[SUNTRUST LOGO]
NEWS RELEASE
Contact:
Investors Media
Greg Ketron Barry Koling
(404) 827-6714 (404) 230-5268
For Immediate Release
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October 18, 2005
SUNTRUST REPORTS THIRD QUARTER 2005 EARNINGS
LOAN AND FEE INCOME GROWTH DRIVE ANOTHER QUARTER OF STRONG RESULTS
ATLANTA-- SunTrust Banks, Inc. (NYSE: STI) today reported net income for the
third quarter of 2005 of $510.8 million, as compared to $368.8 million generated
during the third quarter of 2004. Net income per diluted share was $1.40, up 8%
from the third quarter of 2004. Operating net income per diluted share was
$1.42, up 9% from the third quarter of 2004. Operating net income does not
include $7.5 million of after-tax merger charges incurred in the third quarter
of 2005 associated with SunTrust's acquisition of National Commerce Financial
Corporation (NCF), which closed on October 1, 2004.
"We're pleased to report another quarter of strong results and, in
particular, positive operating leverage led by especially robust revenue growth.
SunTrust's concentrated, corporate-wide sales focus continues to pay off in
strong across-the-board loan growth and record mortgage production as we
continue to tap the opportunities that lie within our high-growth markets," said
L. Phillip Humann, SunTrust Chairman and Chief Executive Officer. Mr. Humann
also noted that SunTrust continues to demonstrate consistently effective expense
discipline as indicated by the 3% core expense growth for the first nine months
of 2005 as compared to the same period of 2004 on an estimated historical
combined basis. Finally, Mr. Humann said that credit quality trends continue to
run better than historical experience although SunTrust reported a modest and
entirely predictable uptick in net charge-offs in the third quarter.
DISCUSSION OF HISTORICAL RESULTS AND ESTIMATED HISTORICAL COMBINED RESULTS
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In order to assist investors with comparing the financial results of the
now-combined SunTrust and NCF, estimated historical combined information for the
third quarter and first nine months of 2004 is presented as if the merger had
been completed at the beginning of the periods 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 on April 22, 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 systems 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 second quarter of 2005, adjusted for estimated
reclassifications that arose as a result of the systems conversions, please see
Appendix C.
THIRD QUARTER 2005 SUMMARY:
ESTIMATED
HISTORICAL ESTIMATED
COMBINED HISTORICAL
3RD QUARTER 3RD QUARTER REPORTED 3RD QUARTER COMBINED
2005 2004 % CHANGE 2004 % CHANGE
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INCOME STATEMENT
(Dollars in millions except per share data)
Net income $510.8 $368.8 39% $436.4 17%
Operating net income (1) 518.3 368.8 41% 436.4 19%
Net income per diluted share 1.40 1.30 8% NR
Operating net income per diluted share (2) 1.42 1.30 9% NR
Revenue 2,008.1 1,521.4 32% 1,832.6 10%
Noninterest expense 1,177.1 929.8 27% 1,117.4 5%
Noninterest expense before affordable housing
impairment charges, amortization of
intangible assets and merger expense 1,109.6 905.3 23% 1,080.2 3%
Efficiency ratio 58.62% 61.12% NR
Operating efficiency ratio (3) 58.01% 61.12% NR
BALANCE SHEET
(Dollars in billions)
Average loans $110.8 $83.8 32% $98.1 13%
Average customer deposits 94.1 74.1 27% 87.9 7%
ASSET QUALITY
(Dollars in millions)
Net charge-offs to average loans 0.27% 0.24% NR
Net charge-offs $76.7 $51.0 50% NR
o Total average loans increased 13% and total average consumer and commercial
deposits increased 7% from the third quarter of 2004 on an estimated
historical combined basis, reflecting the effectiveness of SunTrust's
company-wide sales focus.
o Net income increased 17% from the third quarter of 2004 on an estimated
historical combined basis, and operating net income, which excludes merger
expenses, increased 19%.
o Total revenue increased 10% from the third quarter of 2004 on an estimated
historical combined basis, driven by fully taxable net interest income
growth of 8% and noninterest income growth of 12%.
o Noninterest expense before affordable housing impairment charges,
amortization of intangible assets and merger expense increased only 3% from
the third quarter of 2004 on an estimated historical combined basis,
continuing evidence of the focus on expense management.
o Revenue growth combined with expense management led to positive operating
leverage as evidenced by the efficiency ratio improvement from the third
quarter of 2004, especially in the operating efficiency ratio. The
efficiency ratio for the third quarter of 2005 was 58.62%, a 250 basis
point decrease from the third quarter of 2004. The operating efficiency
ratio, which excludes merger expenses, was 58.01%, a 311 basis point
decrease from the operating efficiency ratio in the third quarter of 2004.
o Net charge-offs were 0.27% of average loans, up slightly from 0.24% of
average loans in the third quarter of 2004. The charge-off related to Delta
Airlines represents six basis points of the ratio this quarter.
- ----------------
(1) Excludes 3rd quarter 2005 merger related expenses, net of taxes, which
totaled $7.5 million.
(2) Excludes 3rd quarter 2005 merger related expenses, net of taxes, per
diluted share of $0.02.
(3) Excludes 3rd quarter 2005 pretax merger related expenses of $12.1 million
which had the effect of reducing the efficiency ratio by 61 basis points.
NR - Not reported.
FINANCIAL PERFORMANCE
- ---------------------
For the quarter, reported return on average total assets (ROA) was 1.19%
and return on average total equity (ROE) was 12.05%. Excluding net realized and
unrealized securities gains and losses and dividends from The Coca-Cola Company,
return on average assets was 1.18% and return on average realized equity was
12.81%. Operating ROA and ROE, which excludes merger charges, was 1.21% and
12.22%, respectively.
For the first nine months of 2005, the Company reported net income of
$1,468.8 million, up from $1,117.2 million earned in the same period in 2004.
Net income per diluted share was $4.04, up from $3.94 earned in the same period
in 2004. Operating net income per diluted share was $4.20 for the first nine
months of 2005, up 7% from the same period in 2004. ROA for the first nine
months of 2005 was 1.19% and ROE was 11.97%. Excluding net realized and
unrealized securities gains and losses and dividends from The Coca-Cola Company,
return on average assets was 1.18% and return on average realized equity was
12.68%.
REVENUE
- -------
Total revenue was $2,008.1 million for the third quarter of 2005, up from
$1,521.4 million in the third quarter of 2004. Total revenue was up 10% from the
third quarter of 2004 on an estimated historical combined basis. Revenue growth
was driven by increases in both net interest income and noninterest income.
For the first nine months of 2005, total revenue was $5,804.5 million, up
from $4,488.1 million for the same period in 2004. For the first nine months of
2005, total revenue was up 7% from the same period in 2004 on an estimated
historical combined basis. Revenue growth for the first nine 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 $1,175.7 million in the third quarter
of 2005, up from $893.7 million in the third quarter of 2004. Fully taxable net
interest income was up 8% from the third quarter of 2004 on an estimated
historical combined basis. The primary factor driving the net interest income
growth year-over-year has been strong loan growth. Loans have grown 13% on
average from the third quarter of 2004 on an estimated historical combined
basis. The net interest margin of 3.12% for the third quarter of 2005 was down
four basis points from the second quarter of 2005 primarily due to an increase
in loans held for sale at a compressed margin. Loans held for sale increased by
$1.8 billion on average, or 26%, in the third quarter from the second quarter of
2005. Although net interest margin declined in the third quarter of 2005, fully
taxable net interest income increased $33.3 million, or 12%, in the third
quarter compared to the second quarter of 2005 on a sequential annualized basis.
For the first nine months of 2005, fully taxable net interest income was
$3,447.4 million, up from $2,642.7 million for the same period in 2004. For the
first nine months of 2005, fully taxable net interest income was up 7% from the
same period in 2004 on an estimated historical combined basis.
NONINTEREST INCOME
Total noninterest income was $832.4 million for the third quarter of 2005,
up from $627.7 million for the third quarter of 2004. Total noninterest income
for the third quarter was up 12% from the third quarter of 2004 on an estimated
historical combined basis. Comparing the third quarter to the second quarter of
2005, total noninterest income excluding securities gains and losses and the net
gain on sale of Receivables Capital Management (RCM) factoring assets increased
31% on a sequential annualized basis. Drivers of the increase in noninterest
income have been growth in mortgage related income, service charge fee income
and broker/dealer revenue.
For the first nine months of 2005, noninterest income excluding securities
gains and losses and the net gain on the sale of RCM factoring assets was
$2,341.5 million, up from $1,867.8 million for the same period in 2004. For the
first nine months of 2005, noninterest income excluding securities gains and
losses and the net gain on the sale of RCM factoring assets was up 6% from the
same period in 2004 on an estimated historical combined basis.
NONINTEREST EXPENSE
- -------------------
Total noninterest expense in the third quarter of 2005 was $1,177.1
million, up from $929.8 million for the third quarter of 2004. Total noninterest
expense before affordable housing impairment charges, amortization of intangible
assets and merger expenses was up 3% from the third quarter of 2004 on an
estimated historical combined basis. Comparing the third quarter to the second
quarter of 2005, total noninterest expense before affordable housing impairment
charges, amortization of intangible assets and merger expenses increased 8% on a
sequential annualized basis. Affordable housing related impairment charges
totaled $25.7 million in the third quarter of 2005 and relate, in part, to
market value adjustments related to certain properties which SunTrust intends to
sell. Cost savings from the merger integration amounted to $36 million in the
third quarter of 2005, bringing the total cost savings to $62 million for the
first nine months of 2005.
Positive operating leverage drove improvement in the Company's efficiency
ratio measures. The reported efficiency ratio was 58.62% for the third quarter
of 2005 compared to 61.30% for the second quarter of 2005. The operating
efficiency ratio, which excludes the impact of merger expenses, was 58.01%. This
compares favorably to the second quarter operating efficiency ratio of 58.46%.
For the first nine months of 2005, total noninterest expense was $3,483.8
million, up from $2,748.0 million for the same period of 2004. Total noninterest
expense before affordable housing impairment charges, amortization of intangible
assets and merger expenses was up 3% from the same period of 2004 on an
estimated historical combined basis.
BALANCE SHEET
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At September 30, 2005, SunTrust had total assets of $172.4 billion. Equity
capital of $16.7 billion represented 10% of total assets. Book value per share
was $46.28, up from $45.96 on June 30, 2005.
LOANS
Average loans for the third quarter of 2005 were $110.8 billion, up from
$83.8 billion for the third quarter of 2004. Average loans were up 13% from the
third quarter of 2004 on an estimated historical combined basis. On a sequential
annualized basis, average loans grew 14% from the second quarter to the third
quarter of 2005. Areas of strongest growth in the consumer category were
residential real estate, home equity and consumer direct. In the commercial
category, loan growth was strong across all segments except for real estate.
DEPOSITS
Average consumer and commercial deposits for the third quarter of 2005 were
$94.1 billion, up from $74.1 billion for the third quarter of 2004. Average
consumer and commercial deposits for the third quarter were up 7% from the third
quarter of 2004 on an estimated historical combined basis. On a sequential
annualized basis, average consumer and commercial deposits grew 4% from the
second quarter to the third quarter of 2005. On a sequential annualized basis
adjusted for estimated reclassifications, money market and time deposit growth
was particularly strong in the third quarter.
ASSET QUALITY
- -------------
Net charge-offs in the third quarter of 2005 were 0.27% of average loans,
up from 0.13% of average loans in the second quarter of 2005 and 0.24% of
average loans in the third quarter of 2004. Net charge-offs were $76.7 million
in the third quarter of 2005 compared to $35.4 million in the second quarter of
2005. Included in net charge-offs in the third quarter of 2005 was a $17.4
million charge-off related to Delta Airlines, which represented six basis points
of the net charge-off to average loans ratio. SunTrust had fully reserved its
credit exposure to Delta Airlines in prior periods; consequently no additional
provision expense was recognized at the time of charge-off. Nonperforming assets
decreased from $380.3 million or 0.35% of loans, other real estate owned and
other repossessed assets at June 30, 2005 to $362.7 million or 0.32% of loans,
other real estate owned and other repossessed assets at September 30, 2005.
The allowance for loan and lease losses decreased to $1,029.9 million at
September 30, 2005 from $1,036.2 million at June 30, 2005. The allowance
declined by $6.3 million due in part to the effect of the Delta Airlines
charge-off. Excluding the effect of the Delta Airlines charge-off, the allowance
for loan and lease losses would have increased by $11.1 million as a result of
the Company's continued strong loan growth. Provision expense increased from
$47.8 million in the second quarter of 2005 to $70.4 million in the third
quarter of 2005. The allowance for loan and lease losses at September 30, 2005
represented 0.92% of loans and 312.4% 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.
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 "3rd Quarter Earnings Release" on the SunTrust homepage.
CONFERENCE CALL
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SunTrust management will host a conference call on October 18, 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: 3Q05; Leader: Greg Ketron). Individuals
calling from outside the United States should dial 1-517-308-9091 (Passcode:
3Q05; Leader: Greg Ketron). A replay of the call will be available beginning
October 18, 2005 and ending November 1, 2005 at 5:00 p.m. (Eastern Time) by
dialing 1-866-416-1187 (domestic) or 1-203-369-0718 (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, "3rd Quarter Earnings Release". Beginning the afternoon
of October 18, 2005, listeners may access an archived version of the
presentation in the "Webcasts and Presentations" subsection found under
"Investor Relations". A link to the Investor Relations page is also found in the
footer of the SunTrust home page.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's
largest banking organizations, serving a broad range of consumer, commercial,
corporate and institutional clients. 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 www.suntrust.com.
###
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements include, but
are not limited to, SunTrust's plans, objectives, expectations and intentions
and other statements that are not historical facts. Such statements are based
upon the current beliefs and expectations of SunTrust's management and are
subject to significant risks and uncertainties. Actual results may differ from
those set forth in the forward-looking statements. Factors that could cause
SunTrust's results to differ materially from those described in the
forward-looking statements can be found in the 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
the appendices of this press release.
###
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
--------------------------- % ------------------------- %
2005 2004 CHANGE 2005 2004 CHANGE
---------------------------------------------------------------------------------
EARNINGS & DIVIDENDS
Net income $510.8 $368.8 38.5% $1,468.8 $1,117.2 31.5%
Total revenue 2,008.1 1,521.4 32.0 5,804.5 4,488.1 29.3
Total revenue excluding securities gains and
losses and net gain on sale of RCM assets (1) 2,006.7 1,539.6 30.3 5,788.9 4,510.4 28.3
Earnings per share
Diluted 1.40 1.30 7.7 4.04 3.94 2.5
Basic 1.42 1.31 8.4 4.09 3.99 2.5
Dividends paid per common share 0.55 0.50 10.0 1.65 1.50 10.0
Average shares outstanding (000s)
Diluted 363,854 283,502 28.3 363,547 283,381 28.3
Basic 359,702 280,185 28.4 359,020 279,851 28.3
CONDENSED BALANCE SHEETS
Selected Average Balances
- -------------------------
Total assets $169,934 $127,128 33.7% $165,501 $126,094 31.3%
Earning assets 149,282 114,334 30.6 145,095 113,015 28.4
Loans 110,818 83,753 32.3 107,028 81,540 31.3
Consumer and commercial deposits 94,076 74,122 26.9 92,714 72,555 27.8
Brokered and foreign deposits 17,969 9,341 92.4 15,718 9,830 59.9
Shareholders' equity 16,823 9,993 68.3 16,409 10,009 63.9
As of
Total assets 172,416 127,786 34.9
Earning assets 151,469 114,748 32.0
Loans 112,411 84,618 32.8
Allowance for loan and lease losses 1,030 893 15.3
Consumer and commercial deposits 94,465 74,956 26.0
Brokered and foreign deposits 19,265 8,141 136.6
Shareholders' equity 16,718 10,129 65.1
FINANCIAL RATIOS
Return on average total assets 1.19% 1.15% 3.5% 1.19% 1.18% 0.8%
Return on average assets less net unrealized
securities gains (1) 1.18 1.18 - 1.18 1.19 (0.8)
Return on average total equity 12.05 14.68 (17.9) 11.97 14.91 (19.7)
Return on average realized equity (1) 12.81 16.96 (24.5) 12.68 17.44 (27.3)
Total average shareholders' equity
to total average assets 9.90 7.86 26.0 9.91 7.94 24.8
Net interest margin (2) 3.12 3.11 0.3 3.18 3.12 1.9
Efficiency ratio (2) 58.62 61.12 (4.1) 60.02 61.23 (2.0)
Book value per share 46.28 35.79 29.3
CAPITAL ADEQUACY
Tier 1 capital ratio 6.90%(3) 8.26% (16.5)%
Total capital ratio 10.50(3) 11.57 (9.2)
Tier 1 leverage ratio 6.59(3) 7.71 (14.5)
- --------------------------------------------------------------------------------
(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
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER FINANCIAL HIGHLIGHTS
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
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THREE MONTHS ENDED
-------------------------------------------------------------------------------------
SEPTEMBER 30 JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30
2005 2005 2005 2004 2004
--------------- ---------------- ---------------- ---------------- --------------
EARNINGS & DIVIDENDS
Net income $510.8 $465.7 $492.3 $455.7 $368.8
Total revenue 2,008.1 1,913.3 1,883.0 1,859.9 1,521.4
Total revenue excluding securities gains and
losses and net gain on sale of RCM assets (1) 2,006.7 1,913.4 1,868.8 1,879.3 1,539.6
Earnings per share
Diluted 1.40 1.28 1.36 1.26 1.30
Basic 1.42 1.30 1.37 1.27 1.31
Dividends paid per common share 0.55 0.55 0.55 0.50 0.50
Average shares outstanding (000s)
Diluted 363,854 363,642 363,138 362,661 283,502
Basic 359,702 359,090 358,253 357,524 280,185
CONDENSED BALANCE SHEETS
Selected Average Balances
- -------------------------
Total assets $169,934 $165,254 $161,218 $156,570 $127,128
Earning assets 149,282 145,058 140,853 136,450 114,334
Loans 110,818 106,967 103,216 100,137 83,753
Consumer and commercial deposits 94,076 93,065 90,968 90,601 74,122
Brokered and foreign deposits 17,969 15,709 13,424 10,671 9,341
Shareholders' equity 16,823 16,276 16,119 15,819 9,993
As of
Total assets 172,416 168,953 164,811 158,870 127,786
Earning assets 151,469 147,996 143,678 138,727 114,748
Loans 112,411 109,594 104,761 101,426 84,618
Allowance for loan and lease losses 1,030 1,036 1,024 1,050 893
Consumer and commercial deposits 94,465 93,814 93,035 92,110 74,956
Brokered and foreign deposits 19,265 15,763 14,499 11,252 8,141
Shareholders' equity 16,718 16,646 16,104 15,987 10,129
FINANCIAL RATIOS
Return on average total assets 1.19% 1.13% 1.24% 1.16% 1.15%
Return on average assets less net unrealized
securities gains (1) 1.18 1.11 1.23 1.18 1.18
Return on average total equity 12.05 11.48 12.39 11.46 14.68
Return on average realized equity (1) 12.81 12.02 13.23 12.54 16.96
Total average shareholders' equity to total
average assets 9.90 9.85 10.00 10.10 7.86
Net interest margin (2) 3.12 3.16 3.25 3.21 3.11
Efficiency ratio (2) 58.62 61.30 60.22 61.78 61.12
Book value per share 46.28 45.96 44.59 44.30 35.79
CAPITAL ADEQUACY
Tier 1 capital ratio 6.90%(3) 7.04% 7.07% 7.16% 8.26%
Total capital ratio 10.50(3) 10.25 10.44 10.36 11.57
Tier 1 leverage ratio 6.59(3) 6.65 6.61 6.64 7.71
- --------------------------------------------------------------------------------
(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
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
- --------------------------------------------------------------------------------
AS OF SEPTEMBER 30 INCREASE/(DECREASE)
-------------------------------- -----------------------------
2005 2004 AMOUNT %
---------------- -------------- -------------- ------------
ASSETS
Cash and due from banks $4,228,590 $3,642,401 $586,189 16.1%
Interest-bearing deposits in other banks 22,694 19,144 3,550 18.5
Trading assets 2,470,160 1,885,894 584,266 31.0
Securities available for sale(1) 26,867,580 24,508,764 2,358,816 9.6
Funds sold and securities purchased under
agreements to resell 1,208,087 1,162,032 46,055 4.0
Loans held for sale 10,378,411 4,602,916 5,775,495 125.5
Loans 112,410,810 84,617,875 27,792,935 32.8
Allowance for loan and lease losses (1,029,855) (892,974) (136,881) 15.3
---------------- -------------- --------------
Net loans 111,380,955 83,724,901 27,656,054 33.0
Goodwill 6,841,631 1,165,036 5,676,595 487.2
Other intangible assets 1,112,873 723,401 389,472 53.8
Other assets 7,905,115 6,351,496 1,553,619 24.5
---------------- -------------- --------------
TOTAL ASSETS (2) $172,416,096 $127,785,985 $44,630,111 34.9
================ ============== ==============
LIABILITIES
Noninterest-bearing consumer and commercial deposits $24,548,595 $21,009,255 $3,539,340 16.8%
Interest-bearing consumer and commercial deposits 69,916,316 53,946,300 15,970,016 29.6
---------------- -------------- --------------
Total consumer and commercial deposits 94,464,911 74,955,555 19,509,356 26.0
Brokered deposits 12,837,377 3,380,458 9,456,919 279.8
Foreign deposits 6,427,770 4,760,048 1,667,722 35.0
---------------- -------------- --------------
Total deposits 113,730,058 83,096,061 30,633,997 36.9
Funds purchased and securities sold under
agreements to repurchase 9,689,204 8,735,483 953,721 10.9
Other short-term borrowings 3,173,951 1,328,445 1,845,506 138.9
Long-term debt 22,364,776 18,756,590 3,608,186 19.2
Trading liabilities 1,064,603 816,486 248,117 30.4
Other liabilities 5,675,754 4,924,403 751,351 15.3
---------------- -------------- --------------
TOTAL LIABILITIES 155,698,346 117,657,468 38,040,878 32.3
---------------- -------------- --------------
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 6,758,901 1,303,024 5,455,877 418.7
Retained earnings 8,991,168 7,843,069 1,148,099 14.6
Treasury stock and other (541,176) (609,245) 68,069 (11.2)
Accumulated other comprehensive income 1,138,279 1,297,506 (159,227) (12.3)
---------------- -------------- --------------
TOTAL SHAREHOLDERS' EQUITY 16,717,750 10,128,517 6,589,233 65.1
---------------- -------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $172,416,096 $127,785,985 $44,630,111 34.9
================ ============== ==============
Common shares outstanding 361,248,048 283,001,181 78,246,867 27.6
Common shares authorized 750,000,000 750,000,000 - -
Treasury shares of common stock 9,330,350 11,161,576 (1,831,226) (16.4)
- -----------------------------------------------------------------------------------------------------------------------
(1) Includes net unrealized gains of $1,888,990 $2,048,776 ($159,786) (7.8)%
(2) Includes earning assets of 151,468,752 114,747,849 36,720,903 32.0
Page 3
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
- --------------------------------------------------------------------------------
AS OF
--------------------------------------------------------------------------------
SEPTEMBER 30 JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30
2005 2005 2005 2004 2004
--------------- -------------- -------------- -------------- ---------------
ASSETS
Cash and due from banks $4,228,590 $4,476,229 $4,178,424 $3,876,741 $3,642,401
Interest-bearing deposits in other banks 22,694 24,255 17,456 15,929 19,144
Trading assets 2,470,160 2,489,467 2,516,512 2,183,645 1,885,894
Securities available for sale (1) 26,867,580 28,767,390 29,374,017 28,941,080 24,508,764
Funds sold and securities purchased under
agreements to resell 1,208,087 1,496,544 1,764,554 1,596,269 1,162,032
Loans held for sale 10,378,411 7,656,249 6,955,538 6,580,223 4,602,916
Loans 112,410,810 109,594,200 104,760,859 101,426,172 84,617,875
Allowance for loan and lease losses (1,029,855) (1,036,173) (1,023,746) (1,050,024) (892,974)
--------------- -------------- -------------- -------------- ---------------
Net loans 111,380,955 108,558,027 103,737,113 100,376,148 83,724,901
Goodwill 6,841,631 6,873,111 6,861,721 6,806,013 1,165,036
Other intangible assets 1,112,873 1,094,803 1,073,154 1,061,451 723,401
Other assets 7,905,115 7,516,500 8,332,465 7,432,285 6,351,496
--------------- -------------- -------------- -------------- ---------------
TOTAL ASSETS (2) $172,416,096 $168,952,575 $164,810,954 $158,869,784 $127,785,985
=============== ============== ============== ============== ===============
LIABILITIES
Noninterest-bearing consumer and commercial deposits $24,548,595 $24,514,476 $24,448,291 $24,878,314 $21,009,255
Interest-bearing consumer and commercial deposits 69,916,316 69,299,154 68,587,192 67,231,381 53,946,300
--------------- -------------- -------------- -------------- ---------------
Total consumer and commercial deposits 94,464,911 93,813,630 93,035,483 92,109,695 74,955,555
Brokered deposits 12,837,377 11,419,706 8,183,776 6,100,911 3,380,458
Foreign deposits 6,427,770 4,343,762 6,315,625 5,150,645 4,760,048
--------------- -------------- -------------- -------------- ---------------
Total deposits 113,730,058 109,577,098 107,534,884 103,361,251 83,096,061
Funds purchased and securities sold under
agreements to repurchase 9,689,204 11,911,559 10,113,705 9,342,831 8,735,483
Other short-term borrowings 3,173,951 2,728,111 2,167,383 2,062,549 1,328,445
Long-term debt 22,364,776 21,565,176 22,498,447 22,127,166 18,756,590
Trading liabilities 1,064,603 1,003,495 1,051,095 1,098,563 816,486
Other liabilities 5,675,754 5,520,940 5,341,181 4,890,525 4,924,403
--------------- -------------- -------------- -------------- ---------------
TOTAL LIABILITIES 155,698,346 152,306,379 148,706,695 142,882,885 117,657,468
--------------- -------------- -------------- -------------- ---------------
SHAREHOLDERS' EQUITY
Preferred stock, no par value - - - - -
Common stock, $1.00 par value 370,578 370,578 370,578 370,578 294,163
Additional paid in capital 6,758,901 6,763,940 6,754,301 6,749,219 1,303,024
Retained earnings 8,991,168 8,679,452 8,412,574 8,118,710 7,843,069
Treasury stock and other (541,176) (465,736) (523,790) (528,558) (609,245)
Accumulated other comprehensive income 1,138,279 1,297,962 1,090,596 1,276,950 1,297,506
--------------- -------------- -------------- -------------- ---------------
TOTAL SHAREHOLDERS' EQUITY 16,717,750 16,646,196 16,104,259 15,986,899 10,128,517
--------------- -------------- -------------- -------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $172,416,096 $168,952,575 $164,810,954 $158,869,784 $127,785,985
=============== ============== ============== ============== ===============
Common shares outstanding 361,248,048 362,159,995 361,176,868 360,840,710 283,001,181
Common shares authorized 750,000,000 750,000,000 750,000,000 750,000,000 750,000,000
Treasury shares of common stock 9,330,350 8,418,403 9,401,530 9,737,688 11,161,576
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes net unrealized gains of $1,888,990 $2,032,317 $1,710,792 $2,010,165 $2,048,776
(2) Includes earning assets of 151,468,752 147,995,788 143,678,144 138,733,153 114,747,849
Page 4
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
--------------------------------------------- ---------------------------------------------
SEPTEMBER 30 INCREASE/(DECREASE) SEPTEMBER 30 INCREASE/(DECREASE)
------------------------ ------------------- ------------------------ -------------------
2005 2004 Amount % 2005 2004 Amount %
----------- ----------- --------- -------- ----------- ----------- ---------- -------
Interest income $1,996,674 $1,252,177 $744,497 59.5% $5,555,969 $3,614,115 $1,941,854 53.7%
Interest expense 840,013 375,303 464,710 123.8 2,164,039 1,013,164 1,150,875 113.6
----------- ----------- --------- ----------- ----------- ----------
NET INTEREST INCOME 1,156,661 876,874 279,787 31.9 3,391,930 2,600,951 790,979 30.4
Provision for loan losses 70,393 41,774 28,619 68.5 128,760 98,438 30,322 30.8
----------- ----------- --------- ----------- ----------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,086,268 835,100 251,168 30.1 3,263,170 2,502,513 760,657 30.4
----------- ----------- --------- ----------- ----------- ----------
NONINTEREST INCOME
Service charges on deposit accounts 198,348 171,140 27,208 15.9 575,727 503,062 72,665 14.4
Trust and investment management income 168,802 149,673 19,129 12.8 500,820 426,257 74,563 17.5
Retail investment services 52,257 44,049 8,208 18.6 160,024 139,626 20,398 14.6
Other charges and fees 117,341 92,472 24,869 26.9 340,974 279,985 60,989 21.8
Investment banking income 53,090 45,916 7,174 15.6 156,803 145,059 11,744 8.1
Trading account profits and commissions 41,837 23,343 18,494 79.2 117,702 83,767 33,935 40.5
Card fees 52,924 34,716 18,208 52.4 153,091 104,131 48,960 47.0
Gain on sale of RCM assets,
net of related expenses 3,508 - 3,508 100.0 23,382 - 23,382 100.0
Other noninterest income 146,360 84,576 61,784 73.1 336,353 185,870 150,483 81.0
Securities losses, net (2,069) (18,193) 16,124 (88.6) (7,755) (22,314) 14,559 (65.2)
----------- ----------- --------- ----------- ----------- ----------
Total noninterest income 832,398 627,692 204,706 32.6 2,357,121 1,845,443 511,678 27.7
----------- ----------- --------- ----------- ----------- ----------
NONINTEREST EXPENSE
Personnel expense 632,333 527,734 104,599 19.8 1,890,410 1,555,452 334,958 21.5
Net occupancy expense 79,519 66,542 12,977 19.5 228,853 190,030 38,823 20.4
Outside processing and software 92,952 68,657 24,295 35.4 265,082 204,902 60,180 29.4
Equipment expense 50,083 43,275 6,808 15.7 154,544 134,100 20,444 15.2
Marketing and customer development 38,651 32,028 6,623 20.7 106,578 93,902 12,676 13.5
Amortization of intangible assets 29,737 15,593 14,144 90.7 90,772 45,823 44,949 98.1
Merger expense 12,104 - 12,104 100.0 92,104 - 92,104 100.0
Other noninterest expense 241,692 176,020 65,672 37.3 655,459 523,837 131,622 25.1
----------- ----------- --------- ----------- ----------- ----------
Total noninterest expense 1,177,071 929,849 247,222 26.6 3,483,802 2,748,046 735,756 26.8
----------- ----------- --------- ----------- ----------- ----------
INCOME BEFORE INCOME TAXES 741,595 532,943 208,652 39.2 2,136,489 1,599,910 536,579 33.5
Provision for income taxes 230,821 164,177 66,644 40.6 667,721 482,738 184,983 38.3
----------- ----------- --------- ----------- ----------- ----------
NET INCOME $510,774 $368,766 $142,008 38.5 $1,468,768 $1,117,172 $351,596 31.5
=========== =========== ========= =========== =========== ==========
Net interest income
(taxable-equivalent)(1) $1,175,742 $893,695 $282,047 31.6 $3,447,397 $2,642,665 $804,732 30.5
Earnings per share
Diluted 1.40 1.30 0.10 7.7 4.04 3.94 0.10 2.5
Basic 1.42 1.31 0.11 8.4 4.09 3.99 0.10 2.5
Cash dividends paid per common share 0.55 0.50 0.05 10.0 1.65 1.50 0.15 10.0
Average shares outstanding (000s)
Diluted 363,854 283,502 80,352 28.3 363,547 283,381 80,166 28.3
Basic 359,702 280,185 79,517 28.4 359,020 279,851 79,169 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.
Page 5
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
THREE MONTHS ENDED
---------------------------------------------------------------------------------------
SEPTEMBER 30 JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30
2005 2005 2005 2004 2004
---------------- ---------------- ---------------- ---------------- ----------------
Interest income $1,996,674 $1,843,273 $1,716,022 $1,604,267 $1,252,177
Interest expense 840,013 719,564 604,462 520,063 375,303
---------------- ---------------- ---------------- ---------------- ----------------
NET INTEREST INCOME 1,156,661 1,123,709 1,111,560 1,084,204 876,874
Provision for loan losses 70,393 47,811 10,556 37,099 41,774
---------------- ---------------- ---------------- ---------------- ----------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,086,268 1,075,898 1,101,004 1,047,105 835,100
---------------- ---------------- ---------------- ---------------- ----------------
NONINTEREST INCOME
Service charges on deposit accounts 198,348 193,276 184,103 196,960 171,140
Trust and investment management income 168,802 167,503 164,515 160,526 149,673
Retail investment services 52,257 52,624 55,143 53,185 44,049
Other charges and fees 117,341 112,258 111,375 110,509 92,472
Investment banking income 53,090 53,706 50,007 61,671 45,916
Trading account profits and commissions 41,837 31,819 44,046 44,032 23,343
Card fees 52,924 52,011 48,156 49,308 34,716
Gain on sale of RCM assets,
net of related expenses 3,508 - 19,874 - -
Other noninterest income 146,360 107,739 82,254 102,189 84,576
Securities losses, net (2,069) (27) (5,659) (19,377) (18,193)
---------------- ---------------- ---------------- ---------------- ----------------
Total noninterest income 832,398 770,909 753,814 759,003 627,692
---------------- ---------------- ---------------- ---------------- ----------------
NONINTEREST EXPENSE
Personnel expense 632,333 623,284 634,793 612,861 527,734
Net occupancy expense 79,519 73,483 75,851 78,218 66,542
Outside processing and software 92,952 89,282 82,848 81,368 68,657
Equipment expense 50,083 51,579 52,882 50,765 43,275
Marketing and customer development 38,651 36,298 31,629 34,389 32,028
Amortization of intangible assets 29,737 29,818 31,217 31,759 15,593
Merger expense 12,104 54,262 25,738 28,401 -
Other noninterest expense 241,692 214,819 198,948 231,231 176,020
---------------- ---------------- ---------------- ---------------- ----------------
Total noninterest expense 1,177,071 1,172,825 1,133,906 1,148,992 929,849
---------------- ---------------- ---------------- ---------------- ----------------
INCOME BEFORE INCOME TAXES 741,595 673,982 720,912 657,116 532,943
Provision for income taxes 230,821 208,282 228,618 201,387 164,177
---------------- ---------------- ---------------- ---------------- ----------------
NET INCOME $510,774 $465,700 $492,294 $455,729 $368,766
================ ================ ================ ================ ================
Net interest income
(taxable-equivalent)(1) $1,175,742 $1,142,429 $1,129,226 $1,100,888 $893,695
Earnings per share
Diluted 1.40 1.28 1.36 1.26 1.30
Basic 1.42 1.30 1.37 1.27 1.31
Cash dividends paid per common share 0.55 0.55 0.55 0.50 0.50
Average shares outstanding (000s)
Diluted 363,854 363,642 363,138 362,661 283,502
Basic 359,702 359,090 358,253 357,524 280,185
- --------------------------------------------------------------------------------
(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
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
------------------------------------------------------------------------------------
SEPTEMBER 30, 2005 JUNE 30, 2005
---------------------------------------- -----------------------------------------
Interest Interest
Average Income/ Yields/ Average Income/ Yields/
Balances Expense Rates Balances Expense Rates
------------ ------------ ------------ ------------ ------------ ------------
ASSETS
Loans:
Real estate 1-4 family $28,250.5 $388.4 5.50% $26,224.1 $347.8 5.31%
Real estate construction 9,515.7 152.6 6.36 9,196.9 137.6 6.00
Real estate equity 12,648.6 195.7 6.14 12,134.7 173.7 5.74
Real estate commercial 12,872.0 193.0 5.95 12,214.5 171.9 5.64
Commercial 32,601.7 428.7 5.22 32,393.4 398.6 4.94
Business credit card 223.5 3.8 6.89 213.1 3.5 6.52
Consumer - direct 5,173.0 76.7 5.88 5,404.7 79.3 5.88
Consumer - indirect 9,179.8 124.9 5.40 8,861.1 117.7 5.33
Nonaccrual and restructured 353.6 3.8 4.25 324.2 3.1 3.78
------------ ------------ ------------ ------------ ------------ ------------
Total loans 110,818.4 1,567.6 5.61 106,966.7 1,433.2 5.37
Securities available for sale:
Taxable 25,252.1 281.6 4.46 26,526.7 293.3 4.42
Tax-exempt 872.2 12.9 5.91 857.8 12.7 5.93
------------ ------------ ------------ ------------ ------------ ------------
Total securities available for sale 26,124.3 294.5 4.51 27,384.5 306.0 4.47
Funds sold and securities purchased under
agreement to resell 1,391.8 11.9 3.35 1,560.7 11.2 2.84
Loans held for sale 8,571.5 123.0 5.74 6,783.0 95.7 5.65
Interest-bearing deposits 18.5 0.2 3.72 31.9 0.3 3.85
Trading assets 2,357.3 18.6 3.12 2,330.9 15.6 2.68
------------ ------------ ------------ ------------ ------------ ------------
Total earning assets 149,281.8 2,015.8 5.36 145,057.7 1,862.0 5.15
Allowance for loan losses (1,036.5) (1,030.7)
Cash and due from banks 4,226.8 4,368.5
Premises and equipment 1,842.6 1,848.1
Other assets 13,517.1 13,218.4
Unrealized gains on securities
available for sale 2,102.2 1,791.6
------------ ------------
TOTAL ASSETS $169,934.0 $165,253.6
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $16,853.1 $44.3 1.04% $17,519.6 $38.6 0.88%
Money market accounts 26,299.7 125.5 1.89 25,472.9 102.7 1.62
Savings 5,865.1 13.6 0.92 6,462.4 14.2 0.88
Consumer time 12,419.3 91.7 2.93 12,122.0 81.2 2.69
Other time 8,117.1 67.5 3.30 7,177.9 54.2 3.03
------------ ------------ ------------ ------------ ------------ ------------
Total interest-bearing consumer
and commercial deposits 69,554.3 342.6 1.95 68,754.8 290.9 1.70
Brokered deposits 10,940.4 94.6 3.38 9,580.3 75.9 3.14
Foreign deposits 7,028.8 61.5 3.42 6,128.9 43.8 2.82
------------ ------------ ------------ ------------ ------------ ------------
Total interest-bearing deposits 87,523.5 498.7 2.26 84,464.0 410.6 1.95
Funds purchased and securities sold under
agreements to repurchase 10,139.2 82.0 3.16 9,848.0 68.0 2.73
Other short-term borrowings 2,625.9 24.9 3.76 2,634.1 22.5 3.42
Long-term debt 21,929.4 234.5 4.24 21,547.2 218.5 4.07
------------ ------------ ------------ ------------ ------------ ------------
Total interest-bearing liabilities 122,218.0 840.1 2.73 118,493.3 719.6 2.44
Noninterest-bearing deposits 24,521.5 24,309.7
Other liabilities 6,371.6 6,175.0
Shareholders' equity 16,822.9 16,275.6
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $169,934.0 $165,253.6
============ ============
------------ ------------
INTEREST RATE SPREAD 2.63% 2.71%
------------ ------------
------------ ------------
NET INTEREST INCOME - FTE $1,175.7 $1,142.4
------------ ------------
------------ ------------
NET INTEREST MARGIN 3.12% 3.16%
------------ ------------
Page 7
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
------------------------------------------------------------------------------------------------
MARCH 31, 2005 DECEMBER 31, 2004 SEPTEMBER 30, 2004
-------------------------------- ------------------------------- -------------------------------
Interest Interest Interest
Average Income/ Yields/ Average Income/ Yields/ Average Income/ Yields/
Balances Expense Rates Balances Expense Rates Balances Expense Rates
------------ ---------- -------- ------------ ---------- ------- ----------- ---------- --------
ASSETS
Loans:
Real estate 1-4 family $23,435.7 $300.5 5.13% $22,461.0 $285.8 5.09% $20,722.7 $262.9 5.07%
Real estate construction 9,621.2 134.8 5.68 9,054.6 121.0 5.32 4,727.8 55.5 4.67
Real estate equity 11,573.7 152.8 5.35 11,016.4 133.3 4.81 8,238.6 85.1 4.11
Real estate commercial 9,537.0 124.8 5.31 9,547.2 120.7 5.03 9,441.9 112.3 4.73
Commercial 33,423.9 394.9 4.79 32,223.1 360.5 4.45 27,630.5 276.3 3.98
Business credit card 197.7 3.4 6.81 192.6 3.2 6.69 158.0 2.7 6.80
Consumer - direct 6,767.2 96.6 5.79 6,706.9 93.6 5.55 3,666.8 44.1 4.78
Consumer - indirect 8,384.4 112.1 5.42 8,661.6 120.1 5.52 8,882.9 124.5 5.58
Nonaccrual and restructured 275.0 2.8 4.19 274.1 3.4 4.90 284.0 3.8 5.38
------------ ---------- -------- ------------ ---------- ------ ----------- ---------- --------
Total loans 103,215.8 1,322.7 5.20 100,137.5 1,241.6 4.93 83,753.2 967.2 4.59
Securities available for sale:
Taxable 26,477.7 288.3 4.36 26,389.5 275.1 4.17 22,068.4 215.4 3.90
Tax-exempt 836.1 12.7 6.10 848.6 13.0 6.11 800.9 12.6 6.27
------------ ---------- -------- ------------ ---------- ------ ----------- ---------- --------
Total securities available
for sale 27,313.8 301.0 4.41 27,238.1 288.1 4.23 22,869.3 228.0 3.99
Funds sold and securities purchased
under agreement to resell 1,604.3 9.7 2.41 1,301.2 6.0 1.82 1,403.3 5.1 1.42
Loans held for sale 6,393.2 86.1 5.39 5,607.0 74.7 5.33 4,650.8 62.6 5.39
Interest-bearing deposits 17.5 0.1 1.60 20.9 0.1 1.35 18.5 - 0.88
Trading assets 2,308.2 14.1 2.48 2,145.7 10.5 1.94 1,639.0 6.1 1.47
------------ ---------- -------- ------------ ---------- ------ ----------- ---------- --------
Total earning assets 140,852.8 1,733.7 4.99 136,450.4 1,621.0 4.73 114,334.1 1,269.0 4.42
Allowance for loan losses (1,065.5) (1,094.5) (955.4)
Cash and due from banks 4,309.5 4,136.4 3,687.5
Premises and equipment 1,862.9 1,839.9 1,620.4
Other assets 13,225.7 13,181.2 6,386.4
Unrealized gains on securities
available for sale 2,032.8 2,056.7 2,055.0
------------ ------------ -----------
Total assets $161,218.2 $156,570.1 $127,128.0
============ ============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $17,479.8 $33.8 0.78% $16,940.7 $28.3 0.66% $12,999.5 $17.6 0.54%
Money market accounts 24,767.4 82.1 1.34 24,507.0 66.3 1.08 22,434.4 47.3 0.84
Savings 7,506.9 15.5 0.84 8,139.3 16.8 0.82 7,424.7 15.8 0.85
Consumer time 12,324.0 75.1 2.47 12,083.9 73.6 2.42 6,967.3 36.3 2.07
Other time 5,166.6 34.9 2.74 4,748.8 30.2 2.53 3,805.7 23.1 2.41
------------ ---------- -------- ------------ ---------- ------ ----------- ---------- --------
Total interest-bearing consumer
and commercial deposits 67,244.7 241.4 1.46 66,419.7 215.2 1.29 53,631.6 140.1 1.04
Brokered deposits 6,462.1 41.1 2.54 5,966.1 32.3 2.11 3,546.1 16.0 1.77
Foreign deposits 6,962.3 40.0 2.30 4,704.5 23.0 1.91 5,795.2 21.5 1.45
------------ ---------- -------- ------------ ---------- ------ ----------- ---------- --------
Total interest-bearing deposits 80,669.1 322.5 1.62 77,090.3 270.5 1.40 62,972.9 177.6 1.12
Funds purchased and securities sold
under agreements to repurchase 10,134.0 56.2 2.22 9,407.1 40.3 1.68 9,448.8 28.6 1.18
Other short-term borrowings 2,591.3 17.0 2.65 2,219.7 11.5 2.06 880.6 4.1 1.84
Long-term debt 22,197.7 208.8 3.82 21,961.6 197.8 3.58 18,099.9 165.0 3.63
------------ ---------- -------- ------------ ---------- ------ ----------- ---------- --------
Total interest-bearing
liabilities 115,592.1 604.5 2.12 110,678.7 520.1 1.87 91,402.2 375.3 1.63
Noninterest-bearing deposits 23,723.1 24,181.7 20,490.2
Other liabilities 5,783.6 5,890.7 5,242.7
Shareholders' equity 16,119.4 15,819.0 9,992.9
------------ ------------ -----------
Total liabilities and
shareholders' equity $161,218.2 $156,570.1 $127,128.0
============ ============ ===========
-------- ------ --------
Interest Rate Spread 2.87% 2.86% 2.79%
-------- ------ --------
---------- ---------- ----------
Net Interest Income - FTE $1,129.2 $1,100.9 $893.7
---------- ---------- ----------
-------- ------ --------
Net Interest Margin 3.25% 3.21% 3.11%
-------- ------ --------
Page 8
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED DAILY AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND RATES PAID
(DOLLARS IN MILLIONS; YIELDS ON TAXABLE-EQUIVALENT BASIS)
- --------------------------------------------------------------------------------
NINE MONTHS ENDED
------------------------------------------------------------------------------------
SEPTEMBER 30, 2005 SEPTEMBER 30, 2004
------------------------------------------ --------------------------------------
Interest Interest
Average Income/ Yields/ Average Income/ Yields/
Balances Expense Rates Balances Expense Rates
---------------- ------------ -------- ------------- ----------- --------
ASSETS
Loans:
Real estate 1-4 family $25,987.8 $1,036.7 5.32% $19,122.8 $729.2 5.08%
Real estate construction 9,444.2 425.0 6.02 4,611.4 154.3 4.47
Real estate equity 12,122.9 522.2 5.76 7,658.6 237.1 4.14
Real estate commercial 11,553.4 489.7 5.67 9,387.9 325.3 4.63
Commercial 32,803.4 1,222.2 4.98 27,867.6 774.0 3.71
Business credit card 211.5 10.7 6.74 149.7 7.5 6.69
Consumer - direct 5,775.8 252.5 5.85 3,592.5 127.9 4.75
Consumer - indirect 8,811.3 354.7 5.38 8,849.7 381.5 5.76
Nonaccrual and restructured 317.9 9.7 4.08 299.4 15.6 6.96
---------------- ------------ -------- ------------- ----------- --------
Total loans 107,028.2 4,323.4 5.40 81,539.6 2,752.4 4.51
Securities available for sale:
Taxable 26,081.0 863.2 4.41 22,436.0 642.0 3.82
Tax-exempt 855.5 38.4 5.98 539.4 24.8 6.12
---------------- ------------ -------- ------------- ----------- --------
Total securities available for sale 26,936.5 901.6 4.46 22,975.4 666.8 3.87
Funds sold and securities purchased under
agreement to resell 1,518.1 32.8 2.85 1,402.2 12.6 1.17
Loans held for sale 7,257.2 304.9 5.60 5,366.7 206.6 5.13
Interest-bearing deposits 22.6 0.5 3.24 17.2 0.1 0.83
Trading assets 2,332.3 48.2 2.77 1,713.5 17.4 1.35
---------------- ------------ -------- ------------- ----------- --------
Total earning assets 145,094.9 5,611.4 5.17 113,014.6 3,655.9 4.32
Allowance for loan losses (1,044.2) (954.3)
Cash and due from banks 4,301.3 3,597.4
Premises and equipment 1,851.1 1,616.6
Other assets 13,321.6 6,341.0
Unrealized gains on securities
available for sale 1,975.8 2,478.2
---------------- -------------
TOTAL ASSETS $165,500.5 $126,093.5
================ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $17,281.9 $116.7 0.90% $12,715.4 $42.8 0.45%
Money market accounts 25,518.9 310.3 1.63 22,313.3 132.5 0.79
Savings 6,605.5 43.3 0.88 6,918.5 38.7 0.75
Consumer time 12,288.8 248.0 2.70 7,074.3 108.3 2.05
Other time 6,831.3 156.6 3.06 3,539.2 62.7 2.37
---------------- ------------ -------- ------------- ----------- --------
Total interest-bearing consumer
and commercial deposits 68,526.4 874.9 1.71 52,560.7 385.0 0.98
Brokered deposits 9,010.7 211.6 3.10 3,705.2 55.6 1.97
Foreign deposits 6,706.9 145.3 2.86 6,125.0 55.1 1.18
---------------- ------------ -------- ------------- ----------- --------
Total interest-bearing deposits 84,244.0 1,231.8 1.95 62,390.9 495.7 1.06
Funds purchased and securities sold under
agreements to repurchase 10,040.4 206.2 2.71 9,927.5 68.3 0.90
Other short-term borrowings 2,617.2 64.2 3.28 1,538.8 18.7 1.62
Long-term debt 21,890.5 661.8 4.04 16,770.5 430.5 3.43
---------------- ------------ -------- ------------- ----------- --------
Total interest-bearing liabilities 118,792.1 2,164.0 2.44 90,627.7 1,013.2 1.49
Noninterest-bearing deposits 24,187.7 19,994.7
Other liabilities 6,112.2 5,462.0
Shareholders' equity 16,408.5 10,009.1
---------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $165,500.5 $126,093.5
================ =============
-------- --------
INTEREST RATE SPREAD 2.73% 2.83%
-------- --------
------------ -----------
NET INTEREST INCOME - FTE $3,447.4 $2,642.7
------------ -----------
-------- --------
NET INTEREST MARGIN 3.18% 3.12%
-------- --------
Page 9
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FIVE QUARTER OTHER FINANCIAL DATA
(DOLLARS IN THOUSANDS)
- --------------------------------------------------------------------------------
THREE MONTHS ENDED
-----------------------------------------------------------------------------------------------
SEPTEMBER 30 JUNE 30 % MARCH 31 DECEMBER 31 SEPTEMBER 30
2005 2005 CHANGE 2005 2004 2004
--------------- --------------- ----------- --------------- --------------- ---------------
CREDIT DATA
Allowance for loan and lease losses
- beginning $1,036,173 $1,023,746 1.2% $1,050,024 $892,974 $902,243
Allowance from acquisitions and
other activity - net - - - - 173,844 -
Provision for loan losses 70,393 47,811 47.2 10,556 37,099 41,774
Charge-offs
Commercial (52,450) (19,779) 165.2 (16,610) (24,335) (36,709)
Real estate:
Construction (748) (1,191) (37.2) (797) (1,002) (2,310)
Residential mortgages (16,098) (8,856) 81.8 (8,473) (7,912) (5,652)
Other (328) (393) (16.5) (825) (1,218) (1,032)
Consumer loans (34,990) (35,582) (1.7) (38,388) (51,352) (32,524)
--------------- --------------- --------------- --------------- ---------------
Total charge-offs (104,614) (65,801) 59.0 (65,093) (85,819) (78,227)
--------------- --------------- --------------- --------------- ---------------
Recoveries
Commercial 7,732 9,278 (16.7) 9,737 14,295 11,511
Real estate:
Construction 205 312 (34.3) 191 61 29
Residential mortgages 4,167 3,860 8.0 1,974 2,826 2,738
Other 1,415 556 154.5 338 679 350
Consumer loans 14,384 16,411 (12.4) 16,019 14,065 12,556
--------------- --------------- --------------- --------------- ---------------
Total recoveries 27,903 30,417 (8.3) 28,259 31,926 27,184
--------------- --------------- --------------- --------------- ---------------
Net charge-offs (76,711) (35,384) 116.8 (36,834) (53,893) (51,043)
--------------- --------------- --------------- --------------- ---------------
Allowance for loan and lease losses
- ending $1,029,855 $1,036,173 (0.6) $1,023,746 $1,050,024 $892,974
=============== =============== =============== =============== ===============
Net charge-offs to average loans 0.27% 0.13% 107.7% 0.14% 0.21% 0.24%
Period Ended
Nonaccrual loans
Commercial $98,291 $116,609 (15.7)% $116,386 $130,961 $114,793
Real estate:
Construction 33,182 50,311 (34.0) 36,793 32,842 24,341
Residential mortgages 101,826 102,201 (0.4) 112,166 104,452 69,812
Other 50,546 36,456 38.6 45,192 36,684 32,699
Consumer loans 23,943 22,441 6.7 26,520 49,302 21,482
--------------- --------------- --------------- --------------- ---------------
Total nonaccrual loans 307,788 328,018 (6.2) 337,057 354,241 263,127
Restructured loans 21,876 21,236 3.0 20,071 19,049 19,725
--------------- --------------- --------------- --------------- ---------------
Total nonperforming loans 329,664 349,254 (5.6) 357,128 373,290 282,852
Other real estate owned (OREO) 26,013 25,263 3.0 27,555 28,619 10,934
Other repossessed assets 7,060 5,786 22.0 7,662 8,749 10,431
--------------- --------------- --------------- --------------- ---------------
Total nonperforming assets $362,737 $380,303 (4.6) $392,345 $410,658 $304,217
=============== =============== =============== =============== ===============
Total nonperforming loans to
total loans 0.29% 0.32 % (9.4)% 0.34% 0.37% 0.33%
Total nonperforming assets to
total loans plus OREO and other
repossessed assets 0.32 0.35 (8.6) 0.37 0.40 0.36
Allowance to period-end loans 0.92 0.95 (3.2) 0.98 1.04 1.06
Allowance to nonperforming loans 312.4 296.7 5.3 286.7 281.3 315.7
- -----------------------------------------------------------------------------------------------------------------------------------
Page 10
SUNTRUST BANKS, INC. AND SUBSIDIARIES
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A TO THE PRESS RELEASE
(DOLLARS IN THOUSANDS)
- --------------------------------------------------------------------------------
THREE MONTHS ENDED
------------------------------------------------------------------------------
SEPTEMBER 30 JUNE 30 MARCH 31 DECEMBER 31 SEPTEMBER 30
2005 2005 2005 2004 2004
-------------- -------------- -------------- -------------- ---------------
NON-GAAP MEASURES PRESENTED IN
THE PRESS RELEASE
Net income $510,774 $465,700 $492,294 $455,729 $368,766
Securities losses, net 1,283 17 3,509 12,595 11,825
-------------- -------------- -------------- -------------- ---------------
Net income excluding securities
gains and losses 512,057 465,717 495,803 468,324 380,591
The Coca-Cola Company dividend,
net of tax (12,028) (12,027) (12,028) (10,739) (10,740)
-------------- -------------- -------------- -------------- ---------------
Net income excluding securities
gains and losses and The Coca-Cola
Company dividend $500,029 $453,690 $483,775 $457,585 $369,851
============== ============== ============== ============== ===============
Total average assets $169,933,960 $165,253,589 $161,218,222 $156,570,092 $127,127,968
Average net unrealized securities
gains (2,102,257) (1,791,566) (2,032,787) (2,056,737) (2,054,978)
-------------- -------------- -------------- -------------- ---------------
Average assets less net unrealized
securities gains $167,831,703 $163,462,023 $159,185,435 $154,513,355 $125,072,990
============== ============== ============== ============== ===============
Total average equity $16,822,919 $16,275,567 $16,119,430 $15,818,968 $9,992,905
Average accumulated other
comprehensive income (1,331,103) (1,139,477) (1,285,278) (1,304,553) (1,318,332)
-------------- -------------- -------------- -------------- ---------------
Total average realized equity $15,491,816 $15,136,090 $14,834,152 $14,514,415 $8,674,573
============== ============== ============== ============== ===============
Return on average total assets 1.19% 1.13% 1.24% 1.16% 1.15%
Impact of excluding net realized and
unrealized securities gains/losses
and The Coca-Cola Company dividend (0.01) (0.02) (0.01) 0.02 0.03
-------------- -------------- -------------- -------------- ---------------
Return on average total assets less
net unrealized securities gains (1) 1.18% 1.11% 1.23% 1.18% 1.18%
============== ============== ============== ============== ===============
Return on average total shareholders'
equity 12.05% 11.48% 12.39% 11.46% 14.68%
Impact of excluding net realized and
unrealized securities gains/losses
and The Coca-Cola Company dividend 0.76 0.54 0.84 1.08 2.28
-------------- -------------- -------------- -------------- ---------------
Return on average realized shareholders'
equity (2) 12.81% 12.02% 13.23% 12.54% 16.96%
============== ============== ============== ============== ===============
Noninterest income $832,398 $770,909 $753,814 $759,003 $627,692
Securities losses, net 2,069 27 5,659 19,377 18,193
Gain on sale of RCM assets,
net of related expenses (3,508) - (19,874) - -
-------------- -------------- -------------- -------------- ---------------
Total noninterest income excluding
securities gains and losses and net
gain on sale of RCM assets (3) $830,959 $770,936 $739,599 $778,380 $645,885
============== ============== ============== ============== ===============
Net interest income $1,156,661 $1,123,709 $1,111,560 $1,084,204 $876,874
FTE adjustment 19,081 18,720 17,666 16,684 16,821
-------------- -------------- -------------- -------------- ---------------
Net interest income - FTE 1,175,742 1,142,429 1,129,226 1,100,888 893,695
Noninterest income 832,398 770,909 753,814 759,003 627,692
-------------- -------------- -------------- -------------- ---------------
Total revenue 2,008,140 1,913,338 1,883,040 1,859,891 1,521,387
Securities losses, net 2,069 27 5,659 19,377 18,193
Gain on sale of RCM assets,
net of related expenses (3,508) - (19,874) - -
-------------- -------------- -------------- -------------- ---------------
Total revenue excluding securities
gains and losses and net gain on
sale of RCM assets (3) $2,006,701 $1,913,365 $1,868,825 $1,879,268 $1,539,580
============== ============== ============== ============== ===============
NINE MONTHS ENDED
--------------------------
SEPTEMBER 30
--------------------------
2005 2004
------------ ------------
NON-GAAP MEASURES PRESENTED IN
THE PRESS RELEASE
Net income $1,468,768 $1,117,172
Securities losses, net 4,808 14,504
------------ ------------
Net income excluding securities
gains and losses 1,473,576 1,131,676
The Coca-Cola Company dividend,
net of tax (36,083) (32,218)
------------ ------------
Net income excluding securities
gains and losses and The Coca-Cola
Company dividend $1,437,493 $1,099,459
============ ============
Total average assets $165,500,517 $126,093,513
Average net unrealized securities
gains (1,975,791) (2,478,183)
------------ ------------
Average assets less net unrealized
securities gains $163,524,726 $123,615,330
============ ============
Total average equity $16,408,550 $10,009,069
Average accumulated other
comprehensive income (1,252,121) (1,588,635)
------------ ------------
Total average realized equity $15,156,429 $8,420,434
============ ============
Return on average total assets 1.19% 1.18 %
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) 1.18% 1.19 %
============ ============
Return on average total shareholders'
equity 11.97% 14.91 %
Impact of excluding net realized and
unrealized securities gains/losses
and The Coca-Cola Company dividend 0.71 2.53
------------ ------------
Return on average realized shareholders'
equity (2) 12.68% 17.44 %
============ ============
Noninterest income $2,357,121 $1,845,443
Securities losses, net 7,755 22,314
Gain on sale of RCM assets,
net of related expenses (23,382) -
------------ ------------
Total noninterest income excluding
securities gains and losses and net
gain on sale of RCM assets (3) $2,341,494 $1,867,757
============ ============
Net interest income $3,391,930 $2,600,951
FTE adjustment 55,467 41,714
------------ ------------
Net interest income - FTE 3,447,397 2,642,665
Noninterest income 2,357,121 1,845,443
------------ ------------
Total revenue 5,804,518 4,488,108
Securities losses, net 7,755 22,314
Gain on sale of RCM assets,
net of related expenses (23,382) -
------------ ------------
Total revenue excluding securities
gains and losses and net gain on
sale of RCM assets (3) $5,788,891 $4,510,422
============ ============
----------------------------------------------------------------------------------------
THREE MONTHS ENDED
----------------------------------------------------------------------------------------
SEPTEMBER 30 JUNE 30 %(4) SEPTEMBER (30) SEPTEMBER (30) %
2005 2005 CHANGE (2005) (2004) CHANGE
------------ ----------- -------- --------------- --------------- ---------
AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT
- --------------------------------------------------------------
Noninterest bearing deposits $24,521,452 $24,309,721 0.9 $24,521,452 $20,490,191 19.7
NOW accounts 16,853,139 17,519,608 (3.8) 16,853,139 12,999,444 29.6
Savings 5,865,099 6,462,425 (9.2) 5,865,099 7,424,698 (21.0)
------------ ----------- --------------- ---------------
Total average low cost consumer
and commercial deposits $47,239,690 $48,291,754 (2.2) $47,239,690 $40,914,333 15.5
============ =========== =============== ===============
- --------------------------------------------------------------------------------
(1) SunTrust presents a return on average assets less net unrealized gains on
securities. The foregoing numbers reflect primarily adjustments to remove
the effects of the Company's securities portfolio which includes the
ownership by the Company of 48.3 million shares of The Coca-Cola Company.
The Company uses this information internally to gauge its actual
performance in the industry. The Company believes that the return on
average assets less the net unrealized securities gains is more indicative
of the Company's return on assets because it more accurately reflects the
return on the assets that are related to the Company's core businesses
which are primarily customer relationship and customer transaction driven.
The return on average assets less net unrealized gains on securities is
computed by dividing annualized net income, excluding securities
gains/losses and The Coca-Cola Company dividend, by average assets less net
unrealized securities gains.
(2) The Company also believes that the return on average realized equity is
more indicative of the Company's return on equity because the excluded
equity relates primarily to a long term holding of a specific security. The
return on average realized shareholders' equity is computed by dividing
annualized net income, excluding securities gains/losses and The Coca-Cola
Company dividend, by average realized shareholders' equity.
(3) SunTrust presents total noninterest income and total revenue excluding
realized securities gains and losses and the net gain on the sale of RCM
assets. The Company believes total noninterest income and total revenue
without securities gains and losses is more indicative of the Company's
performance because it isolates income that is primarily customer
relationship and customer transaction driven. SunTrust further excludes the
net gain on the sale of RCM assets because the Company believes the
exclusion of the net gain is more indicative of normalized operations.
(4) Multiply by 4 to calculate sequential annualized growth or reductions
discussed in the earnings call.
Page 11
SUNTRUST BANKS, INC. AND SUBSIDIARIES
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A TO THE PRESS RELEASE, CONTINUED
(DOLLARS IN THOUSANDS)
- ----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------------------------- ----------------------
SEPTEMBER 30 JUNE 30 SEPTEMBER 30
2005 2005 2005
-------------------- -------------------- ----------------------
SELECTED NON-GAAP OPERATING MEASURES AND ADJUSTED
OPERATING MEASURES PRESENTED IN THE PRESS RELEASE (1)
- -------------------------------------------------------------
Net income $510,774 $465,700 $1,468,768
Merger expense, net of tax 7,505 33,642 57,105
-------------------- -------------------- ----------------------
Operating net income 518,279 499,342 1,525,873
Net gain on sale of RCM assets, net of tax (2,175) - (14,497)
-------------------- -------------------- ----------------------
Adjusted operating net income $516,104 $499,342 $1,511,376
==================== ==================== ======================
Diluted earnings per share $1.40 $1.28 $4.04
Impact of excluding merger expense 0.02 0.09 0.16
-------------------- -------------------- ----------------------
Operating diluted earnings per share 1.42 1.37 4.20
Impact of net gain on sale of RCM assets - - (0.04)
-------------------- -------------------- ----------------------
Adjusted operating diluted earnings per share $1.42 $1.37 $4.16
==================== ==================== ======================
Total revenue $2,008,140 $1,913,338 $5,804,518
Securities losses, net 2,069 27 7,755
Net gain on sale of RCM assets (3,508) - (23,382)
-------------------- -------------------- ----------------------
Adjusted total revenue $2,006,701 $1,913,365 $5,788,891
==================== ==================== ======================
Noninterest income $832,398 $770,909 $2,357,121
Net gain on sale of RCM assets (3,508) - (23,382)
-------------------- -------------------- ----------------------
Noninterest income excluding net gain on sale of RCM assets $828,890 $770,909 $2,333,739
==================== ==================== ======================
Noninterest expense $1,177,071 $1,172,825 $3,483,802
Merger expense (12,104) (54,262) (92,104)
-------------------- -------------------- ----------------------
Noninterest expense excluding merger expense $1,164,967 $1,118,563 $3,391,698
==================== ==================== ======================
Efficiency ratio 58.62 % 61.30 % 60.02 %
Impact of excluding merger expense (0.61) (2.84) (1.59)
-------------------- -------------------- ----------------------
Operating efficiency ratio 58.01 58.46 58.43
Impact of net gain on sale of RCM assets 0.10 - 0.24
-------------------- -------------------- ----------------------
Adjusted operating efficiency ratio 58.11 % 58.46 % 58.67 %
==================== ==================== ======================
Return on average total assets 1.19 % 1.13 % 1.19 %
Impact of excluding merger expense 0.02 0.08 0.04
-------------------- -------------------- ----------------------
Operating return on average total assets (2) 1.21 % 1.21 % 1.23 %
==================== ==================== ======================
Return on average total shareholders' equity 12.05 % 11.48 % 11.97 %
Impact of excluding merger expense 0.17 0.83 0.46
-------------------- -------------------- ----------------------
Operating return on average total shareholders' equity (3) 12.22 % 12.31 % 12.43 %
==================== ==================== ======================
- ----------------------------------------------------------------------------------------------------------------------------------
(1) SunTrust presents selected financial data on an operating basis that
excludes merger charges, which represent incremental costs to integrate
NCF's operations. The Company also presents selected financial data on an
adjusted operating basis, which further excludes the net gain related to
the sale of RCM assets. The Company believes the exclusion of these two
measures is more reflective of normalized operations.
(2) Computed by dividing annualized operating net income by average total
assets.
(3) Computed by dividing annualized operating net income by average total
shareholders' equity.
Page 12
SUNTRUST BANKS, INC. AND SUBSIDIARIES
QUARTER-TO-QUARTER COMPARISON - ACTUAL
APPENDIX B TO THE PRESS RELEASE
- ------------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
-------------------------------------------------------------------------
INCREASE/(DECREASE) SEQUENTIAL
SEPTEMBER 30 JUNE 30 ------------------------- ANNUALIZED(1)
2005 2005 AMOUNT % %
-------------- ------------- ----------- --------- --------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $1,156,661 $1,123,709 $32,952 2.9 % 11.7 %
Provision for loan losses 70,393 47,811 22,582 47.2 NM
-------------- ------------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,086,268 1,075,898 10,370 1.0 3.9
-------------- ------------- -----------
NONINTEREST INCOME
Deposit and other fees(2) 368,613 357,545 11,068 3.1 12.4
Trust and investment management income 168,802 167,503 1,299 0.8 3.1
Broker / dealer revenue(3) 147,184 138,149 9,035 6.5 26.2
Other noninterest income 146,360 107,739 38,621 35.8 NM
-------------- ------------- -----------
Noninterest income before securities losses, net
and net gain on sale of RCM assets(4) 830,959 770,936 60,023 7.8 31.1
Gain on sale of RCM assets, net of related expenses 3,508 - 3,508 100.0 NM
-------------- ------------- -----------
Noninterest income before securities losses, net 834,467 770,936 63,531 8.2 33.0
Securities losses, net (2,069) (27) (2,042) 7,563.0 NM
-------------- ------------- -----------
Total noninterest income 832,398 770,909 61,489 8.0 31.9
-------------- ------------- -----------
NONINTEREST EXPENSE
Personnel expense 632,333 623,284 9,049 1.5 5.8
Net occupancy expense 79,519 73,483 6,036 8.2 32.9
Outside processing and software 92,952 89,282 3,670 4.1 16.4
Equipment expense 50,083 51,579 (1,496) (2.9) (11.6)
Marketing and customer development 38,651 36,298 2,353 6.5 25.9
Other noninterest expense 216,020 214,819 1,201 0.6 2.2
-------------- ------------- -----------
Noninterest expense before Affordable Housing
impairment charge, amortization of intangible
assets and merger expense(5) 1,109,558 1,088,745 20,813 1.9 7.6
Impairment charge on Affordable Housing Properties 25,672 - 25,672 100.0 NM
Amortization of intangible assets 29,737 29,818 (81) (0.3) (1.1)
Merger expense 12,104 54,262 (42,158) (77.7) NM
-------------- ------------- -----------
Total noninterest expense 1,177,071 1,172,825 4,246 0.4 1.4
-------------- ------------- -----------
INCOME BEFORE INCOME TAXES 741,595 673,982 67,613 10.0 40.1
Provision for income taxes 230,821 208,282 22,539 10.8 43.3
-------------- ------------- -----------
NET INCOME 510,774 465,700 45,074 9.7 38.7
Merger expense, net of tax 7,505 33,642 (26,137) (77.7) NM
-------------- ------------- -----------
OPERATING NET INCOME 518,279 499,342 18,937 3.8 15.2
Net gain on sale of RCM assets, net of tax (2,175) - (2,175) 100.0 NM
-------------- ------------- -----------
ADJUSTED OPERATING NET INCOME $516,104 $499,342 $16,762 3.4 % 13.4 %
============== ============= ===========
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $1,156,661 $1,123,709 $32,952 2.9 % 11.7 %
FTE adjustment 19,081 18,720 361 1.9 7.7
-------------- ------------- -----------
Net interest income - FTE 1,175,742 1,142,429 33,313 2.9 11.7
Noninterest income 832,398 770,909 61,489 8.0 31.9
-------------- ------------- -----------
Total revenue 2,008,140 1,913,338 94,802 5.0 19.8
Securities losses, net 2,069 27 2,042 7,563.0 NM
Net gain on sale of RCM assets (3,508) - (3,508) 100.0 NM
Total revenue excluding securities gains and losses
-------------- ------------- -----------
and net gain on sale of RCM assets $2,006,701 $1,913,365 $93,336 4.9 % 19.5 %
============== ============= ===========
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (6), (8)
Commercial $32,713 $32,508 $205 0.6 % 2.5 %
Real estate 1-4 family 28,366 26,324 2,042 7.8 31.0
Real estate commercial and construction 22,484 21,496 988 4.6 18.4
Real estate equity 12,649 12,135 514 4.2 16.9
Consumer (7) 14,382 14,291 91 0.6 2.5
Credit cards 224 213 11 5.2 20.7
-------------- ------------- -----------
Total loans $110,818 $106,967 $3,851 3.6 % 14.4 %
============== ============= ===========
Average deposits(8)
Noninterest bearing deposits $24,522 $24,310 $212 0.9 % 3.5 %
NOW accounts 16,853 17,520 (667) (3.8) (15.2)
Money market accounts 26,300 25,473 827 3.2 13.0
Savings 5,865 6,462 (597) (9.2) (37.0)
Consumer and other time 20,536 19,300 1,236 6.4 25.6
-------------- ------------- -----------
Total consumer and commercial deposits 94,076 93,065 1,011 1.1 4.3
Brokered and foreign deposits 17,969 15,709 2,260 14.4 57.5
-------------- ------------- -----------
Total deposits $112,045 $108,774 $3,271 3.0 % 12.0 %
============== ============= ===========
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $307,788 $328,018 ($20,230) (6.2)% (24.7)%
Restructured loans 21,876 21,236 640 3.0 12.1
-------------- ------------- -----------
Total nonperforming loans 329,664 349,254 (19,590) (5.6) (22.4)
Other real estate owned (OREO) 26,013 25,263 750 3.0 11.9
Other repossessed assets 7,060 5,786 1,274 22.0 88.1
-------------- ------------- -----------
Total nonperforming assets $362,737 $380,303 ($17,566) (4.6)% (18.5)%
============== ============= ===========
Allowance for loan and lease losses $1,029,855 $1,036,173 ($6,318) (0.6)% (2.4)%
============== ============= ===========
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Multiply percentage change by 4 to calculate sequential annualized change.
Any sequential annualized change over 100 percent is labeled as "NM". Those
changes over 100 percent were not considered to be meaningful.
(2) Includes service charges on deposits, card and other charges and fees.
(3) Includes retail investment services, investment banking income and trading
account profits and commissions.
(4) SunTrust presents noninterest income before securities (losses)/gains and
the net gain on the sale of RCM assets. The Company believes noninterest
income before securities gains and losses is more indicative of the
Company's performance because it isolates income that is primarily customer
relationship and customer transaction driven. SunTrust further excludes the
net gain on the sale of RCM assets because the Company believes the
exclusion of the net gain provides better comparability and is more
indicative of normalized operations.
(5) The Company presents noninterest expense before an impairment charge on
Affordable Housing Properties, amortization of intangible assets and merger
expense. The Company believes the exclusion of these measures provides
better comparability and is more reflective of normalized operations.
(6) SunTrust's average nonaccrual and restructured loans are included in the
respective categories to conform to the NCF presentation.
(7) Includes consumer direct and consumer indirect loans.
(8) See Appendix C for the impact of the estimated reclassification adjustments
resulting from the April 22, 2005 NCF systems conversion.
Page 13
SUNTRUST BANKS, INC. AND SUBSIDIARIES
QUARTER-TO-QUARTER COMPARISON - HISTORICAL COMBINED GROWTH
APPENDIX B TO THE PRESS RELEASE, CONTINUED
The 3rd quarter and year-to-date 2004 figures represent SunTrust and NCF on a
historical combined basis. See page 15 for a reconcilement of these historical
combined amounts.
- ------------------------------------------------------------------------------------------------------------------------------------
HISTORICAL COMBINED
---------------------------------------------------------------------
THREE MONTHS ENDED
---------------------------------------------------------------------
SEPTEMBER 30 INCREASE/(DECREASE)
---------------------------------- --------------------------------
2005 2004 AMOUNT %
--------------- ----------------- --------------- --------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $1,156,661 $1,071,689 $84,972 7.9 %
Provision for loan losses 70,393 60,818 9,575 15.7
--------------- ----------------- ---------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,086,268 1,010,871 75,397 7.5
--------------- ----------------- ---------------
NONINTEREST INCOME
Deposit and other fees (1) 368,613 353,573 15,040 4.3
Trust and investment management income 168,802 165,603 3,199 1.9
Broker / dealer revenue (2) 147,184 132,650 14,534 11.0
Other noninterest income 146,360 106,550 39,810 37.4
--------------- ----------------- ---------------
Noninterest income before securities losses, net
and net gain on sale of RCM assets(3) 830,959 758,376 72,583 9.6
Gain on sale of RCM assets, net of related expenses 3,508 - 3,508 100.0
--------------- ----------------- ---------------
Noninterest income before securities losses, net 834,467 758,376 76,091 10.0
Securities losses, net (2,069) (16,565) 14,496 (87.5)
--------------- ----------------- ---------------
Total noninterest income 832,398 741,811 90,587 12.2
--------------- ----------------- ---------------
NONINTEREST EXPENSE
Personnel expense 632,333 605,325 27,008 4.5
Net occupancy expense 79,519 79,875 (356) (0.4)
Outside processing and software 92,952 75,449 17,503 23.2
Equipment expense 50,083 50,904 (821) (1.6)
Marketing and customer development 38,651 34,975 3,676 10.5
Other noninterest expense 216,020 233,692 (17,672) (7.6)
--------------- ----------------- ---------------
Noninterest expense before Affordable Housing
impairment charge, amortization of intangible assets and
merger expense(4) 1,109,558 1,080,220 29,338 2.7
Impairment charge on Affordable Housing Properties 25,672 9,001 16,671 185.2
Amortization of intangible assets 29,737 28,132 1,605 5.7
Merger expense 12,104 - 12,104 100.0
--------------- ----------------- ---------------
Total noninterest expense 1,177,071 1,117,353 59,718 5.3
--------------- ----------------- ---------------
INCOME BEFORE INCOME TAXES 741,595 635,329 106,266 16.7
Provision for income taxes 230,821 198,926 31,895 16.0
--------------- ----------------- ---------------
NET INCOME 510,774 436,403 74,371 17.0
Merger expense, net of tax 7,505 - 7,505 100.0
--------------- ----------------- ---------------
OPERATING NET INCOME 518,279 436,403 81,876 18.8
Net gain on sale of RCM assets, net of tax (2,175) - (2,175) 100.0
--------------- ----------------- ---------------
ADJUSTED OPERATING NET INCOME $516,104 $436,403 $79,701 18.3 %
=============== ================= ===============
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $1,156,661 $1,071,689 $84,972 7.9 %
FTE adjustment (5) 19,081 19,063 18 0.1
--------------- ----------------- ---------------
Net interest income - FTE 1,175,742 1,090,752 84,990 7.8
Noninterest income 832,398 741,811 90,587 12.2
--------------- ----------------- ---------------
Total revenue 2,008,140 1,832,563 175,577 9.6
Securities losses, net 2,069 16,565 (14,496) (87.5)
Net gain on sale of RCM assets (3,508) - (3,508) 100.0
Total revenue excluding securities gains and losses
--------------- ----------------- ---------------
and net gain on sale of RCM assets $2,006,701 $1,849,128 $157,573 8.5 %
=============== ================= ===============
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (6)
Commercial $32,713 $31,977 $736 2.3 %
Real estate 1-4 family 28,366 21,963 6,403 29.2
Real estate commercial and construction 22,484 18,155 4,329 23.8
Real estate equity 12,649 10,295 2,354 22.9
Consumer(7) 14,382 15,520 (1,138) (7.3)
Credit cards 224 175 49 28.0
--------------- ----------------- ---------------
Total loans $110,818 $98,085 $12,733 13.0 %
=============== ================= ===============
Average deposits
Noninterest bearing deposits $24,522 $23,239 $1,283 5.5 %
NOW accounts 16,853 15,335 1,518 9.9
Money market accounts 26,300 24,211 2,089 8.6
Savings 5,865 9,099 (3,234) (35.5)
Consumer and other time 20,536 15,994 4,542 28.4
--------------- ----------------- ---------------
Total consumer and commercial deposits 94,076 87,878 6,198 7.1
Brokered and foreign deposits 17,969 11,496 6,473 56.3
--------------- ----------------- ---------------
Total deposits $112,045 $99,374 $12,671 12.8 %
=============== ================= ===============
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $307,788 $329,340 ($21,552) (6.5)%
Restructured loans 21,876 19,724 2,152 10.9
--------------- ----------------- ---------------
Total nonperforming loans 329,664 349,064 (19,400) (5.6)
Other real estate owned (OREO) 26,013 27,126 (1,113) (4.1)
Other repossessed assets 7,060 15,082 (8,021) (53.2)
--------------- ----------------- ---------------
Total nonperforming assets $362,737 $391,272 ($28,535) (7.3)%
=============== ================= ===============
Allowance for loan and lease losses $1,029,855 $1,067,829 ($37,974) (3.6)%
=============== ================= ===============
HISTORICAL COMBINED
--------------------------------------------------------------------
NINE MONTHS ENDED
--------------------------------------------------------------------
SEPTEMBER 30 INCREASE/(DECREASE)
------------------------------- ----------------------------------
2005 2004 AMOUNT %
-------------- -------------- ----------------- --------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $3,391,930 $3,180,823 $211,107 6.6 %
Provision for loan losses 128,760 142,415 (13,655) (9.6)
-------------- -------------- -----------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,263,170 3,038,408 224,762 7.4
-------------- -------------- -----------------
NONINTEREST INCOME
Deposit and other fees (1) 1,069,792 1,046,326 23,466 2.2
Trust and investment management income 500,820 474,671 26,149 5.5
Broker / dealer revenue (2) 434,529 440,267 (5,738) (1.3)
Other noninterest income 336,353 252,186 84,167 33.4
-------------- -------------- -----------------
Noninterest income before securities losses, net
and net gain on sale of RCM assets(3) 2,341,494 2,213,450 128,044 5.8
Gain on sale of RCM assets, net of related expenses 23,382 - 23,382 100.0
-------------- -------------- -----------------
Noninterest income before securities losses, net 2,364,876 2,213,450 151,426 6.8
Securities losses, net (7,755) (9,702) 1,947 (20.1)
-------------- -------------- -----------------
Total noninterest income 2,357,121 2,203,748 153,373 7.0
-------------- -------------- -----------------
NONINTEREST EXPENSE
Personnel expense 1,890,410 1,789,971 100,439 5.6
Net occupancy expense 228,853 230,183 (1,330) (0.6)
Outside processing and software 265,082 225,345 39,737 17.6
Equipment expense 154,544 156,156 (1,612) (1.0)
Marketing and customer development 106,578 104,011 2,567 2.5
Other noninterest expense 629,787 674,364 (44,577) (6.6)
-------------- -------------- -----------------
Noninterest expense before Affordable Housing
impairment charge, amortization of intangible assets and
merger expense(4) 3,275,254 3,180,030 95,224 3.0
Impairment charge on Affordable Housing Properties 25,672 9,001 16,671 185.2
Amortization of intangible assets 90,772 84,902 5,870 6.9
Merger expense 92,104 - 92,104 100.0
-------------- -------------- -----------------
Total noninterest expense 3,483,802 3,273,933 209,869 6.4
-------------- -------------- -----------------
INCOME BEFORE INCOME TAXES 2,136,489 1,968,223 168,266 8.5
Provision for income taxes 667,721 608,079 59,642 9.8
-------------- -------------- -----------------
NET INCOME 1,468,768 1,360,144 108,624 8.0
Merger expense, net of tax 57,105 - 57,105 100.0
-------------- -------------- -----------------
OPERATING NET INCOME 1,525,873 1,360,144 165,729 12.2
Net gain on sale of RCM assets, net of tax (14,497) - (14,497) (100.0)
-------------- -------------- -----------------
ADJUSTED OPERATING NET INCOME $1,511,376 $1,360,144 $151,232 11.1 %
============== ============== =================
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $3,391,930 $3,180,823 $211,107 6.6 %
FTE adjustment (5) 55,467 48,441 7,026 14.5
-------------- -------------- -----------------
Net interest income - FTE 3,447,397 3,229,264 218,133 6.8
Noninterest income 2,357,121 2,203,748 153,373 7.0
-------------- -------------- -----------------
Total revenue 5,804,518 5,433,012 371,506 6.8
Securities losses, net 7,755 9,702 (1,947) 20.1
Net gain on sale of RCM assets (23,382) - (23,382) (100.0)
Total revenue excluding securities gains and losses
-------------- -------------- -----------------
and net gain on sale of RCM assets $5,788,891 $5,442,714 $346,177 6.4 %
============== ============== =================
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (6)
Commercial $32,903 $32,112 $791 2.5 %
Real estate 1-4 family 26,092 20,270 5,822 28.7
Real estate commercial and construction 21,084 17,899 3,185 17.8
Real estate equity 12,123 9,548 2,575 27.0
Consumer (7) 14,614 15,326 (712) (4.6)
Credit cards 212 165 47 28.5
-------------- -------------- -----------------
Total loans $107,028 $95,320 $11,708 12.3 %
============== ============== =================
Average deposits
Noninterest bearing deposits $24,188 $22,650 $1,538 6.8 %
NOW accounts 17,282 14,974 2,308 15.4
Money market accounts 25,519 24,163 1,356 5.6
Savings 6,605 8,619 (2,014) (23.4)
Consumer and other time 19,120 15,512 3,608 23.3
-------------- -------------- -----------------
Total consumer and commercial deposits 92,714 85,918 6,796 7.9
Brokered and foreign deposits 15,718 12,255 3,463 28.3
-------------- -------------- -----------------
Total deposits $108,432 $98,173 $10,259 10.4 %
============== ============== =================
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
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes service charges on deposits, card and other charges and fees.
(2) Includes retail investment services, investment banking income and trading
account profits and commissions.
(3) SunTrust presents noninterest income before securities (losses)/gains and
the net gain on the sale of RCM assets. The Company believes noninterest
income before securities gains and losses is more indicative of the
Company's performance because it isolates income that is primarily customer
relationship and customer transaction driven. SunTrust further excludes the
net gain on the sale of RCM assets because the Company believes the
exclusion of the net gain provides better comparability and is more
indicative of normalized operations.
(4) The Company presents noninterest expense before an impairment charge on
Affordable Housing Properties, amortization of intangible assets and merger
expense. The Company believes the exclusion of these measures provides
better comparability and is more reflective of normalized operations.
(5) NCF's FTE adjustments were reduced $4.0 million and $13.1 million from the
third quarter and first nine months of 2004, respectively, to conform to
SunTrust's methodology. (6)SunTrust's average nonaccrual and restructured
loans are included in the respective categories to conform to the NCF
presentation.
(7) Includes consumer direct and consumer indirect loans.
Page 14
SUNTRUST BANKS, INC. AND SUBSIDIARIES
SUNTRUST / NCF - SELECTED HISTORICAL FINANCIAL DATA
APPENDIX B TO THE PRESS RELEASE, CONTINUED
- ----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
-------------------------------------------------------------
SEPTEMBER 30, 2004
-------------------------------------------------------------
SUNTRUST NCF HISTORICAL COMBINED
------------------ ------------------- -------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $876,874 $194,815 $1,071,689
Provision for loan losses 41,774 19,044 60,818
------------------ ------------------- -------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 835,100 175,771 1,010,871
------------------ ------------------- -------------------
NONINTEREST INCOME
Deposit and other fees (1) 298,328 55,245 353,573
Trust and investment management income 149,673 15,930 165,603
Broker / dealer revenue (2) 113,308 19,342 132,650
Other noninterest income 84,576 21,974 106,550
------------------ ------------------- -------------------
Noninterest income before securities losses, net 645,885 112,491 758,376
Securities losses, net (18,193) 1,628 (16,565)
------------------ ------------------- -------------------
Total noninterest income 627,692 114,119 741,811
------------------ ------------------- -------------------
NONINTEREST EXPENSE
Personnel expense 527,734 77,591 605,325
Net occupancy expense 66,542 13,333 79,875
Outside processing and software 68,657 6,792 75,449
Equipment expense 43,275 7,629 50,904
Marketing and customer development 32,028 2,947 34,975
Other noninterest expense 167,019 66,673 233,692
------------------ ------------------- -------------------
Noninterest expense before Affordable Housing
impairment charge and amortization of intangible assets 905,255 174,965 1,080,220
Impairment charge on Affordable Housing Properties 9,001 - 9,001
Amortization of intangible assets 15,593 12,539 28,132
------------------ ------------------- -------------------
Total noninterest expense 929,849 187,504 1,117,353
------------------ ------------------- -------------------
INCOME BEFORE INCOME TAXES 532,943 102,386 635,329
Provision for income taxes 164,177 34,749 198,926
------------------ ------------------- -------------------
NET INCOME $368,766 $67,637 $436,403
================== =================== ===================
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $876,874 $194,815 $1,071,689
FTE adjustment (3) 16,821 2,242 19,063
------------------ ------------------- -------------------
Net interest income - FTE 893,695 197,057 1,090,752
Noninterest income 627,692 114,119 741,811
------------------ ------------------- -------------------
Total revenue 1,521,387 311,176 1,832,563
Securities losses, net 18,193 (1,628) 16,565
------------------ ------------------- -------------------
Total revenue excluding securities gains and losses $1,539,580 $309,548 $1,849,128
================== =================== ===================
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (4)
Commercial $27,753 $4,224 $31,977
Real estate 1-4 family 20,798 1,165 21,963
Real estate commercial and construction 14,231 3,924 18,155
Real estate equity 8,239 2,056 10,295
Consumer (5) 12,574 2,946 15,520
Credit cards 158 17 175
------------------ ------------------- -------------------
Total loans $83,753 $14,332 $98,085
================== =================== ===================
Average deposits
Noninterest bearing deposits $20,490 $2,749 $23,239
NOW accounts 13,000 2,335 15,335
Money market accounts 22,434 1,777 24,211
Savings 7,425 1,674 9,099
Consumer and other time 10,773 5,221 15,994
------------------ ------------------- -------------------
Total consumer and commercial deposits 74,122 13,756 87,878
Brokered and foreign deposits 9,341 2,155 11,496
------------------ ------------------- -------------------
Total deposits $83,463 $15,911 $99,374
================== =================== ===================
SELECTED CREDIT DATA (DOLLARS IN THOUSANDS)
Nonaccrual loans $263,127 $66,213 $329,340
Restructured loans 19,724 - 19,724
------------------ ------------------- -------------------
Total nonperforming loans 282,851 66,213 349,064
Other real estate owned (OREO) 10,934 16,192 27,126
Other repossessed assets 10,431 4,651 15,082
------------------ ------------------- -------------------
Total nonperforming assets $304,216 $87,056 $391,272
================== =================== ===================
Allowance for loan and lease losses $892,974 $174,855 $1,067,829
================== =================== ===================
NINE MONTHS ENDED
--------------------------------------------------------------
SEPTEMBER 30, 2004
--------------------------------------------------------------
SUNTRUST NCF HISTORICAL COMBINED
------------------- ------------------ -------------------
STATEMENTS OF INCOME (DOLLARS IN THOUSANDS)
NET INTEREST INCOME $2,600,951 $579,872 $3,180,823
Provision for loan losses 98,438 43,977 142,415
------------------- ------------------ -------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,502,513 535,895 3,038,408
------------------- ------------------ -------------------
NONINTEREST INCOME
Deposit and other fees (1) 887,178 159,148 1,046,326
Trust and investment management income 426,257 48,414 474,671
Broker / dealer revenue (2) 368,452 71,815 440,267
Other noninterest income 185,870 66,316 252,186
------------------- ------------------ -------------------
Noninterest income before securities losses, net 1,867,757 345,693 2,213,450
Securities losses, net (22,314) 12,612 (9,702)
------------------- ------------------ -------------------
Total noninterest income 1,845,443 358,305 2,203,748
------------------- ------------------ -------------------
NONINTEREST EXPENSE
Personnel expense 1,555,452 234,519 1,789,971
Net occupancy expense 190,030 40,153 230,183
Outside processing and software 204,902 20,443 225,345
Equipment expense 134,100 22,056 156,156
Marketing and customer development 93,902 10,109 104,011
Other noninterest expense 514,836 159,528 674,364
------------------- ------------------ -------------------
Noninterest expense before Affordable Housing
impairment charge and amortization of intangible assets 2,693,222 486,808 3,180,030
Impairment charge on Affordable Housing Properties 9,001 - 9,001
Amortization of intangible assets 45,823 39,079 84,902
------------------- ------------------ -------------------
Total noninterest expense 2,748,046 525,887 3,273,933
------------------- ------------------ -------------------
INCOME BEFORE INCOME TAXES 1,599,910 368,313 1,968,223
Provision for income taxes 482,738 125,341 608,079
------------------- ------------------ -------------------
NET INCOME $1,117,172 $242,972 $1,360,144
=================== ================== ===================
REVENUE (DOLLARS IN THOUSANDS)
Net interest income $2,600,951 $579,872 $3,180,823
FTE adjustment (3) 41,714 6,727 48,441
------------------- ------------------ -------------------
Net interest income - FTE 2,642,665 586,599 3,229,264
Noninterest income 1,845,443 358,305 2,203,748
------------------- ------------------ -------------------
Total revenue 4,488,108 944,904 5,433,012
Securities losses, net 22,314 (12,612) 9,702
------------------- ------------------ -------------------
Total revenue excluding securities gains and losses $4,510,422 $932,292 $5,442,714
=================== ================== ===================
SELECTED AVERAGE BALANCES (DOLLARS IN MILLIONS)
Average Loans (4)
Commercial $27,998 $4,114 $32,112
Real estate 1-4 family 19,202 1,068 20,270
Real estate commercial and construction 14,064 3,835 17,899
Real estate equity 7,659 1,889 9,548
Consumer (5) 12,468 2,858 15,326
Credit cards 149 16 165
------------------- ------------------ -------------------
Total loans $81,540 $13,780 $95,320
=================== ================== ===================
Average deposits
Noninterest bearing deposits $19,995 $2,655 $22,650
NOW accounts 12,715 2,259 14,974
Money market accounts 22,313 1,850 24,163
Savings 6,919 1,700 8,619
Consumer and other time 10,614 4,898 15,512
------------------- ------------------ -------------------
Total consumer and commercial deposits 72,556 13,362 85,918
Brokered and foreign deposits 9,830 2,425 12,255
------------------- ------------------ -------------------
Total deposits $82,386 $15,787 $98,173
=================== ================== ===================
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
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes service charges on deposits, card and other charges and fees.
(2) Includes retail investment services, investment banking income and trading
account profits and commissions.
(3) NCF's FTE adjustments were reduced $4.0 million and $13.1 million from the
third quarter and first nine months of 2004, respectively, to conform to
SunTrust methodology.
(4) SunTrust's average nonaccrual and restructured loans are included in the
respective categories to conform to the NCF presentation.
(5) Includes consumer direct and consumer indirect loans.
Page 15
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED DAILY AVERAGE BALANCES - ADJUSTED(1)
APPENDIX C TO THE PRESS RELEASE
(DOLLARS IN MILLIONS)
- ------------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
----------------------------------------------------------------------------------
SEPTEMBER 30 JUNE 30
------------------- ----------------------------------------------------------
2005 2005
------------------- ----------------------------------------------------------
Average Average
Balances - Balances - Estimated
Reported Reported Reclassification As Adjusted
------------------- ---------------- -------------------- ----------------
LOANS:
Real estate 1-4 family $28,250.5 $26,224.1 $528.8 $26,752.9
Real estate construction 9,515.7 9,196.9 (234.5) 8,962.4
Real estate equity 12,648.6 12,134.7 (104.4) 12,030.3
Real estate commercial 12,872.0 12,214.5 827.8 13,042.3
Commercial 32,601.7 32,393.4 (762.7) 31,630.7
Business credit card 223.5 213.1 - 213.1
Consumer - direct 5,173.0 5,404.7 (467.7) 4,937.0
Consumer - indirect 9,179.8 8,861.1 197.4 9,058.5
Nonaccrual and restructured 353.6 324.2 15.3 339.5
------------------- ---------------- -------------------- ----------------
Total loans $110,818.4 $106,966.7 $- $106,966.7
=================== ================ ==================== ================
DEPOSITS:
Noninterest-bearing deposits $24,521.4 $24,309.7 $15.0 $24,324.7
NOW accounts 16,853.1 17,519.6 (4.6) 17,515.0
Money Market accounts 26,299.7 25,472.9 205.4 25,678.3
Savings 5,865.1 6,462.4 (215.8) 6,246.6
Consumer time 12,419.3 12,122.0 (565.5) 11,556.5
Other time 8,117.1 7,177.9 565.5 7,743.4
------------------- ---------------- -------------------- ----------------
Total consumer and commercial deposits 94,075.7 93,064.5 - 93,064.5
Brokered deposits 10,940.4 9,580.3 - 9,580.3
Foreign deposits 7,028.8 6,128.9 - 6,128.9
------------------- ---------------- -------------------- ----------------
Total deposits $112,044.9 $108,773.7 $- $108,773.7
=================== ================ ==================== ================
Adjusted
Sequential
Adjusted Adjusted Annualized
Growth Growth Rate Growth Rate(2)
----------------- ----------------- -------------------
LOANS:
Real estate 1-4 family $1,497.6 5.6 % 22.4 %
Real estate construction 553.3 6.2 24.7
Real estate equity 618.3 5.1 20.6
Real estate commercial (170.3) (1.3) (5.2)
Commercial 971.0 3.1 12.3
Business credit card 10.4 4.9 19.5
Consumer - direct 236.0 4.8 19.1
Consumer - indirect 121.3 1.3 5.4
Nonaccrual and restructured 14.1 4.2 16.6
-----------------
Total loans $3,851.7 3.6 14.4
=================
DEPOSITS:
Noninterest-bearing deposits $196.7 0.8 % 3.2 %
NOW accounts (661.9) (3.8) (15.1)
Money Market accounts 621.4 2.4 9.7
Savings (381.5) (6.1) (24.4)
Consumer time 862.8 7.5 29.9
Other time 373.7 4.8 19.3
-----------------
Total consumer and commercial deposits 1,011.2 1.1 4.3
Brokered deposits 1,360.1 14.2 56.8
Foreign deposits 899.9 14.7 58.7
-----------------
Total deposits $3,271.2 3.0 12.0
=================
- -------------------------------------------------------------------------------------------------------------------
(1) As a result of the NCF systems conversion on April 22, 2005, SunTrust
presents consolidated average balances on an adjusted basis for both loans
and deposits. The Company believes these adjusted measures provide a better
comparison between reporting periods and are more indicative of true loan
and deposit fluctuations. The adjustments represent reclassifications due
to account mapping changes resulting from the systems conversion.
(2) Multiply percentage change by 4 to calculate sequential annualized change.
Page 16
