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.