterest income including securities gains and losses was $759.0
million for the fourth quarter of 2004, up from $584.1 million for the fourth
quarter of 2003. On an estimated historical combined basis, total noninterest
income including securities gains and losses for the fourth quarter was up 9%
from the fourth quarter of 2003.
Noninterest income excluding securities gains and losses was $778.4
million for the fourth quarter of 2004, up from $564.6 million for the fourth
quarter of 2003. On an estimated historical combined basis, noninterest income
excluding securities gains and losses for the fourth quarter was up 16% from the
fourth quarter of 2003.
Noninterest income excluding securities gains and losses represented 41%
of total revenue excluding securities gains and losses for the fourth quarter of
2004 compared to 39% of total revenue excluding securities gains and losses in
the fourth quarter 2003. For the full year 2004, noninterest income excluding
securities gains and losses was $2,646.1 million, up from $2,179.1 million for
2003.
Total noninterest expense in the fourth quarter of 2004 was $1,149.0
million, up from $884.8 million for the fourth quarter of 2003. On an estimated
historical combined basis in the fourth quarter of 2004, total noninterest
expense was up 10% from the fourth quarter of 2003. On an estimated historical
combined basis, noninterest expense before amortization of intangible assets and
merger expense in the fourth quarter of 2004 was up 7% from the fourth quarter
of 2003 and essentially flat from the prior quarter. The Company's reported
efficiency ratio was 61.78% for the fourth quarter of 2004, however its
operating efficiency ratio was 60.25%. For the full year of 2004, total
noninterest expense was $3,897.0 million, up from $3,400.6 million for the full
year of 2003.
Net charge-offs in the fourth quarter of 2004 were 0.21% of average loans,
down from 0.35% of average loans in the fourth quarter of 2003. Net charge-offs
were $53.9 million in the fourth quarter of 2004 and the provision for loan
losses was $37.1 million. For the full year of 2004, net charge-offs were 0.23%
of average loans compared to 0.41% of average loans for the full year of 2003.
Nonperforming assets were $410.7 million at December 31, 2004 or 0.40% of
loans, other real estate owned and other repossessed assets compared to $378.1
million at December 31, 2003. On an estimated historical combined basis,
nonperforming assets were down 7% from December 31, 2003.
Nonperforming assets at December 31, 2004 included $373.3 million in
nonperforming loans, $28.6 million in other real estate owned and $8.7 million
in other repossessed assets. The allowance for loan losses at December 31, 2004
was $1,050.0 million and represented 1.04% of loans and 281.3% of nonperforming
loans. SunTrust's net charge-off and nonperforming asset levels continue to
compare very favorably with the most recently published industry averages.
At December 31, 2004, SunTrust had total assets of $159.1 billion. Equity
capital of $16.0 billion represented 10% of total assets. Book value per share
was $44.30, up from $34.52 on December 31, 2003.
-more-
The Company disclosed in its Form 10-Q for the 2004 third quarter that
there was a material weakness in the Company's internal controls over financial
reporting relating to the process of establishing the allowance for loan and
lease losses and that the Company would likely not be able to fully remediate
the weakness in internal controls by December 31, 2004. Although significant
remedial actions have been taken, SunTrust was not able to fully remediate the
material weakness in internal controls as of December 31, 2004. As a result,
management will disclose this material weakness in internal controls in its
report in the Company's Form 10-K and indicate that the Company's internal
controls over financial reporting were not effective at such date. In addition,
the Company expects that the material weakness will result in an adverse opinion
by the Company's independent auditors on the effectiveness of the Company's
internal controls.
To view the corresponding financial tables and information, please refer
to the Investor Relations section located under "About SunTrust" on our Web site
at www.suntrust.com. This information may also be directly accessed via the
quick link entitled "4th Quarter Earnings Release" located at the lower right
hand corner of the SunTrust homepage.
SunTrust management will host a conference call on January 20, 2005 at
9:00 a.m. (Eastern Time) to discuss the earnings results and business trends.
Individuals are encouraged to call in beginning at 8:45 a.m. (Eastern Time) by
dialing 1-888-822-9863 (Passcode: 4Q04; Leader: Gary Peacock). Individuals
calling from outside the United States should dial 1-484-630-1854 (Passcode:
4Q04; Leader: Gary Peacock). A replay of the call will be available beginning
January 20, 2005 and ending February 3, 2005 at 5:00 p.m. (Eastern Time) by
dialing 1-866-463-4956 (domestic) or 1-203-369-1394 (international).
-more-
Alternatively, individuals may listen to the live webcast of the
presentation by visiting the SunTrust Web site at www.suntrust.com. The webcast
will be hosted under "Investor Relations" located under "About SunTrust" or may
be accessed directly from the SunTrust home page by clicking on the
earnings-related link, "4th Quarter/Full Year Earnings Release". Beginning the
afternoon of January 20, 2005, listeners may access an archived version of the
presentation in the "Webcasts and Presentations" subsection found under
"Investor Relations". A link to the Investor Relations page is also found in the
footer of the SunTrust home page.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's
largest commercial banking organizations. The company operates an extensive
distribution network primarily in Florida, Georgia, Maryland, North Carolina,
South Carolina, Tennessee, Virginia and the District of Columbia and also serves
customers in selected markets nationally. Its primary businesses include
deposit, credit, trust and investment services. Through various subsidiaries the
company provides credit cards, mortgage banking, insurance, brokerage and
capital markets services. SunTrust's Internet address is www.suntrust.com.
###
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements include, but
are not limited to, 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. Factors that could cause
SunTrust's results to differ materially from those described in the
forward-looking statements can be found in the 2003 Annual Reports on Form 10-K
of SunTrust and National Commerce Financial Corporation ("NCF"), in the
Quarterly Reports on Form 10-Q and 10-Q/A of SunTrust and the Quarterly Reports
on Form 10-Q of NCF, and in the Current Reports filed on Form 8-K 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 press release 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 press release contains certain non-GAAP measures to describe our Company's
performance. The reconciliation of those measures to the most directly
comparable GAAP measures can be found in the financial information contained at
the end of this press release.
###
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED
---------------------- % --------------------- %
2004 2003 CHANGE 2004 2003 CHANGE
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS & DIVIDENDS
Period Ended December 31
- ------------------------
(Dollars in millions except per share data)
Net income $ 455.7 $ 342.5 33.1 % $1,572.9 $1,332.3 18.1 %
Total revenue 1,859.9 1,461.6 27.3 6,348.0 5,668.3 12.0
Total revenue excluding securities gains and losses(1) 1,879.3 1,442.1 30.3 6,389.7 5,544.4 15.2
Earnings per share
Diluted $ 1.26 $ 1.21 4.1 $ 5.19 $ 4.73 9.7
Basic 1.27 1.23 3.3 5.25 4.79 9.6
Dividends paid per common share 0.50 0.45 11.1 2.00 1.80 11.1
Average shares outstanding (000s)
Diluted 362,661 282,537 28.4 303,309 281,434 7.8
Basic 357,524 278,852 28.2 299,375 278,295 7.6
KEY RATIOS
Return on average total assets 1.16 % 1.09 % 6.4 % 1.18 % 1.09 % 8.3 %
Return on average assets less net unrealized securities gains(2) 1.18 1.04 13.5 1.19 1.01 17.8
Return on average total equity 11.46 14.40 (20.4) 13.71 14.67 (6.5)
Return on average realized equity(2) 12.54 16.02 (21.7) 15.65 15.98 (2.1)
Total average shareholders' equity to total average assets 10.10 7.56 33.6 8.58 7.43 15.5
Net interest margin(3) 3.21 3.09 3.9 3.15 3.08 2.3
Efficiency ratio(3) 61.78 60.54 2.0 61.39 59.99 2.3
Period Ended December 31
Book value per share 44.30 34.52 28.3
Tier 1 capital ratio 7.00(4) 7.85 (10.8)
Total capital ratio 10.30(4) 11.75 (12.3)
Tier 1 leverage ratio 6.46(4) 7.37 (12.3)
- -----------------------------------------------------------------------------------------------------------------------------------
CONDENSED BALANCE SHEETS (DOLLARS IN MILLIONS)
Average Balances
Securities available for sale $ 29,295 $ 25,595 14.5 % $ 26,419 $ 23,712 11.4 %
Loans held for sale 5,607 7,202 (22.1) 5,427 8,588 (36.8)
Loans 100,137 79,370 26.2 86,214 76,138 13.2
Other earning assets 3,468 2,926 18.5 3,217 3,163 1.7
Allowance for loan losses (1,095) (954) 14.8 (990) (951) 4.1
Intangible assets 7,880 1,691 366.0 3,312 1,623 104.1
Other assets 11,278 8,926 26.3 10,155 10,052 1.0
--------- --------- -------- ---------
Total assets $ 156,570 $ 124,756 25.5 $133,754 $ 122,325 9.3
========= ========= ======== =========
Consumer and commercial deposits $ 90,601 $ 70,313 28.9 $ 77,092 $ 69,444 11.0
Purchased liabilities(5) 22,297 25,018 (10.9) 21,548 24,474 (12.0)
Long-term debt 21,962 14,469 51.8 18,075 12,657 42.8
Other liabilities 5,891 5,521 6.7 5,570 6,667 (16.5)
--------- --------- -------- ---------
Total liabilities 140,751 115,321 22.1 122,285 113,242 8.0
Shareholder's equity 15,819 9,435 67.7 11,469 9,083 26.3
--------- --------- -------- ---------
Total liabilities and shareholders' equity $ 156,570 $ 124,756 25.5 $133,754 $ 122,325 9.3
========= ========= ======== =========
Period Ended December 31
Securities available for sale $ 28,941 $ 25,607 13.0
Loans held for sale 6,580 5,552 18.5
Loans 101,426 80,732 25.6
Other earning assets 4,008 3,243 23.6
Allowance for loan losses (1,050 (942) 11.5
Intangible assets 7,867 1,717 358.2
Other assets 11,310 9,484 19.3
--------- ---------
Total assets $159,082 $125,393 26.9
========= =========
Consumer and commercial deposits $ 92,110 $ 72,925 26.3
Purchased liabilities(5) 22,981 21,945 4.7
Long-term debt 22,127 15,314 44.5
Other liabilities 5,877 5,478 7.3
--------- ---------
Total liabilities 143,095 115,662 23.7
Shareholders' equity 15,987 9,731 64.3
--------- ---------
Total liabilities and shareholders' equity $ 159,082 $125,393 26.9
========= =========
(1) SunTrust presents total revenue excluding realized securities gains/losses.
The Company believes 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. See
Appendix A for a reconcilement of this non-GAAP performance measure.
(2) SunTrust presents a return on average assets and return on average realized
equity which exclude realized and unrealized securities gains/losses and
dividends from The Coca-Cola Company. 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 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. See Appendix A for a reconcilement of these non-GAAP performance
measures.
(3) The net interest margin and efficiency ratios are presented on a fully
taxable-equivalent (FTE) basis. The FTE basis adjusts for the tax-favored
status of income from certain loans and investments. The Company believes
this measure to be the preferred industry measurement of net interest income
and provides relevant comparison between taxable and non-taxable amounts.
(4) Current period tier 1 capital, total capital and tier 1 leverage ratios are
estimated as of the press release date.
(5) Purchased liabilities include foreign and brokered deposits, funds purchased
and other short-term borrowings.
Page 1
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED
---------------------- % --------------------- %
2004 2003 CHANGE 2004 2003 CHANGE
- -----------------------------------------------------------------------------------------------------------------------------------
CREDIT DATA (DOLLARS IN THOUSANDS)
Period Ended December 31
Allowance for loan losses - beginning $ 892,974 941,423 (5.1)% $941,922 $930,114 1.3 %
Allowance from acquisitions and other activity - net 173,844 - 100.0 173,844 9,324 1,764.5
Provision for loan losses 37,099 70,286 (47.2) 135,537 313,550 (56.8)
Net charge-offs
Consumer 37,287 39,469 (5.5) 105,335 131,451 (19.9)
Real estate 6,566 9,695 (32.3) 31,279 21,762 43.7
Commercial 10,040 20,623 (51.3) 64,665 157,853 (59.0)
---------- -------- ---------- --------
Allowance for loan losses - ending $1,050,024 $941,922 11.5 $1,050,024 $941,922 11.5
========== ======== ========== ========
Total net charge-offs $ 53,893 $ 69,787 (22.8) $201,279 $311,066 (35.3)
Net charge-offs to average loans 0.21% 0.35% (40.0) 0.23% 0.41% (43.9)
Period Ended December 31
Nonaccrual loans $ 354,241 $336,587 5.2
Restructured loans 19,049 14,782 28.9
---------- --------
Total nonperforming loans 373,290 351,369 6.2
Other real estate owned (OREO) 28,619 16,458 73.9
Other repossessed assets 8,749 10,270 (14.8)
---------- --------
Total nonperforming assets $ 410,658 $378,097 8.6
========== ========
Total nonperforming loans to total loans 0.37% 0.44% (15.9)
Total nonperforming assets to total loans plus
OREO and other repossessed assets 0.40 0.47 (14.9)
Allowance to period-end loans 1.04 1.17 (11.1)
Allowance to nonperforming loans 281.3 268.1 4.9
Page 2
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
- ------------------------------------------------------------------------------------------------------------------------------------
AS OF DECEMBER 31 INCREASE/(DECREASE)
--------------------------- -------------------------
2004 2003 AMOUNT %
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 3,968,238 $ 3,931,653 $ 36,585 0.9 %
Interest-bearing deposits in other banks 15,929 16,329 (400) (2.4)
Trading assets 2,395,365 1,853,137 542,228 29.3
Securities available for sale(1) 28,941,080 25,606,884 3,334,196 13.0
Funds sold and securities purchased under agreements to resell 1,596,269 1,373,392 222,877 16.2
Loans held for sale 6,580,223 5,552,060 1,028,163 18.5
Loans 101,426,172 80,732,321 20,693,851 25.6
Allowance for loan losses (1,050,024) (941,922) (108,102) 11.5
------------- ------------- ------------
Net loans 100,376,148 79,790,399 20,585,749 25.8
Goodwill 6,806,013 1,077,638 5,728,375 531.6
Other intangible assets 1,061,451 639,619 421,832 66.0
Other assets 7,340,788 5,552,042 1,788,746 32.2
------------- ------------- ------------
TOTAL ASSETS(2) $159,081,504 $125,393,153 $33,688,351 26.9
============= ============= ============
LIABILITIES
Noninterest-bearing consumer and commercial deposits $24,878,314 $21,001,324 $ 3,876,990 18.5
Interest-bearing consumer and commercial deposits 67,231,381 51,923,322 15,308,059 29.5
------------- ------------- ------------
Total consumer and commercial deposits 92,109,695 72,924,646 19,185,049 26.3
Brokered deposits 6,100,911 3,184,084 2,916,827 91.6
Foreign deposits 5,150,645 5,080,789 69,856 1.4
------------- ------------- ------------
Total deposits 103,361,251 81,189,519 22,171,732 27.3
Funds purchased and securities sold under agreements to repurchase 9,342,831 9,505,246 (162,415) (1.7)
Other short-term borrowings 2,386,893 4,175,415 (1,788,522) (42.8)
Long-term debt 22,127,166 15,313,922 6,813,244 44.5
Trading liabilities 985,939 1,048,543 (62,604) (6.0)
Other liabilities 4,890,525 4,429,342 461,183 10.4
------------- ------------- ------------
TOTAL LIABILITIES 143,094,605 115,661,987 27,432,618 23.7
------------- ------------- ------------
SHAREHOLDERS' EQUITY
Preferred stock, no par value - - - -
Common stock, $1.00 par value 370,578 294,163 76,415 26.0
Additional paid in capital 6,749,219 1,288,311 5,460,908 423.9
Retained earnings 8,118,710 7,149,118 969,592 13.6
Treasury stock and other (528,558) (664,518) 135,960 (20.5)
Accumulated other comprehensive income 1,276,950 1,664,092 (387,142) (23.3)
------------- ------------- ------------
TOTAL SHAREHOLDERS' EQUITY 15,986,899 9,731,166 6,255,733 64.3
------------- ------------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $159,081,504 $125,393,153 $33,688,351 26.9
============= ============= ============
Common shares outstanding 360,840,710 281,923,057 78,917,653 28.0
Common shares authorized 750,000,000 750,000,000 - -
Treasury shares of common stock 9,737,688 12,239,700 (2,502,012) (20.4)
(1) Includes net unrealized gains of $ 2,016,733 $ 2,614,512 $ (597,779) (22.9)
(2) Includes earning assets of 138,938,305 112,519,611 26,418,694 23.5
Page 3
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- -------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
-----------------------------------------------------------------
DECEMBER 31 INCREASE/(DECREASE)
--------------------------------- -------------------------------
2004 2003 Amount %
- -------------------------------------------------------------------------------------------------------------------------------
Interest income $1,604,267 $1,198,936 $405,331 33.8
Interest expense 520,063 333,416 186,647 56.0
---------- ---------- --------
NET INTEREST INCOME 1,084,204 865,520 218,684 25.3
Provision for loan losses 37,099 70,286 (33,187) (47.2)
NET INTEREST INCOME AFTER
---------- ---------- --------
PROVISION FOR LOAN LOSSES 1,047,105 795,234 251,871 31.7
---------- ---------- --------
NONINTEREST INCOME
Service charges on deposit accounts 196,960 165,298 31,662 19.2
Trust and investment management income 160,526 129,622 30,904 23.8
Retail investment services 53,185 43,637 9,548 21.9
Other charges and fees 110,509 79,376 31,133 39.2
Investment banking income 61,671 53,800 7,871 14.6
Trading account profits and commissions 44,032 22,680 21,352 94.1
Card fees 49,308 28,893 20,415 70.7
Other noninterest income 102,189 41,265 60,924 147.6
Securities (losses)/gains (19,377) 19,501 (38,878) (199.4)
---------- ---------- --------
Total noninterest income 759,003 584,072 174,931 30.0
---------- ---------- --------
NONINTEREST EXPENSE
Personnel expense 612,861 516,171 96,690 18.7
Net occupancy expense 78,218 60,522 17,696 29.2
Outside processing and software 81,368 63,176 18,192 28.8
Equipment expense 50,765 45,527 5,238 11.5
Marketing and customer development 34,389 24,830 9,559 38.5
Amortization of intangible assets 31,759 16,379 15,380 93.9
Merger expense 28,401 - 28,401 100.0
Other noninterest expense 231,231 158,189 73,042 46.2
---------- ---------- --------
Total noninterest expense 1,148,992 884,794 264,198 29.9
---------- ---------- --------
INCOME BEFORE INCOME TAXES 657,116 494,512 162,604 32.9
Provision for income taxes 201,387 152,005 49,382 32.5
---------- ---------- --------
NET INCOME $ 455,729 $ 342,507 $113,222 33.1
========== ========== ========
Net interest income (taxable-equivalent)(1) $1,100,888 $877,501 $223,387 25.5
Earnings per share
Diluted 1.26 1.21 0.05 4.1
Basic 1.27 1.23 0.04 3.3
Cash dividends paid per common share 0.50 0.45 0.05 11.1
Average shares outstanding (000s)
Diluted 362,661 282,537 80,124 28.4
Basic 357,524 278,852 78,672 28.2
- -----------------------------------------------------------------------------------------------------------------------------------
TWELVE MONTHS ENDED
-------------------------------------------------------------
DECEMBER 31 INCREASE/(DECREASE)
----------------------------- ------------------------------
2004 2003 AMOUNT %
- -----------------------------------------------------------------------------------------------------------------------------------
Interest income $5,218,382 $4,768,842 $ 449,540 9.4 %
Interest expense 1,533,227 1,448,539 84,688 5.8
---------- ---------- ---------
NET INTEREST INCOME 3,685,155 3,320,303 364,852 11.0
Provision for loan losses 135,537 313,550 (178,013) (56.8)
NET INTEREST INCOME AFTER
---------- ---------- ---------
PROVISION FOR LOAN LOSSES 3,549,618 3,006,753 542,865 18.1
---------- ---------- ---------
NONINTEREST INCOME
Service charges on deposit accounts 700,022 643,103 56,919 8.9
Trust and investment management income 586,783 502,409 84,374 16.8
Retail investment services 192,811 161,753 31,058 19.2
Other charges and fees 390,494 326,311 64,183 19.7
Investment banking income 206,730 192,480 14,250 7.4
Trading account profits and commissions 127,799 109,878 17,921 16.3
Card fees 153,439 119,585 33,854 28.3
Other noninterest income 288,059 123,606 164,453 133.0
Securities (losses)/gains (41,691) 123,876 (165,567) (133.7)
---------- ---------- ---------
Total noninterest income 2,604,446 2,303,001 301,445 13.1
---------- ---------- ---------
NONINTEREST EXPENSE
Personnel expense 2,168,313 1,944,563 223,750 11.5
Net occupancy expense 268,248 237,266 30,982 13.1
Outside processing and software 286,270 246,654 39,616 16.1
Equipment expense 184,865 178,443 6,422 3.6
Marketing and customer development 128,291 100,280 28,011 27.9
Amortization of intangible assets 77,582 64,515 13,067 20.3
Merger expense 28,401 - 28,401 100.0
Other noninterest expense 755,068 628,895 126,173 20.1
---------- ---------- ---------
Total noninterest expense 3,897,038 3,400,616 496,422 14.6
---------- ---------- ---------
INCOME BEFORE INCOME TAXES 2,257,026 1,909,138 347,888 18.2
Provision for income taxes 684,125 576,841 107,284 18.6
---------- ---------- ---------
NET INCOME $1,572,901 $1,332,297 $ 240,604 18.1
========== ========== =========
Net interest income (taxable-equivalent)(1) $3,743,553 $3,365,317 $ 378,236 11.2
Earnings per share
Diluted 5.19 4.73 0.46 9.7
Basic 5.25 4.79 0.46 9.6
Cash dividends paid per common share 2.00 1.80 0.20 11.1
Average shares outstanding (000s)
Diluted 303,309 281,434 21,875 7.8
Basic 299,375 278,295 21,080 7.6
(1) Net interest income includes the effects of taxable-equivalent adjustments
using a federal tax rate of 35% and state income taxes where applicable to
increase tax-exempt interest income to a taxable-equivalent basis.
Page 4
SUNTRUST BANKS, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
- ------------------------------------------------------------------------------------------------------------------------------------
4TH QUARTER 3RD QUARTER 2ND QUARTER 1ST QUARTER
2004 2004 2004 2004
- ------------------------------------------------------------------------------------------------------------------------------------
RESULTS OF OPERATIONS
(Dollars in thousands, except per share data)
Net interest income $ 1,084,204 $ 876,874 $ 872,429 $ 851,648
Provision for loan losses 37,099 41,774 2,827 53,837
----------- ---------- ---------- ----------
Net credit income 1,047,105 835,100 869,602 797,811
Securities (losses)/gains (19,377) (18,193) (9,048) 4,927
Other noninterest income 778,380 645,885 631,713 590,159
----------- ---------- ---------- ----------
Net credit and noninterest income 1,806,108 1,462,792 1,492,267 1,392,897
Noninterest expense 1,148,992 929,849 928,449 889,748
----------- ---------- ---------- ----------
Income before income taxes 657,116 532,943 563,818 503,149
Provision for income taxes 201,387 164,177 177,247 141,314
----------- ---------- ---------- ----------
NET INCOME $ 455,729 $ 368,766 $ 386,571 $ 361,835
=========== ========== ========== ==========
Net interest income (taxable-equivalent) $1,100,888 $ 893,695 $ 885,066 $ 863,904
Total revenue 1,859,891 1,521,387 1,507,731 1,458,990
Total revenue excluding securities gains and losses(1) 1,879,268 1,539,580 1,516,779 1,454,063
Earnings per share
Diluted $ 1.26 $ 1.30 $ 1.36 $ 1.28
Basic 1.27 1.31 1.39 1.29
Dividends paid per common share 0.50 0.50 0.50 0.50
Average shares outstanding (000s)
Diluted 362,661 283,502 283,116 283,523
Basic 357,524 280,185 279,840 279,523
- ------------------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
(Dollars in millions)
Total assets $ 156,570 $127,128 $127,287 $ 123,854
Earning assets 136,450 114,334 113,657 111,038
Unrealized gains on securities available for sale 2,057 2,055 2,804 2,580
Loans 100,137 83,753 80,936 79,905
Interest-bearing liabilities 110,679 91,402 90,680 89,792
Total deposits 101,272 83,463 83,320 80,362
Shareholders' equity 15,819 9,993 10,194 9,840
- ------------------------------------------------------------------------------------------------------------------------------------
SELECTED RATIOS
Net interest margin(2) 3.21 % 3.11 % 3.13 % 3.13
Return on average total assets 1.16 1.15 1.22 1.18
Return on average assets less net unrealized securities gains(3) 1.18 1.18 1.23 1.15
Return on average total equity 11.46 14.68 15.25 14.79
Return on average realized equity(3 ) 12.54 16.96 18.30 17.07
- ------------------------------------------------------------------------------------------------------------------------------------
CREDIT DATA
(Dollars in thousands)
Allowance for loan losses - beginning $ 892,974 $902,243 $936,972 $ 941,922
Allowance from acquisitions and other activity - net 173,844 - - -
Provision for loan losses 37,099 41,774 2,827 53,837
Net charge-offs 53,893 51,043 37,556 58,787
---------- -------- -------- ----------
Allowance for loan losses - ending $1,050,024 $ 892,974 $ 902,243 $ 936,972
========== ========== ========== ==========
Net charge-offs to average loans 0.21 % 0.24 % 0.19 % 0.30
Period Ended
Nonaccrual loans $ 354,241 $263,127 $282,909 $ 283,918
Restructured loans 19,049 19,724 18,189 18,661
---------- ---------- ---------- ----------
Total nonperforming loans 373,290 282,851 301,098 302,579
Other real estate owned (OREO) 28,619 10,934 14,246 18,380
Other repossessed assets 8,749 10,431 9,076 10,953
---------- ---------- ---------- ----------
Total nonperforming assets $ 410,658 $ 304,216 $ 324,420 $ 331,912
========== ========== ========== ==========
Total nonperforming loans to total loans 0.37 % 0.33 % 0.36 % 0.38
Total nonperforming assets to total loans plus
OREO and other repossessed assets 0.40 0.36 0.39 0.42
Allowance to period-end loans 1.04 1.06 1.09 1.18
Allowance to nonperforming loans 281.3 315.7 299.7 309.7
- ----------------------------------------------------------------------------------------------------------------------------------
TWELVE MONTHS ENDED
4TH QUARTER DECEMBER 31
2003 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
RESULTS OF OPERATIONS
(Dollars in thousands, except per share data)
Net interest income $ 865,520 $3,685,155 $3,320,303
Provision for loan losses 70,286 135,537 313,550
---------- ---------- ----------
Net credit income 795,234 3,549,618 3,006,753
Securities (losses)/gains 19,501 (41,691) 123,876
Other noninterest income 564,571 2,646,137 2,179,125
---------- ---------- ----------
Net credit and noninterest income 1,379,306 6,154,064 5,309,754
Noninterest expense 884,794 3,897,038 3,400,616
---------- ---------- ----------
Income before income taxes 494,512 2,257,026 1,909,138
Provision for income taxes 152,005 684,125 576,841
---------- ---------- ----------
NET INCOME $ 342,507 $1,572,901 $1,332,297
========== ========== ==========
Net interest income (taxable-equivalent) $ 877,501 $3,743,553 $3,365,317
Total revenue 1,461,573 6,347,999 5,668,318
Total revenue excluding securities gains and losses(1) 1,442,072 6,389,690 5,544,442
Earnings per share
Diluted $ 1.21 $ 5.19 $ 4.73
Basic 1.23 5.25 4.79
Dividends paid per common share 0.45 2.00 1.80
Average shares outstanding (000s)
Diluted 282,537 303,309 281,434
Basic 278,852 299,375 278,295
- ----------------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
(Dollars in millions)
Total assets $ 124,756 $ 133,754 $ 122,325
Earning assets 112,730 118,906 109,257
Unrealized gains on securities available for sale 2,364 2,372 2,343
Loans 79,370 86,214 76,138
Interest-bearing liabilities 91,213 95,668 88,748
Total deposits 81,082 87,133 80,039
Shareholders' equity 9,436 11,469 9,083
- ----------------------------------------------------------------------------------------------------------------------------------
SELECTED RATIOS
Net interest margin(2) 3.09 % 3.15 % 3.08 %
Return on average total assets 1.09 1.18 1.09
Return on average assets less net unrealized securities gains(3) 1.04 1.19 1.01
Return on average total equity 14.40 13.71 14.67
Return on average realized equity(3) 16.02 15.65 15.98
- ----------------------------------------------------------------------------------------------------------------------------------
CREDIT DATA
(Dollars in thousands)
Allowance for loan losses - beginning $ 941,423 $ 941,922 $ 930,114
Allowance from acquisitions and other activity - net - 173,844 9,324
Provision for loan losses 70,286 135,537 313,550
Net charge-offs 69,787 201,279 311,066
---------- ---------- ----------
Allowance for loan losses - ending $ 941,922 $1,050,024 $ 941,922
========== ========== ==========
Net charge-offs to average loans 0.35 % 0.23 % 0.41 %
Period Ended
Nonaccrual loans $ 336,587
Restructured loans 14,782
----------
Total nonperforming loans 351,369
Other real estate owned (OREO) 16,458
Other repossessed assets 10,270
----------
Total nonperforming assets $ 378,097
==========
Total nonperforming loans to total loans 0.44 %
Total nonperforming assets to total loans plus
OREO and other repossessed assets 0.47
Allowance to period-end loans 1.17
Allowance to nonperforming loans 268.1
(1) SunTrust presents total revenue excluding realized securities gains/losses.
The Company believes 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. See
Appendix A for a reconcilement of this non-GAAP performance measure.
(2) The net interest margin is presented on a fully taxable-equivalent (FTE) and
annualized basis. The FTE basis adjusts for the tax-favored status of income
from certain loans and investments. The Company believes this measure to be
the preferred industry measurement of net interest income and provides
relevant comparison between taxable and non-taxable amounts.
(3) SunTrust presents a return on average assets and return on average realized
equity which exclude realized and unrealized securities gains/losses and
dividends from The Coca-Cola Company. 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 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. See Appendix A for a reconcilement of these non-GAAP performance
measures.
Page 5
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED DAILY AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND RATES PAID
(Dollars in millions; yields on taxable-equivalent basis)
- -----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
----------------------------------------------------------------------
DECEMBER 31, 2004 DECEMBER 31, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
INTEREST INTEREST
AVERAGE INCOME/ YIELDS/ AVERAGE INCOME/ YIELDS/
BALANCES EXPENSE RATES BALANCES EXPENSE RATES
------------ ---------- ------- ----------- --------- --------
ASSETS
Loans:
Real estate 1-4 family $ 22,461.0 $ 285.8 5.09% $ 17,117.4 $ 227.8 5.32%
Real estate construction 9,054.6 121.0 5.32 4,364.4 48.3 4.39
Real estate equity 11,016.4 133.3 4.81 6,740.7 71.3 4.20
Real estate commercial 9,547.2 120.7 5.03 9,286.5 109.4 4.68
Commercial 32,223.1 360.5 4.45 29,289.1 264.1 3.58
Business credit card 192.6 3.2 6.69 140.5 2.4 6.71
Consumer - direct 6,706.9 93.6 5.55 3,600.0 44.1 4.86
Consumer - indirect 8,661.6 120.1 5.52 8,435.0 133.5 6.28
Nonaccrual and restructured 274.1 3.4 4.90 396.5 3.9 3.89
--------------------------------- ---------------------------------
Total loans 100,137.5 1,241.6 4.93 79,370.1 904.8 4.52
Securities available for sale:
Taxable 26,389.5 275.1 4.17 22,868.1 200.7 3.51
Tax-exempt 848.6 13.0 6.11 363.3 5.7 6.32
--------------------------------- ---------------------------------
Total securities available for sale 27,238.1 288.1 4.23 23,231.4 206.4 3.55
Funds sold and securities purchased under agreement
to resell 1,301.2 6.0 1.82 1,181.2 3.2 1.05
Loans held for sale 5,607.0 74.7 5.33 7,202.3 92.2 5.12
Interest-bearing deposits 20.9 0.1 1.35 13.0 0.0 1.28
Trading assets 2,145.7 10.5 1.94 1,731.5 4.3 0.98
--------------------------------- ---------------------------------
Total earning assets 136,450.4 1,621.0 4.73 112,729.5 1,210.9 4.26
Allowance for loan losses (1,094.5) (954.2)
Cash and due from banks 4,136.4 3,492.3
Premises and equipment 1,839.9 1,591.3
Other assets 13,181.2 5,533.3
Unrealized gains on securities
available for sale 2,056.7 2,363.9
--------------------------------- ---------------------------------
Total assets $ 156,570.1 $124,756.1
================================= =================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $ 16,940.7 $ 28.3 0.66% $ 12,102.3 $ 11.2 0.37%
Money Market accounts 24,507.0 66.3 1.08 22,273.8 42.3 0.75
Savings 8,139.3 16.8 0.82 6,248.9 9.5 0.60
Consumer time 12,083.9 73.6 2.42 7,600.3 41.8 2.18
Other time 4,748.8 30.2 2.53 3,501.2 20.7 2.35
--------------------------------- ---------------------------------
Total interest-bearing consumer
and commercial deposits 66,419.7 215.2 1.29 51,726.5 125.5 0.96
Brokered deposits 5,966.1 32.3 2.11 3,754.0 21.9 2.28
Foreign deposits 4,704.5 23.0 1.91 7,015.6 17.7 0.99
--------------------------------- ---------------------------------
Total interest-bearing deposits 77,090.3 270.5 1.40 62,496.1 165.1 1.05
Funds purchased and securities sold under agreements
to repurchase 9,407.1 40.3 1.68 10,497.4 20.1 0.75
Other short-term borrowings 2,219.7 11.5 2.06 3,750.6 14.8 1.56
Long-term debt 21,961.6 197.8 3.58 14,468.8 133.4 3.66
--------------------------------- ---------------------------------
Total interest-bearing liabilities 110,678.7 520.1 1.87 91,212.9 333.4 1.45
Noninterest-bearing deposits 24,181.7 18,586.1
Other liabilities 5,890.7 5,521.3
Shareholders' equity 15,819.0 9,435.8
------------ -----------
Total liabilities and shareholders' equity $ 156,570.1 $124,756.1
================================= =================================
Interest rate spread 2.86% 2.81%
--------------------------------- ---------------------------------
NET INTEREST INCOME $1,100.9 $ 877.5
--------------------------------- ---------------------------------
NET INTEREST MARGIN 3.21% 3.09%
--------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TWELVE MONTHS ENDED
--------------------------------------------------------------------------
DECEMBER 31, 2004 DECEMBER 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------------
INTEREST INTEREST
AVERAGE INCOME/ YIELDS/ AVERAGE INCOME/ YIELDS/
BALANCES EXPENSE RATES BALANCES EXPENSE RATES
----------- ------------ -------- ------------- ---------- --------
ASSETS
Loans:
Real estate 1-4 family $ 19,961.9 $ 1,015.0 5.08 % $ 15,689.7 $ 901.6 5.75 %
Real estate construction 5,728.3 275.4 4.81 4,149.5 190.9 4.60
Real estate equity 8,502.6 370.4 4.36 6,098.0 267.3 4.38
Real estate commercial 9,427.9 446.0 4.73 9,203.7 454.6 4.94
Commercial 28,962.4 1,134.5 3.92 28,616.2 1,060.2 3.70
Business credit card 160.5 10.7 6.69 129.7 9.0 6.91
Consumer - direct 4,375.4 221.5 5.06 3,675.7 186.2 5.07
Consumer - indirect 8,802.4 501.6 5.70 8,103.3 548.5 6.77
Nonaccrual and restructured 293.1 19.0 6.48 472.1 14.1 2.98
----------------------------------- ------------------------------------
Total loans 86,214.5 3,994.1 4.63 76,137.9 3,632.4 4.77
Securities available for sale:
Taxable 23,429.8 917.1 3.91 20,994.4 676.2 3.22
Tax-exempt 617.1 37.7 6.11 374.1 24.1 6.46
----------------------------------- ------------------------------------
Total securities available for sale 24,046.9 954.8 3.97 21,368.5 700.3 3.28
Funds sold and securities purchased under agreement
to resell 1,376.9 18.6 1.35 1,387.0 15.7 1.13
Loans held for sale 5,427.1 281.3 5.18 8,587.7 448.3 5.22
Interest-bearing deposits 18.1 0.2 0.98 10.5 0.1 1.39
Trading assets 1,822.1 27.8 1.53 1,765.8 17.0 0.96
----------------------------------- ------------------------------------
Total earning assets 118,905.6 5,276.8 4.44 109,257.4 4,813.8 4.41
Allowance for loan losses (989.5) (950.8)
Cash and due from banks 3,732.9 3,432.1
Premises and equipment 1,672.7 1,588.7
Other assets 8,060.4 6,655.0
Unrealized gains on securities
available for sale 2,372.2 2,343.0
----------------------------------- ------------------------------------
Total assets $133,754.3 $122,325.4
=================================== ====================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $ 13,777.5 $ 71.0 0.52 % $ 11,702.0 $ 50.7 0.43 %
Money Market accounts 22,864.7 198.9 0.87 22,218.5 203.5 0.92
Savings 7,225.4 55.5 0.77 6,259.3 46.7 0.75
Consumer time 8,333.5 182.0 2.18 7,975.4 201.7 2.53
Other time 3,843.3 92.8 2.42 3,461.6 80.0 2.31
----------------------------------- ------------------------------------
Total interest-bearing consumer
and commercial deposits 56,044.4 600.2 1.07 51,616.8 582.6 1.13
Brokered deposits 4,273.5 87.9 2.06 3,662.0 111.2 3.04
Foreign deposits 5,767.9 78.1 1.35 6,933.3 77.8 1.12
----------------------------------- ------------------------------------
Total interest-bearing deposits 66,085.8 766.2 1.16 62,212.1 771.6 1.24
Funds purchased and securities sold under agreements
to repurchase 9,796.7 108.6 1.11 11,666.9 106.2 0.91
Other short-term borrowings 1,709.9 30.2 1.77 2,211.7 33.5 1.52
Long-term debt 18,075.4 628.2 3.48 12,657.1 537.2 4.24
----------------------------------- ------------------------------------
Total interest-bearing liabilities 95,667.8 1,533.2 1.60 88,747.8 1,448.5 1.63
Noninterest-bearing deposits 21,047.1 17,826.9
Other liabilities 5,569.9 6,667.7
Shareholders' equity 11,469.5 9,083.0
----------- -------------
Total liabilities and shareholders' equity $133,754.3 $122,325.4
=================================== ====================================
Interest rate spread 2.84 % 2.78 %
----------------------------------- ------------------------------------
NET INTEREST INCOME $ 3,743.6 $3,365.3
----------------------------------- ------------------------------------
NET INTEREST MARGIN 3.15 % 3.08 %
----------------------------------- ------------------------------------
Page 6
SUNTRUST BANKS, INC. AND SUBSIDIARIES
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A TO THE PRESS RELEASE
- ------------------------------------------------------------------------------------------------------------------------------------
QUARTER - TO - QUARTER COMPARISON
- ------------------------------------------------------------------------------------------------------------------------------------
4TH QUARTER 3RD QUARTER 2ND QUARTER 1ST QUARTER 4TH QUARTER
2004 2004 2004 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
NON-GAAP MEASURES PRESENTED IN THE PRESS RELEASE
(Dollars in thousands)
Net income $ 455,729 $ 368,766 $ 386,571 $ 361,835 $ 342,507
Securities losses/(gains), net of tax 12,595 11,825 5,881 (3,203) (12,676)
------------- ------------- ------------- ------------- -------------
Net income excluding securities gains and losses 468,324 380,591 392,452 358,632 329,831
The Coca-Cola Company dividend, net of tax (10,739) (10,740) (10,739) (10,740) (9,451)
------------- ------------- ------------- ------------- -------------
Net income excluding securities gains and losses and
The Coca-Cola Company dividend $ 457,585 $ 369,851 $ 381,713 $ 347,892 $ 320,380
============= ============= ============= ============= =============
Total average assets $156,570,092 $127,127,968 $127,287,458 $123,853,747 $124,756,099
Average net unrealized securities gains (2,056,737) (2,054,978) (2,803,917) (2,580,304) (2,363,948)
------------- ------------- ------------- ------------- -------------
Average assets less net unrealized securities gains $154,513,355 $125,072,990 $124,483,541 $121,273,443 $122,392,151
============= ============= ============= ============= =============
Total average equity $ 15,818,968 $ 9,992,905 $ 10,194,201 $ 9,840,282 $ 9,435,794
Average other comprehensive income (1,304,553) (1,318,332) (1,804,833) (1,645,712) (1,503,355)
------------- ------------- ------------- ------------- -------------
Total average realized equity $ 14,514,415 $ 8,674,573 $ 8,389,368 $ 8,194,570 $ 7,932,439
============= ============= ============= ============= =============
Return on average total assets 1.16 % 1.15 % 1.22 % 1.18 % 1.09 %
Impact of excluding net realized and
unrealized securities gains/losses and
The Coca-Cola Company dividend 0.02 0.03 0.01 (0.03) (0.05)
------------- ------------- ------------- ------------- -------------
Return on average total assets less net
realized and unrealized securities
gains/losses and The Coca-Cola Company dividend(1) 1.18 % 1.18 % 1.23 % 1.15 % 1.04 %
============= ============= ============= ============= =============
Return on average total shareholders' equity 11.46 % 14.68 % 15.25 % 14.79 % 14.40 %
Impact of excluding net unrealized securities gains 1.08 2.28 3.05 2.28 1.62
------------- ------------- ------------- ------------- -------------
Return on average realized shareholders' equity(2) 12.54 % 16.96 % 18.30 % 17.07 % 16.02 %
============= ============= ============= ============= =============
Net interest income $ 1,084,204 $ 876,874 $ 872,429 $ 851,648 $ 865,520
FTE adjustment 16,684 16,821 12,637 12,256 11,981
------------- ------------- ------------- ------------- -------------
Net interest income - FTE 1,100,888 893,695 885,066 863,904 877,501
Noninterest income 759,003 627,692 622,665 595,086 584,072
------------- ------------- ------------- ------------- -------------
Total revenue 1,859,891 1,521,387 1,507,731 1,458,990 1,461,573
Securities losses/(gains) 19,377 18,193 9,048 (4,927) (19,501)
------------- ------------- ------------- ------------- -------------
Total revenue excluding securities gains and losses $ 1,879,268 $ 1,539,580 $ 1,516,779 $ 1,454,063 $ 1,442,072
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------
YTD COMPARISON
- ------------------------------------------------------------------------------------------------------------------------
DECEMBER 31
2004 2003
- ------------------------------------------------------------------------------------------------------------------------
NON-GAAP MEASURES PRESENTED IN THE PRESS RELEASE
(Dollars in thousands)
Net income $ 1,572,901 $ 1,332,297
Securities losses/(gains), net of tax 27,099 (80,519)
------------ ------------
Net income excluding securities gains and losses 1,600,000 1,251,778
The Coca-Cola Company dividend, net of tax (42,957) (37,803)
------------ ------------
Net income excluding securities gains and losses and
The Coca-Cola Company dividend $ 1,557,043 $ 1,213,975
============ ===========
Total average assets $133,754,293 $ 122,325,361
Average net unrealized securities gains (2,372,246) (2,343,015)
------------ ------------
Average assets less net unrealized securities gains $131,382,047 $119,982,346
============ ===========
Total average equity $ 11,469,482 $ 9,083,026
Average other comprehensive income (1,517,227) (1,486,125)
------------ ------------
Total average realized equity $ 9,952,255 $ 7,596,901
============ ===========
Return on average total assets 1.18 % 1.09 %
Impact of excluding net realized and unrealized securities 0.01 (0.08)
gains/losses and The Coca-Cola Company dividend
------------ ------------
Return on average total assets less net realized and unrealized 1.19 % 1.01 %
securities gains/losses and The Coca-Cola Company dividend(1)
============ ===========
Return on average total shareholders' equity 13.71 % 14.67 %
Impact of excluding net unrealized securities gains 1.94 1.31
------------ ------------
Return on average realized shareholders' equity(2) 15.65 % 15.98 %
============ ===========
Net interest income $ 3,685,155 $ 3,320,303
FTE adjustment 58,398 45,014
------------ ------------
Net interest income - FTE 3,743,553 3,365,317
Noninterest income 2,604,446 2,303,001
------------ ------------
Total revenue 6,347,999 5,668,318
Securities losses/(gains) 41,691 (123,876)
------------ ------------
Total revenue excluding securities gains and losses $ 6,389,690 $ 5,544,442
============ ============
- ------------------------------------------------------------------------------------------------------------------
4TH QUARTER YTD
DECEMBER 31
2004 2004
- ------------------------------------------------------------------------------------------------------------------
SELECTED NON-GAAP OPERATING MEASURES PRESENTED IN THE PRESS RELEASE(3)
(Dollars in thousands)
Net income $ 455,729 $ 1,572,901
Merger expense, net of tax 18,461 18,461
----------- -----------
Operating net income 474,190 1,591,362
Securities losses/(gains), net of tax 12,595 27,099
The Coca-Cola Company dividend, net of tax (10,739) (42,957)
----------- -----------
Operating net income excluding securities gains/
losses and The Coca-Cola Company dividend $ 476,046 $ 1,575,504
=========== ===========
Noninterest expense $ 1,148,992 $ 3,897,038
Merger expense (28,401) (28,401)
----------- -----------
Noninterest expense excluding merger expense $ 1,120,591 $ 3,868,637
=========== ===========
Return on average total assets 1.16 % 1.18 %
Impact of excluding merger expense 0.04 0.01
----------- -----------
Operating return on average total assets(4) 1.20 % 1.19 %
=========== ===========
Return on average total shareholders' equity 11.46 % 13.71 %
Impact of excluding merger expense 0.47 0.16
----------- -----------
Operating return on average total shareholders' equity(5) 11.93 % 13.87 %
=========== ===========
Efficiency ratio 61.78 % 61.39 %
Impact of excluding merger expense (1.53) (0.45)
----------- -----------
Operating efficiency ratio 60.25 % 60.94 %
=========== ===========
Diluted earnings per share $ 1.26 $ 5.19
Impact of excluding merger expense 0.05 0.06
----------- -----------
Operating diluted earnings per share $ 1.31 $ 5.25
=========== ===========
(1) 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) Computed by dividing annualized net income, excluding securities
gains/losses and The Coca-Cola Company dividend, by average realized
shareholders' equity.
(3) SunTrust presents selected financial data on an operating basis that
excludes merger charges. The Company believes the exclusion of the merger
charges, which represent incremental costs to integrate NCF's operations, is
more reflective of normalized operations.
(4) Computed by dividing annualized operating net income by average total
assets.
(5) Computed by dividing annualized operating net income by average total
shareholders' equity.
Page 7
SUNTRUST BANKS, INC. AND SUBSIDIARIES
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A TO THE PRESS RELEASE, CONTINUED
- --------------------------------------------------------------------------------------------------------------------
QUARTER - TO - QUARTER COMPARISON
- --------------------------------------------------------------------------------------------------------------------
4TH QUARTER 4TH QUARTER CHANGE
2004 2003 %
- --------------------------------------------------------------------------------------------------------------------
NON-GAAP DISCLOSURES FOR IMPACTS OF THREE PILLARS(1)
- ------------------------------------------------------------------
(Dollars in millions)
Average loans - reported $100,137 $ 79,370 26.2
Impact of Three Pillars - (2,243)
--------- ---------
Average loans excluding Three Pillars $100,137 $ 77,127 29.8
========= =========
Average earning assets - reported $136,450 $112,730 21.0
Impact of Three Pillars - (2,699)
--------- ---------
Average earning assets excluding Three Pillars $136,450 $110,031 24.0
========= =========
Average commercial loans - reported $ 32,223 $ 29,289 10.0
Impact of Three Pillars - (2,243)
--------- ---------
Average commercial loans excluding Three Pillars $ 32,223 $ 27,046 19.1
========= =========
Average commercial loan yield - reported 4.45 % 3.58 % 24.3
Impact of Three Pillars - 0.11
--------- ---------
Average commercial loan yield excluding Three Pillars 4.45 % 3.69 % 20.6
========= =========
Net interest margin - reported 3.21 % 3.09 % 3.9
Impact of Three Pillars - 0.06
--------- ---------
Net interest margin excluding Three Pillars 3.21 % 3.15 % 1.9
========= =========
- -----------------------------------------------------------------------------------------------------------------------------------
QUARTER - TO - QUARTER COMPARISON
- -----------------------------------------------------------------------------------------------------------------------------------
4TH QUARTER 3RD QUARTER CHANGE 4TH QUARTER 4TH QUARTER CHANGE
2004 2004 %(2) 2004 2003 %
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUE GROWTH RATE
(Dollars in thousands)
Total revenue excluding securities gains and losses $ 1,879,268 $ 1,539,580 22.1 $ 1,879,268 $ 1,442,072 30.3
============ ============= ============ ============
AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT
(Dollars in thousands)
Demand deposits $24,181,729 $ 20,490,191 18.0 $24,181,729 $18,586,159 30.1
NOW accounts 16,940,751 12,999,444 30.3 16,940,751 12,102,292 40.0
Savings 8,139,263 7,424,698 9.6 8,139,263 6,248,917 30.3
------------ ------------- ------------ ------------
Total average low cost consumer and commercial deposits $49,261,743 $ 40,914,333 20.4 $49,261,743 $36,937,368 33.4
============ ============= ============ ============
(1) Under the provisions of FASB Interpretation No. 46, SunTrust consolidated
its commercial paper conduit, Three Pillars, effective July 1, 2003. As of
March 1, 2004, Three Pillars was restructured and deconsolidated.
Adjustments were made to reported figures for comparability purposes.
(2) Multiply by 4 to calculate sequential annualized growth or reductions
discussed in the earnings call.
Page 8
SUNTRUST BANKS, INC. AND SUBSIDIARIES
ESTIMATES OF HISTORICAL COMBINED HISTORICAL GROWTH
APPENDIX B TO THE PRESS RELEASE
The 3rd Quarter 2004 and 4th Quarter 2003 figures represent SunTrust and NCF on
a historical combined basis. See page 10 for a reconcilement of these historical
combined amounts.
------------------------------------------------------------------
QUARTER - TO - QUARTER COMPARISON
------------------------------------------------------------------
4TH QUARTER 3RD QUARTER INCREASE/(DECREASE)
2004 2004 AMOUNT %
------------------------------------------------------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $1,084,204 $1,071,689 $ 12,515 1.2 %
Provision for loan losses 37,099 60,818 (23,719) (39.0)
---------- ---------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,047,105 1,010,871 36,234 3.6
---------- ---------- -----------
NONINTEREST INCOME
Deposit and other fees(1) 356,777 353,573 3,204 0.9
Trust and investment management income 160,526 165,603 (5,077) (3.1)
Broker / dealer revenue(2) 158,888 132,650 26,238 19.8
Other noninterest income 102,189 106,550 (4,361) (4.1)
---------- ---------- -----------
Noninterest income before securities (losses)/gains 778,380 758,376 20,004 2.6
Securities (losses)/gains (19,377) (16,565) (2,812) (17.0)
---------- ---------- -----------
Total noninterest income 759,003 741,811 17,192 2.3
---------- ---------- -----------
NONINTEREST EXPENSE
Personnel expense 612,861 605,325 7,536 1.2
Net occupancy expense 78,218 79,875 (1,657) (2.1)
Outside processing and software 81,368 75,449 5,919 7.8
Equipment expense 50,765 50,904 (139) (0.3)
Marketing and customer development 34,389 34,975 (586) (1.7)
Other noninterest expense 231,231 242,693 (11,462) (4.7)
---------- ---------- -----------
Noninterest expense before amortization of
intangible assets and merger expense 1,088,832 1,089,221 (389) (0.0)
Amortization of intangible assets 31,759 28,132 3,627 12.9
Merger expense 28,401 - 28,401 100.0
---------- ---------- -----------
Total noninterest expense 1,148,992 1,117,353 31,639 2.8
---------- ---------- -----------
INCOME BEFORE INCOME TAXES 657,116 635,329 21,787 3.4
Provision for income taxes 201,387 198,926 2,461 1.2
---------- ---------- -----------
NET INCOME FROM CONTINUING OPERATIONS 455,729 436,403 19,326 4.4
Income from discontinued operations, net of tax - - - -
---------- ---------- -----------
NET INCOME 455,729 436,403 19,326 4.4
Merger expense, net of tax 18,461 - 18,461 100.0
---------- ---------- -----------
OPERATING NET INCOME $ 474,190 $ 436,403 $ 37,787 8.7 %
========== ========== ===========
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $1,084,204 $1,071,689 $ 12,515 1.2 %
FTE adjustment(3) 16,684 19,063 (2,379) (12.5)
---------- ---------- -----------
Net interest income - FTE 1,100,888 1,090,752 10,136 0.9
Noninterest income 759,003 741,811 17,192 2.3
---------- ---------- -----------
Total revenue 1,859,891 1,832,563 27,328 1.5
Securities losses/(gains) 19,377 16,565 2,812 17.0
---------- ---------- -----------
Total revenue excluding securities gains and losses $1,879,268 $1,849,128 $ 30,140 1.6 %
========== ========== ===========
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans(4)
Commercial(5) $ 32,343 $ 31,977 $ 366 1.1 %
Real estate 1-4 family 22,535 21,963 572 2.6
Real estate commercial and construction 18,660 18,155 505 2.8
Real estate equity 11,016 10,295 721 7.0
Consumer(6) 15,390 15,520 (130) (0.8)
Credit cards 193 175 18 10.3
---------- ---------- -----------
Total loans $ 100,137 $ 98,085 $ 2,052 2.1 %
========== ========== ===========
Average deposits
Noninterest bearing deposits $ 24,182 $ 23,239 $ 943 4.1 %
NOW accounts 16,941 15,335 1,606 10.5
Money market accounts 24,507 24,211 296 1.2
Savings 8,139 9,099 (960) (10.6)
Consumer time 12,084 11,882 202 1.7
Other time 4,748 4,112 636 15.5
---------- ---------- -----------
Total consumer and commercial deposits 90,601 87,878 2,723 3.1
Brokered and foreign deposits 10,671 11,496 (825) (7.2)
---------- ---------- -----------
Total deposits $ 101,272 $ 99,374 $ 1,898 1.9 %
========== ========== ===========
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $ 354,241 $ 329,340 $ 24,901 7.6 %
Restructured loans 19,049 19,724 (675) (3.4)
---------- ---------- -----------
Total nonperforming loans 373,290 349,064 24,226 6.9
Other real estate owned (OREO) 28,619 27,126 1,493 5.5
Other repossessed assets 8,749 15,082 (6,333) (42.0)
---------- ---------- -----------
Total nonperforming assets $ 410,658 $ 391,272 $ 19,386 5.0 %
========== ========== ===========
------------------------------------------------------------------
QUARTER - TO - QUARTER COMPARISON
------------------------------------------------------------------
4TH QUARTER 4TH QUARTER INCREASE/(DECREASE)
2004 2003 AMOUNT %
------------------------------------------------------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $1,084,204 $ 1,060,948 $ 23,256 2.2 %
---------- ----------- -----------
Provision for loan losses 37,099 82,668 (45,569) (55.1)
---------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,047,105 978,280 68,825 7.0
---------- ----------- -----------
NONINTEREST INCOME
Deposit and other fees(1) 356,777 323,081 33,696 10.4
Trust and investment management income 160,526 145,856 14,670 10.1
Broker / dealer revenue(2) 158,888 141,677 17,211 12.1
Other noninterest income 102,189 62,324 39,865 64.0
---------- ----------- -----------
Noninterest income before securities (losses)/gains 778,380 672,938 105,442 15.7
Securities (losses)/gains (19,377) 22,839 (42,216) (184.8)
---------- ----------- -----------
Total noninterest income 759,003 695,777 63,226 9.1
---------- ----------- -----------
NONINTEREST EXPENSE
Personnel expense 612,861 591,575 21,286 3.6
Net occupancy expense 78,218 73,766 4,452 6.0
Outside processing and software 81,368 69,871 11,497 16.5
Equipment expense 50,765 52,926 (2,161) (4.1)
Marketing and customer development 34,389 27,574 6,815 24.7
Other noninterest expense 231,231 200,602 30,629 15.3
---------- ----------- -----------
Noninterest expense before amortization of
intangible assets and merger expense 1,088,832 1,016,314 72,518 7.1
Amortization of intangible assets 31,759 30,716 1,043 3.4
Merger expense 28,401 - 28,401 100.0
---------- ----------- -----------
Total noninterest expense 1,148,992 1,047,030 101,962 9.7
---------- ----------- -----------
INCOME BEFORE INCOME TAXES 657,116 627,027 30,089 4.8
Provision for income taxes 201,387 195,019 6,368 3.3
---------- ----------- -----------
NET INCOME FROM CONTINUING OPERATIONS 455,729 432,008 23,721 5.5
Income from discontinued operations, net of tax - 767 (767) (100.0)
---------- ----------- -----------
NET INCOME 455,729 432,775 22,954 5.3
Merger expense, net of tax 18,461 - 18,461 100.0
---------- ----------- -----------
OPERATING NET INCOME $ 474,190 $ 432,775 $ 41,415 9.6 %
========== =========== ===========
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $1,084,204 $ 1,060,948 $ 23,256 2.2 %
FTE adjustment(3) 16,684 14,027 2,657 18.9
---------- ----------- -----------
Net interest income - FTE 1,100,888 1,074,975 25,913 2.4
Noninterest income 759,003 695,777 63,226 9.1
---------- ----------- -----------
Total revenue 1,859,891 1,770,752 89,139 5.0
Securities losses/(gains) 19,377 (22,839) 42,216 184.8
---------- ----------- -----------
Total revenue excluding securities gains and losses $1,879,268 $ 1,747,913 $ 131,355 7.5 %
========== =========== ===========
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans(4)
Commercial(5) $ 32,343 $ 33,344 $ (1,001) (3.0)%
Real estate 1-4 family 22,535 18,213 4,322 23.7
Real estate commercial and construction 18,660 17,489 1,171 6.7
Real estate equity 11,016 8,350 2,666 31.9
Consumer(6) 15,390 14,812 578 3.9
Credit cards 193 155 38 24.5
---------- ----------- -----------
Total loans $ 100,137 $ 92,363 $ 7,774 8.4 %
========== =========== ===========
Average deposits
Noninterest bearing deposits $ 24,182 $ 21,141 $ 3,041 14.4 %
NOW accounts 16,941 14,139 2,802 19.8
Money market accounts 24,507 24,304 203 0.8
Savings 8,139 7,982 157 2.0
Consumer time 12,084 12,390 (306) (2.5)
Other time 4,748 3,833 915 23.9
---------- ----------- -----------
Total consumer and commercial deposits 90,601 83,789 6,812 8.1
Brokered and foreign deposits 10,671 12,645 (1,974) (15.6)
---------- ----------- -----------
Total deposits $ 101,272 $ 96,434 $ 4,838 5.0 %
========== =========== ===========
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $ 354,241 $ 367,276 $ (13,035) (3.5)%
Restructured loans 19,049 14,782 4,267 28.9
---------- ----------- -----------
Total nonperforming loans 373,290 382,058 (8,768) (2.3)
Other real estate owned (OREO) 28,619 44,654 (16,035) (35.9)
Other repossessed assets 8,749 14,908 (6,159) (41.3)
---------- ----------- -----------
Total nonperforming assets $ 410,658 $ 441,620 $ (30,962) (7.0)%
========== =========== ===========
(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 $4,001 from the third quarter 2004 and
$4,917 from the fourth quarter of 2003 to conform to SunTrust's methodology.
(4) SunTrust's average nonaccrual and restructured loans are included in the
respective categories to conform to the NCF presentation.
(5) The historical combined 4th quarter 2003 includes $2,243 related to the
consolidation of SunTrust's commercial paper conduit, Three Pillars.
(6) Includes consumer direct and consumer indirect loans.
Page 9
SUNTRUST BANKS, INC. AND SUBSIDIARIES
SUNTRUST / NCF - SELECTED HISTORICAL FINANCIAL DATA
APPENDIX B TO THE PRESS RELEASE, CONTINUED
-------------------------------------------------------------
3RD QUARTER
2004
-------------------------------------------------------------
SUNTRUST NCF HISTORICAL COMBINED
------------------ ------------------ -------------------
STATEMENTS OF INCOME (Dollars in thousands)
NET INTEREST INCOME $ 876,874 $ 194,815 $ 1,071,689
Provision for loan losses 41,774 19,044 60,818
---------- ---------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 835,100 175,771 1,010,871
---------- ---------- -----------
NONINTEREST INCOME
Deposit and other fees(1) 298,328 55,245 353,573
Trust and investment management income 149,673 15,930 165,603
Broker / dealer revenue(2) 113,308 19,342 132,650
Other noninterest income 84,576 21,974 106,550
---------- ---------- -----------
Noninterest income before securities (losses)/gains 645,885 112,491 758,376
Securities (losses)/gains (18,193) 1,628 (16,565)
---------- ---------- -----------
Total noninterest income 627,692 114,119 741,811
---------- ---------- -----------
NONINTEREST EXPENSE
Personnel expense 527,734 77,591 605,325
Net occupancy expense 66,542 13,333 79,875
Outside processing and software 68,657 6,792 75,449
Equipment expense 43,275 7,629 50,904
Marketing and customer development 32,028 2,947 34,975
Other noninterest expense 176,020 66,673 242,693
---------- ---------- -----------
Noninterest expense before amortization of
intangible assets 914,256 174,965 1,089,221
Amortization of intangible assets 15,593 12,539 28,132
---------- ---------- -----------
Total noninterest expense 929,849 187,504 1,117,353
---------- ---------- -----------
INCOME BEFORE INCOME TAXES 532,943 102,386 635,329
Provision for income taxes 164,177 34,749 198,926
---------- ---------- -----------
NET INCOME FROM CONTINUING OPERATIONS 368,766 67,637 436,403
Income from discontinued operations, net of tax - - -
---------- ---------- -----------
NET INCOME $ 368,766 $ 67,637 $ 436,403
========== ========== ===========
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $ 876,874 $ 194,815 $ 1,071,689
FTE adjustment(3) 16,821 2,242 19,063
---------- ---------- -----------
Net interest income - FTE 893,695 197,057 1,090,752
Noninterest income 627,692 114,119 741,811
---------- ---------- -----------
Total revenue 1,521,387 311,176 1,832,563
Securities losses/(gains) 18,193 (1,628) 16,565
---------- ---------- -----------
Total revenue excluding securities gains and losses $1,539,580 $ 309,548 $ 1,849,128
========== ========== ===========
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans(4)
Commercial(5) $ 27,753 $ 4,224 $ 31,977
Real estate 1-4 family 20,798 1,165 21,963
Real estate commercial and construction 14,231 3,924 18,155
Real estate equity 8,239 2,056 10,295
Consumer(6) 12,574 2,946 15,520
Credit cards 158 17 175
---------- ---------- -----------
Total loans $ 83,753 $ 14,332 $ 98,085
========== ========== ===========
Average deposits
Noninterest bearing deposits $ 20,490 $ 2,749 $ 23,239
NOW accounts 13,000 2,335 15,335
Money market accounts 22,434 1,777 24,211
Savings 7,425 1,674 9,099
Consumer time 6,967 4,915 11,882
Other time 3,806 306 4,112
---------- ---------- -----------
Total consumer and commercial deposits 74,122 13,756 87,878
Brokered and foreign deposits 9,341 2,155 11,496
---------- ---------- -----------
Total deposits $ 83,463 $ 15,911 $ 99,374
========== ========== ===========
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
========== ========== ===========
---------------------------------------------------------------
4TH QUARTER
2003
---------------------------------------------------------------
SUNTRUST NCF HISTORICAL COMBINED
------------------ ------------------ ---------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $ 865,520 $ 195,428 $ 1,060,948
Provision for loan losses 70,286 12,382 82,668
---------- ---------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 795,234 183,046 978,280
---------- ---------- -----------
NONINTEREST INCOME
Deposit and other fees(1) 273,567 49,514 323,081
Trust and investment management income 129,622 16,234 145,856
Broker / dealer revenue(2) 120,117 21,560 141,677
Other noninterest income 41,265 21,059 62,324
---------- ---------- -----------
Noninterest income before securities (losses)/gains 564,571 108,367 672,938
Securities (losses)/gains 19,501 3,338 22,839
---------- ---------- -----------
Total noninterest income 584,072 111,705 695,777
---------- ---------- -----------
NONINTEREST EXPENSE
Personnel expense 516,171 75,404 591,575
Net occupancy expense 60,522 13,244 73,766
Outside processing and software 63,176 6,695 69,871
Equipment expense 45,527 7,399 52,926
Marketing and customer development 24,830 2,744 27,574
Other noninterest expense 158,189 42,413 200,602
---------- ---------- -----------
Noninterest expense before amortization of
intangible assets 868,415 147,899 1,016,314
Amortization of intangible assets 16,379 14,337 30,716
---------- ---------- -----------
Total noninterest expense 884,794 162,236 1,047,030
---------- ---------- -----------
INCOME BEFORE INCOME TAXES 494,512 132,515 627,027
Provision for income taxes 152,005 43,014 195,019
---------- ---------- -----------
NET INCOME FROM CONTINUING OPERATIONS 342,507 89,501 432,008
Income from discontinued operations, net of tax - 767 767
---------- ---------- -----------
NET INCOME $ 342,507 $ 90,268 $ 432,775
========== ========== ===========
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $ 865,520 $ 195,428 $ 1,060,948
FTE adjustment(3) 11,981 2,046 14,027
---------- ---------- -----------
Net interest income - FTE 877,501 197,474 1,074,975
Noninterest income 584,072 111,705 695,777
---------- ---------- -----------
Total revenue 1,461,573 309,179 1,770,752
Securities losses/(gains) (19,501) (3,338) (22,839)
---------- ---------- -----------
Total revenue excluding securities gains and losses $1,442,072 $ 305,841 $ 1,747,913
========== ========== ===========
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans(4)
Commercial(5) $ 29,484 $ 3,860 $ 33,344
Real estate 1-4 family 17,218 995 18,213
Real estate commercial and construction 13,713 3,776 17,489
Real estate equity 6,741 1,609 8,350
Consumer(6) 12,074 2,738 14,812
Credit cards 140 15 155
---------- ---------- -----------
Total loans $ 79,370 $ 12,993 $ 92,363
========== ========== ===========
Average deposits
Noninterest bearing deposits $ 18,586 $ 2,555 $ 21,141
NOW accounts 12,102 2,037 14,139
Money market accounts 22,274 2,030 24,304
Savings 6,249 1,733 7,982
Consumer time 7,601 4,789 12,390
Other time 3,501 332 3,833
---------- ---------- -----------
Total consumer and commercial deposits 70,313 13,476 83,789
Brokered and foreign deposits 10,769 1,876 12,645
---------- ---------- -----------
Total deposits $ 81,082 $ 15,352 $ 96,434
========== ========== ===========
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $ 336,587 $ 30,689 $ 367,276
Restructured loans 14,782 - 14,782
---------- ---------- -----------
Total nonperforming loans 351,369 30,689 382,058
Other real estate owned (OREO) 16,458 28,196 44,654
Other repossessed assets 10,270 4,638 14,908
---------- ---------- -----------
Total nonperforming assets $ 378,097 $ 63,523 $ 441,620
========== ========== ===========
(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 $4,001 from the third quarter 2004 and
$4,917 from the fourth quarter of 2003 to conform to SunTrust's methodology.
(4) SunTrust's average nonaccrual and restructured loans are included in the
respective categories to conform to the NCF presentation.
(5) SunTrust's 4th quarter 2003 includes $2,243 related to the consolidation of
its commercial paper conduit, Three Pillars.
(6) Includes consumer direct and consumer indirect loans.
Page 10
