Suntrust Banks 8-K SunTrust Reports Third Quarter Earnings

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS

	Three Months Ended						%		Nine Months Ended						% Change
	2003			2002			Change		2003			2002
EARNINGS & DIVIDENDS
Period Ended September 30
(Dollars in millions except per share data)
Net income	$	331.6		$	343.0		(3.3	)%	$	989.8		$	991.6		(0.2	)%
Earnings per share
Diluted	$	1.18		$	1.20		(1.7	)	$	3.52		$	3.46		1.7
Basic		1.19			1.21		(1.7	)		3.56			3.50		1.7
Dividends paid per common share		0.45			0.43		4.7			1.35			1.29		4.7
Average shares outstanding (000s)
Diluted		281,567			285,991		(1.5	)		281,062			286,880		(2.0	)
Basic		278,296			282,310		(1.4	)		278,107			283,213		(1.8	)
KEY RATIOS
Return on average total assets1		1.04	%		1.26	%	(17.5	)%		1.09	%		1.25	%	(12.8	)%
Return on average assets less net unrealized gains on securities1		1.06			1.30		(18.5	)		1.11			1.28		(13.3	)
Return on average total equity1		14.24			15.22		(6.4	)		14.76			15.25		(3.2	)
Return on average realized equity1		17.06			19.18		(11.1	)		17.68			19.18		(7.8	)
Net interest margin2		2.98			3.38		(11.8	)		3.08			3.46		(11.0	)
Efficiency ratio2		60.60			56.90		6.5			59.80			56.91		5.1
Period Ended September 30
Book value per share		32.83			31.04		5.8
Equity to assets		7.29			7.87		(7.4	)
Tier 1 capital ratio		7.603			7.56		0.5
Total capital ratio		11.303			11.50		(1.7	)
Tier 1 leverage ratio		7.053			7.69		(8.3	)
CONDENSED BALANCE SHEETS (Dollars in millions)
Average Balances
Securities available for sale	$	23,025		$	19,464		18.3	%	$	23,077		$	19,419		18.8	%
Loans held for sale		10,833			3,858		180.8			9,055			3,798		138.4
Loans		77,733			71,696		8.4			75,049			70,799		6.0
Other earning assets		3,139			3,449		(9.0	)		3,243			3,284		(1.2	)
Allowance for loan losses		(955	)		(935	)	2.1			(950	)		(922	)	3.0
Intangible assets		1,661			1,611		3.1			1,600			1,474		8.5
Other assets		11,266			8,703		29.4			10,432			8,537		22.2
Total assets	$	126,702		$	107,846		17.5		$	121,506		$	106,389		14.2
Consumer and commercial deposits	$	70,852		$	66,141		7.1		$	69,151		$	64,621		7.0
Purchased liabilities4		26,070			15,421		69.1			24,291			15,993		51.9
Long-term debt		12,489			11,950		4.5			12,046			12,036		0.1
Other liabilities		8,055			5,391		49.4			7,054			5,047		39.8
Total liabilities		117,466			98,903		18.8			112,542			97,697		15.2
Realized shareholders’ equity		7,710			7,096		8.7			7,484			6,910		8.3
Accumulated other comprehensive income		1,526			1,847		(17.4	)		1,480			1,782		(16.9	)
Total liabilities and shareholders’ equity	$	126,702		$	107,846		17.5		$	121,506		$	106,389		14.2
Period Ended September 30
Securities available for sale	$	25,607		$	20,700		23.7
Loans held for sale		9,182			4,746		93.5
Loans		78,788			72,605		8.5
Other earning assets		3,035			4,114		(26.2	)
Allowance for loan losses		(941	)		(929	)	1.3
Intangible assets		1,690			1,605		5.3
Other assets		9,293			9,581		(3.0	)
Total assets	$	126,654		$	112,422		12.7
Consumer and commercial deposits	$	70,444		$	67,992		3.6
Purchased liabilities4		27,825			17,619		57.9
Long-term debt		12,924			11,863		8.9
Other liabilities		6,222			6,100		2.0
Total liabilities		117,415			103,574		13.4
Realized shareholders’ equity		7,820			7,191		8.7
Accumulated other comprehensive income		1,419			1,657		(14.4	)
Total liabilities and shareholders’ equity	$	126,654		$	112,422		12.7

¹ SunTrust presents a return on average assets less net unrealized gains on securities and a return on average realized equity. These performance measures exclude the net unrealized gains on the Company’s securities portfolio. Due to its ownership of 48 million shares of common stock of The Coca-Cola Company, the Company believes this is a more indicative performance measure when being compared to other companies.

² The net interest margin and efficiency ratios are presented on a fully taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax-favored status of income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

³ Current period tier 1 capital, total capital and tier 1 leverage ratios are estimated as of the press release date.

⁴ Purchased liabilities include foreign and brokered deposits, funds purchased and other short-term borrowings.

1

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS

	Three Months Ended						%		Nine Months Ended						%
	2003			2002			Change		2003			2002			Change
CREDIT DATA (Dollars in thousands)
Period Ended September 30
Allowance for loan losses—beginning	$	940,889		$	928,932		1.3	%	$	930,114		$	867,059		7.3	%
Allowance from acquisitions and other activity—net		—			—		—			9,324			15,531		(40.0	)
Provision for loan losses		79,799			98,699		(19.1	)		243,264			373,292		(34.8	)
Net charge-offs
Business credit card		662			138		379.7			1,825			351		419.9
Consumer		31,505			28,785		9.4			91,982			78,430		17.3
Residential		4,578			2,870		59.5			10,717			7,407		44.7
Commercial		42,520			66,518		(36.1	)		136,755			240,374		(43.1	)
Allowance for loan losses—ending	$	941,423		$	929,320		1.3		$	941,423		$	929,320		1.3
Total net charge-offs	$	79,265		$	98,311		(19.4	)	$	241,279		$	326,562		(26.1	)
Net charge-offs to average loans		0.40	%		0.54	%	(25.9	)		0.43	%		0.62	%	(30.6	)
Period Ended September 30
Nonaccrual loans	$	423,320		$	553,812		(23.6	)
Restructured loans		9,241			—		100.0
Total nonperforming loans		432,561			553,812		(21.9	)
Other real estate owned (OREO)		19,607			15,002		30.7
Other repossessed assets		11,637			25,925		(55.1	)
Total nonperforming assets	$	463,805		$	594,739		(22.0	)
Total nonperforming loans to total loans		0.55	%		0.76	%	(27.6	)
Total nonperforming assets to total loans plus
OREO and other repossessed assets		0.59			0.82		(28.0	)
Allowance to period-end loans		1.19			1.28		(7.0	)
Allowance to nonperforming loans		217.6			167.8		29.7
RECONCILEMENT OF NON-GAAP MEASURES
(Dollars in thousands)
Return on average total assets		1.04	%		1.26	%				1.09	%		1.25	%
Impact of excluding net unrealized securities gains		0.02			0.04					0.02			0.03
Return on average assets less net unrealized gains on securities		1.06			1.30					1.11			1.28
Return on average total shareholders’ equity		14.24			15.22					14.76			15.25
Impact of excluding net unrealized securities gains		2.82			3.96					2.92			3.93
Return on average realized shareholders’ equity		17.06			19.18					17.68			19.18
Net interest income	$	832,800		$	805,114				$	2,454,783		$	2,416,608
FTE adjustment		11,588			10,013					33,033			29,282
Net interest income—FTE	$	844,388		$	815,127				$	2,487,816		$	2,445,890

2

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	As of September 30						Increase/(Decrease)
	2003			2002			Amount			%
ASSETS
Cash and due from banks	$	3,720,378		$	3,819,192		$	(98,814	)	(2.6	)%
Interest-bearing deposits in other banks		1,576			782,141			(780,565	)	(99.8
Trading assets		2,026,798			1,889,206			137,592		7.3
Securities available for sale1		25,607,404			20,699,819			4,907,585		23.7
Funds sold and securities purchased under agreements to resell		1,007,018			1,442,842			(435,824	)	(30.2	)
Loans held for sale		9,181,921			4,745,817			4,436,104		93.5
Loans		78,788,246			72,604,893			6,183,353		8.5
Allowance for loan losses		(941,423	)		(929,320	)		(12,103	)	1.3
Net loans		77,846,823			71,675,573			6,171,250		8.6
Goodwill		1,077,198			956,090			121,108		12.7
Other intangible assets		613,231			649,357			(36,126	)	(5.6	)
Other assets		5,572,029			5,761,989			(189,960	)	(3.3	)
Total Assets2	$	126,654,376		$	112,422,026		$	14,232,350		12.7
LIABILITIES
Noninterest-bearing consumer and commercial deposits	$	18,750,157		$	16,558,287		$	2,191,870		13.2
Interest-bearing consumer and commercial deposits		51,693,938			51,433,993			259,945		0.5
Total consumer and commercial deposits		70,444,095			67,992,280			2,451,815		3.6
Brokered deposits		3,648,447			2,394,791			1,253,656		52.3
Foreign deposits		6,374,675			3,420,890			2,953,785		86.3
Total deposits		80,467,217			73,807,961			6,659,256		9.0
Funds purchased and securities sold under agreements to repurchase		13,811,271			10,204,195			3,607,076		35.3
Other short-term borrowings		3,990,318			1,598,484			2,391,834		149.6
Long-term debt		12,923,985			11,863,445			1,060,540		8.9
Trading liabilities		1,007,403			941,274			66,129		7.0
Other liabilities		5,215,769			5,158,273			57,496		1.1
Total liabilities		117,415,963			103,573,632			13,842,331		13.4
SHAREHOLDERS’ EQUITY
Preferred stock, no par value		—			—			—		—
Common stock, $1.00 par value		294,163			294,163			—		—
Additional paid in capital		1,288,164			1,276,633			11,531		0.9
Retained earnings		6,933,175			6,103,364			829,811		13.6
Treasury stock and other		(695,909	)		(483,005	)		(212,904	)	44.1
Realized shareholders’ equity		7,819,593			7,191,155			628,438		8.7
Accumulated other comprehensive income		1,418,820			1,657,239			(238,419	)	(14.4	)
Total shareholders’ equity		9,238,413			8,848,394			390,019		4.4
Total Liabilities and Shareholders’ Equity	$	126,654,376		$	112,422,026		$	14,232,350		12.7
Common shares outstanding		281,410,181			285,042,697			(3,632,516	)	(1.3	)
Common shares authorized		750,000,000			750,000,000			—		—
Treasury shares of common stock		12,752,576			9,120,060			3,632,516		39.8
1Includes net unrealized gains of:		2,246,886			2,616,382			(369,496	)	(14.1	)
2Includes earning assets of:		114,366,077			99,548,336			14,817,741		14.9

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)
	2003		2002			Amount			%		2003			2002			Amount			%
Interest income	1,177,745		$	1,270,717		$	(92,972	)	(7.3	)%	$	3,569,906		$	3,860,258		$	(290,352	)	(7.5	)%
Interest expense	344,945			465,603			(120,658	)	(25.9	)		1,115,123			1,443,650			(328,527	)	(22.8	)
NET INTEREST INCOME	832,800			805,114			27,686		3.4			2,454,783			2,416,608			38,175		1.6
Provision for loan losses2	79,799			98,699			(18,900	)	(19.1	)		243,264			373,292			(130,028	)	(34.8	)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	753,001			706,415			46,586		6.6			2,211,519			2,043,316			168,203		8.2
NONINTEREST INCOME
Service charges on deposit accounts	162,030			156,955			5,075		3.2			477,805			456,722			21,083		4.6
Trust and investment management income	127,777			123,861			3,916		3.2			372,787			385,119			(12,332	)	(3.2	)
Retail investment services	38,657			35,087			3,570		10.2			118,116			103,704			14,412		13.9
Other charges and fees	86,090			76,578			9,512		12.4			246,935			222,524			24,411		11.0
Investment banking income	47,701			39,835			7,866		19.7			138,680			137,438			1,242		0.9
Trading account profits and commissions	26,822			23,553			3,269		13.9			87,198			73,444			13,754		18.7
Mortgage production	32,178			22,265			9,913		44.5			153,130			31,040			122,090		393.3
Mortgage servicing	(52,672	)		(36,476	)		(16,196	)	(44.4	)		(179,818	)		(42,001	)		(137,817	)	(328.1	)
Credit card and other fees	29,643			27,448			2,195		8.0			90,692			90,058			634		0.7
Other noninterest income	45,154			33,964			11,190		32.9			109,029			118,055			(9,026	)	(7.6	)
Securities gains	31,098			45,813			(14,715	)	(32.1	)		104,375			165,000			(60,625	)	(36.7	)
Total noninterest income	574,478			548,883			25,595		4.7			1,718,929			1,741,103			(22,174	)	(1.3	)
NONINTEREST EXPENSE
Personnel expense	472,068			435,337			36,731		8.4			1,428,392			1,362,343			66,049		4.8
Net occupancy expense	60,459			57,578			2,881		5.0			176,744			167,515			9,229		5.5
Outside processing and software	65,402			59,941			5,461		9.1			183,478			168,199			15,279		9.1
Equipment expense	44,900			42,784			2,116		4.9			132,916			129,736			3,180		2.5
Marketing and customer development	24,988			15,713			9,275		59.0			75,450			59,152			16,298		27.6
Amortization of intangible assets	16,211			17,455			(1,244	)	(7.1	)		48,136			41,443			6,693		16.1
Merger-related expenses2	—			—			—		—			—			15,998			(15,998	)	(100.0	)
Other noninterest expense	175,837			147,344			28,493		19.3			470,706			438,627			32,079		7.3
Total noninterest expense	859,865			776,152			83,713		10.8			2,515,822			2,383,013			132,809		5.6
INCOME BEFORE INCOME TAXES	467,614			479,146			(11,532	)	(2.4	)		1,414,626			1,401,406			13,220		0.9
Provision for income taxes	136,031			136,153			(122	)	(0.1	)		424,836			409,847			14,989		3.7
NET INCOME	331,583		$	342,993		$	(11,410	)	(3.3	)	$	989,790		$	991,559		$	(1,769	)	(0.2	)
Net interest income (taxable-equivalent)1	844,388			815,127			29,261		3.6			2,487,816			2,445,890			41,926		1.7
Earnings per share
Diluted	1.18			1.20			(0.02	)	(1.7	)		3.52			3.46			0.06		1.7
Basic	1.19			1.21			(0.02	)	(1.7	)		3.56			3.50			0.06		1.7
Cash dividends paid per common share	0.45			0.43			0.02		4.7			1.35			1.29			0.06		4.7
Average shares outstanding (000s)
Diluted	281,567			285,991			(4,424	)	(1.5	)		281,062			286,880			(5,818	)	(2.0	)
Basic	278,296			282,310			(4,014	)	(1.4	)		278,107			283,213			(5,106	)	(1.8	)

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.

² Results include merger-related expenses of $16.0 million for the nine months ended September 30, 2002, for the Company’s acquisition of the Florida franchise of Huntington Bancshares. The provision for loan losses includes an additional $45.3 million for the nine months ended September 30, 2002, to conform the Huntington portfolio to the Company’s credit standards. The net of tax impact of these two items was $39.8 million.

SunTrust Banks, Inc. and Subsidiaries

SELECTED FINANCIAL INFORMATION

																Nine Months Ended
	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			September 30
	2003			2003			2003			2002			2002			2003			2002
RESULTS OF OPERATIONS
(Dollars in thousands, except per share data)
Net interest income	$	832,800		$	799,513		$	822,470		$	827,101		$	805,114		$	2,454,783		$	2,416,608
Provision for loan losses		79,799			82,662			80,803			96,500			98,699			243,264			373,292
Net credit income		753,001			716,851			741,667			730,601			706,415			2,211,519			2,043,316
Securities gains		31,098			31,238			42,039			39,547			45,813			104,375			165,000
Other noninterest income		543,380			565,554			505,620			488,177			503,070			1,614,554			1,576,103
Net credit and noninterest income		1,327,479			1,313,643			1,289,326			1,258,325			1,255,298			3,930,448			3,784,419
Noninterest expense		859,865			837,728			818,229			836,407			776,152			2,515,822			2,383,013
Income before income taxes		467,614			475,915			471,097			421,918			479,146			1,414,626			1,401,406
Provision for income taxes		136,031			145,556			143,249			81,668			136,153			424,836			409,847
Net Income	$	331,583		$	330,359		$	327,848		$	340,250		$	342,993		$	989,790		$	991,559
Net interest income (taxable-equivalent)		844,388			810,415			833,013			837,341			815,127			2,487,816			2,445,890
Earnings per share
Diluted	$	1.18		$	1.17		$	1.17		$	1.20		$	1.20			3.52			3.46
Basic		1.19			1.19			1.18			1.21			1.21			3.56			3.50
Dividends paid per common share		0.45			0.45			0.45			0.43			0.43			1.35			1.29
Average shares outstanding (000s)
Diluted		281,567			280,287			281,330			283,595			285,991			281,062			286,880
Basic		278,296			277,397			278,631			280,364			282,310			278,107			283,213
SELECTED AVERAGE BALANCES
(Dollars in millions)
Total assets	$	126,702		$	119,448		$	118,276		$	114,828		$	107,846		$	121,506		$	106,389
Earning assets		112,329			106,606			105,249			101,895			95,562			108,087			94,509
Unrealized gains on securities available for sale		2,402			2,293			2,312			2,553			2,904			2,336			2,792
Loans		77,733			74,311			73,050			72,669			71,696			75,049			70,799
Interest-bearing liabilities		90,464			86,414			86,834			83,437			78,275			87,917			77,706
Total deposits		81,373			79,804			77,847			75,159			71,098			79,687			69,809
Shareholders’ equity		9,237			8,864			8,787			8,823			8,943			8,964			8,693
SELECTED RATIOS
Net interest margin1		2.98	%		3.05	%		3.21	%		3.26	%		3.38	%		3.08	%		3.46	%
Return on average total assets2		1.04			1.11			1.12			1.18			1.26			1.09			1.25
Return on average assets less net unrealized gains on securities2		1.06			1.13			1.15			1.20			1.30			1.11			1.28
Return on average total equity2		14.24			14.95			15.13			15.30			15.22			14.76			15.25
Return on average realized equity2		17.06			17.87			18.16			18.74			19.18			17.68			19.18
CREDIT DATA
(Dollars in thousands)
Allowance for loan losses—beginning	$	940,889		$	931,080		$	930,114		$	929,320		$	928,932		$	930,114		$	867,059
Allowance from acquisitions and other activity—net		—			9,324			—			—			—			9,324			15,531
Provision for loan losses		79,799			82,662			80,803			96,500			98,699			243,264			373,292
Net charge-offs		79,265			82,177			79,837			95,706			98,311			241,279			326,562
Allowance for loan losses—ending	$	941,423		$	940,889		$	931,080		$	930,114		$	929,320		$	941,423		$	929,320
Net charge-offs to average loans		0.40	%		0.44	%		0.44	%		0.52	%		0.54	%		0.43	%		0.62	%
Period Ended
Nonaccrual loans	$	423,320		$	480,582		$	520,052		$	510,974		$	553,812
Restructured loans		9,241			2,500			—			—			—
Total nonperforming loans		432,561			483,082			520,052			510,974			553,812
Other real estate owned (OREO)		19,607			20,887			18,064			17,972			15,002
Other repossessed assets		11,637			11,421			10,279			13,030			25,925
Total nonperforming assets	$	463,805		$	515,390		$	548,395		$	541,976		$	594,739
Total nonperforming loans to total loans		0.55	%		0.64	%		0.70	%		0.70	%		0.76	%
Total nonperforming assets to total loans plus OREO and other repossessed assets		0.59			0.68			0.74			0.74			0.82
Allowance to period-end loans		1.19			1.25			1.26			1.27			1.28
Allowance to nonperforming loans		217.6			194.8			179.0			182.0			167.8

¹ The net interest margin is presented on a fully taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax-favored status of income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

² SunTrust presents a return on average assets less net unrealized gains on securities and a return on average realized equity. These performance measures exclude the net unrealized gains on the Company’s securities portfolio. Due to its ownership of 48 million shares of common stock of The Coca-Cola Company, the Company believes this is a more indicative performance measure when being compared to other companies.

5

SunTrust Banks, Inc. and Subsidiaries

SELECTED FINANCIAL INFORMATION

																Nine Months Ended
	3rd Quarter 2003			2nd Quarter 2003			1st Quarter 2003			4th Quarter 2002			3rd Quarter 2002			September 30
																2003			2002
RECONCILEMENT OF NON-GAAP MEASURES
(Dollars in thousands)
Return on average total assets		1.04	%		1.11	%		1.12	%		1.18	%		1.26	%		1.09	%		1.25	%
Impact of excluding net unrealized securities gains		0.02			0.02			0.03			0.02			0.04			0.02			0.03
Return on average assets less net unrealized gains on securitie		1.06			1.13			1.15			1.20			1.30			1.11			1.28
Return on average total shareholders’ equity		14.24			14.95			15.13			15.30			15.22			14.76			15.25
Impact of excluding net unrealized securities gains		2.82			2.92			3.03			3.44			3.96			2.92			3.93
Return on average realized shareholders’ equit		17.06			17.87			18.16			18.74			19.18			17.68			19.18
Net interest income	$	832,800		$	799,513		$	822,470		$	827,101		$	805,114		$	2,454,783		$	2,416,608
FTE adjustment		11,588			10,902			10,543			10,240			10,013			33,033			29,282
Net interest income—FTE	$	844,388		$	810,415		$	833,013		$	837,341		$	815,127		$	2,487,816		$	2,445,890

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										Nine Months Ended
	September 30, 2003					September 30, 2002					September 30, 2003					September 30, 2002
	Average Balances			Yields/ Rates		Average Balances			Yields/ Rates		Average Balances			Yields/ Rates		Average Balances			Yields/ Rates
Assets
Loans:
Real estate 1-4 family	$	15,924.4		5.51	%	$	14,931.0		6.83	%	$	15,208.5		5.91	%	$	14,991.5		7.00	%
Real estate construction		4,223.2		4.46			3,812.0		5.36			4,077.1		4.68			3,725.0		5.53
Real estate equity		6,341.3		4.28			4,571.2		5.03			5,881.3		4.46			3,910.5		5.13
Real estate commercial		9,228.1		4.80			8,823.7		5.81			9,175.9		5.03			8,607.1		5.97
Commercial		29,501.8		3.52			27,213.0		4.35			28,389.4		3.75			27,465.9		4.41
Business credit card		132.1		6.89			93.5		8.22			126.1		6.99			91.6		7.93
Consumer—direct		3,655.7		4.87			4,400.4		5.43			3,701.2		5.13			4,513.3		5.92
Consumer—indirect		8,264.5		6.57			7,351.7		7.80			7,991.5		6.94			6,958.1		7.99
Nonaccrual and restructured		462.1		3.92			499.1		2.73			497.6		2.74			536.1		2.56
Total loans		77,733.2		4.58			71,695.6		5.55			75,048.6		4.86			70,799.1		5.69
Securities available for sale:
Taxable		20,261.1		2.81			16,163.8		4.78			20,363.0		3.11			16,215.9		5.14
Tax-exempt		362.0		6.38			396.2		6.86			377.7		6.50			411.3		6.91
Total securities available for sale		20,623.1		2.87			16,560.0		4.83			20,740.7		3.17			16,627.2		5.18
Funds sold and securities purchased under agreement to resell		1,420.5		0.97			1,439.5		1.80			1,456.4		1.13			1,357.6		1.79
Loans held for sale		10,833.0		5.04			3,858.1		6.54			9,054.6		5.24			3,798.2		6.60
Interest-bearing deposits		6.6		2.22			377.5		1.83			9.6		1.45			353.1		1.80
Trading assets		1,712.2		0.92			1,631.5		1.69			1,777.4		0.96			1,573.8		1.64
Total earning assets		112,328.6		4.20			95,562.2		5.32			108,087.3		4.46			94,509.0		5.50
Allowance for loan losses		(954.8	)				(935.1	)				(949.6	)				(922.3	)
Cash and due from banks		3,459.8					3,255.9					3,411.9					3,270.6
Premises and equipment		1,578.3					1,631.3					1,587.8					1,622.6
Other assets		7,888.0					5,427.5					7,032.8					5,117.2
Unrealized gains on securities available for sale		2,401.9					2,904.1					2,336.0					2,792.1
Total assets	$	126,701.8				$	107,845.9				$	121,506.2				$	106,389.2
Liabilities and Shareholders’ Equity
Interest-bearing deposits:
NOW accounts	$	11,792.8		0.37	%	$	10,431.6		0.72	%	$	11,567.1		0.46	%	$	10,080.6		0.74	%
Money Market accounts		22,452.7		0.77			20,843.0		1.58			22,199.8		0.97			20,140.5		1.67
Savings		6,315.7		0.66			6,301.3		1.30			6,262.9		0.79			6,336.8		1.42
Consumer time		7,837.4		2.39			9,481.9		3.57			8,101.8		2.64			9,403.5		3.82
Other time		3,506.1		2.28			3,846.4		2.51			3,448.2		2.30			3,715.2		2.88
Total interest-bearing consumer and commercial deposits		51,904.7		1.02			50,904.2		1.81			51,579.8		1.18			49,676.6		1.95
Brokered deposits		3,410.6		2.82			2,394.8		4.89			3,631.0		3.24			2,477.9		5.28
Foreign deposits		7,110.5		0.99			2,561.9		1.73			6,905.6		1.15			2,710.0		1.72
Total interest-bearing deposits		62,425.8		1.11			55,860.9		1.94			62,116.4		1.31			54,864.5		2.09
Funds purchased and securities sold under agreements to repurchase		11,852.5		0.79			9,597.1		1.40			12,061.0		0.94			9,834.0		1.39
Other short-term borrowings		3,696.7		1.59			867.0		1.59			1,693.2		1.48			970.5		1.60
Long-term debt		12,488.7		4.16			11,950.0		5.13			12,046.5		4.48			12,036.5		5.22
Total interest-bearing liabilities		90,463.7		1.51			78,275.0		2.36			87,917.1		1.70			77,705.5		2.48
Noninterest-bearing deposits		18,946.8					15,237.1					17,571.0					14,944.2
Other liabilities		8,054.5					5,390.5					7,054.0					5,046.7
Realized shareholders’ equity		7,710.4					7,095.9					7,483.8					6,910.4
Accumulated other comprehensive income		1,526.4					1,847.4					1,480.3					1,782.4
Total liabilities and shareholders’ equity	$	126,701.8				$	107,845.9				$	121,506.2				$	106,389.2
Interest rate spread				2.69	%				2.96	%				2.76	%				3.02	%
Net Interest Margin				2.98	%				3.38	%				3.08	%				3.46	%

SunTrust Banks, Inc. and Subsidiaries

APPENDIX A TO THE PRESS RELEASE

	Quarter-to-Quarter Comparison																YTD Comparison
	3rd Quarter 2003			2nd Quarter 2003			Change %		3rd Quarter 2003			3rd Quarter 2002			Change %		September 30 2003			September 30 2002			Change %
RECONCILEMENTS OF NON- GAAP DISCLOSURES FOR IMPACTS OF THREE PILLARS, AFFORDABLE HOUSING CONSOLIDATION, AND LIGHTHOUSE ACQUISITION1
(Dollars in millions)
Average loans—reported	$	77,733		$	74,311		4.6	%	$	77,733		$	71,696		8.4	%	$	75,049		$	70,799		6.0	%
Impact of Three Pillars		(1,975	)		—					1,975			—					(668	)		—
Average loans excluding Three Pillars	$	75,758		$	74,311		1.9		$	75,758		$	71,696		5.7		$	74,381		$	70,799		5.1
Average earning assets—reported	$	112,329		$	106,606		5.4		$	112,329		$	95,562		17.5		$	108,087		$	94,509		14.4
Impact of Three Pillars		(2,490	)		—					(2,490	)		—					(842	)		—
Average earning assets excluding Three Pillars	$	109,839		$	106,606		3.0		$	109,839		$	95,562		14.9		$	107,245		$	94,509		13.5
Average commercial loans—reported	$	29,502		$	27,810		6.1		$	29,502		$	27,213		8.4		$	28,389		$	27,466		3.4
Impact of Three Pillars		(1,975	)		—					(1,975	)		—					(668	)		—
Average commercial loans excluding Three Pillars	$	27,527		$	27,810		(1.0	)	$	27,527		$	27,213		1.2		$	27,721		$	27,466		0.9
Average commercial loan yield—reported		3.52	%		3.81	%	(7.6	)%		3.52	%		4.35	%	(19.1	)%		3.75	%		4.41	%	(15.0	)%
Impact of Three Pillars		0.09			—					0.09			—					0.03			—
Average commercial loan yield excluding Three Pillars		3.61			3.81		(5.2	)		3.61			4.35		(17.0	)		3.78			4.41		(14.3	)
Net interest margin—reported		2.98			3.05		(2.3	)		2.98			3.38		(11.8	)		3.08			3.46		(11.0	)
Impact of Three Pillars		0.06			—					0.06			—					0.02			—
Impact of affordable housing consolidation		0.02			—					0.02			—					—			—
Net interest margin excluding Three Pillars and affordable housing consolidation		3.06			3.05		0.3			3.06			3.38		(9.5	)		3.10			3.46		(10.4	)
Net charge-offs to average loans—reported		0.40			0.44		(9.1	)		0.40			0.54		(25.9	)		0.43			0.62		(30.6	)
Impact of Three Pillars		0.02			—					0.02			—					—			—
Net charge-offs to average loans excluding Three Pillar		0.42			0.44		(4.5	)		0.42			0.54		(22.2	)		0.43			0.62		(30.6	)
Allowance to period-end loans—reported		1.19			1.25		(4.8	)		1.19			1.28		(7.0	)
Impact of Three Pillars		0.04			—					0.04			—
Allowance to period-end loans excluding Three Pillar		1.23			1.25		(1.6	)		1.23			1.28		(3.9	)
Total nonperforming loans to total loans—reported		0.55			0.64		(14.1	)		0.55			0.76		(27.6	)
Impact of Three Pillars		0.01			—					0.01			—
Total nonperforming loans to total loans excluding Three Pillars		0.56			0.64		(12.5	)		0.56			0.76		(26.3	)
Total nonperforming assets to total loans plus OREO and other repossessed       assets—reported		0.59			0.68		(13.2	)		0.59			0.82		(28.0	)
Impact of Three Pillars		0.01			—					0.01			—
Total nonperforming assets to total loans plus OREO and other repossessed assets excluding Three Pillars		0.60			0.68		(11.8	)		0.60			0.82		(26.8	)
Efficiency ratio—reported		60.60
Impact of affordable housing consolidation		(0.52	)
Efficiency ratio excluding affordable housing consolidation		60.08
(Dollars in thousands)
Noninterest expense—reported	$	859,865		$	837,728		2.6		$	859,865		$	776,152		10.8		$	2,515,822		$	2,383,013		5.6
Impact of Lighthouse		(6,090	)		(1,300	)				(6,090	)		—					(7,390	)		—
Impact of affordable housing consolidation		(14,128	)		—					(14,128	)		—					(14,128	)		—
Noninterest expense excluding Lighthouse and affordable housing consolidation	$	839,647		$	836,428		0.4		$	839,647		$	776,152		8.2		$	2,494,304		$	2,383,013		4.7

¹ Under the provisions of FASB Interpretation No. 46 , SunTrust was required to consolidate its commercial paper conduit, Three Pillars, and certain other affordable housing limited partnerships in the third quarter of 2003.