Exhibit 99.1
[SunTrust Logo]
NEWS RELEASE
Contact:
Investors Media
Greg Ketron Barry Koling
(404) 827-6714 (404) 230-5268
For Immediate Release
---------------------
July 19, 2005
SUNTRUST REPORTS SECOND QUARTER 2005 EARNINGS
POSITIVE OPERATING TRENDS CONTINUE, FUELED BY STRONG LOAN AND DEPOSIT GROWTH
ATLANTA-- SunTrust Banks, Inc. (NYSE: STI) today reported net income for the
second quarter of 2005 of $465.7 million, up from $386.6 million in the second
quarter of 2004. Net income per diluted share was $1.28, down from the $1.36 per
diluted share earned in the second quarter of 2004. Operating income per diluted
share was $1.37, up 1% from the second quarter of 2004. Operating income does
not include $33.6 million of after-tax merger charges incurred in the second
quarter of 2005 associated with SunTrust's acquisition of National Commerce
Financial Corporation (NCF), which closed on October 1, 2004.
"Strong revenue growth coupled with effective cost control led to the
continuation of positive operating trends this quarter," said L. Phillip Humann,
SunTrust Chairman and Chief Executive Officer. "Hallmarks of the quarter
included significant loan and deposit growth, evidence of the success that sales
and customer retention initiatives are having. In addition, credit quality
remained excellent with charge-offs near historically low levels. These positive
trends helped offset an increase in provision for loan losses necessary to
accommodate another quarter of very strong loan growth."
DISCUSSION OF HISTORICAL RESULTS AND ESTIMATED HISTORICAL COMBINED RESULTS
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In order to assist investors in comparing the financial results of the
now-combined SunTrust and NCF, estimated historical combined information for the
second quarter and first six months of 2004 is presented as if the merger had
been completed at the beginning of the period presented. In management's view,
the estimated historical combined financial results assist investors in better
understanding 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.
Furthermore, NCF's systems applications were converted to SunTrust's
systems applications in April 2005. In some cases, NCF classified loans and
deposits differently for financial reporting compared to the SunTrust
methodology. While prior to the conversion NCF loan and deposit accounts were
mapped as closely as possible to SunTrust classifications, it was anticipated
that additional reclassifications could occur once the system conversions were
completed. As a result, to better ascertain underlying growth dynamics of the
combined Company, sequential annualized growth rates adjusted for estimated
reclassifications have been provided. In management's view, sequential
annualized growth rates adjusted for estimated reclassifications assist
investors in better understanding the comparative performance and underlying
growth dynamics of loans and deposits for the combined Company. For further
information regarding the consolidated daily average balances for loans and
deposits for the first and second quarters of 2005, adjusted for estimated
reclassifications that arose as a result of the systems conversions, please see
Appendix C.
SECOND QUARTER 2005 SUMMARY:
<TABLE>
ESTIMATED
HISTORICAL ESTIMATED
COMBINED HISTORICAL
2ND QUARTER 2ND QUARTER REPORTED 2ND QUARTER COMBINED
2005 2004 % CHANGE 2004 % CHANGE
-------------- ------------- ------------- --------------- --------------
INCOME STATEMENT
(Dollars in millions except per share data)
Net income $465.7 $386.6 20% $471.7 (1)%
Operating net income (1) 499.3 386.6 29% 471.7 6%
Net income per diluted share 1.28 1.36 (6)% NR
Operating net income per diluted share (2) 1.37 1.36 1% NR
Revenue 1,913.3 1,507.8 27% 1,828.3 5%
Revenue excluding securities gains and losses 1,913.4 1,516.8 26% 1,837.3 4%
Noninterest expense 1,172.8 928.4 26% 1,103.1 6%
Noninterest expense before amortization of
intangible assets and merger expense 1,088.7 913.9 19% 1,075.6 1%
Efficiency ratio 61.30% 61.58% NR
Operating efficiency ratio (3) 58.46% 61.58% NR
BALANCE SHEET
(Dollars in billions)
Average loans $107.0 $80.9 32% $94.7 13%
Average customer deposits 93.1 73.2 27% 86.6 8%
ASSET QUALITY
(Dollars in millions)
Net charge-offs to average loans 0.13% 0.19% NR
Net charge-offs $35.4 $37.6 (6)% NR
</TABLE>
o Total average loans increased 13% and total average consumer and
commercial deposits increased 8% from the second quarter of 2004 on an
estimated historical combined basis, reflecting the effectiveness of
SunTrust's company-wide sales focus.
o Total revenue increased 5% from the second quarter of 2004 on an estimated
historical combined basis, driven by fully taxable net interest income
growth of 6% and noninterest income growth of 3%.
o Noninterest expense before amortization of intangible assets and merger
expense increased only 1% from the second quarter of 2004 on an estimated
historical combined basis, evidence of the focus on expense management.
o Revenue growth and good expense management led to positive operating
leverage as demonstrated in the efficiency ratio improvement from the
second quarter of 2004, especially in the operating efficiency ratio
measurement that excludes merger related expenses. The efficiency ratio for
the second quarter of 2005 was 61.30%, a 28 basis point decrease from the
second quarter of 2004. The operating efficiency ratio, which excludes
merger expenses, was 58.46%, a 312 basis point decrease from the operating
efficiency ratio in the second quarter of 2004.
o Credit quality was outstanding during the quarter; net charge-offs were
0.13% of average loans, down from 0.19% of average loans in the second
quarter of 2004.
o Although net income decreased 1% from the second quarter of 2004 on an
estimated historical combined basis, operating net income, which excludes
merger expenses, increased 6%.
o SunTrust completed the NCF conversion of all branches and significant
systems during the quarter. One-time merger expenses are on track and cost
savings are ahead of expectations for 2005.
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(1) Excludes 2nd quarter 2005 merger related expenses, net of taxes, which
totaled $33.6 million.
(2) Excludes 2nd quarter 2005 merger related expenses, net of taxes, per
diluted share of $.09.
(3) Excludes 2nd quarter 2005 merger related expenses of $54.3 million, which
had the effect of reducing the efficiency ratio by 284 basis points.
NR - Not reported.
FINANCIAL PERFORMANCE
- ---------------------
For the quarter, reported return on average total assets (ROA) was
1.13% and return on average total equity (ROE) was 11.48%. Excluding net
realized and unrealized securities gains and losses and dividends from The
Coca-Cola Company, return on average assets was 1.11% and return on average
realized equity was 12.02%. Operating ROA and ROE, which excludes merger
charges, was 1.21% and 12.31%, respectively.
For the first six months of 2005, the Company reported net income of
$958.0 million, up from $748.4 million earned in the same period in 2004. Net
income per diluted share was $2.64, flat from the same period in 2004. Operating
net income per diluted share was $2.77 for the first six months of 2005, up 5%
from the same period in 2004. ROA for the first six months of 2005 was 1.18% and
ROE was 11.93%. Excluding net realized and unrealized securities gains and
losses and dividends from The Coca-Cola Company, return on average assets was
one basis point lower and return on average realized equity was 68 basis points
higher than the reported returns.
REVENUE
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Total revenue was $1,913.3 million for the second quarter of 2005, up
from $1,507.8 million in the second quarter of 2004. On an estimated historical
combined basis, total revenue was up 5% from the second quarter of 2004. On a
sequential annualized basis, total revenue, excluding securities gains and
losses and the net gain on sale of Receivables Capital Management (RCM)
factoring assets that occurred in the first quarter, increased 10%. Revenue
growth was driven by increases in both net interest income and noninterest
income.
For the first six months of 2005, total revenue was $3,796.4 million,
up from $2,966.7 million for the same period in 2004. On an estimated historical
combined basis, for the first six months of 2005, total revenue was up 5% from
the same period in 2004. Revenue growth for the first six months of 2005 was
also driven by increases in both net interest income and noninterest income.
NET INTEREST INCOME
Fully taxable net interest income was $1,142.4 million in the second
quarter of 2005, up from $885.1 million in the second quarter of 2004. On an
estimated historical combined basis, fully taxable net interest income was up 6%
from the second quarter of 2004. The primary factors driving the net interest
income growth year-over-year have been strong loan growth and year-over-year
improvement in net interest margin. On an estimated historical combined basis,
loans have grown 13% on average from the second quarter of 2004. The net
interest margin improved from 3.13% for the second quarter of 2004 to 3.16% for
the second quarter of 2005. The net interest margin of 3.16% for the second
quarter of 2005 was down nine basis points from the first quarter of 2005 due to
a number of factors, including: 1) the reversal of the day count benefit that
occurred in the first quarter; 2) the mix of both the strong incremental loan
growth and how the growth was funded had a dilutive effect on net interest
margin; 3) an increase in loans held for sale at a compressed margin; 4)
increases in deposit pricing to remain competitive; and 5) the impact of the
flattening yield curve during the second quarter. Although net interest margin
declined in the second quarter of 2005, fully taxable net interest income
increased 5% in the second quarter compared to the first quarter of 2005 on a
sequential annualized basis.
For the first six months of 2005, fully taxable net interest income was
$2,271.7 million, up from $1,749.0 million for the same period in 2004. On an
estimated historical combined basis for the first six months of 2005, fully
taxable net interest income was up 6% from the same period in 2004.
NONINTEREST INCOME
Total noninterest income was $770.9 million for the second quarter of
2005, up from $622.7 million for the second quarter of 2004. On an estimated
historical combined basis, total noninterest income for the second quarter was
up 3% from the second quarter of 2004. Comparing the second quarter to the first
quarter of 2005, total noninterest income excluding securities gains and losses
and the net gain on sale of RCM factoring assets that occurred in the first
quarter increased 17% on a
sequential annualized basis. Drivers of the increase in noninterest income have
been growth in service charge fee income, trust and investment management income
and mortgage related income.
For the first six months of 2005, noninterest income excluding
securities gains and losses and the net gain on the sale of RCM factoring assets
was $1,510.5 million, up from $1,221.9 million for the same period in 2004. On
an estimated historical combined basis for the first six months of 2005,
noninterest income excluding securities gains and losses and the net gain on the
sale of RCM factoring assets was up 4% from the same period in 2004.
NONINTEREST EXPENSE
- -------------------
Total noninterest expense in the second quarter of 2005 was $1,172.8
million, up from $928.4 million for the second quarter of 2004. On an estimated
historical combined basis, total noninterest expense before amortization of
intangible assets and merger expenses was up 1% from the second quarter of 2004.
Comparing the second quarter to the first quarter of 2005, total noninterest
expense before amortization of intangible assets and merger expenses increased
4% on a sequential annualized basis. Cost savings from the merger integration
amounted to $18 million in the second quarter of 2005, bringing the total cost
savings to $26 million for the first six months of 2005.
The Company's reported efficiency ratio was 61.30% for the second
quarter of 2005 compared to 60.22% for the first quarter of 2005. The operating
efficiency ratio, which excludes the impact of merger expenses, was 58.46%. This
compares favorably to the first quarter operating efficiency ratio of 58.85% and
the adjusted operating efficiency ratio, which excludes the impact of the net
gain on sale of RCM factoring assets in addition to merger expenses, of 59.48%.
For the first six months of 2005, total noninterest expense was
$2,306.7 million, up from $1,818.2 million for the same period of 2004. For the
first six months of 2005, total noninterest expense before amortization of
intangible assets and merger expenses was up 3% from the same period of 2004 on
an estimated historical combined basis.
BALANCE SHEET
- -------------
At June 30, 2005, SunTrust had total assets of $169.0 billion. Equity
capital of $16.6 billion represented 10% of total assets. Book value per share
was $45.96, up from $44.59 on March 31, 2005.
LOANS
Average loans for the second quarter of 2005 were $107.0 billion, up
from $80.9 billion for the second quarter of 2004. On an estimated historical
combined basis, average loans were up 13% from the second quarter of 2004. On a
sequential annualized basis, average loans grew 15% from the first quarter to
the second quarter of 2005. Areas of strongest growth in the consumer category
were residential real estate, home equity and consumer direct. Commercial loan
growth was strong across all market segments.
DEPOSITS
Average consumer and commercial deposits for the second quarter of 2005
were $93.1 billion, up from $73.2 billion for the second quarter of 2004. On an
estimated historical combined basis, average consumer and commercial deposits
for the second quarter were up 8% from the second quarter of 2004. On a
sequential annualized basis, average consumer and commercial deposits grew 9%
from the first quarter to the second quarter of 2005. On a sequential annualized
basis adjusted for estimated reclassifications, noninterest-bearing and time
deposit growth was particularly strong in the second quarter. Time deposit
growth was enhanced through a marketing campaign that began in the first quarter
and continued through a portion of the second quarter.
ASSET QUALITY
- -------------
Credit quality trends continued to improve in the second quarter of
2005. Net charge-offs in the second quarter of 2005 were 0.13% of average loans,
down from 0.14% of average loans in the first quarter of 2005 and 0.19% of
average loans in the second quarter of 2004. Net charge-offs were $35.4 million
in the second quarter of 2005 compared to $36.8 million in the first quarter of
2005.
Nonperforming assets were $380.3 million at June 30, 2005 or 0.35% of loans,
other real estate owned and other repossessed assets, as compared to $392.3
million or 0.37% of loans, other real estate owned and other repossessed assets
at March 31, 2005.
Although the credit trends continued to improve, the allowance for loan
and lease losses was increased to $1,036.2 million at June 30, 2005 from
$1,023.7 million at March 31, 2005 to accommodate the continuation of
significant loan growth. Provision expense increased from $10.6 million in the
first quarter of 2005 to $47.8 million in the second quarter of 2005 as a result
of the need to increase the allowance for loan and lease losses. The allowance
for loan and leases losses at June 30, 2005 represented 0.95% of loans and
296.7% of nonperforming loans. SunTrust believes its net charge-off and
nonperforming asset levels continue to compare very favorably with the most
recently published industry averages.
ELIMINATION OF MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING
- -----------------------------------------------------------------------------
SunTrust disclosed that there was a material weakness in the Company's
internal control over financial reporting relating to the allowance for loan and
lease losses initially in its Form 10-Q for the third quarter of 2004, in the
subsequent Form 10-K for the year ended December 31, 2004 and in the Form 10-Q
for the first quarter of 2005. Management has determined that SunTrust has
eliminated the material weakness in internal control over financial reporting
relating to the allowance for loan and lease losses through a series of remedial
actions undertaken since the identification of the material weakness.
CORRESPONDING FINANCIAL TABLES AND INFORMATION
- ----------------------------------------------
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 "2nd Quarter Earnings Release" on the SunTrust homepage.
CONFERENCE CALL
- ---------------
SunTrust management will host a conference call on July 19, 2005 at
8:00 a.m. (Eastern Time) to discuss the earnings results and business trends.
Individuals are encouraged to call in beginning at 7:45 a.m. (Eastern Time) by
dialing 1-888-972-7805 (Passcode: 2Q05; Leader: Greg Ketron). Individuals
calling from outside the United States should dial 1-517-308-9091 (Passcode:
2Q05; Leader: Greg Ketron). A replay of the call will be available beginning
July 19, 2005 and ending August 2, 2005 at 5:00 p.m. (Eastern Time) by dialing
1-800-947-6436 (domestic) or 1-203-369-3984 (international).
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, "2nd Quarter Earnings Release". Beginning the afternoon
of July 19, 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., (NYSE: STI) headquartered in Atlanta, Georgia, is
one of the nation's largest commercial banking organizations. The Company
operates an extensive branch and ATM network throughout the high-growth
Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour
delivery channels. The Company 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 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 2004 Annual Report on Form 10-K
of SunTrust, 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 in
Appendix A of this press release.
###
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(DOLLARS IN MILLIONS EXCEPT PER SHARE DATA)
- -----------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
------------------------------------
JUNE 30 %
2005 2004 CHANGE
---------------------------------------------------------
EARNINGS & DIVIDENDS
Net income $465.7 $386.6 20.5 %
Total revenue 1,913.3 1,507.8 26.9
Total revenue excluding securities gains and losses
and net gain on sale of RCM assets (1) (1,913.4) (1,516.8) (26.1)
Earnings per share
Diluted 1.28 1.36 (5.9)
Basic 1.30 1.39 (6.5)
Dividends paid per common share 0.55 0.50 10.0
Average shares outstanding (000s)
Diluted 363,642 283,116 28.4
Basic 359,090 279,840 28.3
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets $165,254 $127,287 29.8 %
Earning assets 145,058 113,657 27.6
Loans 106,967 80,936 32.2
Consumer and commercial deposits 93,065 73,166 27.2
Brokered and foreign deposits 15,709 10,154 54.7
Shareholders' equity 16,276 10,194 59.7
As of
Total assets 168,953 128,177 31.8
Earning assets 147,996 114,404 29.4
Loans 109,594 82,540 32.8
Allowance for loan and lease losses 1,036 902 14.8
Consumer and commercial deposits 93,814 73,855 27.0
Brokered and foreign deposits 15,763 11,674 35.0
Shareholders' equity 16,646 10,060 65.5
FINANCIAL RATIOS
Return on average total assets 1.13 % 1.22 % (7.4)%
Return on average assets less net unrealized
securities gains(1) (1.11) (1.23) (9.8)
Return on average total equity 11.48 15.25 (24.7)
Return on average realized equity (1) (12.02) (18.30) (34.3)
Total average shareholders' equity to total average assets 9.85 8.01 23.0
Net interest margin(2) (3.16) (3.13) 1.0
Efficiency ratio(2) (61.30) (61.58) (0.5)
Book value per share 45.96 35.58 29.2
CAPITAL ADEQUACY
Tier 1 capital ratio 7.00 %(3) (8.18)% (14.4)%
Total capital ratio 10.20 (3) (11.87) (14.1)
Tier 1 leverage ratio 6.60 (3) (7.53) (12.4)
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SIX MONTHS ENDED
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JUNE 30 %
2005 2004 CHANGE
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EARNINGS & DIVIDENDS
Net income $958.0 $748.4 28.0 %
Total revenue 3,796.4 2,966.7 28.0
Total revenue excluding securities gains and losses
and net gain on sale of RCM assets (1) 3,782.2 2,970.8 27.3
Earnings per share
Diluted 2.64 2.64 -
Basic 2.67 2.68 (0.4)
Dividends paid per common share 1.10 1.00 10.0
Average shares outstanding (000s)
Diluted 363,392 283,320 28.3
Basic 358,674 279,682 28.2
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets $163,247 $125,571 30.0 %
Earning assets 142,967 112,348 27.3
Loans 105,102 80,421 30.7
Consumer and commercial deposits 92,022 71,764 28.2
Brokered and foreign deposits 14,573 10,077 44.6
Shareholders' equity 16,198 10,017 61.7
As of
Total assets
Earning assets
Loans
Allowance for loan and lease losses
Consumer and commercial deposits
Brokered and foreign deposits
Shareholders' equity
FINANCIAL RATIOS
Return on average total assets 1.18 % 1.20 % (1.7)%
Return on average assets less net unrealized
securities gains(1) 1.17 1.19 (1.7)
Return on average total equity 11.93 15.02 (20.6)
Return on average realized equity (1) 12.61 17.69 (28.7)
Total average shareholders' equity to total average assets 9.92 7.98 24.3
Net interest margin(2) 3.20 3.13 2.2
Efficiency ratio(2) 60.76 61.29 (0.9)
Book value per share
CAPITAL ADEQUACY
Tier 1 capital ratio
Total capital ratio
Tier 1 leverage ratio
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</TABLE>
(1) See Appendix A for a reconcilement of non-GAAP performance measures.
(2) 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.
(3) Current period tier 1 capital, total capital and tier 1 leverage ratios are
estimated as of the press release date.
Page 1
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER FINANCIAL HIGHLIGHTS
(DOLLARS IN MILLIONS EXCEPT PER SHARE DATA)
- ---------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
------------------------------------------------------------------------
JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30 JUNE 30
2005 2005 2004 2004 2004
------------------------------------------------------------------------
EARNINGS & DIVIDENDS
Net income $465.7 $492.3 $455.7 $368.8 $386.6
Total revenue 1,913.3 1,883.0 1,859.9 1,521.4 1,507.8
Total revenue excluding securities gains and
losses and net gain on sale of RCM assets(1) (1,913.4) (1,868.8) (1,879.3) (1,539.6) (1,516.8)
Earnings per share
Diluted 1.28 1.36 1.26 1.30 1.36
Basic 1.30 1.37 1.27 1.31 1.39
Dividends paid per common share 0.55 0.55 0.50 0.50 0.50
Average shares outstanding (000s)
Diluted 363,642 363,138 362,661 283,502 283,116
Basic 359,090 358,253 357,524 280,185 279,840
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets $165,254 $161,218 $156,570 $127,128 $127,287
Earning assets 145,058 140,853 136,450 114,334 113,657
Loans 106,967 103,216 100,137 83,753 80,936
Consumer and commercial deposits 93,065 90,968 90,601 74,122 73,166
Brokered and foreign deposits 15,709 13,424 10,671 9,341 10,154
Shareholders' equity 16,276 16,119 15,819 9,993 10,194
As of
Total assets 168,953 164,811 158,870 127,786 128,177
Earning assets 147,996 143,678 138,727 114,748 114,404
Loans 109,594 104,761 101,426 84,618 82,540
Allowance for loan and lease losses 1,036 1,024 1,050 893 902
Consumer and commercial deposits 93,814 93,035 92,110 74,956 73,855
Brokered and foreign deposits 15,763 14,499 11,252 8,141 11,674
Shareholders' equity 16,646 16,104 15,987 10,129 10,060
FINANCIAL RATIOS
Return on average total assets 1.13 % 1.24 % 1.16 % 1.15 % 1.22
Return on average assets less net unrealized
securities gains (1) (1.11) (1.23) (1.18) (1.18) (1.23)
Return on average total equity 11.48 12.39 11.46 14.68 15.25
Return on average realized equity (1) (12.02) (13.23) (12.54) (16.96) (18.30)
Total average shareholders' equity to total
average assets 9.85 10.00 10.10 7.86 8.01
Net interest margin(2) (3.16) (3.25) (3.21) (3.11) (3.13)
Efficiency ratio(2) (61.30) (60.22) (61.78) (61.12) (61.58)
Book value per share 45.96 44.59 44.30 35.79 35.58
CAPITAL ADEQUACY
Tier 1 capital ratio 7.00 %(3) (7.07)% (7.16)% (8.26)% (8.18)
Total capital ratio 10.20 (3) (10.44) (10.36) (11.57) (11.87)
Tier 1 leverage ratio 6.60 (3) (6.61) (6.64) (7.71) (7.53)
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</TABLE>
(1) See Appendix A for a reconcilement of non-GAAP performance measures.
(2) 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.
(3) Current period tier 1 capital, total capital and tier 1 leverage ratios are
estimated as of the press release date.
Page 2
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
- ---------------------------------------------------------------------------------------------------------------------------------
AS OF JUNE 30 INCREASE/(DECREASE)
------------------------------------------ ------------------------------
2005 2004 AMOUNT %
---------------------------------------------------------------------------
ASSETS
Cash and due from banks $4,476,229 $4,068,693 $407,536 10.0 %
Interest-bearing deposits in other banks 24,255 17,196 7,059 41.1
Trading assets 2,489,467 1,807,320 682,147 37.7
Securities available for sale(1) (28,767,390) (25,587,978) (3,179,412) 12.4
Funds sold and securities purchased under
agreements to resell 1,496,544 1,679,403 (182,859) (10.9)
Loans held for sale 7,656,249 5,030,617 2,625,632 52.2
Loans 109,594,200 82,540,230 27,053,970 32.8
Allowance for loan and lease losses (1,036,173) (902,243) (133,930) 14.8
------------------- ------------------ ------------------
Net loans 108,558,027 81,637,987 26,920,040 33.0
Goodwill 6,873,111 1,164,846 5,708,265 490.0
Other intangible assets 1,094,803 721,428 373,375 51.8
Other assets 7,516,500 6,461,055 1,055,445 16.3
------------------- ------------------ ------------------
TOTAL ASSETS (2) $168,952,575 $128,176,523 $40,776,052 31.8
=================== ================== ==================
LIABILITIES
Noninterest-bearing consumer and commercial deposits $24,514,476 $20,610,429 $3,904,047 18.9 %
Interest-bearing consumer and commercial deposits 69,299,154 53,244,549 16,054,605 30.2
------------------- ------------------ ------------------
Total consumer and commercial deposits 93,813,630 73,854,978 19,958,652 27.0
Brokered deposits 11,419,706 4,050,525 7,369,181 181.9
Foreign deposits 4,343,762 7,623,200 (3,279,438) (43.0)
------------------- ------------------ ------------------
Total deposits 109,577,098 85,528,703 24,048,395 28.1
Funds purchased and securities sold under
agreements to repurchase 11,911,559 8,099,685 3,811,874 47.1
Other short-term borrowings 2,728,111 1,438,908 1,289,203 89.6
Long-term debt 21,565,176 17,441,487 4,123,689 23.6
Trading liabilities 1,003,495 1,072,125 (68,630) (6.4)
Other liabilities 5,520,940 4,535,856 985,084 21.7
------------------- ------------------ ------------------
TOTAL LIABILITIES 152,306,379 118,116,764 34,189,615 28.9
------------------- ------------------ ------------------
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 6,763,940 1,297,555 5,466,385 421.3
Retained earnings 8,679,452 7,615,503 1,063,949 14.0
Treasury stock and other (465,736) (625,137) 159,401 (25.5)
Accumulated other comprehensive income 1,297,962 1,477,675 (179,713) (12.2)
------------------- ------------------ ------------------
TOTAL SHAREHOLDERS' EQUITY 16,646,196 10,059,759 6,586,437 65.5
------------------- ------------------ ------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $168,952,575 $128,176,523 $40,776,052 31.8
=================== ================== ==================
Common shares outstanding 362,159,995 282,726,614 79,433,381 28.1
Common shares authorized 750,000,000 750,000,000 - -
Treasury shares of common stock 8,418,403 11,436,143 (3,017,740) (26.4)
- ---------------------------------------------------------------------------------------------------------------------------------
(1)Includes net unrealized gains of $2,032,317 $2,258,984 ($226,667) (10.0)%
(2)Includes earning assets of 147,995,788 114,403,760 33,592,028 29.4
</TABLE>
Page 3
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
- -----------------------------------------------------------------------------------------------------------------------------------
AS OF
-----------------------------------------------------------------------------
JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30 JUNE 30
2005 2005 2004 2004 2004
-----------------------------------------------------------------------------
ASSETS
Cash and due from banks $4,476,229 $4,178,424 $3,876,741 $3,642,401 $4,068,693
Interest-bearing deposits in other banks 24,255 17,456 15,929 19,144 17,196
Trading assets 2,489,467 2,516,512 2,183,645 1,885,894 1,807,320
Securities available for sale(1) 28,767,390 29,374,017 28,941,080 24,508,764 25,587,978
Funds sold and securities purchased under
agreements to resell 1,496,544 1,764,554 1,596,269 1,162,032 1,679,403
Loans held for sale 7,656,249 6,955,538 6,580,223 4,602,916 5,030,617
Loans 109,594,200 104,760,859 101,426,172 84,617,875 82,540,230
Allowance for loan and lease losses (1,036,173) (1,023,746) (1,050,024) (892,974) (902,243)
-------------- --------------- -------------- -------------- -------------
Net loans 108,558,027 103,737,113 100,376,148 83,724,901 81,637,987
Goodwill 6,873,111 6,861,721 6,806,013 1,165,036 1,164,846
Other intangible assets 1,094,803 1,073,154 1,061,451 723,401 721,428
Other assets 7,516,500 8,332,465 7,432,285 6,351,496 6,461,055
-------------- --------------- -------------- -------------- -------------
TOTAL ASSETS (2) $168,952,575 $164,810,954 $158,869,784 $127,785,985 $128,176,523
============== =============== ============== ============== =============
LIABILITIES
Noninterest-bearing consumer and commercial deposits $24,514,476 $24,448,291 $24,878,314 $21,009,255 $20,610,429
Interest-bearing consumer and commercial deposits 69,299,154 68,587,192 67,231,381 53,946,300 53,244,549
-------------- --------------- -------------- -------------- -------------
Total consumer and commercial deposits 93,813,630 93,035,483 92,109,695 74,955,555 73,854,978
Brokered deposits 11,419,706 8,183,776 6,100,911 3,380,458 4,050,525
Foreign deposits 4,343,762 6,315,625 5,150,645 4,760,048 7,623,200
-------------- --------------- -------------- -------------- -------------
Total deposits 109,577,098 107,534,884 103,361,251 83,096,061 85,528,703
Funds purchased and securities sold under
agreements to repurchase 11,911,559 10,113,705 9,342,831 8,735,483 8,099,685
Other short-term borrowings 2,728,111 2,167,383 2,062,549 1,328,445 1,438,908
Long-term debt 21,565,176 22,498,447 22,127,166 18,756,590 17,441,487
Trading liabilities 1,003,495 1,051,095 1,098,563 816,486 1,072,125
Other liabilities 5,520,940 5,341,181 4,890,525 4,924,403 4,535,856
-------------- --------------- -------------- -------------- -------------
TOTAL LIABILITIES 152,306,379 148,706,695 142,882,885 117,657,468 118,116,764
-------------- --------------- -------------- -------------- -------------
SHAREHOLDERS' EQUITY
Preferred stock, no par value - - - - -
Common stock, $1.00 par value 370,578 370,578 370,578 294,163 294,163
Additional paid in capital 6,763,940 6,754,301 6,749,219 1,303,024 1,297,555
Retained earnings 8,679,452 8,412,574 8,118,710 7,843,069 7,615,503
Treasury stock and other (465,736) (523,790) (528,558) (609,245) (625,137)
Accumulated other comprehensive income 1,297,962 1,090,596 1,276,950 1,297,506 1,477,675
-------------- --------------- -------------- -------------- -------------
TOTAL SHAREHOLDERS' EQUITY 16,646,196 16,104,259 15,986,899 10,128,517 10,059,759
-------------- --------------- -------------- -------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $168,952,575 $164,810,954 $158,869,784 $127,785,985 $128,176,523
============== =============== ============== ============== =============
Common shares outstanding 362,159,995 361,176,868 360,840,710 283,001,181 282,726,614
Common shares authorized 750,000,000 750,000,000 750,000,000 750,000,000 750,000,000
Treasury shares of common stock 8,418,403 9,401,530 9,737,688 11,161,576 11,436,143
- -----------------------------------------------------------------------------------------------------------------------------------
(1)Includes net unrealized gains of $2,032,317 $1,710,792 $2,010,165 $2,048,776 $2,258,984
(2)Includes earning assets of 147,995,788 143,678,144 138,733,153 114,747,849 114,403,760
</TABLE>
Page 4
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
- -----------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
------------------------------------------------------------------------
JUNE 30 INCREASE/(DECREASE)
-------------------------------------- --------------------------------
2005 2004 AMOUNT %
------------------------------------------------------------------------
Interest income $1,843,273 $1,188,074 $655,199 55.1 %
Interest expense 719,564 315,645 403,919 128.0
------------------ ------------------ ----------------
NET INTEREST INCOME 1,123,709 872,429 251,280 28.8
Provision for loan losses 47,811 2,827 44,984 1,591.2
NET INTEREST INCOME AFTER
------------------ ------------------ ----------------
PROVISION FOR LOAN LOSSES 1,075,898 869,602 206,296 23.7
------------------ ------------------ ----------------
NONINTEREST INCOME
Service charges on deposit accounts 193,276 168,704 24,572 14.6
Trust and investment management income 167,503 140,366 27,137 19.3
Retail investment services 52,624 49,839 2,785 5.6
Other charges and fees 112,258 94,766 17,492 18.5
Investment banking income 53,706 54,330 (624) (1.1)
Trading account profits and commissions 31,819 31,034 785 2.5
Card fees 52,011 37,721 14,290 37.9
Gain on sale of RCM assets,
net of related expenses - - - -
Other noninterest income 107,739 54,953 52,786 96.1
Securities (losses)/gains (27) (9,048) 9,021 (99.7)
------------------ ------------------ ----------------
Total noninterest income 770,909 622,665 148,244 23.8
------------------ ------------------ ----------------
NONINTEREST EXPENSE
Personnel expense 623,284 520,922 102,362 19.7
Net occupancy expense 73,483 61,629 11,854 19.2
Outside processing and software 89,282 70,619 18,663 26.4
Equipment expense 51,579 45,740 5,839 12.8
Marketing and customer development 36,298 31,655 4,643 14.7
Amortization of intangible assets 29,818 14,590 15,228 104.4
Merger expense 54,262 - 54,262 100.0
Other noninterest expense 214,819 183,294 31,525 17.2
------------------ ------------------ ----------------
Total noninterest expense 1,172,825 928,449 244,376 26.3
------------------ ------------------ ----------------
INCOME BEFORE INCOME TAXES 673,982 563,818 110,164 19.5
Provision for income taxes 208,282 177,247 31,035 17.5
------------------ ------------------ ----------------
NET INCOME $465,700 $386,571 $79,129 20.5
================== ================== ================
Net interest income (taxable-equivalent) (1) $1,142,429 $885,066 $257,363 29.1 %
Earnings per share
Diluted 1.28 1.36 (0.08) (5.9)
Basic 1.30 1.39 (0.09) (6.5)
Cash dividends paid per common share 0.55 0.50 0.05 10.0
Average shares outstanding (000s)
Diluted 363,642 283,116 80,526 28.4
Basic 359,090 279,840 79,250 28.3
- -----------------------------------------------------------------------------------------------------------------------
(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.
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
----------------------------------------------------------------------------------
JUNE 30 INCREASE/(DECREASE)
------------------------------------------- ------------------------------------
2005 2004 AMOUNT %
----------------------------------------------------------------------------------
Interest income $3,559,295 $2,361,938 $1,197,357 50.7 %
Interest expense 1,324,026 637,861 686,165 107.6
-------------------- -------------------- -----------------
NET INTEREST INCOME 2,235,269 1,724,077 511,192 29.7
Provision for loan losses 58,367 56,664 1,703 3.0
NET INTEREST INCOME AFTER
-------------------- -------------------- -----------------
PROVISION FOR LOAN LOSSES 2,176,902 1,667,413 509,489 30.6
-------------------- -------------------- -----------------
NONINTEREST INCOME
Service charges on deposit accounts 377,379 331,922 45,457 13.7
Trust and investment management income 332,018 276,584 55,434 20.0
Retail investment services 107,767 95,577 12,190 12.8
Other charges and fees 223,633 187,513 36,120 19.3
Investment banking income 103,713 99,143 4,570 4.6
Trading account profits and commissions 75,865 60,424 15,441 25.6
Card fees 100,167 69,415 30,752 44.3
Gain on sale of RCM assets,
net of related expenses 19,874 - 19,874 100.0
Other noninterest income 189,993 101,294 88,699 87.6
Securities (losses)/gains (5,686) (4,121) (1,565) 38.0
-------------------- -------------------- -----------------
Total noninterest income 1,524,723 1,217,751 306,972 25.2
-------------------- -------------------- -----------------
NONINTEREST EXPENSE
Personnel expense 1,258,077 1,027,718 230,359 22.4
Net occupancy expense 149,334 123,488 25,846 20.9
Outside processing and software 172,130 136,245 35,885 26.3
Equipment expense 104,461 90,825 13,636 15.0
Marketing and customer development 67,927 61,874 6,053 9.8
Amortization of intangible assets 61,035 30,230 30,805 101.9
Merger expense 80,000 - 80,000 100.0
Other noninterest expense 413,767 347,817 65,950 19.0
-------------------- -------------------- -----------------
Total noninterest expense 2,306,731 1,818,197 488,534 26.9 %
-------------------- -------------------- -----------------
INCOME BEFORE INCOME TAXES 1,394,894 1,066,967 327,927 30.7
Provision for income taxes 436,900 318,561 118,339 37.1
-------------------- -------------------- -----------------
NET INCOME $957,994 $748,406 $209,588 28.0
==================== ==================== =================
Net interest income (taxable-equivalent) (1) $2,271,655 $1,748,970 $522,685 29.9 %
Earnings per share
Diluted 2.64 2.64 - -
Basic 2.67 2.68 (0.01) (0.4)
Cash dividends paid per common share 1.10 1.00 0.10 10.0
Average shares outstanding (000s)
Diluted 363,392 283,320 80,072 28.3
Basic 358,674 279,682 78,992 28.2
---------------------------------------------------------------------------------
</TABLE>
Page 5
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
- ------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
-------------------------------------------------------------------------
JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30 JUNE 30
2005 2005 2004 2004 2004
-------------------------------------------------------------------------
Interest income $1,843,273 $1,716,022 $1,604,267 $1,252,177 $1,188,074
Interest expense 719,564 604,462 520,063 375,303 315,645
------------- ------------ -------------- ------------- -------------
NET INTEREST INCOME 1,123,709 1,111,560 1,084,204 876,874 872,429
Provision for loan losses 47,811 10,556 37,099 41,774 2,827
NET INTEREST INCOME AFTER
------------- ------------ -------------- ------------- -------------
PROVISION FOR LOAN LOSSES 1,075,898 1,101,004 1,047,105 835,100 869,602
------------- ------------ -------------- ------------- -------------
NONINTEREST INCOME
Service charges on deposit accounts 193,276 184,103 196,960 171,140 168,704
Trust and investment management income 167,503 164,515 160,526 149,673 140,366
Retail investment services 52,624 55,143 53,185 44,049 49,839
Other charges and fees 112,258 111,375 110,509 92,472 94,766
Investment banking income 53,706 50,007 61,671 45,916 54,330
Trading account profits and commissions 31,819 44,046 44,032 23,343 31,034
Card fees 52,011 48,156 49,308 34,716 37,721
Gain on sale of RCM assets, net of related expenses - 19,874 - - -
Other noninterest income 107,739 82,254 102,189 84,576 54,953
Securities (losses)/gains (27) (5,659) (19,377) (18,193) (9,048)
------------- ------------ -------------- ------------- -------------
Total noninterest income 770,909 753,814 759,003 627,692 622,665
------------- ------------ -------------- ------------- -------------
NONINTEREST EXPENSE
Personnel expense 623,284 634,793 612,861 527,734 520,922
Net occupancy expense 73,483 75,851 78,218 66,542 61,629
Outside processing and software 89,282 82,848 81,368 68,657 70,619
Equipment expense 51,579 52,882 50,765 43,275 45,740
Marketing and customer development 36,298 31,629 34,389 32,028 31,655
Amortization of intangible assets 29,818 31,217 31,759 15,593 14,590
Merger expense 54,262 25,738 28,401 - -
Other noninterest expense 214,819 198,948 231,231 176,020 183,294
------------- ------------ -------------- ------------- -------------
Total noninterest expense 1,172,825 1,133,906 1,148,992 929,849 928,449
------------- ------------ -------------- ------------- -------------
INCOME BEFORE INCOME TAXES 673,982 720,912 657,116 532,943 563,818
Provision for income taxes 208,282 228,618 201,387 164,177 177,247
------------- ------------ -------------- ------------- -------------
NET INCOME $465,700 $492,294 $455,729 $368,766 $386,571
============= ============ ============== ============= =============
Net interest income (taxable-equivalent) (1) $1,142,429 $1,129,226 $1,100,888 $893,695 $885,066
Earnings per share
Diluted 1.28 1.36 1.26 1.30 1.36
Basic 1.30 1.37 1.27 1.31 1.39
Cash dividends paid per common share 0.55 0.55 0.50 0.50 0.50
Average shares outstanding (000s)
Diluted 363,642 363,138 362,661 283,502 283,116
Basic 359,090 358,253 357,524 280,185 279,840
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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 6
<TABLE>
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
------------------------------------------------------------------------------------
JUNE 30, 2005 MARCH 31, 2005
------------------------------------------------------------------------------------
Interest
Average Interest Income/ Yields/
Balances Income/ Expense Yields/Rates Average Balances Expense Rates
-------------- --------------- ------------ ----------------- --------- -------
ASSETS
Loans:
Real estate 1-4 family $26,224.1 $347.8 5.31 % $23,435.7 $300.5 5.13 %
Real estate construction 9,196.9 137.6 6.00 9,621.2 134.8 5.68
Real estate equity 12,134.7 173.7 5.74 11,573.7 152.8 5.35
Real estate commercial 12,214.5 171.9 5.64 9,537.0 124.8 5.31
Commercial 32,393.4 398.6 4.94 33,423.9 394.9 4.79
Business credit card 213.1 3.5 6.52 197.7 3.4 6.81
Consumer - direct 5,404.7 79.3 5.88 6,767.2 96.6 5.79
Consumer - indirect 8,861.1 117.7 5.33 8,384.4 112.1 5.42
Nonaccrual and restructured 324.2 3.1 3.78 275.0 2.8 4.19
------------------------------------------- -------------------------------------
Total loans 106,966.7 1,433.2 5.37 103,215.8 1,322.7 5.20
Securities available for sale:
Taxable 26,526.7 293.3 4.42 26,477.7 288.3 4.36
Tax-exempt 857.8 12.7 5.93 836.1 12.7 6.10
------------------------------------------- -------------------------------------
Total securities available for sale 27,384.5 306.0 4.47 27,313.8 301.0 4.41
Funds sold and securities purchased under
agreement to resell 1,560.7 11.2 2.84 1,604.3 9.7 2.41
Loans held for sale 6,783.0 95.7 5.65 6,393.2 86.1 5.39
Interest-bearing deposits 31.9 0.3 3.85 17.5 0.1 1.60
Trading assets 2,330.9 15.6 2.68 2,308.2 14.1 2.48
------------------------------------------- -------------------------------------
Total earning assets 145,057.7 1,862.0 5.15 140,852.8 1,733.7 4.99
Allowance for loan and lease losses (1,030.7) (1,065.5)
Cash and due from banks 4,368.5 4,309.5
Premises and equipment 1,848.1 1,862.9
Other assets 13,218.4 13,225.7
Unrealized gains on securities
available for sale 1,791.6 2,032.8
------------------------------------------- -------------------------------------
TOTAL ASSETS $165,253.6 $161,218.2
=========================================== =====================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $17,519.6 $38.6 0.88 % $17,479.8 $33.8 0.78 %
Money Market accounts 25,472.9 102.7 1.62 24,767.4 82.1 1.34
Savings 6,462.4 14.2 0.88 7,506.9 15.5 0.84
Consumer time 12,122.0 81.2 2.69 12,324.0 75.1 2.47
Other time 7,177.9 54.2 3.03 5,166.6 34.9 2.74
------------------------------------------- -------------------------------------
Total interest-bearing consumer
and commercial deposits 68,754.8 290.9 1.70 67,244.7 241.4 1.46
Brokered deposits 9,580.3 75.9 3.14 6,462.1 41.1 2.54
Foreign deposits 6,128.9 43.8 2.82 6,962.3 40.0 2.30
------------------------------------------- -------------------------------------
Total interest-bearing deposits 84,464.0 410.6 1.95 80,669.1 322.5 1.62
Funds purchased and securities sold under
agreements to repurchase 9,848.0 68.0 2.73 10,134.0 56.2 2.22
Other short-term borrowings 2,634.1 22.5 3.42 2,591.3 17.0 2.65
Long-term debt 21,547.2 218.5 4.07 22,197.7 208.8 3.82
------------------------------------------- -------------------------------------
Total interest-bearing liabilities 118,493.3 719.6 2.44 115,592.1 604.5 2.12
Noninterest-bearing deposits 24,309.7 23,723.1
Other liabilities 6,175.0 5,783.6
Shareholders' equity 16,275.6 16,119.4
-------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $165,253.6 $161,218.2
=========================================== =====================================
INTEREST RATE SPREAD 2.71 % 2.87 %
------------------------------------------- -------------------------------------
NET INTEREST INCOME - FTE $1,142.4 $1,129.2
------------------------------------------- -------------------------------------
NET INTEREST MARGIN 3.16 % 3.25 %
------------------------------------------- -------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 7
<TABLE>
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 SEPTEMBER 30, 2004
-----------------------------------------------------------------------------------
Interest
Average Income/ Average Interest Yields/
Balances Expense Yields/Rates Balances Income/ Expense Rates
-------------- --------- ------------ ------------- ---------------- --------
ASSETS
Loans:
Real estate 1-4 family $22,461.0 $285.8 5.09 % $20,722.7 $262.9 5.07
Real estate construction 9,054.6 121.0 5.32 4,727.8 55.5 4.67
Real estate equity 11,016.4 133.3 4.81 8,238.6 85.1 4.11
Real estate commercial 9,547.2 120.7 5.03 9,441.9 112.3 4.73
Commercial 32,223.1 360.5 4.45 27,630.5 276.3 3.98
Business credit card 192.6 3.2 6.69 158.0 2.7 6.80
Consumer - direct 6,706.9 93.6 5.55 3,666.8 44.1 4.78
Consumer - indirect 8,661.6 120.1 5.52 8,882.9 124.5 5.58
Nonaccrual and restructured 274.1 3.4 4.90 284.0 3.8 5.38
------------------------------------- ------------------------------------------
Total loans 100,137.5 1,241.6 4.93 83,753.2 967.2 4.59
Securities available for sale:
Taxable 26,389.5 275.1 4.17 22,068.4 215.4 3.90
Tax-exempt 848.6 13.0 6.11 800.9 12.6 6.27
------------------------------------- ------------------------------------------
Total securities available for sale 27,238.1 288.1 4.23 22,869.3 228.0 3.99
Funds sold and securities purchased under
agreement to resell 1,301.2 6.0 1.82 1,403.3 5.1 1.42
Loans held for sale 5,607.0 74.7 5.33 4,650.8 62.6 5.39
Interest-bearing deposits 20.9 0.1 1.35 18.5 - 0.88
Trading assets 2,145.7 10.5 1.94 1,639.0 6.1 1.47
------------------------------------- ------------------------------------------
Total earning assets 136,450.4 1,621.0 4.73 114,334.1 1,269.0 4.42
Allowance for loan and lease losses (1,094.5) (955.4)
Cash and due from banks 4,136.4 3,687.5
Premises and equipment 1,839.9 1,620.4
Other assets 13,181.2 6,386.4
Unrealized gains on securities
available for sale 2,056.7 2,055.0
------------------------------------- ------------------------------------------
TOTAL ASSETS $156,570.1 $127,128.0
===================================== ==========================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $16,940.7 $28.3 0.66 % $12,999.5 $17.6 0.54
Money Market accounts 24,507.0 66.3 1.08 22,434.4 47.3 0.84
Savings 8,139.3 16.8 0.82 7,424.7 15.8 0.85
Consumer time 12,083.9 73.6 2.42 6,967.3 36.3 2.07
Other time 4,748.8 30.2 2.53 3,805.7 23.1 2.41
------------------------------------- ------------------------------------------
Total interest-bearing consumer
and commercial deposits 66,419.7 215.2 1.29 53,631.6 140.1 1.04
Brokered deposits 5,966.1 32.3 2.11 3,546.1 16.0 1.77
Foreign deposits 4,704.5 23.0 1.91 5,795.2 21.5 1.45
------------------------------------- ------------------------------------------
Total interest-bearing deposits 77,090.3 270.5 1.40 62,972.9 177.6 1.12
Funds purchased and securities sold under
agreements to repurchase 9,407.1 40.3 1.68 9,448.8 28.6 1.18
Other short-term borrowings 2,219.7 11.5 2.06 880.6 4.1 1.84
Long-term debt 21,961.6 197.8 3.58 18,099.9 165.0 3.63
------------------------------------- ------------------------------------------
Total interest-bearing liabilities 110,678.7 520.1 1.87 91,402.2 375.3 1.63
Noninterest-bearing deposits 24,181.7 20,490.2
Other liabilities 5,890.7 5,242.7
Shareholders' equity 15,819.0 9,992.9
------------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $156,570.1 $127,128.0
===================================== ==========================================
INTEREST RATE SPREAD 2.86 % 2.79
------------------------------------- ------------------------------------------
NET INTEREST INCOME - FTE $1,100.9 $893.7
------------------------------------- ------------------------------------------
NET INTEREST MARGIN 3.21 % 3.11
------------------------------------- ------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------
THREE MONTHS ENDED
----------------------------------------------------------
JUNE 30, 2004
----------------------------------------------------------
Interest
Average Balances Income/ Expense Yields/Rates
-------------------- ----------------- ---------------
ASSETS
Loans:
Real estate 1-4 family $18,870.1 $235.9 5.00 %
Real estate construction 4,558.9 49.5 4.37
Real estate equity 7,619.1 78.1 4.12
Real estate commercial 9,426.0 106.2 4.53
Commercial 27,510.8 247.4 3.62
Business credit card 151.0 2.5 6.55
Consumer - direct 3,576.9 41.6 4.68
Consumer - indirect 8,938.3 126.6 5.70
Nonaccrual and restructured 285.3 5.8 8.14
-----------------------------------------------------
Total loans 80,936.4 893.6 4.44
Securities available for sale:
Taxable 22,781.2 213.7 3.75
Tax-exempt 449.7 6.5 5.81
-----------------------------------------------------
Total securities available for sale 23,230.9 220.2 3.79
Funds sold and securities purchased under
agreement to resell 1,562.8 4.1 1.04
Loans held for sale 6,141.2 76.8 5.01
Interest-bearing deposits 17.9 - 0.76
Trading assets 1,767.9 6.0 1.36
-----------------------------------------------------
Total earning assets 113,657.1 1,200.7 4.25
Allowance for loan and lease losses (953.7)
Cash and due from banks 3,732.5
Premises and equipment 1,617.4
Other assets 6,430.3
Unrealized gains on securities
available for sale 2,803.9
-----------------------------------------------------
TOTAL ASSETS $127,287.5
=====================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $12,811.6 $13.4 0.42 %
Money Market accounts 22,367.4 42.9 0.77
Savings 6,990.9 12.7 0.73
Consumer time 6,988.0 34.5 1.98
Other time 3,416.6 19.7 2.32
-----------------------------------------------------
Total interest-bearing consumer
and commercial deposits 52,574.5 123.2 0.94
Brokered deposits 3,668.2 17.1 1.84
Foreign deposits 6,485.7 17.1 1.04
-----------------------------------------------------
Total interest-bearing deposits 62,728.4 157.4 1.01
Funds purchased and securities sold under
agreements to repurchase 10,163.3 19.9 0.78
Other short-term borrowings 1,004.6 3.6 1.44
Long-term debt 16,784.1 134.7 3.23
-----------------------------------------------------
Total interest-bearing liabilities 90,680.4 315.6 1.40
Noninterest-bearing deposits 20,591.6
Other liabilities 5,821.3
Shareholders' equity 10,194.2
-------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $127,287.5
=====================================================
INTEREST RATE SPREAD 2.85 %
-----------------------------------------------------
NET INTEREST INCOME - FTE $885.1
-----------------------------------------------------
NET INTEREST MARGIN 3.13 %
-----------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Page 8
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED DAILY AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND RATES PAID
(DOLLARS IN MILLIONS; YIELDS ON TAXABLE-EQUIVALENT BASIS)
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
-------------------------------------------------------------------------------
JUNE 30, 2005 JUNE 30, 2004
-------------------------------------------------------------------------------
Interest Interest
Average Income/ Yields/ Average Income/ Yields/
Balances Expense Rates Balances Expense Rates
-------------------------------------------------------------------------------
ASSETS
Loans:
Real estate 1-4 family $24,837.6 $648.3 5.22 % $18,314.0 $466.4 5.09 %
Real estate construction 9,407.9 272.4 5.84 4,552.6 98.8 4.36
Real estate equity 11,855.8 326.5 5.55 7,365.5 152.0 4.15
Real estate commercial 10,883.1 296.6 5.50 9,360.5 213.1 4.58
Commercial 32,905.9 793.6 4.86 27,987.5 497.6 3.58
Business credit card 205.4 6.8 6.66 145.5 4.8 6.64
Consumer - direct 6,082.2 175.9 5.83 3,555.0 83.8 4.74
Consumer - indirect 8,624.0 229.8 5.37 8,832.9 256.9 5.85
Nonaccrual and restructured 299.7 5.9 3.97 307.2 11.8 7.71
----------------------------------- ------------------------------------
Total loans 105,101.6 2,755.8 5.29 80,420.7 1,785.2 4.46
Securities available for sale:
Taxable 26,502.4 581.5 4.39 22,621.9 426.6 3.77
Tax-exempt 847.0 25.5 6.01 407.1 12.2 5.99
----------------------------------- ------------------------------------
Total securities available for sale 27,349.4 607.0 4.44 23,029.0 438.8 3.81
Funds sold and securities purchased under
agreement to resell 1,582.4 20.9 2.62 1,401.7 7.4 1.05
Loans held for sale 6,589.1 181.9 5.52 5,728.6 144.0 5.03
Interest-bearing deposits 24.7 0.4 3.06 16.6 0.1 0.80
Trading assets 2,319.6 29.7 2.58 1,751.1 11.3 1.30
----------------------------------- ------------------------------------
Total earning assets 142,966.8 3,595.7 5.07 112,347.7 2,386.8 4.27
Allowance for loan and lease losses (1,048.0) (953.7)
Cash and due from banks 4,339.2 3,551.8
Premises and equipment 1,855.4 1,614.7
Other assets 13,222.2 6,318.0
Unrealized gains on securities
available for sale 1,911.5 2,692.1
----------------------------------- ------------------------------------
TOTAL ASSETS $163,247.1 $125,570.6
=================================== ====================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $17,499.8 $72.4 0.83 % $12,571.8 $25.1 0.40 %
Money Market accounts 25,122.1 184.8 1.48 22,252.1 85.2 0.77
Savings 6,981.8 29.8 0.86 6,662.6 22.9 0.69
Consumer time 12,222.5 156.3 2.58 7,128.4 72.1 2.03
Other time 6,177.8 89.0 2.91 3,404.5 39.6 2.34
-------------------------------------- ----------------------------------
Total interest-bearing consumer
and commercial deposits 68,004.0 532.3 1.58 52,019.4 244.9 0.95
Brokered deposits 8,029.8 117.0 2.90 3,785.6 39.6 2.07
Foreign deposits 6,543.2 83.8 2.55 6,291.7 33.5 1.05
-------------------------------------- ----------------------------------
Total interest-bearing deposits 82,577.0 733.1 1.79 62,096.7 318.0 1.03
Funds purchased and securities sold under
agreements to repurchase 9,990.2 124.2 2.47 10,169.4 39.7 0.77
Other short-term borrowings 2,612.8 39.4 3.04 1,871.5 14.6 1.57
Long-term debt 21,870.7 427.3 3.94 16,098.5 265.5 3.32
-------------------------------------- ----------------------------------
Total interest-bearing liabilities 117,050.7 1,324.0 2.28 90,236.1 637.8 1.42
Noninterest-bearing deposits 24,018.0 19,744.2
Other liabilities 5,980.5 5,573.1
Shareholders' equity 16,197.9 10,017.2
------------ --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $163,247.1 $125,570.6
====================================== ==================================
INTEREST RATE SPREAD 2.79 % 2.85 %
-------------------------------------- ----------------------------------
NET INTEREST INCOME $2,271.7 $1,749.0
-------------------------------------- ----------------------------------
NET INTEREST MARGIN 3.20 % 3.13 %
-------------------------------------- ----------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 9
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER OTHER FINANCIAL DATA
(DOLLARS IN THOUSANDS)
- -------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
-------------------------------------------------------------
JUNE 30 MARCH 31 %
2005 2005 CHANGE
-------------------------------------------------------------
CREDIT DATA
Allowance for loan and lease losses - beginning $1,023,746 $1,050,024 (2.5)%
Allowance from acquisitions and other activity - net - - -
Provision for loan losses 47,811 10,556 352.9
Charge-offs
Commercial (19,779) (16,610) 19.1
Real estate
Construction (1,191) (797) 49.4
Residential mortgages (8,856) (8,473) 4.5
Other (393) (825) (52.4)
Consumer loans (35,582) (38,388) (7.3)
----------------- -------------------
Total charge-offs (65,801) (65,093) 1.1
----------------- -------------------
Recoveries
Commercial 9,278 9,737 (4.7)
Real estate
Construction 312 191 63.4
Residential mortgages 3,860 1,974 95.5
Other 556 338 64.5
Consumer loans 16,411 16,019 2.4
----------------- -------------------
Total recoveries 30,417 28,259 7.6
----------------- -------------------
Net charge-offs (35,384) (36,834) (3.9)
----------------- -------------------
Allowance for loan and lease losses - ending $1,036,173 $1,023,746 1.2
================= ===================
Net charge-offs to average loans 0.13 % 0.14 % (7.1)
Period Ended
Nonaccrual loans
Commercial $116,609 $116,386 0.2 %
Real estate
Construction 50,311 36,793 36.7
Residential mortgages 102,201 112,166 (8.9)
Other 36,456 45,192 (19.3)
Consumer loans 22,441 26,520 (15.4)
----------------- -------------------
Total nonaccrual loans 328,018 337,057 (2.7)
Restructured loans 21,236 20,071 5.8
----------------- -------------------
Total nonperforming loans 349,254 357,128 (2.2)
Other real estate owned (OREO) 25,263 27,555 (8.3)
Other repossessed assets 5,786 7,662 (24.5)
----------------- -------------------
Total nonperforming assets $380,303 $392,345 (3.1)
================= ===================
Total nonperforming loans to total loans 0.32 % 0.34 % (5.9)%
Total nonperforming assets to total loans plus
OREO and other repossessed assets 0.35 0.37 (5.4)
Allowance to period-end loans 0.95 0.98 (3.1)
Allowance to nonperforming loans 296.7 286.7 3.5
- ------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------
THREE MONTHS ENDED
-----------------------------------------------------------
DECEMBER 31 SEPTEMBER 30 JUNE 30
2004 2004 2004
-----------------------------------------------------------
CREDIT DATA
Allowance for loan and lease losses - beginning $892,974 $902,243 $936,972
Allowance from acquisitions and other activity - net 173,844 - -
Provision for loan losses 37,099 41,774 2,827
Charge-offs
Commercial (24,335) (36,709) (20,024)
Real estate
Construction (1,002) (2,310) (102)
Residential mortgages (7,912) (5,652) (8,647)
Other (1,218) (1,032) (1,756)
Consumer loans (51,352) (32,524) (36,665)
------------------ ----------------- --------------
Total charge-offs (85,819) (78,227) (67,194)
------------------ ----------------- --------------
Recoveries
Commercial 14,295 11,511 12,520
Real estate
Construction 61 29 19
Residential mortgages 2,826 2,738 2,176
Other 679 350 248
Consumer loans 14,065 12,556 14,675
------------------ ----------------- --------------
Total recoveries 31,926 27,184 29,638
------------------ ----------------- --------------
Net charge-offs (53,893) (51,043) (37,556)
------------------ ----------------- --------------
Allowance for loan and lease losses - ending $1,050,024 $892,974 $902,243
================== ================= ==============
Net charge-offs to average loans 0.21 % 0.24 % 0.19 %
Period Ended
Nonaccrual loans
Commercial $130,961 $114,793 $143,071
Real estate
Construction 32,842 24,341 20,363
Residential mortgages 104,452 69,812 63,919
Other 36,684 32,699 37,778
Consumer loans 49,302 21,482 17,779
------------------ ----------------- --------------
Total nonaccrual loans 354,241 263,127 282,910
Restructured loans 19,049 19,725 18,189
------------------ ----------------- --------------
Total nonperforming loans 373,290 282,852 301,099
Other real estate owned (OREO) 28,619 10,934 14,246
Other repossessed assets 8,749 10,431 9,076
------------------ ----------------- --------------
Total nonperforming assets $410,658 $304,217 $324,421
================== ================= ==============
Total nonperforming loans to total loans 0.37 % 0.33 % 0.36 %
Total nonperforming assets to total loans plus
OREO and other repossessed assets 0.40 0.36 0.39
Allowance to period-end loans 1.04 1.06 1.09
Allowance to nonperforming loans 281.3 315.7 299.7
- ---------------------------------------------------- -----------------------------------------------------------
</TABLE>
Page 10
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A TO THE PRESS RELEASE
(DOLLARS IN THOUSANDS)
----------------------------------------------------------------------------
THREE MONTHS ENDED
----------------------------------------------------------------------------
JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30 JUNE 30
2005 2005 2004 2004 2004
----------------------------------------------------------------------------
NON-GAAP MEASURES PRESENTED IN THE PRESS RELEASE
Net income $465,700 $492,294 $455,729 $368,766 $386,571
Securities losses/(gains), net of tax 17 3,509 12,595 11,825 5,881
--------------- ------------- ------------- ------------- -------------
Net income excluding securities gains and losses 465,717 495,803 468,324 380,591 392,452
The Coca-Cola Company dividend, net of tax (12,027) (12,028) (10,739) (10,740) (10,739)
--------------- ------------- ------------- ------------- -------------
Net income excluding securities gains and losses and
The Coca-Cola Company dividend $453,690 $483,775 $457,585 $369,851 $381,713
=============== ============= ============= ============= =============
Total average assets $165,253,589 $161,218,222 $156,570,092 $127,127,968 $127,287,458
Average net unrealized securities gains (1,791,566) (2,032,787) (2,056,737) (2,054,978) (2,803,917)
--------------- ------------- ------------- ------------- -------------
Average assets less net unrealized securities gains $163,462,023 $159,185,435 $154,513,355 $125,072,990 $124,483,541
=============== ============= ============= ============= =============
Total average equity $16,275,567 $16,119,430 $15,818,968 $9,992,905 $10,194,201
Average accumulated other comprehensive income (1,139,477) (1,285,278) (1,304,553) (1,318,332) (1,804,833)
--------------- ------------- ------------- ------------- -------------
Total average realized equity $15,136,090 $14,834,152 $14,514,415 $8,674,573 $8,389,368
=============== ============= ============= ============= =============
Return on average total assets 1.13 % 1.24 % 1.16 % 1.15 % 1.22 %
Impact of excluding net realized and unrealized
securities gains/losses and The Coca-Cola Company
dividend (0.02) (0.01) 0.02 0.03 0.01
--------------- ------------- ------------- ------------- -------------
Return on average total assets less net unrealized
securities gains(1) 1.11 % 1.23 % 1.18 % 1.18 % 1.23 %
=============== ============= ============= ============= =============
Return on average total shareholders' equity 11.48 % 12.39 % 11.46 % 14.68 % 15.25 %
Impact of excluding net unrealized securities gains 0.54 0.84 1.08 2.28 3.05
--------------- ------------- ------------- ------------- -------------
Return on average realized shareholders' equity (2) 12.02 % 13.23 % 12.54 % 16.96 % 18.30 %
=============== ============= ============= ============= =============
Noninterest income $770,909 $753,814 $759,003 $627,692 $622,665
Securities losses/(gains) 27 5,659 19,377 18,193 9,048
Gain on sale of RCM assets, net of related expenses - (19,874) - - -
--------------- ------------- ------------- ------------- -------------
Total noninterest income excluding securities gains
and losses and net gain on sale of RCM assets(3) $770,936 $739,599 $778,380 $645,885 $631,713
=============== ============= ============= ============= =============
Net interest income $1,123,709 $1,111,560 $1,084,204 $876,874 $872,429
FTE adjustment 18,720 17,666 16,684 16,821 12,637
--------------- ------------- ------------- ------------- -------------
Net interest income - FTE 1,142,429 1,129,226 1,100,888 893,695 885,066
Noninterest income 770,909 753,814 759,003 627,692 622,665
--------------- ------------- ------------- ------------- -------------
Total revenue 1,913,338 1,883,040 1,859,891 1,521,387 1,507,731
Securities losses/(gains) 27 5,659 19,377 18,193 9,048
Gain on sale of RCM assets, net of related expenses - (19,874) - - -
--------------- ------------- ------------- ------------- -------------
Total revenue excluding securities gains and losses
and net gain on sale of RCM assets(3) $1,913,365 $1,868,825 $1,879,268 $1,539,580 $1,516,779
=============== ============= ============= ============= =============
----------------------------------------
SIX MONTHS ENDED
----------------------------------------
JUNE 30
2005 2004
----------------------------------------
NON-GAAP MEASURES PRESENTED IN THE PRESS RELEASE
Net income $957,994 $748,406
Securities losses/(gains), net of tax 3,525 2,679
-------------------- ----------------
Net income excluding securities gains and losses 961,519 751,085
The Coca-Cola Company dividend, net of tax (24,056) (21,478)
-------------------- ----------------
Net income excluding securities gains and losses and
The Coca-Cola Company dividend $937,463 $729,607
==================== ================
Total average assets $163,247,052 $125,570,602
Average net unrealized securities gains (1,911,510) (2,692,110)
-------------------- ----------------
Average assets less net unrealized securities gains $161,335,542 $122,878,492
==================== ================
Total average equity $16,197,929 $10,017,242
Average accumulated other comprehensive income (1,211,975) (1,725,273)
-------------------- ----------------
Total average realized equity $14,985,954 $8,291,969
==================== ================
Return on average total assets 1.18 % 1.20 %
Impact of excluding net realized and unrealized securities
gains/losses and The Coca-Cola Company dividend (0.01) (0.01)
-------------------- ----------------
Return on average total assets less net unrealized
securities gains(1) 1.17 % 1.19 %
==================== ================
Return on average total shareholders' equity 11.93 % 15.02 %
Impact of excluding net unrealized securities gains 0.68 2.67
-------------------- ----------------
Return on average realized shareholders' equity (2) 12.61 % 17.69 %
==================== ================
Noninterest income $1,524,723 $1,217,751
Securities losses/(gains) 5,686 4,121
Gain on sale of RCM assets, net of related expenses (19,874) -
-------------------- ----------------
Total noninterest income excluding securities gains and losses
and net gain on sale of RCM assets(3) $1,510,535 $1,221,872
==================== ================
Net interest income $2,235,269 $1,724,077
FTE adjustment 36,386 24,893
-------------------- ----------------
Net interest income - FTE 2,271,655 1,748,970
Noninterest income 1,524,723 1,217,751
-------------------- ----------------
Total revenue 3,796,378 2,966,721
Securities losses/(gains) 5,686 4,121
Gain on sale of RCM assets, net of related expenses (19,874) -
-------------------- ----------------
Total revenue excluding securities gains and losses
and net gain on sale of RCM assets(3) $3,782,190 $2,970,842
==================== ================
</TABLE>
<TABLE>
--------------------------------------------
THREE MONTHS ENDED
--------------------------------------------
JUNE 30 MARCH 31 %(4)
2005 2005 CHANGE
--------------------------------------------
AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT
Noninterest bearing deposits $24,309,721 $23,723,080 2.5%
NOW accounts 17,519,608 17,479,848 0.2
Savings 6,462,425 7,506,923 (13.9)
------------------ ----------------
Total average low cost consumer and commercial deposits $48,291,754 $48,709,851 (0.9)
================== ================
---------------------------------------------
THREE MONTHS ENDED
---------------------------------------------
JUNE (30) JUNE (30) %
(2005) (2004) CHANGE
---------------------------------------------
AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT
Noninterest bearing deposits $24,309,721 $20,591,615 18.1%
NOW accounts 17,519,608 12,811,554 36.7
Savings 6,462,425 6,990,929 (7.6)
--------------- -------------
Total average low cost consumer and commercial deposits $48,291,754 $40,394,098 19.6
=============== =============
</TABLE>
- --------------------------------------------------------------------------------
(1) SunTrust presents a return on average assets less net unrealized gains
on securities. The foregoing numbers reflect primarily adjustments to
remove the effects of the Company's securities portfolio which includes the
ownership by the Company of 48.3 million shares of The Coca-Cola Company.
The Company uses this information internally to gauge its actual
performance in the industry. The Company believes that the return on
average assets less the net unrealized securities gains is more indicative
of the Company's return on assets because it more accurately reflects the
return on the assets that are related to the Company's core businesses
which are primarily customer relationship and customer transaction driven.
The return on average assets less net unrealized gains on securities is
computed by dividing annualized net income, excluding securities
gains/losses and The Coca-Cola Company dividend, by average assets less net
unrealized securities gains.
(2) The Company also believes that the return on average realized equity is
more indicative of the Company's return on equity because the excluded
equity relates primarily to a long term holding of a specific security. The
return on average realized shareholders' equity is computed by dividing
annualized net income, excluding securities gains/losses and The Coca-Cola
Company dividend, by average realized shareholders' equity.
(3) SunTrust presents total noninterest income and total revenue excluding
realized securities gains and losses and the net gain on the sale of RCM
assets. The Company believes total noninterest income and total revenue
without securities gains and losses is more indicative of the Company's
performance because it isolates income that is primarily customer
relationship and customer transaction driven. SunTrust further excludes the
net gain on the sale of RCM assets because the Company believes the
exclusion of the net gain is more indicative of normalized operations.
(4) Multiply by 4 to calculate sequential annualized growth or reductions
discussed in the earnings call.
Page 11
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A TO THE PRESS RELEASE, CONTINUED
(DOLLARS IN THOUSANDS)
---------------------------------------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------------------------------------
JUNE 30 MARCH 31 JUNE 30
2005 2005 2005
---------------------------------------------------------
SELECTED NON-GAAP OPERATING MEASURES AND ADJUSTED OPERATING MEASURES
PRESENTED IN THE PRESS RELEASE (1)
- --------------------------------------------------------------------
Net income $465,700 $492,294 $957,994
Merger expense, net of tax 33,642 15,958 49,600
---------------- ---------------- ----------------
Operating net income 499,342 508,252 1,007,594
Net gain on sale of RCM assets, net of tax - (12,322) (12,322)
---------------- ---------------- ----------------
Adjusted operating net income $499,342 $495,930 $995,272
================ ================ ================
Diluted earnings per share $1.28 $1.36 $2.64
Impact of excluding merger expense 0.09 0.04 0.13
---------------- ---------------- ----------------
Operating diluted earnings per share 1.37 1.40 2.77
Impact of net gain on sale of RCM assets - (0.03) (0.03)
---------------- ---------------- ----------------
Adjusted operating diluted earnings per share $1.37 $1.37 $2.74
================ ================ ================
Total revenue $1,913,338 $1,883,040 $3,796,378
Securities losses 27 5,659 5,686
Net gain on sale of RCM assets - (19,874) (19,874)
---------------- ---------------- ----------------
Adjusted total revenue $1,913,365 $1,868,825 $3,782,190
================ ================ ================
Noninterest income $770,909 $753,814 $1,524,723
Net gain on sale of RCM assets - (19,874) (19,874)
---------------- ---------------- ----------------
Noninterest income excluding net gain on sale of RCM assets $770,909 $733,940 $1,504,849
================ ================ ================
Noninterest expense $1,172,825 $1,133,906 $2,306,731
Merger expense (54,262) (25,738) (80,000)
---------------- ---------------- ----------------
Noninterest expense excluding merger expense $1,118,563 $1,108,168 $2,226,731
================ ================ ================
Efficiency ratio 61.30 % 60.22 % 60.76 %
Impact of excluding merger expense (2.84) (1.37) (2.11)
---------------- ---------------- ----------------
Operating efficiency ratio 58.46 58.85 58.65
Impact of net gain on sale of RCM assets - 0.63 0.31
---------------- ---------------- ----------------
Adjusted operating efficiency ratio 58.46 % 59.48 % 58.96 %
================ ================ ================
Return on average total assets 1.13 % 1.24 % 1.18 %
Impact of excluding merger expense 0.08 0.04 0.06
---------------- ---------------- ----------------
Operating return on average total assets(2) 1.21 % 1.28 % 1.24 %
================ ================ ================
Return on average total shareholders' equity 11.48 % 12.39 % 11.93 %
Impact of excluding merger expense 0.83 0.40 0.61
---------------- ---------------- ----------------
Operating return on average total shareholders' equity (3) 12.31 % 12.79 % 12.54 %
================ ================ ================
</TABLE>
- -------------------------------------------------------------------------------
(1) SunTrust presents selected financial data on an operating basis that
excludes merger charges, which represent incremental costs to integrate
NCF's operations. The Company also presents selected financial data on an
adjusted operating basis, which further excludes the net gain related to
the sale of RCM assets. The Company believes the exclusion of these two
measures is more reflective of normalized operations.
(2) Computed by dividing annualized operating net income by average total
assets.
(3) Computed by dividing annualized operating net income by average total
shareholders' equity.
Page 12
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
QUARTER-TO-QUARTER COMPARISON - ACTUAL
APPENDIX B TO THE PRESS RELEASE
------------------------------------------------------------------------
THREE MONTHS ENDED
------------------------------------------------------------------------
JUNE 30 MARCH 31 INCREASE/(DECREASE) SEQUENTIAL
2005 2005 AMOUNT % ANNUALIZED(1) %
------------------------------------------------------------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $1,123,709 $1,111,560 $12,149 1.1 % 4.4 %
Provision for loan losses 47,811 10,556 37,255 352.9 NM
------------ ------------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,075,898 1,101,004 (25,106) (2.3) (9.1)
------------ ------------- -----------
NONINTEREST INCOME
Deposit and other fees (2) 357,545 343,634 13,911 4.0 16.2
Trust and investment management income 167,503 164,515 2,988 1.8 7.3
Broker / dealer revenue (3) 138,149 149,196 (11,047) (7.4) (29.6)
Other noninterest income 107,739 82,254 25,485 31.0 NM
------------ ------------- -----------
Noninterest income before securities (losses)/gains
and net gain on sale of RCM assets(4) 770,936 739,599 31,337 4.2 16.9
Gain on sale of RCM assets, net of related expenses - 19,874 (19,874) (100.0) NM
------------ ------------- -----------
Noninterest income before securities (losses)/gains 770,936 759,473 11,463 1.5 6.0
Securities (losses)/gains (27) (5,659) 5,632 (99.5) NM
------------ ------------- -----------
Total noninterest income 770,909 753,814 17,095 2.3 9.1
------------ ------------- -----------
NONINTEREST EXPENSE
Personnel expense 623,284 634,793 (11,509) (1.8) (7.3)
Net occupancy expense 73,483 75,851 (2,368) (3.1) (12.5)
Outside processing and software 89,282 82,848 6,434 7.8 31.1
Equipment expense 51,579 52,882 (1,303) (2.5) (9.9)
Marketing and customer development 36,298 31,629 4,669 14.8 59.0
Other noninterest expense 214,819 198,948 15,871 8.0 31.9
------------ ------------- -----------
Noninterest expense before amortization of
intangible assets and merger expense(5) 1,088,745 1,076,951 11,794 1.1 4.4
Amortization of intangible assets 29,818 31,217 (1,399) (4.5) (17.9)
Merger expense 54,262 25,738 28,524 110.8 NM
------------ ------------- -----------
Total noninterest expense 1,172,825 1,133,906 38,919 3.4 13.7
------------ ------------- -----------
INCOME BEFORE INCOME TAXES 673,982 720,912 (46,930) (6.5) (26.0)
Provision for income taxes 208,282 228,618 (20,336) (8.9) (35.6)
------------ ------------- -----------
NET INCOME 465,700 492,294 (26,594) (5.4) (21.6)
Merger expense, net of tax 33,642 15,958 17,684 110.8 NM
------------ ------------- -----------
OPERATING NET INCOME 499,342 508,252 (8,910) (1.8) (7.0)
Net gain on sale of RCM assets, net of tax - (12,322) 12,322 (100.0) NM
------------ ------------- -----------
ADJUSTED OPERATING NET INCOME $499,342 $495,930 $3,412 0.7 2.8
============ ============= ===========
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $1,123,709 $1,111,560 $12,149 1.1 % 4.4 %
FTE adjustment 18,720 17,666 1,054 6.0 23.9
------------ ------------- -----------
Net interest income - FTE 1,142,429 1,129,226 13,203 1.2 4.7
Noninterest income 770,909 753,814 17,095 2.3 9.1
------------ ------------- -----------
Total revenue 1,913,338 1,883,040 30,298 1.6 6.4
Securities losses/(gains) 27 5,659 (5,632) (99.5) NM
Net gain on sale of RCM assets - (19,874) 19,874 (100.0) NM
------------ ------------- -----------
Total revenue excluding securities gains and losses
and net gain on sale of RCM assets $1,913,365 $1,868,825 $44,540 2.4 9.5
============ ============= ===========
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans 6, (8)
Commercial $32,508 $33,518 ($1,010) (3.0)% (12.1)%
Real estate 1-4 family 26,324 23,527 2,797 11.9 47.6
Real estate commercial and construction 21,496 19,224 2,272 11.8 47.3
Real estate equity 12,135 11,574 561 4.8 19.4
Consumer (7) 14,291 15,175 (884) (5.8) (23.3)
Credit cards 213 198 15 7.6 30.3
------------ ------------- -----------
Total loans $106,967 $103,216 $3,751 3.6 14.5
============ ============= ===========
Average deposits(8)
Noninterest bearing deposits $24,310 $23,723 $587 2.5 % 9.9 %
NOW accounts 17,520 17,480 40 0.2 0.9
Money Market accounts 25,473 24,767 706 2.9 11.4
Savings 6,462 7,507 (1,045) (13.9) (55.7)
Consumer and other time 19,300 17,491 1,809 10.3 41.4
------------ ------------- -----------
Total consumer and commercial deposits 93,065 90,968 2,097 2.3 9.2
Brokered and foreign deposits 15,709 13,424 2,285 17.0 68.1
------------ ------------- -----------
Total deposits $108,774 $104,392 $4,382 4.2 16.8
============ ============= ===========
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $328,018 $337,057 ($9,039) (2.7)% (10.7)%
Restructured loans 21,236 20,071 1,165 5.8 23.2
------------ ------------- -----------
Total nonperforming loans 349,254 357,128 (7,874) (2.2) (8.8)
Other real estate owned (OREO) 25,263 27,555 (2,292) (8.3) (33.3)
Other repossessed assets 5,786 7,662 (1,876) (24.5) (97.9)
------------ ------------- -----------
Total nonperforming assets $380,303 $392,345 ($12,042) (3.1) (12.3)
============ ============= ===========
Allowance for loan and lease losses $1,036,173 $1,023,746 $12,427 1.2 4.9
============ ============= ===========
</TABLE>
- -------------------------------------------------------------------------------
(1) Multiply percentage change by 4 to calculate sequential annualized change.
Any sequential annualized change over 100 percent is labled as "NM." Those
changes over 100 percent were not considered to be meaningful.
(2) Includes service charges on deposits, card and other charges and fees.
(3) Includes retail investment services, investment banking income and trading
account profits and commissions.
(4) SunTrust presents noninterest income before securities (losses)/gains and
the net gain on the sale of RCM assets. The Company believes noninterest
income before securities gains and losses is more indicative of the
Company's performance because it isolates income that is primarily customer
relationship and customer transaction driven. SunTrust further excludes the
net gain on the sale of RCM assets because the Company believes the
exclusion of the net gain provides better comparability and is more
indicative of normalized operations.
(5) The Company presents noninterest expense before amortization of intangible
assets and merger expense. The Company believes the exclusion of these
measures provides better comparability and is more reflective of normalized
operations.
(6) SunTrust's average nonaccrual and restructured loans are included in the
respective categories to conform to the NCF presentation.
(7) Includes consumer direct and consumer indirect loans.
(8) See Appendix C for the impact of the estimated reclassification adjustments
resulting from the April 22, 2005 NCF systems conversion.
Page 13
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
QUARTER-TO-QUARTER COMPARISON - HISTORICAL COMBINED GROWTH
APPENDIX B TO THE PRESS RELEASE, CONTINUED
The 2nd quarter and year-to-date 2004 figures represent SunTrust and NCF on a
historical combined basis. See page 15 for a reconcilement of these historical
combined amounts.
------------------------------------------------------------------
HISTORICAL COMBINED
------------------------------------------------------------------
THREE MONTHS ENDED
------------------------------------------------------------------
JUNE 30 INCREASE/(DECREASE)
2005 2004 AMOUNT %
------------------------------------------------------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $1,123,709 $1,066,415 $57,294 5.4 %
Provision for loan losses 47,811 15,672 32,139 205.1
--------------- ---------------- ---------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,075,898 1,050,743 25,155 2.4
--------------- ---------------- ---------------
NONINTEREST INCOME
Deposit and other fees (1) 357,545 355,631 1,914 0.5
Trust and investment management income 167,503 156,352 11,151 7.1
Broker / dealer revenue (2) 138,149 161,914 (23,765) (14.7)
Other noninterest income 107,739 81,998 25,741 31.4
--------------- ---------------- ---------------
Noninterest income before securities (losses)/gains
and net gain on sale of RCM assets(3) 770,936 755,895 15,041 2.0
Gain on sale of RCM assets, net of related expenses - - - -
--------------- ---------------- ---------------
Noninterest income before securities (losses)/gains 770,936 755,895 15,041 2.0
Securities (losses)/gains (27) (8,982) 8,955 (99.7)
--------------- ---------------- ---------------
Total noninterest income 770,909 746,913 23,996 3.2
--------------- ---------------- ---------------
NONINTEREST EXPENSE
Personnel expense 623,284 598,729 24,555 4.1
Net occupancy expense 73,483 75,042 (1,559) (2.1)
Outside processing and software 89,282 77,680 11,602 14.9
Equipment expense 51,579 52,934 (1,355) (2.6)
Marketing and customer development 36,298 35,788 510 1.4
Other noninterest expense 214,819 235,442 (20,623) (8.8)
--------------- ---------------- ---------------
Noninterest expense before amortization of
intangible assets and merger expense(4) 1,088,745 1,075,615 13,130 1.2
Amortization of intangible assets 29,818 27,491 2,327 8.5
Merger expense 54,262 - 54,262 100.0
--------------- ---------------- ---------------
Total noninterest expense 1,172,825 1,103,106 69,719 6.3
--------------- ---------------- ---------------
INCOME BEFORE INCOME TAXES 673,982 694,550 (20,568) (3.0)
Provision for income taxes 208,282 222,888 (14,606) (6.6)
--------------- ---------------- ---------------
NET INCOME 465,700 471,662 (5,962) (1.3)
Merger expense, net of tax 33,642 - 33,642 100.0
--------------- ---------------- ---------------
OPERATING NET INCOME 499,342 471,662 27,680 5.9
Net gain on sale of RCM assets, net of tax - - - -
--------------- ---------------- ---------------
ADJUSTED OPERATING NET INCOME $499,342 $471,662 $27,680 5.9
=============== ================ ===============
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $1,123,709 $1,066,415 $57,294 5.4 %
FTE adjustment (5) 18,720 15,017 3,703 24.7
--------------- ---------------- ---------------
Net interest income - FTE 1,142,429 1,081,432 60,997 5.6
Noninterest income 770,909 746,913 23,996 3.2
--------------- ---------------- ---------------
Total revenue 1,913,338 1,828,345 84,993 4.6
Securities losses/(gains) 27 8,982 (8,955) (99.7)
Net gain on sale of RCM assets - - - -
--------------- ---------------- ---------------
Total revenue excluding securities gains and losses
and net gain on sale of RCM assets $1,913,365 $1,837,327 $76,038 4.1
=============== ================ ===============
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (6)
Commercial $32,508 $31,775 $733 2.3 %
Real estate 1-4 family 26,324 20,018 6,306 31.5
Real estate commercial and construction 21,496 17,864 3,632 20.3
Real estate equity 12,135 9,497 2,638 27.8
Consumer (7) 14,291 15,382 (1,091) (7.1)
Credit cards 213 167 46 27.5
--------------- ---------------- ---------------
Total loans $106,967 $94,703 $12,264 12.9
=============== ================ ===============
Average deposits
Noninterest bearing deposits $24,310 $23,292 $1,018 4.4 %
NOW accounts 17,520 15,090 2,430 16.1
Money Market accounts 25,473 24,207 1,266 5.2
Savings 6,462 8,697 (2,235) (25.7)
Consumer and other time 19,300 15,270 4,030 26.4
--------------- ---------------- ---------------
Total consumer and commercial deposits 93,065 86,556 6,509 7.5
Brokered and foreign deposits 15,709 12,677 3,032 23.9
--------------- ---------------- ---------------
Total deposits $108,774 $99,233 $9,541 9.6
=============== ================ ===============
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $328,018 $320,548 $7,470 2.3 %
Restructured loans 21,236 18,189 3,047 16.8
--------------- ---------------- ---------------
Total nonperforming loans 349,254 338,737 10,517 3.1
Other real estate owned (OREO) 25,263 36,865 (11,602) (31.5)
Other repossessed assets 5,786 14,201 (8,415) (59.3)
--------------- ---------------- ---------------
Total nonperforming assets $380,303 $389,803 ($9,500) (2.4)
=============== ================ ===============
Allowance for loan and lease losses $1,036,173 $1,080,681 ($44,508) (4.1)
=============== ================ ===============
- --------------------------------------------------------------------------------
----------------------------------------------------------------------
HISTORICAL COMBINED
----------------------------------------------------------------------
SIX MONTHS ENDED
----------------------------------------------------------------------
JUNE 30 INCREASE/(DECREASE)
2005 2004 AMOUNT %
----------------------------------------------------------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $2,235,269 $2,109,134 $126,135 6.0 %
Provision for loan losses 58,367 81,597 (23,230) (28.5)
----------------- ----------------- -----------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,176,902 2,027,537 149,365 7.4
----------------- ----------------- -----------------
NONINTEREST INCOME
Deposit and other fees (1) 701,179 692,753 8,426 1.2
Trust and investment management income 332,018 309,068 22,950 7.4
Broker / dealer revenue (2) 287,345 307,617 (20,272) (6.6)
Other noninterest income 189,993 145,636 44,357 30.5
----------------- ----------------- -----------------
Noninterest income before securities (losses)/gains
and net gain on sale of RCM assets(3) 1,510,535 1,455,074 55,461 3.8
Gain on sale of RCM assets, net of related expenses 19,874 - 19,874 100.0
----------------- ----------------- -----------------
Noninterest income before securities (losses)/gains 1,530,409 1,455,074 75,335 5.2
Securities (losses)/gains (5,686) 6,863 (12,549) (182.9)
----------------- ----------------- -----------------
Total noninterest income 1,524,723 1,461,937 62,786 4.3
----------------- ----------------- -----------------
NONINTEREST EXPENSE
Personnel expense 1,258,077 1,184,646 73,431 6.2
Net occupancy expense 149,334 150,308 (974) (0.6)
Outside processing and software 172,130 149,895 22,235 14.8
Equipment expense 104,461 105,252 (791) (0.8)
Marketing and customer development 67,927 69,036 (1,109) (1.6)
Other noninterest expense 413,767 440,673 (26,906) (6.1)
----------------- ----------------- -----------------
Noninterest expense before amortization of
intangible assets and merger expense(4) 2,165,696 2,099,810 65,886 3.1
Amortization of intangible assets 61,035 56,770 4,265 7.5
Merger expense 80,000 - 80,000 100.0
----------------- ----------------- -----------------
Total noninterest expense 2,306,731 2,156,580 150,151 7.0
----------------- ----------------- -----------------
INCOME BEFORE INCOME TAXES 1,394,894 1,332,894 62,000 4.7
Provision for income taxes 436,900 409,153 27,747 6.8
----------------- ----------------- -----------------
NET INCOME 957,994 923,741 34,253 3.7
Merger expense, net of tax 49,600 - 49,600 100.0
----------------- ----------------- -----------------
OPERATING NET INCOME 1,007,594 923,741 83,853 9.1
Net gain on sale of RCM assets, net of tax (12,322) - (12,322) (100.0)
----------------- ----------------- -----------------
ADJUSTED OPERATING NET INCOME $995,272 $923,741 $71,531 7.7
================= ================= =================
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $2,235,269 $2,109,134 $126,135 6.0 %
FTE adjustment (5) 36,386 29,378 7,008 23.9
----------------- ----------------- -----------------
Net interest income - FTE 2,271,655 2,138,512 133,143 6.2
Noninterest income 1,524,723 1,461,937 62,786 4.3
----------------- ----------------- -----------------
Total revenue 3,796,378 3,600,449 195,929 5.4
Securities losses/(gains) 5,686 (6,863) 12,549 182.9
Net gain on sale of RCM assets (19,874) - (19,874) (100.0)
----------------- ----------------- -----------------
Total revenue excluding securities gains and losses
and net gain on sale of RCM assets $3,782,190 $3,593,586 $188,604 5.2
================= ================= =================
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (6)
Commercial $33,011 $32,202 $809 2.5 %
Real estate 1-4 family 24,931 19,402 5,529 28.5
Real estate commercial and construction 20,370 17,767 2,603 14.7
Real estate equity 11,856 9,170 2,686 29.3
Consumer (7) 14,729 15,222 (493) (3.2)
Credit cards 205 161 44 27.3
----------------- ----------------- -----------------
Total loans $105,102 $93,924 $11,178 11.9
================= ================= =================
Average deposits
Noninterest bearing deposits $24,018 $22,352 $1,666 7.5 %
NOW accounts 17,500 14,792 2,708 18.3
Money Market accounts 25,122 24,139 983 4.1
Savings 6,982 8,376 (1,394) (16.6)
Consumer and other time 18,400 15,422 2,978 19.3
----------------- ----------------- -----------------
Total consumer and commercial deposits 92,022 85,081 6,941 8.2
Brokered and foreign deposits 14,573 12,484 2,089 16.7
----------------- ----------------- -----------------
Total deposits $106,595 $97,565 $9,030 9.3
================= ================= =================
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans
Restructured loans
Total nonperforming loans
Other real estate owned (OREO)
Other repossessed assets
Total nonperforming assets
Allowance for loan and lease losses
</TABLE>
- --------------------------------------------------------------------------------
(1) Includes service charges on deposits, card and other charges and fees.
(2) Includes retail investment services, investment banking income and trading
account profits and commissions.
(3) SunTrust presents noninterest income before securities (losses)/gains and
the net gain on the sale of RCM assets. The Company believes noninterest
income before securities gains and losses is more indicative of the
Company's performance because it isolates income that is primarily customer
relationship and customer transaction driven. SunTrust further excludes the
net gain on the sale of RCM assets because the Company believes the
exclusion of the net gain provides better comparability and is more
indicative of normalized operations.
(4) The Company presents noninterest expense before amortization of intangible
assets and merger expense. The Company believes the exclusion of these
measures provides better comparability and is more reflective of normalized
operations.
(5) NCF's FTE adjustments were reduced $4.4 million and $9.1 million from the
second quarter and first six months of 2004, respectively, to conform to
SunTrust's methodology.
(6) SunTrust's average nonaccrual and restructured loans are included in the
respective categories to conform to the NCF presentation.
(7) Includes consumer direct and consumer indirect loans.
Page 14
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
SUNTRUST / NCF - SELECTED HISTORICAL FINANCIAL DATA
APPENDIX B TO THE PRESS RELEASE, CONTINUED
------------------------------------------------------------
THREE MONTHS ENDED
------------------------------------------------------------
JUNE 30, 2004
------------------------------------------------------------
SUNTRUST NCF HISTORICAL COMBINED
----------------- ------------------ ---------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $872,429 $193,986 $1,066,415
Provision for loan losses 2,827 12,845 15,672
----------------- ------------------ -------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 869,602 181,141 1,050,743
----------------- ------------------ -------------------
NONINTEREST INCOME
Deposit and other fees (1) 301,191 54,440 355,631
Trust and investment management income 140,366 15,986 156,352
Broker / dealer revenue (2) 135,203 26,711 161,914
Other noninterest income 54,953 27,045 81,998
----------------- ------------------ -------------------
Noninterest income before securities (losses)/gains 631,713 124,182 755,895
Securities (losses)/gains (9,048) 66 (8,982)
----------------- ------------------ -------------------
Total noninterest income 622,665 124,248 746,913
----------------- ------------------ -------------------
NONINTEREST EXPENSE
Personnel expense 520,922 77,807 598,729
Net occupancy expense 61,629 13,413 75,042
Outside processing and software 70,619 7,061 77,680
Equipment expense 45,740 7,194 52,934
Marketing and customer development 31,655 4,133 35,788
Other noninterest expense 183,294 52,148 235,442
----------------- ------------------ -------------------
Noninterest expense before amortization of
intangible assets 913,859 161,756 1,075,615
Amortization of intangible assets 14,590 12,901 27,491
----------------- ------------------ -------------------
Total noninterest expense 928,449 174,657 1,103,106
----------------- ------------------ -------------------
INCOME BEFORE INCOME TAXES 563,818 130,732 694,550
Provision for income taxes 177,247 45,641 222,888
----------------- ------------------ -------------------
NET INCOME $386,571 $85,091 $471,662
================= ================== ===================
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $872,429 $193,986 $1,066,415
FTE adjustment (3) 12,637 2,380 15,017
----------------- ------------------ -------------------
Net interest income - FTE 885,066 196,366 1,081,432
Noninterest income 622,665 124,248 746,913
----------------- ------------------ -------------------
Total revenue 1,507,731 320,614 1,828,345
Securities losses/(gains) 9,048 (66) 8,982
----------------- ------------------ -------------------
Total revenue excluding securities gains and losses $1,516,779 $320,548 $1,837,327
================= ================== ===================
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (4)
Commercial $27,654 $4,121 $31,775
Real estate 1-4 family 18,934 1,084 20,018
Real estate commercial and construction 14,043 3,821 17,864
Real estate equity 7,619 1,878 9,497
Consumer (5) 12,535 2,847 15,382
Credit cards 151 16 167
----------------- ------------------ -------------------
Total loans $80,936 $13,767 $94,703
================= ================== ===================
Average deposits
Noninterest bearing deposits $20,591 $2,701 $23,292
NOW accounts 12,812 2,278 15,090
Money Market accounts 22,367 1,840 24,207
Savings 6,991 1,706 8,697
Consumer and other time 10,405 4,865 15,270
----------------- ------------------ -------------------
Total consumer and commercial deposits 73,166 13,390 86,556
Brokered and foreign deposits 10,154 2,523 12,677
----------------- ------------------ -------------------
Total deposits $83,320 $15,913 $99,233
================= ================== ===================
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $282,910 $37,638 $320,548
Restructured loans 18,189 - 18,189
----------------- ------------------ -------------------
Total nonperforming loans 301,099 37,638 338,737
Other real estate owned (OREO) 14,246 22,619 36,865
Other repossessed assets 9,076 5,125 14,201
----------------- ------------------ -------------------
Total nonperforming assets $324,421 $65,382 $389,803
================= ================== ===================
Allowance for loan and lease losses $902,243 $178,438 $1,080,681
================= ================== ===================
- -------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------
SIX MONTHS ENDED
-------------------------------------------------------------
JUNE 30, 2004
-------------------------------------------------------------
SUNTRUST NCF HISTORICAL COMBINED
------------------ ------------------- ---------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $1,724,077 $385,057 $2,109,134
Provision for loan losses 56,664 24,933 81,597
------------------ ------------------- -------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,667,413 360,124 2,027,537
------------------ ------------------- -------------------
NONINTEREST INCOME
Deposit and other fees (1) 588,850 103,903 692,753
Trust and investment management income 276,584 32,484 309,068
Broker / dealer revenue (2) 255,144 52,473 307,617
Other noninterest income 101,294 44,342 145,636
------------------ ------------------- -------------------
Noninterest income before securities (losses)/gains 1,221,872 233,202 1,455,074
Securities (losses)/gains (4,121) 10,984 6,863
------------------ ------------------- -------------------
Total noninterest income 1,217,751 244,186 1,461,937
------------------ ------------------- -------------------
NONINTEREST EXPENSE
Personnel expense 1,027,718 156,928 1,184,646
Net occupancy expense 123,488 26,820 150,308
Outside processing and software 136,245 13,650 149,895
Equipment expense 90,825 14,427 105,252
Marketing and customer development 61,874 7,162 69,036
Other noninterest expense 347,817 92,856 440,673
------------------ ------------------- -------------------
Noninterest expense before amortization of
intangible assets 1,787,967 311,843 2,099,810
Amortization of intangible assets 30,230 26,540 56,770
------------------ ------------------- -------------------
Total noninterest expense 1,818,197 338,383 2,156,580
------------------ ------------------- -------------------
INCOME BEFORE INCOME TAXES 1,066,967 265,927 1,332,894
Provision for income taxes 318,561 90,592 409,153
------------------ ------------------- -------------------
NET INCOME $748,406 $175,335 $923,741
================== =================== ===================
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $1,724,077 $385,057 $2,109,134
FTE adjustment (3) 24,893 4,485 29,378
------------------ ------------------- -------------------
Net interest income - FTE 1,748,970 389,542 2,138,512
Noninterest income 1,217,751 244,186 1,461,937
------------------ ------------------- -------------------
Total revenue 2,966,721 633,728 3,600,449
Securities losses/(gains) 4,121 (10,984) (6,863)
------------------ ------------------- -------------------
Total revenue excluding securities gains and losses $2,970,842 $622,744 $3,593,586
================== =================== ===================
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (4)
Commercial $28,143 $4,059 $32,202
Real estate 1-4 family 18,383 1,019 19,402
Real estate commercial and construction 13,976 3,791 17,767
Real estate equity 7,365 1,805 9,170
Consumer (5) 12,409 2,813 15,222
Credit cards 145 16 161
------------------ ------------------- -------------------
Total loans $80,421 $13,503 $93,924
================== =================== ===================
Average deposits
Noninterest bearing deposits $19,744 $2,608 $22,352
NOW accounts 12,572 2,220 14,792
Money Market accounts 22,252 1,887 24,139
Savings 6,663 1,713 8,376
Consumer and other time 10,533 4,889 15,422
------------------ ------------------- -------------------
Total consumer and commercial deposits 71,764 13,317 85,081
Brokered and foreign deposits 10,077 2,407 12,484
------------------ ------------------- -------------------
Total deposits $81,841 $15,724 $97,565
================== =================== ===================
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans
Restructured loans
Total nonperforming loans
Other real estate owned (OREO)
Other repossessed assets
Total nonperforming assets
Allowance for loan and lease losses
</TABLE>
- --------------------------------------------------------------------------------
(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 $4.4 million and $9.1 million from the
second quarter and first six months of 2004, respectively, to conform to
SunTrust methodology.
(4) SunTrust's average nonaccrual and restructured loans are included in the
respective categories to conform to the NCF presentation.
(5) Includes consumer direct and consumer indirect loans.
Page 15
<TABLE>
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED DAILY AVERAGE BALANCES - ADJUSTED (1)
APPENDIX C TO THE PRESS RELEASE
(DOLLARS IN MILLIONS)
-----------------------------------------------------------------------------------------
THREE MONTHS ENDED
-----------------------------------------------------------------------------------------
JUNE 30 MARCH 31
2005 2005
-----------------------------------------------------------------------------------------
Average Average
Balances - Estimated Balances - Estimated
Reported Reclassification As Adjusted Reported Reclassification As Adjusted
----------- ----------------- -------------- ------------ ---------------- -----------
LOANS
Real estate 1-4 family $26,224.1 $528.8 $26,752.9 $23,435.7 $2,163.4 $25,599.1
Real estate construction 9,196.9 (234.5) 8,962.4 9,621.2 (959.3) 8,661.9
Real estate equity 12,134.7 (104.4) 12,030.3 11,573.7 (427.1) 11,146.6
Real estate commercial 12,214.5 827.8 13,042.3 9,537.0 3,386.1 12,923.1
Commercial 32,393.4 (762.7) 31,630.7 33,423.9 (3,120.0) 30,303.9
Business credit card 213.1 - 213.1 197.7 - 197.7
Consumer - direct 5,404.7 (467.7) 4,937.0 6,767.2 (1,913.4) 4,853.8
Consumer - indirect 8,861.1 197.4 9,058.5 8,384.4 807.6 9,192.0
Nonaccrual and restructured 324.2 15.3 339.5 275.0 62.7 337.7
-------------- ----------- -------------- ------------- ---------------------------
Total loans $106,966.7 $- $106,966.7 $103,215.8 $- $103,215.8
============== =========== ============== ============= ===========================
DEPOSITS
Noninterest-bearing deposits $24,309.7 $15.0 $24,324.7 $23,723.1 $61.4 $23,784.5
NOW accounts 17,519.6 (4.6) 17,515.0 17,479.8 (18.8) 17,461.0
Money Market accounts 25,472.9 205.4 25,678.3 24,767.4 840.2 25,607.6
Savings 6,462.4 (215.8) 6,246.6 7,506.9 (882.8) 6,624.1
Consumer time 12,122.0 (565.5) 11,556.5 12,324.0 (2,313.4) 10,010.6
Other time 7,177.9 565.5 7,743.4 5,166.6 2,313.4 7,480.0
-------------- ----------- -------------- ------------- ---------------------------
Total consumer and commercial deposits 93,064.5 - 93,064.5 90,967.8 - 90,967.8
Brokered deposits 9,580.3 - 9,580.3 6,462.1 - 6,462.1
Foreign deposits 6,128.9 - 6,128.9 6,962.3 - 6,962.3
-------------------------- -------------- ------------- ---------------------------
Total deposits $108,773.7 $- $108,773.7 $104,392.2 $- $104,392.2
============== =========== ============== ============= ===========================
Adjusted
Adjusted Sequential
Adjusted Growth Annualized
Growth Rate Growth Rate(2)
------------------- ------------------ -------------------
LOANS
Real estate 1-4 family $1,153.8 4.5 % 18.0 %
Real estate construction 300.5 3.5 13.9
Real estate equity 883.7 7.9 31.7
Real estate commercial 119.2 0.9 3.7
Commercial 1,326.8 4.4 17.5
Business credit card 15.4 7.8 31.2
Consumer - direct 83.2 1.7 6.9
Consumer - indirect (133.5) (1.5) (5.8)
Nonaccrual and restructured 1.8 0.5 2.1
------------------
Total loans $3,750.9 3.6 14.5
==================
DEPOSITS
Noninterest-bearing deposits $540.2 2.3 % 9.1 %
NOW accounts 54.0 0.3 1.2
Money Market accounts 70.7 0.3 1.1
Savings (377.5) (5.7) (22.8)
Consumer time 1,545.9 15.4 61.8
Other time 263.4 3.5 14.1
------------------
Total consumer and commercial deposits 2,096.7 2.3 9.2
Brokered deposits 3,118.2 48.3 NM
Foreign deposits (833.4) (12.0) (47.9)
------------------
Total deposits $4,381.5 4.2 16.8
==================
</TABLE>
- --------------------------------------------------------------------------------
(1) As a result of the NCF systems conversion on April 22, 2005, SunTrust
presents consolidated average balances on an adjusted basis for both loans
and deposits. The Company believes these adjusted measures provide a better
comparison between reporting periods and are more indicative of true loan
and deposit fluctuations. The adjustments represent reclassifications due
to account mapping changes resulting from the systems conversion.
(2) Multiply percentage change by 4 to calculate sequential annualized change.
Any sequential annualized change over 100 percent is labled as "NM." Those
changes over 100 percent were not considered to be meaningful.
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