0000916641-01-501315.txt : 20011018 0000916641-01-501315.hdr.sgml : 20011018 ACCESSION NUMBER: 0000916641-01-501315 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011010 ITEM INFORMATION: Other events FILED AS OF DATE: 20011010 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNTRUST BANKS INC CENTRAL INDEX KEY: 0000750556 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 581575035 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08918 FILM NUMBER: 1756114 BUSINESS ADDRESS: STREET 1: 303 PEACHTREE ST N E CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045887711 MAIL ADDRESS: STREET 1: 303 PEACHTREE ST N E CITY: ATLANTA STATE: GA ZIP: 30308 8-K 1 d8k.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 10, 2001 ------------------ SunTrust Banks, Inc. -------------------- (Exact name of registrant as specified in its charter) Georgia 001-08918 58-1575035 ---------------------------- ---------------- --------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 303 Peachtree St., N.E., Atlanta, Georgia 30308 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (404) 588-7711 --------------- Item 5. OTHER EVENTS On October 10, 2001, SunTrust Banks, Inc. issued a press release reporting third quarter 2001 Operating Earnings were $354.3 million, an increase of 7% from the third quarter 2000. A copy of the press release is filed as Exhibit 99 to this Current Report on Form 8-K. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SUNTRUST BANKS, INC. (Registrant) Date: October 10, 2001 By: /s/ William P. O'Halloran ----------------------------------------- William P. O'Halloran Senior Vice President and Controller EX-99 3 dex99.txt PRESS RELEASE Exhibit 99 News -------------------------------------------------------------------------------- SunTrust Press Release For Immediate Release: Contact: Gary Peacock, Jr. (404) 658-4879 SunTrust Reports Record Operating Income and Earnings Per Share ATLANTA, October 10, 2001 - SunTrust Banks, Inc. (NYSE: STI) today reported record operating income for the third quarter of 2001 of $354.3 million, up 7% from the third quarter of 2000. Operating income per diluted share was $1.22, up 10% from the $1.11 per diluted share earned in the third quarter of 2000. Operating income excludes $20.2 million in after-tax nonrecurring items associated with the Company's proposal to acquire Wachovia for the third quarter of 2001 and excludes the $5.4 million in after-tax merger related charges for the third quarter of 2000. Reported net income was $334.1 million for the quarter or $1.15 per diluted share compared to $326.8 million or $1.10 per diluted share in the third quarter of 2000. For the quarter, reported return on assets was 1.34% and return on average realized equity was 21.02%. "Despite the headwind of a much weakened economy, we are very pleased to announce yet another record quarter, reflective of SunTrust's commitment to providing one of the most consistent and high quality earnings performance in our industry," said L. Phillip Humann, SunTrust's Chairman, President, and Chief Executive Officer. "Our Company benefited from continued growth in fee income and disciplined control of expenses. And while we have, predictably, seen an increase in our levels of nonperforming assets and charge-offs, our credit quality remains sound and very favorable compared to recently published peer results." For the first nine months of 2001, operating income was $1,039.0 million compared to the $989.8 million earned in the first nine months of 2000. Operating income per diluted share for the first nine months of 2001 was $3.55, up 9% from that earned in 2000. Including $20.2 million in after-tax non recurring items associated with the Company's Wachovia proposal in 2001 and $26.0 million in after-tax merger-related charges in 2000, for the first nine months of 2001, reported net income was $1,018.8 million, up 6% from the $963.7 million earned in the first nine months of 2000. Net income per diluted share was $3.48, up 9% from the first nine months of 2000. Fully taxable net interest income was $813.9 million in the third quarter, up 4% from the third quarter of 2000. The net interest margin for the quarter was 3.56%, up 9 basis points from the third quarter of 2000. For the first nine months of 2001, fully taxable net interest income was $2,463.2 million, up 5% from the first nine months of 2000. Average loans for the third quarter were $69.0 billion and average earning assets were $90.6 billion. Adjusting for recent securitizations, average loans were up .5% from the News -------------------------------------------------------------------------------- SunTrust third quarter of last year. Average consumer and commercial deposits for the third quarter were $57.1 billion, up an annualized 5% from the second quarter. Noninterest income, excluding securities gains and losses, was $514.2 million in the quarter, up 15% from the third quarter of 2000. Total noninterest income, including net securities gains, was $550.4 million for the quarter, up 23% from the third quarter of 2000. Noninterest income represented 40% of total revenue or 39% without net securities gains. For the first nine months of 2001, noninterest income, excluding securities gains and losses, was $1,477.1 million, up 12% from the first nine months of 2000. Total noninterest expense in the quarter was $776.8 million. As previously mentioned, included in the noninterest expenses for the third quarter was $32 million ($20.2 million after-tax) or $.07 per diluted share in expenses associated with the Company's proposal to acquire Wachovia. Additionally, in the third quarter the Company spent $17.5 million ($11.4 million after- tax) or $.04 per diluted share on its One Bank initiative for enhancements to customer based systems that will yield operating efficiencies in the future. For the first nine months of 2001, the Company spent $39.1 million ($25.4 million after-tax) or $.09 per diluted share on this initiative. Adjusting for unusual expense items, third quarter 2001 noninterest expenses were up 4% compared to third quarter 2000. The Company's efficiency ratio was 56.94% in the third quarter of 2001, an improvement from the 57.50% reported in the third quarter of 2000. For the first nine months of 2001, total noninterest expense was $2,283.3 million, up 7% from the first nine months of 2000. The improvement in operating efficiency is attributable to a series of initiatives undertaken over the past two years to enhance standardization across the Company following consolidation of SunTrust's banking charters in January 2000. Consistent with the slowing economy, the Company's charge-offs and nonperforming asset levels rose in the third quarter. Net charge-offs in the third quarter were $79.9 million or .46% of average loans. The provision for loan losses was $80.2 million for the third quarter. For the first nine months of 2001, annualized net charge-offs were .35% of average loans. Nonperforming assets were $509.1 million at quarter end or .73% of loans and foreclosed properties. Total nonperfoming assets were up 18% from the second quarter end. The Company continues to sell nonperforming assets in the secondary loan market as opportunities permit. Nonperforming assets at September 30, 2001 included $490.2 million in nonperforming loans and $18.9 million in net other real estate owned. The allowance for loan losses at September 30, 2001 was $866.4 million and represented 1.24% of loans and 176.7% of nonperforming loans. Over the long term, the Company's net charge-offs and non-performing asset levels have been substantially below industry averages, and current levels remain much better than the most recently published industry averages. On September 26, the Company announced plans to acquire Huntington's Florida franchise. Huntington-Florida has approximately $4.7 billion in deposits and $2.6 News -------------------------------------------------------------------------------- SunTrust billion in loans and operates 141 branches in central and southwestern Florida. This acquisition expands the Company's presence in some of the best markets in Florida. At September 30, 2001, SunTrust had total assets of $103.3 billion. Equity capital of $8.2 billion represented 7.94% of total assets. Book value per share was $28.40, up 10% from the third quarter 2000. To view the corresponding financial tables and information, please refer to the Investor Relations section located under "About SunTrust" of our website at www.suntrust.com. This information may also be directly accessed via the quick link entitled "Earnings Release" located at the lower right hand corner of the SunTrust homepage. Also, SunTrust will host a conference call this morning at 9:00 a.m. (Eastern). Individuals may access the call by dialing 888-709-9420; passcode 75302 (domestically) or 415-228-3886; passcode 75302 (internationally). A replay of the call will be available beginning this afternoon by dialing 800-944-7324; passcode 89371 (domestically) or 402-220-3515; passcode 89371 (internationally). The replay of the call will be available for ten days. SunTrust Banks, Inc., based in Atlanta, Georgia, is the nation's 9th largest commercial banking organization. The Company provides a wide range of services to meet the financial needs of its growing customer base in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia, and the District of Columbia. Its primary businesses include traditional deposit and credit services as well as trust and investment services. Through various subsidiaries the Company provides credit cards, mortgage banking, insurance, brokerage and investment services. This press release may contain forward-looking statements as defined by federal securities law which involve significant risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in the economic scenario: significant changes in regulatory requirements; and significant changes in securities markets. SunTrust Banks, Inc. and Subsidiaries FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------------------------------------------------------- Three Months Ended Nine Months Ended ------------------------- % ---------------------- % 2001 2000 Change 2001 2000 Change --------------------------------------------------------------------------------------------------------------------------------- EARNINGS & DIVIDENDS Period Ended September 30 (Dollars in millions except per share data) Net income $ 334.1 $ 326.8 2.2% $ 1,018.8 $ 963.7 5.7% Earnings per share Diluted $ 1.15 $ 1.10 4.5 $ 3.48 $ 3.19 9.1 Basic 1.17 1.11 5.4 3.53 3.22 9.6 Dividends paid per common share 0.40 0.37 8.1 1.20 1.11 8.1 Average shares outstanding (000s) Diluted 289,601 298,558 (3.0) 292,347 302,465 (3.3) Basic 285,571 295,575 (3.4) 288,395 299,327 (3.7) KEY RATIOS Return on average assets 1.34% 1.34% - % 1.36% 1.35% 0.7% Return on average realized equity (4) 21.02 21.62 (2.8) 21.76 21.47 1.4 Return on average total equity (4) 16.58 17.36 (4.5) 17.06 17.43 (2.1) Net interest margin(1) 3.56 3.47 2.6 3.58 3.57 0.3 Efficiency ratio 56.94 57.50 (1.0) 56.22 57.89 (2.9) Period Ended September 30 ------------------------- Book value per share 28.40 25.85 9.9 28.40 25.85 9.9 Equity to assets 7.94 7.64 3.9 7.94 7.64 3.9 Tier 1 capital ratio 7.05 (3) 7.02 0.4 Total capital ratio 11.30 (3) 10.73 5.3 Tier 1 leverage ratio 6.95 (3) 6.92 0.4 --------------------------------------------------------------------------------------------------------------------------------- CONDENSED BALANCE SHEET (Dollars in millions) Average Balances ---------------- Securities available for sale $ 18,203 $ 16,969 7.3% $ 19,068 $ 17,275 10.4% Loans held for sale 3,183 1,395 128.2 2,671 1,371 94.8 Loans 69,024 71,507 (3.5) 70,183 69,463 1.0 Other earning assets 2,781 2,158 28.9 2,651 2,049 29.4 Allowance for loan losses (873) (869) 0.5 (879) (872) 0.8 Intangible assets 832 807 3.1 822 801 2.6 Other assets 8,096 7,425 9.0 8,032 7,354 9.2 --------- --------- --------- --------- Total assets $ 101,246 $ 99,392 1.9 $ 102,548 $ 97,441 5.2 ========= ========= ========= ========= Consumer and commercial deposits $ 57,081 $ 53,641 6.4 $ 55,997 $ 53,648 4.4 Purchased liabilities(2) 18,405 25,934 (29.0) 21,507 24,914 (13.7) Long-term debt 12,926 8,378 54.3 12,371 7,803 58.5 Other liabilities 4,838 3,951 22.5 4,687 3,689 27.1 --------- --------- --------- --------- Total liabilities 93,250 91,904 1.5 94,562 90,054 5.0 Realized shareholders' equity 6,305 6,013 4.9 6,260 5,995 4.4 Accumulated other comprehensive income 1,691 1,475 14.6 1,726 1,392 24.0 --------- --------- --------- --------- Total liabilities and shareholders' equity $ 101,246 $ 99,392 1.9 $ 102,548 $ 97,441 5.2 ========= ========= ========= ========= Period Ended September 30 ------------------------- Securities available for sale $ 18,493 $ 17,099 8.2 Loans held for sale 3,255 1,496 117.6 Loans 69,630 72,114 (3.4) Other earning assets 3,071 2,352 30.6 Allowance for loan losses (866) (874) (0.9) Intangible assets 858 812 5.7 Other assets 8,821 7,716 14.3 --------- --------- Total assets $ 103,262 $ 100,715 2.5 ========= ========= Consumer and commercial deposits $ 57,217 $ 53,509 6.9 Purchased liabilities(2) 19,077 26,965 (29.3) Long-term debt 13,343 8,335 60.1 Other liabilities 5,425 4,208 28.9 --------- --------- Total liabilities 95,062 93,017 2.2 Realized shareholders' equity 6,478 6,132 5.6 Accumulated other comprehensive income 1,722 1,566 10.0 --------- --------- Total liabilities and shareholders' equity $ 103,262 $ 100,715 2.5 ========= ========= --------------------------------------------------------------------------------------------------------------------------------- CREDIT DATA ($ in thousands) Allowance for loan losses - beginning $ 866,099 $ 874,484 (1.0)% $ 874,547 $ 871,323 0.4% Allowance from acquisitions and other activity - net - - - (10,210) - (100.0) Provision for loan losses 80,157 30,540 162.5 187,072 80,525 132.3 Net charge-offs Credit card 178 1,207 (85.3) 163 1,248 (86.9) Other consumer 18,053 8,007 125.5 43,629 21,975 98.5 Residential 1,198 491 144.0 5,922 3,536 67.5 Commercial 60,474 20,829 190.3 135,342 50,599 167.5 --------- --------- --------- -------- Allowance for loan losses - ending $ 866,353 $ 874,490 (0.9) $ 866,353 $ 874,490 (0.9) ========= ========= ========= ========= Total net charge-offs $ 79,903 $ 30,534 161.7 $ 185,056 $ 77,358 139.2 Net charge-offs to average loans 0.46% 0.17% 170.6 0.35% 0.15% 133.3 Period Ended September 30 ------------------------- Nonperforming loans $ 490,178 $ 380,942 28.7 Other real estate owned 18,931 23,586 (19.7) --------- --------- Total nonperforming assets $ 509,109 $ 404,528 25.9 ========= ========= Allowance to loans 1.24% 1.21% 2.5 Nonperforming assets to total loans plus other real estate owned 0.73 0.56 30.4 Allowance to nonperforming loans 176.7 229.6 (23.0)
(1) Net interest income and net interest margin include the effects of taxable-equivalent adjustments. (2) Purchased liabilities include foreign and brokered deposits, funds purchased and other short-term borrowings. (3) Current period tier 1 capital, total capital and tier 1 leverage ratios are estimated as of the press release date. (4) SunTrust presents a return on average realized shareholders' equity, as well as a return on total shareholders' equity. The return on realized shareholders' equity excludes net unrealized security gains. SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEET (Dollars in thousands)
------------------------------------------------------------------------------------------------------------------------------ As of September 30 Increase/(Decrease) ------------------------------------ -------------------------------- 2001 2000 Amount % ------------------------------------------------------------------------------------------------------------------------------ ASSETS Cash and due from banks $ 3,608,003 $ 3,200,930 $ 407,073 12.7% Interest-bearing deposits in other banks 104,627 10,410 94,217 905.1 Trading account 1,550,883 913,787 637,096 69.7 Securities available for sale (1) 18,493,304 17,098,832 1,394,472 8.2 Funds sold 1,415,846 1,427,318 (11,472) (0.8) Loans held for sale 3,254,854 1,495,836 1,759,018 117.6 Loans 69,630,249 72,113,649 (2,483,400) (3.4) Allowance for loan losses (866,353) (874,490) 8,137 (0.9) --------------- ----------------- --------------- Net loans 68,763,896 71,239,159 (2,475,263) (3.5) Intangible assets 858,073 812,079 45,994 5.7 Other assets 5,212,549 4,516,401 696,148 15.4 --------------- ----------------- --------------- Total Assets (2) $ 103,262,035 $ 100,714,752 $ 2,547,283 2.5 =============== ================= =============== LIABILITIES Noninterest-bearing deposits $ 13,023,697 $ 13,060,887 $ (37,190) (0.3) Interest-bearing consumer and commercial deposits 44,192,944 40,448,398 3,744,546 9.3 --------------- ----------------- --------------- Total consumer and commercial deposits 57,216,641 53,509,285 3,707,356 6.9 Brokered deposits 2,544,652 4,488,000 (1,943,348) (43.3) Foreign deposits 3,364,761 11,155,585 (7,790,824) (69.8) --------------- ----------------- --------------- Total deposits 63,126,054 69,152,870 (6,026,816) (8.7) Funds purchased 10,242,725 9,301,754 940,971 10.1 Other short-term borrowings 2,924,641 2,019,907 904,734 44.8 Long-term debt 13,343,390 8,334,903 5,008,487 60.1 Other liabilities 5,425,326 4,207,515 1,217,811 28.9 --------------- ----------------- --------------- Total liabilities 95,062,136 93,016,949 2,045,187 2.2 --------------- ----------------- --------------- SHAREHOLDERS' EQUITY Preferred stock, no par value - - - - Common stock, $1.00 par value 294,163 323,163 (29,000) (9.0) Additional paid in capital 1,262,518 1,269,792 (7,274) (0.6) Retained earnings 5,238,398 6,090,868 (852,470) (14.0) Treasury stock and other (316,709) (1,551,714) 1,235,005 (79.6) --------------- ----------------- --------------- Realized shareholders' equity 6,478,370 6,132,109 346,261 5.6 Accumulated other comprehensive income 1,721,529 1,565,694 155,835 10.0 --------------- ----------------- --------------- Total shareholders' equity 8,199,899 7,697,803 502,096 6.5 --------------- ----------------- --------------- Total Liabilities and Shareholders' Equity $ 103,262,035 $ 100,714,752 $ 2,547,283 2.5 =============== ================= =============== Common shares outstanding 288,741,890 297,791,574 (9,049,684) (3.0) Common shares authorized 750,000,000 750,000,000 - - Treasury shares of common stock 5,420,867 25,371,183 (19,950,316) (78.6) (1) Includes net unrealized gains of: 2,761,050 2,461,858 299,192 12.2 (2) Includes earning assets of: 91,688,713 90,597,974 1,090,739 1.2
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED STATEMENT OF INCOME (Dollars in thousands, except per share data)
----------------------------------------------------------------------------------------------------------------------------- Three Months Ended September 30 Increase/(Decrease) ---------------------------------- ----------------------------------- 2001 2000 Amount % ----------------------------------------------------------------------------------------------------------------------------- Interest income $ 1,509,944 $1,764,216 $ (254,272) (14.4)% Interest expense 706,115 992,766 (286,651) (28.9) ---------------- --------------- ---------------- NET INTEREST INCOME 803,829 771,450 32,379 4.2 Provision for loan losses 80,157 30,540 49,617 162.5 NET INTEREST INCOME AFTER ---------------- --------------- ---------------- PROVISION FOR LOAN LOSSES 723,672 740,910 (17,238) (2.3) ---------------- --------------- ---------------- NONINTEREST INCOME Trust and investment management income 119,786 120,185 (399) (0.3) Service charges on deposit accounts 129,142 116,875 12,267 10.5 Other charges and fees 61,316 56,290 5,026 8.9 Mortgage production related income 43,058 23,809 19,249 80.8 Mortgage servicing related income 829 7,906 (7,077) (89.5) Credit card and other fees 28,655 24,250 4,405 18.2 Retail investment services 26,802 24,022 2,780 11.6 Investment banking income 33,422 35,972 (2,550) (7.1) Trading account profits and commissions 30,048 4,924 25,124 510.2 Other noninterest income 41,183 33,586 7,597 22.6 Securities gains (losses) 36,161 (586) 36,747 6,270.8 ---------------- --------------- ---------------- Total noninterest income 550,402 447,233 103,169 23.1 ---------------- --------------- ---------------- NONINTEREST EXPENSE Personnel expense 447,373 400,899 46,474 11.6 Net occupancy expense 55,080 51,915 3,165 6.1 Equipment expense 49,907 47,191 2,716 5.8 Outside processing and software 51,639 42,385 9,254 21.8 Marketing and customer development 25,320 25,315 5 0.0 Amortization of intangible assets 8,413 8,889 (476) (5.4) Merger-related expenses (2) - 8,255 (8,255) (100.0) Other noninterest expense 139,080 121,721 17,359 14.3 ---------------- --------------- ---------------- Total noninterest expense 776,812 706,570 70,242 9.9 ---------------- --------------- ---------------- INCOME BEFORE INCOME TAXES AND EXTRAORDINARY LOSS 497,262 481,573 15,689 3.3 Provision for income taxes 163,118 154,753 8,365 5.4 ---------------- --------------- ---------------- INCOME BEFORE EXTRAORDINARY LOSS 334,144 326,820 7,324 2.2 Extraordinary loss, net of taxes (3) - - - - ---------------- --------------- ---------------- NET INCOME $ 334,144 $ 326,820 $ 7,324 2.2 ================ =============== ================ Net interest income (taxable-equivalent)(1) 813,880 781,536 32,344 4.1 Earnings per share Diluted Income before extraordinary loss $ 1.15 $ 1.10 $ 0.05 4.5 Extraordinary loss - - - - ---------------- --------------- ---------------- Net income 1.15 1.10 0.05 4.5 Basic Income before extraordinary loss 1.17 1.11 0.06 5.4 Extraordinary loss - - - - ---------------- --------------- ---------------- Net income 1.17 1.11 0.06 5.4 Cash dividends paid per common share 0.40 0.37 0.03 8.1 Average shares outstanding (000s) Diluted 289,601 298,558 (8,957) (3.0) Basic 285,571 295,575 (10,004) (3.4) ----------------------------------------------------------------------------------------------------------------------------- Nine Months Ended September 30 Increase/(Decrease) --------------------------------- ---------------------------------- 2001 2000 Amount % ----------------------------------------------------------------------------------------------------------------------------- Interest income $4,888,476 $5,047,094 $ (158,618) (3.1)% Interest expense 2,455,887 2,724,021 (268,134) (9.8) --------------- --------------- --------------- NET INTEREST INCOME 2,432,589 2,323,073 109,516 4.7 Provision for loan losses 187,072 80,525 106,547 132.3 NET INTEREST INCOME AFTER --------------- --------------- --------------- PROVISION FOR LOAN LOSSES 2,245,517 2,242,548 2,969 0.1 --------------- --------------- --------------- NONINTEREST INCOME Trust and investment management income 368,880 372,536 (3,656) (1.0) Service charges on deposit accounts 374,753 340,730 34,023 10.0 Other charges and fees 174,386 155,802 18,584 11.9 Mortgage production related income 127,755 62,975 64,780 102.9 Mortgage servicing related income 4,868 23,319 (18,451) (79.1) Credit card and other fees 84,211 70,719 13,492 19.1 Retail investment services 78,845 85,370 (6,525) (7.6) Investment banking income 66,925 90,964 (24,039) (26.4) Trading account profits and commissions 84,637 15,495 69,142 446.2 Other noninterest income 111,867 102,338 9,529 9.3 Securities gains (losses) 121,006 7,807 113,199 1,450.0 --------------- --------------- --------------- Total noninterest income 1,598,133 1,328,055 270,078 20.3 --------------- --------------- --------------- NONINTEREST EXPENSE Personnel expense 1,311,950 1,235,570 76,380 6.2 Net occupancy expense 156,862 151,865 4,997 3.3 Equipment expense 138,796 149,496 (10,700) (7.2) Outside processing and software 142,122 128,384 13,738 10.7 Marketing and customer development 71,308 75,472 (4,164) (5.5) Amortization of intangible assets 37,697 26,660 11,037 41.4 Merger-related expenses (2) - 40,071 (40,071) (100.0) Other noninterest expense 424,612 323,151 101,461 31.4 --------------- --------------- --------------- Total noninterest expense 2,283,347 2,130,669 152,678 7.2 --------------- --------------- --------------- INCOME BEFORE INCOME TAXES AND EXTRAORDINARY LOSS 1,560,303 1,439,934 120,369 8.4 Provision for income taxes 523,664 476,206 47,458 10.0 --------------- --------------- --------------- INCOME BEFORE EXTRAORDINARY LOSS 1,036,639 963,728 72,911 7.6 Extraordinary loss, net of taxes (3) 17,824 - 17,824 100.0 --------------- --------------- --------------- NET INCOME $1,018,815 $ 963,728 $ 55,087 5.7 =============== =============== =============== Net interest income (taxable-equivalent)(1) 2,463,249 2,352,336 110,913 4.7 Earnings per share Diluted Income before extraordinary loss $ 3.54 $ 3.19 $ 0.35 11.0 Extraordinary loss 0.06 - 0.06 100.0 --------------- --------------- --------------- Net income 3.48 3.19 0.29 9.1 Basic Income before extraordinary loss 3.59 3.22 0.37 11.5 Extraordinary loss 0.06 - 0.06 100.0 --------------- --------------- --------------- Net income 3.53 3.22 0.31 9.6 Cash dividends paid per common share 1.20 1.11 0.09 8.1 Average shares outstanding (000s) Diluted 292,347 302,465 (10,118) (3.3) Basic 288,395 299,327 (10,932) (3.7)
(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) 2000 results include merger-related expenses, net of tax, of $5.4 million and $26.0 million for the three months and nine months ended September 30, 2000, respectively. (3) Results for the nine months ended September 30, 2001 include an extraordinary loss of $17.8 million, net of tax, for the early extinguishment of debt during the second quarter of 2001. SunTrust Banks, Inc. and Subsidiaries SELECTED FINANCIAL INFORMATION
----------------------------------------------------------------------------------------------------------------------------------- 3rd QTR. 2nd QTR. 1st QTR. 4th QTR. 3rd QTR. 2001 2001 2001 2000 2000 ----------------------------------------------------------------------------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- (in thousands, except per share data) Net interest income $ 803,829 $ 823,903 $ 804,857 $ 785,365 $ 771,450 Provision for loan losses 80,157 39,615 67,300 53,449 30,540 ----------- ----------- ---------- ---------- --------- Net credit income 723,672 784,288 737,557 731,916 740,910 Securities gains (losses) 36,161 27,728 57,117 (1,191) (586) Other noninterest income 514,241 494,084 468,802 446,761 447,819 ----------- ----------- ---------- ---------- --------- Net credit and noninterest income 1,274,074 1,306,100 1,263,476 1,177,486 1,188,143 Noninterest expense 776,812 763,838 742,697 697,864 706,570 ----------- ----------- ---------- ---------- --------- Income before income taxes and extraordinary loss 497,262 542,262 520,779 479,622 481,573 Provision for income taxes 163,118 177,292 183,254 149,250 154,753 ----------- ----------- ---------- ---------- --------- Income before extraordinary loss 334,144 364,970 337,525 330,372 326,820 Extraordinary loss, net of taxes - 17,824 - - - ----------- ----------- ---------- ---------- --------- Net Income $ 334,144 $ 347,146 $ 337,525 $ 330,372 $ 326,820 =========== =========== ========== ========== ========= Net interest income (taxable-equivalent) 813,880 834,142 815,227 796,090 781,536 Earnings per share Diluted Income before extraordinary loss $ 1.15 $ 1.25 $ 1.14 $ 1.11 $ 1.10 Extraordinary loss - 0.06 - - - ----------- ----------- ---------- ---------- --------- Net income 1.15 1.19 1.14 1.11 1.10 Basic Income before extraordinary loss 1.17 1.27 1.16 1.13 1.11 Extraordinary loss - 0.06 - - - ----------- ----------- ---------- ---------- --------- Net income 1.17 1.21 1.16 1.13 1.11 Dividends paid per common share 0.40 0.40 0.40 0.37 0.37 Average shares outstanding(000s) Diluted 289,601 291,677 295,832 296,461 298,558 Basic 285,571 287,878 291,805 293,390 295,575 ---------------------------------------------------------------------------------------------------------------------------- SELECTED AVERAGE BALANCES ------------------------- (in millions) Total assets $ 101,246 $ 103,194 $ 103,225 $ 101,246 $ 99,392 Earning assets 90,588 92,571 92,554 90,680 89,664 Unrealized gains on securities available for sale 2,602 2,562 2,868 2,681 2,365 Loans 69,024 69,900 71,654 71,775 71,507 Interest-bearing liabilities 75,243 77,090 77,518 75,548 74,914 Total deposits 63,168 64,361 65,409 67,182 67,158 Shareholders' equity 7,996 7,873 8,089 7,844 7,487 ---------------------------------------------------------------------------------------------------------------------------- SELECTED RATIOS --------------- Net interest margin 3.56% 3.61% 3.57% 3.49% 3.47 Return on average assets 1.34 1.38 1.36 1.33 1.34 Return on average realized equity 21.02 22.43 21.85 21.40 21.62 Return on average total equity 16.58 17.68 16.92 16.75 17.36 ---------------------------------------------------------------------------------------------------------------------------- CREDIT DATA ----------- (Dollars in thousands) Allowance for loan losses - beginning $ 866,099 $ 871,964 $ 874,547 $ 874,490 $ 874,484 Allowance from acquisitions and other activity - net - (6,660) (3,550) - - Provision for loan losses 80,157 39,615 67,300 53,449 30,540 Net charge-offs 79,903 38,820 66,333 53,392 30,534 ----------- ----------- ---------- ---------- --------- Allowance for loan losses - ending 866,353 866,099 871,964 874,547 874,490 =========== =========== ========== ========== ========= Net charge-offs to average loans 0.46% 0.22% 0.38% 0.30% 0.17% Period Ended ------------ Nonperforming loans $ 490,178 $ 411,166 $ 348,652 $ 405,270 $ 380,942 Other real estate owned 18,931 20,265 20,646 23,004 23,586 ----------- ----------- ---------- ---------- --------- Nonperforming assets $ 509,109 $ 431,431 $ 369,298 $ 428,274 $ 404,528 =========== =========== ========== ========== ========= Allowance to period-end loans 1.24% 1.26% 1.24% 1.21% 1.21% Nonperforming assets to total loans plus other real estate 0.73 0.63 0.52 0.59 0.56 Allowance to nonperforming loans 176.7 210.6 250.1 215.8 229.6 -------------------------------- Nine Months Ended September 30 2001 2000 -------------------------------- RESULTS OF OPERATIONS --------------------- (in thousands, except per share data) Net interest income $2,432,589 $2,323,073 Provision for loan losses 187,072 80,525 ---------- ---------- Net credit income 2,245,517 2,242,548 Securities gains (losses) 121,006 7,807 Other noninterest income 1,477,127 1,320,248 ---------- ---------- Net credit and noninterest income 3,843,650 3,570,603 Noninterest expense 2,283,347 2,130,669 ---------- ---------- Income before income taxes and extraordinary loss 1,560,303 1,439,934 Provision for income taxes 523,664 476,206 ---------- ---------- Income before extraordinary loss 1,036,639 963,728 Extraordinary loss, net of taxes 17,824 - ---------- ---------- Net Income $1,018,815 $ 963,728 ========== ========== Net interest income (taxable-equivalent) 2,463,249 2,352,336 Earnings per share Diluted Income before extraordinary loss $ 3.54 $ 3.19 Extraordinary loss 0.06 - ---------- ---------- Net income 3.48 3.19 Basic Income before extraordinary loss 3.59 3.22 Extraordinary loss 0.06 - ---------- ---------- Net income 3.53 3.22 Dividends paid per common share 1.20 1.11 Average shares outstanding(000s) Diluted 292,347 302,465 Basic 288,395 299,327 ------------------------------------------------------------------------------------------ SELECTED AVERAGE BALANCES ------------------------- (in millions) Total assets $ 102,548 $ 97,441 Earning assets 91,897 87,914 Unrealized gains on securities available for sale 2,676 2,244 Loans 70,183 69,463 Interest-bearing liabilities 76,609 73,285 Total deposits 64,304 66,527 Shareholders' equity 7,986 7,387 ------------------------------------------------------------------------------------------ SELECTED RATIOS --------------- Net interest margin 3.58% 3.57% Return on average assets 1.36 1.35 Return on average realized equity 21.76 21.47 Return on average total equity 17.06 17.43 ------------------------------------------------------------------------------------------ CREDIT DATA ----------- (Dollars in thousands) Allowance for loan losses - beginning $ 874,547 $ 871,323 Allowance from acquisitions and other activity - net (10,210) - Provision for loan losses 187,072 80,525 Net charge-offs 185,056 77,358 ---------- ---------- Allowance for loan losses - ending 866,353 874,490 ========== ========== Net charge-offs to average loans 0.35% 0.15%
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES AND AVERAGE YIELDS EARNED AND RATES PAID (Dollars in millions; yields on taxable-equivalent basis)
------------------------------------------------------------------------------------------------------- Three Months Ended ------------------------------------------------------ September 30, 2001 September 30, 2000 ------------------------------------------------------------------------------------------------------- Average Yields/ Average Yields/ Balances Rates Balances Rates --------------- ---------- -------------- --------- Assets Loans: Taxable $ 67,894.6 6.79% $ 70,427.3 8.15% Tax-exempt 1,129.4 6.71 1,079.6 7.79 --------------------------- ------------------------- Total loans 69,024.0 6.79 71,506.9 8.14 Securities available for sale: Taxable 15,152.8 6.52 14,146.9 6.75 Tax-exempt 447.8 8.10 456.5 7.59 --------------------------- ------------------------- Total securities available for sale 15,600.6 6.56 14,603.4 6.77 Funds sold 1,271.6 3.62 1,587.2 6.68 Loans held for sale 3,182.5 7.16 1,395.0 8.12 Other short-term investments 1,509.3 3.08 571.1 5.11 --------------------------- ------------------------- Total earning assets 90,588.0 6.66 89,663.6 7.87 Allowance for loan losses (872.8) (868.9) Cash and due from banks 3,315.2 3,083.6 Premises and equipment 1,594.2 1,628.1 Other assets 4,019.0 3,520.7 Unrealized gains on securities available for sale 2,602.4 2,365.1 --------------------------- ------------------------- Total assets $ 101,246.0 $ 99,392.2 =========================== ========================= Liabilities and Shareholders' Equity Interest-bearing deposits: NOW/Money market accounts $ 25,254.1 2.52% $ 19,904.4 3.26% Savings 6,004.6 2.65 6,324.0 3.70 Consumer time 8,870.2 5.01 10,151.8 5.53 Other time 3,783.0 4.95 4,221.4 5.84 --------------------------- ------------------------- Total interest-bearing consumer and commercial deposits 43,911.9 3.25 40,601.6 4.17 Brokered deposits 2,797.6 3.97 3,815.3 6.77 Foreign deposits 3,289.0 3.55 9,701.5 6.62 --------------------------- ------------------------- Total interest-bearing deposits 49,998.5 3.31 54,118.4 4.79 Funds purchased 10,616.7 3.17 11,050.9 6.35 Other short-term borrowings 1,702.1 3.40 1,365.8 6.44 Long-term debt 12,926.0 5.81 8,378.4 6.78 --------------------------- ------------------------- Total interest-bearing liabilities 75,243.3 3.72 74,913.5 5.27 Noninterest-bearing deposits 13,169.2 13,039.7 Other liabilities 4,837.4 3,951.6 Realized shareholders' equity 6,305.4 6,012.8 Accumulated other comprehensive income 1,690.7 1,474.6 --------------------------- ------------------------- Total liabilities and shareholders' equity $ 101,246.0 $ 99,392.2 =========================== ========================= Interest rate spread 2.94% 2.60% --------------------------- ------------------------- Net Interest Margin 3.56% 3.47% --------------------------- ------------------------- ------------------------------------------------------------------------------------------------------ Nine Months Ended ---------------------------------------------------- September 30, 2001 September 30, 2000 ------------------------------------------------------------------------------------------------------ Average Yields/ Average Yields/ Balances Rates Balances Rates ------------- --------- ------------- -------- Assets Loans: Taxable $ 69,076.1 7.37% $ 68,405.0 7.99% Tax-exempt 1,107.2 7.22 1,058.3 7.64 ------------------------- ------------------------ Total loans 70,183.3 7.36 69,463.3 7.98 Securities available for sale: Taxable 15,940.5 6.69 14,552.8 6.70 Tax-exempt 451.1 8.27 478.3 7.55 ------------------------- ------------------------ Total securities available for sale 16,391.6 6.73 15,031.1 6.73 Funds sold 1,269.4 4.62 1,478.5 6.37 Loans held for sale 2,671.2 7.31 1,370.7 7.53 Other short-term investments 1,381.5 3.76 570.1 4.71 ------------------------- ------------------------ Total earning assets 91,897.0 7.16 87,913.7 7.71 Allowance for loan losses (879.4) (872.5) Cash and due from banks 3,336.9 3,266.5 Premises and equipment 1,604.2 1,627.8 Other assets 3,912.9 3,262.0 Unrealized gains on securities available for sale 2,676.4 2,243.9 ------------------------- ------------------------ Total assets $102,548.0 $ 97,441.4 ========================= ======================== Liabilities and Shareholders' Equity Interest-bearing deposits: NOW/Money market accounts $ 23,417.2 2.89% $ 20,164.5 3.08% Savings 6,092.7 3.14 6,477.0 3.46 Consumer time 9,273.1 5.35 9,925.8 5.21 Other time 3,947.5 5.49 4,001.5 5.66 ------------------------- ------------------------ Total interest-bearing consumer and commercial deposits 42,730.5 3.70 40,568.8 3.92 Brokered deposits 2,519.0 4.99 3,056.5 6.44 Foreign deposits 5,788.1 4.83 9,822.7 6.26 ------------------------- ------------------------ Total interest-bearing deposits 51,037.6 3.89 53,448.0 4.49 Funds purchased 11,601.9 4.21 10,596.4 5.97 Other short-term borrowings 1,597.7 4.57 1,438.0 6.20 Long-term debt 12,371.4 5.94 7,802.8 6.62 ------------------------- ------------------------ Total interest-bearing liabilities 76,608.6 4.29 73,285.2 4.97 Noninterest-bearing deposits 13,266.5 13,079.3 Other liabilities 4,687.0 3,690.0 Realized shareholders' equity 6,259.7 5,995.1 Accumulated other comprehensive income 1,726.2 1,391.8 ------------------------- ------------------------ Total liabilities and shareholders' equity $102,548.0 $ 97,441.4 ========================= ======================== Interest rate spread 2.87% 2.74% ------------------------- ------------------------ Net Interest Margin 3.58% 3.57% ------------------------- ------------------------
SunTrust Banks, Inc. and Subsidiaries APPENDIX TO THE PRESS RELEASE (Dollars in thousands)
---------------------------------------------------------------------------------------------------------- 3rd QTR. 2nd QTR. 3rd QTR. 2001 2001 2000 ---------------------------------------------------------------------------------------------------------- The following table reflects adjustments for unusual transactions for trend analysis purposes: ADJUSTED NONINTEREST EXPENSE ---------------------------- Reported noninterest expense $ 776,812 $ 763,838 $ 706,570 Adjustments: Wachovia merger proposal expenses 32,000 - - One Bank Initiative (1) 17,492 14,700 - Sale of STI Credit Corporation business (2) - 17,400 - Merger-related expenses - - 8,255 ---------- ---------- ---------- Total adjusted noninterest expense $ 727,320 $ 731,738 $ 698,315 ========== ========== ==========
(1) Expenses included in personnel expense and other noninterest expense. (2) Comprised of approximately $12.7 million in additional goodwill amortization and $4.7 million in other expenses. Additionally, as part of the sale of this business, $6.7 million in allowance for loan losses was transferred.