EX-99.1 4 file002.htm SLIDE PACKAGE

L. Phillip Humann
Chairman and CEO

Smith Barney Citigroup

Financial Services Conference

January 2005


This presentation contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include, but are not limited to,
statements about the benefits of the merger between SunTrust Banks, Inc. (“SunTrust”) and
National Commerce Financial Corporation (“NCF”), including future financial and operating
results, SunTrust’s plans, objectives, expectations and intentions and other statements that
are not historical facts. Such statements are based upon the current beliefs and expectations
of SunTrust’s management and are subject to significant risks and uncertainties. Actual results
may differ from those set forth in the forward-looking statements. The following factors, among
others, could cause actual results to differ from those set forth in the forward-looking
statements: the risk that the cost savings and any revenue synergies from the merger may not
be fully realized or may take longer to realize than expected; disruption from the merger
making it more difficult to maintain relationships with clients, employees or suppliers;
increased competition and its effects on pricing, spending, third-party relationships and
revenues; the risk of new and changing regulation in the U.S. and internationally. Additional
factors that could cause SunTrust’s results to differ materially from those described in the
forward-looking statements can be found in the 2003 Annual Reports on Form 10-K of
SunTrust and NCF, and in the Quarterly Reports on Form 10-Q and 10-Q/A of SunTrust and
NCF filed with the Securities and Exchange Commission and available at the Securities and
Exchange Commission’s internet site (http://www.sec.gov). The forward-looking statements in
this presentation speak only as of the date of the filing, and SunTrust does not assume any
obligation to update the forward-looking statements or to update the reasons why actual
results could differ from those contained in the forward-looking statements.

This presentation could include some non-GAAP measures to describe SunTrust’s
performance. The reconciliation of those measures to GAAP measures can be found in
SunTrust’s earnings press release, on SunTrust’s website in the press release section of the
Investor Relations pages and in the appendix of this presentation.


TRANSLATING POTENTIAL INTO PERFORMANCE

Potential

Revenue and earnings momentum

Industry-leading credit quality

Strong LOB & sales results

Performance

High growth geographic footprint

Distinctive operating model

Sales and revenue focus

Investments for the future


TRANSLATING POTENTIAL INTO PERFORMANCE

Highest growth markets for Top 20

banks; 61% better than the national

average*

Top 5 rank in 20 of 25 largest high

growth markets in Southeast

#3 in market share in Southeast

Top 20 U.S. banks and thrifts by market cap as of July 16, 2004.
Weighted average based on MSA deposits. Source: SNL Financial

2003-2008 Projected

Weighted Average

Population Growth

8.7%

5.3%

Sun Trust

National Average

Distinctive Operating Model

Deliver “big bank” capabilities with local
decisions and responsiveness

Decisions close to customer

True client management

Ability to serve all segments

Strong Footprint

*

*


TRANSLATING POTENTIAL INTO PERFORMANCE

Ongoing Strategic Focus

Placing highest priority on sales and client
retention

Aligning top talent to key leadership
positions

Implementing new LOB revenue initiatives

Developing Capabilities
2000-2004

Streamlined administrative structure and
implemented series of operational initiatives

Introduced new geographic structure and
operating model

Focused on efficiency, ability to
deliver common customer experience


EPS Growth Back on Track

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

0.37

0.10

0.09

0.07

0.14

0.06

Growth      = 8.3%

CAGR       = (0.6)%

EPS  

CAGR     = 10.1%

GAAP EPS

Reduction in EPS due to merger-related charges

(1)         EPS as originally reported and adjusted for stock splits. There are no adjustments for merger pooling.

(2)         CAGR and growth based on GAAP EPS excluding merger-related charges

CAGR       = 11.5%

0.05

(2)

(1)

(2)

(2)

(2)


CORE REVENUE GROWTH PER SHARE IMPROVING VERSUS
PEERS

$

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

4Q 02

1Q 03

2Q 03

3Q 03

4Q 03

1Q 04

2Q 04

3Q 04

4Q 04

STI = 9% Growth
Peers = 10% Growth

STI = 2% Growth
Peers = flat

Core revenue per share is calculated by dividing total revenue excluding securities gains and losses by average diluted shares for the quarter. The
Company believes core revenue is more indicative of the Company’s performance because it isolates income that is primarily customer relationship and
customer transaction driven.

Total Revenue Growth for SunTrust was 27% 4Q 04 over 4Q 03 and 7% for 4Q 03 over 4Q 02, on a historical combined basis total revenue growth for
SunTrust was 5% 4Q 04 over 4Q 03

Wells Fargo, AmSouth, National City, Wachovia, US Bancorp, Fifth Third, Bank of America, KeyCorp, PNC, Comerica, Northern Trust, BB&T and Mellon. Numbers presented
are averages

(1)



(2)

Peers*

SunTrust

Source: SNL

*

(2)

(2)

(1)


FEE INCOME GROWTH PER SHARE IMPROVING VERSUS
PEERS(1)(2)

4Q 02

1Q 03

2Q 03

3Q 03

4Q 03

1Q 04

2Q 04

3Q 04

4Q 04

For more data on fee income and reconciliations, please refer to the appendix of this presentation

Fee Income excludes securities gains and losses.  Fee income per share is calculated by dividing fee income by average diluted shares for the quarter.  
The Company believes fee income without securities gains/losses is more indicative of the Company's performance because it isolates income that is
primarily customer relationship and customer transaction driven.

Wells Fargo, AmSouth, National City, Wachovia, US Bancorp, Fifth Third, Bank of America, KeyCorp, PNC, Comerica, Northern Trust, BB&T and
Mellon.  Numbers presented are averages

(1)

(2)

Peers*

SunTrust

Source: SNL

*

$

0.00

2.50

STI = 16% Growth
Peers = 18% Growth

STI = 8% Growth
Peers = 1% Growth

2.00

1.50

1.00

0.50


NET INTEREST MARGIN TRENDS

3.5%

3.0%

2.5%

2.0%

1.5%

3Q01

4Q01

1Q03

1Q02

4Q02

2Q02

3Q02

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

3.56%

3.56%

3.51%

3.48%

3.38%

3.26%

3.21%

3.05%

2.98%

3.09%

3.13%

3.13%

3.11%

3.21%

3.12%

(1)

4.0%

(1) NCF added 9 b.p., organic margin improved 1 b.p.


Estimated Historical Combined (3)

10

24

34

31

Mortgage loans

13

14

82

33

Low cost deposits (2)

12%

8%

89%

29%

Deposits (2)

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

Highlights

LOAN AND DEPOSIT GROWTH (1)(2)

Real Estate Equity

Total Loans

63

26

135

8

32

78

28

8

120,000

100,000

80,000

60,000

40,000

20,000

0

Deposits

Loans

4Q 03

1Q 04

2Q 04

4Q 04

3Q 04

(1)

(3)

(2)

For more data on deposits and loans and reconciliations, please refer to the appendix of this presentation

Deposits = Consumer and Commercial Deposits, Low Cost Deposits = Demand Deposits + NOW + Savings

See appendix for reconciliations. SunTrust provides estimated historical combined information to facilitate a more
appropriate computation of the organic growth of the combined organization

($ in millions)

$


INDUSTRY LEADING CREDIT QUALITY (1)

NPAs/(Loans+OREO+Repos)

NCOs/Average Loans

1.20

1.00

0.80

0.60

0.40

0.20

0.00

4Q02

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

4Q 02

1Q 03

2Q 03

3Q 03

4Q 03

1Q 04

2Q 04

3Q 04

4Q 04

0.70

0.60

0.50

0.40

0.30

0.20

0.00

0.10

(1) For more data on credit quality, please refer to the appendix of this presentation
(2) The peer averages obtained from SNL exclude repossessed assets

Wells Fargo, AmSouth, National City, Wachovia, US Bancorp, Fifth Third, Bank of America, KeyCorp, PNC,
Comerica, Northern Trust, BB&T and Mellon. Numbers presented are averages

Source: SNL

Peers* (2)

SunTrust

*


FOCUS ON EFFICIENCY

62.02

60.35

57.47

56.12

57.99

59.99

61.39

60.94

(1)

1998

1999

2000

2001

2002

2003

2004

70

65

55

25

35

50

30

60

40

45

20

Year over Year Growth Trends

Revenue Growth

Expense Growth

Sequential Annualized Growth Trends

Core Revenue Growth (3)

4%

1%

7%

1999

2000

2001

2002

2003

2004

3Q 04

4Q 04

2

(3)

flat

9

6

6

4

7

3

2

6

4

12

15

15

4

1

6

6  (2)

flat(2)

7  (2)

Reflected Revenue
Slowdown

(1)

(2)

(3)

Excluding merger related expenses, see appendix for reconciliations

Estimated historical combined basis.  Expense growth excludes merger related expenses and amortization of intangibles, see appendix for reconciliations

SunTrust presents total revenue excluding realized securities gains/losses.  The Company believes total revenue without
securities gains/losses is more indicative of the Company's performance because it isolates income that is primarily customer relationship and customer
transaction driven.


TRANSLATING POTENTIAL INTO PERFORMANCE
Retail

Leverage our merger with National Commerce Financial to capture market share in
new markets

Enhance existing Consumer Lending and Business Banking delivery channels
by implementing the SunTrust Operating Model

Continue to emphasize the Perfect Client Experience in each Retail delivery channel

Enhance online experience and capabilities including Integrated Customer
Experience and Online Treasury Management Platform for Business Banking
clients

Engage clients in performing a “Money Makeover” to meet unvoiced needs

Expand Consumer Lending Home Equity products outside of the SunTrust footprint

Continued growth in the Equity Wholesale and Mortgage Cross-sell channels

Continue to grow branch network over next three years in high-growth markets

60-80 locations in 2005 with specific emphasis on Wal-Mart opportunities

Capture fair share of the Business Banking segment

Focus on increasing SBA originations

Partner with Branch Banking to drive a continuous
focus on Business Client acquisition and retention

Potential

Performance

11%

35,709

Net Income Growth

12%

2,898,414

Loan Growth

4%

$1,866,870

Deposit Growth

% Growth

$  Growth**

3Q 2004:3Q 2003*

* 4Q 04 not available until the 10-K is published

** Deposit and loan growth based on average balances for the quarter, in thousands

Long Term Growth
Rate Target:  8 – 10%


TRANSLATING POTENTIAL INTO PERFORMANCE
Commercial

Potential

Long Term Growth
Rate Target:  8 – 10%

Sustain market share gains through continued emphasis on strategic dialogue
with clients, service excellence and industry specialization competencies

Capture greater share of business in each stage of client lifecycle

Utilize internal resources to provide capital in early growth stages

Capitalize on high market share and customer satisfaction to build
relationships with mature clients and prospects

Provide succession planning and wealth monetization options
through LOB partners

Leverage the Commercial sales teams to achieve consistent levels of cross
sales across regions

Focus on Capital Markets and Institutional Trust services

Build on strong Treasury Management and Commercial Card sales
performance

Deepen commercial relationships with Private
Banking services

Improve yields and spreads on loan transactions
through improved profit modeling and pricing governance

Performance

(4)%

(6,744)

Net Income Growth

5%

1,081,472

Loan Growth

14%

$1,517,520

Deposit Growth

% Growth

$  Growth**

3Q 2004:3Q 2003*

* 4Q 04 not available until the 10-K is published

** Deposit and loan growth based on average balances for the quarter, in thousands


TRANSLATING POTENTIAL INTO PERFORMANCE
Corporate and Investment Banking

Enhance Capital Markets product capabilities that support 9-11% long-
term growth of CIB’s bottom line

Invest in current and new product capabilities to ensure that we
have ‘competitive’ products for key client segments

Drive revenue from CIB, Commercial and PCS client bases

Improve the effectiveness of our relationship management process
across all client bases

Develop a more dynamic Client Planning Process to enhance our
strategic positioning with our top tier clients

Implement a new client segmentation model (Tier 1, 2, 3) to
improve coverage on clients that represent the greatest value
proposition

Maintain the strong credit culture in CIB that allows us to
deliver ‘best in class’ performance

Performance

Potential

43%

42,418

Net Income Growth

(21)%

(3,487,340)

Loan Growth

9%

$271,786

Deposit Growth

% Growth

$ Growth**

3Q 2004:3Q 2003*

* 4Q 04 not available until the 10-K is published

** Deposit and loan growth based on average balances for the quarter, in thousands

Long Term Growth
Rate Target:  9 – 11%


TRANSLATING POTENTIAL INTO PERFORMANCE
Wealth & Investment Management

Aggressively expand and retain SunTrust share of emerging
wealth segments:

Enhance strategies and tactics to attract and retain
baby boomer retirement assets (including rollover)

Improve use of financial planning discipline to uncover
client needs and better position our broker capabilities

Expand Client Retention programs into SunTrust Securities,
Wealth Management, Retirement Services,
Trusco and Endowment and Foundations

Focus on growing insurance business

Integrate successful Private Banking units into Private
Wealth Management for a more comprehensive approach to
Wealth Management

Exceed the investment performance and service
expectations of our institutional clients

Performance

Potential

25%

11,036

Net Income Growth

11%

225,508

Loan Growth

36%

$542,210

Deposit Growth

% Growth

$ Growth**

3Q 2004:3Q 2003*

* 4Q 04 not available until the 10-K is published

** Deposit and loan growth based on average balances for the quarter, in thousands

Long Term Growth
Rate Target:  12 – 14%


TRANSLATING POTENTIAL INTO PERFORMANCE
Mortgage

Grow the sales force in all channels

Improve client satisfaction and profitability by reducing
the time elapsed between application and shipping

Continue to improve service quality, thereby improving
borrower retention

Strengthen our product offerings and distribution

capabilities:

Affiliated Business Arrangements

Second Lien Lending

Alternative Credit

Construction / Permanent Financing

Partner with Retail to improve the penetration rate of
mortgages within the STI client base and the sales of
banking products to mortgage borrowers

Performance

Potential

(15)%

(11,012)

Net Income Growth

40%

5,309,521

Loan Growth

(39)%

$(851,932)

Deposit Growth

% Growth

$ Growth**

3Q 2004:3Q 2003*

* 4Q 04 not available until the 10-K is published

** Deposit and loan growth based on average balances for the quarter, in thousands

Long Term Growth
Rate Target:  8 – 10%


LONG TERM GROWTH INITIATIVES RECAP

8 - 10%

Commercial

8 - 10%

SunTrust

8 - 10%

Mortgage

12 - 14%


Wealth & Investment
Management

9 - 11%

Corporate and Investment
Banking

8 - 10%

Retail

Long Term Growth
Rate Target

Business Line


SALES FOCUS PAYING OFF (1)

Retail

Private Client Services

Mortgage

Equity line sales
were up 35% over
4Q03

Retail investment
sales up 20% over
4Q03

Mortgage
closing volume
($s) up 26%
over 4Q03

Corp and Investment
Banking

Commercial

SunTrust Online

Debt Capital Markets
fees up 51% over
4Q03

Deposit balances up
16% over 4Q03

New deposit
accounts (#s) up
21%

(1)           These numbers represent legacy SunTrust


INTEGRATION TIMELINE SUMMARY

To date, we’ve successfully completed more than 44 % of the merger
   integration milestones (812 of 1,865 total integration milestones).

Regulatory Approval (8/04-9/04)

Change control process installed
(9/04)

Shareholder Approval (9/15/04)

Customer and employee impacts
cataloged

Leadership positions identified
8/31/04, 9/22/04

Added five new banking regions
Memphis, South Carolina, Triad,
Triangle, Mecklenburg) 7/19/04

NCF Consumer and Small
Business checking product rolled
out to SunTrust legacy footprint

Established and communicated
management positions:

Group LOBs

Region Presidents

Region LOBs

Market Presidents

Group Functional support

Commercial Team leads

Region Credit and Marketing

Operations unit managers

All revenue producing
relationships

Legal Closing
10/1/04

Procurement rollout 10/6/04
(anticipate $10MM in savings
by 2006)

Divestiture of deposits of $65
million and 3 branches
12/10/04

Migration to common pricing
begins (anticipate $25MM
incremental revenue by
2006)

Mitigation plans developed
for all customer and
employee impacts

Network connectivity and
infrastructure

Sequenced
Systems
Conversions
Begins

Completed Systems
Conversions:

Fixed Assets

Treasury

PCS Brokerage &
Insurance

Payroll/Benefits

Accounts Payable

Officer Knowledge

General Ledger

Non-Systems
Conversion
Begins

NCF ATM/Debit  
Card Release

Buddy Bankers
Onsite

Store signage  
installation

Complete Core
conversion

Trust Conversion

Bank Operations
Standard
Operational
Authorities
implementation

Branch consolidations
begin 4/22/05

Data center consolidation

3Q04

4Q04

1Q05

2Q05

3Q05

Ongoing Employee
Communications


FOCUSED ON RETAINING CUSTOMERS

Three-phase customer analysis
identifying effects of integration
on the customer so mitigation
activities can be planned to
promote retention and client
satisfaction

Phase I complete – over
one million households
analyzed with 80%
showing minimal or no
impact.

Phases II and III include
additional analysis, action
plan development and
special analysis in support
of conversion weekend

Comprehensive
communications program
designed to inform customers
of merger-related events or
changes.

Recent customer mailings:

Over one million
welcome letters

Securities letters and
other early conversion
communications

Upcoming major mailings
include:

Branch consolidations

Product/pricing letters
in March

Customer remediation plans
include phone follow-up,
employee communication,
training, and scripting.

Retention teams in all LOBs
are developing programs based
on results of the customers
profile analysis.

A Service Quality Excellence
Scorecard is produced monthly
that monitors 49 key service
measures across all lines of
business and major corporate
functions.

Activities scheduled in
planned waves

Special promotions

Sales opportunities

Client retention tracking
underway; will continue for
12-month period

Examples of key measures:

Telephone banking
average speed of
answer (ASA)

ATM availability

Mortgage client
satisfaction survey
scores

Action plans are in place to
ensure service quality is
maintained in all critical
areas

Customer Impact
Assessment

Communications

Retention
Implementation

Measurement and
Monitoring


BUILDING WITH PROVEN TALENT

Key Accomplishments

Key NCF Managers named in combined organization:

Bill Reed, former CEO of NCF, named vice chairman and head of Geographic
Banking(Florida, Central, Mid Atlantic, and the Carolinas) and Sales Administration.

Richard Furr, former chief operating officer at NCF, was named chairman, president and
CEO of the Carolinas Group.

Scott Edwards, former NCF chief administrative officer, was named Carolinas Group
credit officer

David Popwell, former executive vice president for Financial Enterprises at NCF, was
named chairman and CEO of the Memphis Region and Executive for specialty
businesses.

Integrated NCF organizational structure, major business lines and support functions into the
overall SunTrust organization.

Placed more than 160 NCF managers within in a geography, a business line or a support area

Mapped all NCF revenue producers to SunTrust position (over 3,200 positions)

Guaranteed positions to all branch personnel.

Created an Employee Experience team comprised of NCF and STI employees across lines of
business, functions and geographies focused on employee communications, retention, morale,
and merger readiness.


TRANSLATING POTENTIAL INTO PERFORMANCE

Potential

Revenue and earnings momentum

Industry-leading credit quality

Strong LOB & sales results

Performance

High growth geographic footprint

Distinctive operating model

Sales and revenue focus

Investments for the future


APPENDIX


SunTrust presents a return on average assets and return on average realized equity which exclude realized and unrealized securities gains/losses and dividends from The Coca-
Cola Company. The foregoing numbers reflect primarily adjustments to remove the effects of the Company's securities portfolio which includes the ownership by the Company of
48.3 million shares of The Coca-Cola Company. The Company uses this information internally to gauge its actual performance in the industry. The Company believes that the
return on average assets less the net unrealized securities gains is more indicative of the Company's return on assets because it more accurately reflects the return on the assets
that are related to the Company's core businesses which are primarily customer relationship and customer transaction driven. The Company also believes that the return on
average realized equity is more indicative of the Company's return on equity because the excluded equity relates primarily to a long term holding of a specific security

Annualized      
SunTrust presents selected financial data on an operating basis that excludes merger charges. The Company believes the exclusion of the merger charges, which represent
incremental costs to integrate NCF’s operations, is more reflective of normalized operations

EARNINGS MOMENTUM

(442) b.p.

(348) b.p.

16.02

16.96

12.54

Return on Avg.
Realized Equity (1)

(275) b.p.

(247) b.p.

(322)b.p.

(294) b.p.

14.40

14.68

11.46

Return on Avg. Equity

flat

14 b.p.

1.04

1.18

1.18

Return on Avg. Assets less net
realized securities gains (1)

5 b.p.

11 b.p.

1 b.p.

7 b.p.

1.09

1.15

1.16

Return on Avg. Assets

3% (2)

8%

(12)% (2)

4%

1.21

1.30

1.26

Earnings per Share

114% (2)

38%

94% (2)

33%

$342.5

$368.8

$455.7

Net Income

4Q04 : 3Q04
Sequential
Change(3)

4Q04 : 4Q03
Change(3)

4Q04 : 3Q04
Sequential
Change

4Q04 : 4Q03
Change

4Q 2003

3Q 2004

4Q 2004

($ in millions except per share data)

(1)




(3) 




(2) 





FEE INCOME GROWTH

Estimated Historical
Combined(1)

4%

10%

78%

30%

273.6

298.3

356.8

Deposits and Other Fees

79%

12%

161%

32%

120.1

113.3

159.9

Broker Dealer Revenue

(12)%

10%

29%

24%

$129.6

$149.7

$160.5

Trust and Investment Mgmt.

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

4Q 2003

3Q 2004

4Q 2004

($ in millions)

Fee income growth momentum continuing

(1) See appendix for reconciliations


LOAN GROWTH

Driven by targeted sales initiatives

($ in millions)

8%

8%

78%

26/30%

79,370.1

83,753.2

100,137.5

Total Loans

28%

32%

135%

63%

6,740.7

8,238.6

11,016.4

Real Estate Equity

(3)%

4%

90%

28%

12,035.0

12,549.7

15,368.5

Consumer

(10)%

3%

8,435.0

8,882.9

8,661.6

Indirect

332%

86%

3,600.0

3,666.8

6,706.9

Direct

10%

24%

34%

31%

17,117.4

20,722.7

22,461.0

Mortgages

11%

7%

125%

36%

13,650.9

14,169.7

18,601.8

RE Comm. &Const

366%

108%

4,364.4

4,727.8

9,054.6

RE Construction

5%

3%

9,286.5

9,441.9

9,547.2

RE Commercial

5%

(3)%

66%

10/19%

$29,289.1

$27,630.5

$32,223.1

Commercial

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

4Q 2003

3Q 2004

4Q 2004

(1)

See appendix for reconciliations

(2)

The addition of direct and indirect

(3)

Higher growth rate adjusted for consolidation of Three Pillars

(3)

(2)


CUSTOMER DEPOSIT GROWTH

($ in millions)

13%

14%

82%

33%

36,937.3

40,914.4

49,261.7

Total low cost
deposits (2)

12%

8%

89%

29%

70,312.6

74,121.8

90,601.4

TOTAL (1)

21%

4%

225%

52%

11,101.5

10,773.0

16,832.7

CDs

(42)%

2%

39%

30%

6,248.9

7,424.7

8,139.3

SAV

5%

1%

37%

10%

22,273.8

22,434.4

24,507.0

MMA

42%

20%

121%

40%

12,102.3

12,999.5

16,940.7

NOW

16%

14%

72%

30%

$18,586.1

$20,490.2

$24,181.7

DDA

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

4Q04:3Q04
(Annualized)

4Q2004:
4Q2003

4Q 2003

3Q 2004

4Q 2004

Estimated Historical Combined(3)

(1)

Average quarterly Consumer and Commercial Deposits (excludes Broker & Foreign Deposits)

(2)

Total of DDA, NOW, Savings

(3)

See appendix for reconciliations


STRONG CREDIT QUALITY

3.4

4.0

6.0

4.4

4.9

Allowance to Charge-
offs (Years Coverage)

268.1%

309.7%

299.7%

315.7%

281.3%

Allowance to Non-
performing loans

$941,922

$936,972

$902,243

$892,974

$1,050,024

Allowance for loan
losses


0.47%


0.42%


0.39%


0.36%


0.40%

NPAs to
Loans/OREO/Other repo

$378,097

$331,912

$324,420

$304,216

$410,658

NPAs


0.35%


0.30%


0.19%


0.24%


0.21%

Net Charge-offs to Avg.
Loans

$69,787

$58,787

$37,556

$51,043

$53,893

Net Charge-offs

    4Q2003

       1Q2004

          2Q2004

     3Q2004

      4Q2004

($ in thousands)


Average Diluted Shares


Outstanding

Fee Income excluding securities

gains and losses

Fee Income excluding securities

RECONCILIATIONS APPENDIX

1,879,268

1,539,580

1,516,779

1,454,063

1,442,072

1,387,768

1,375,969

1,338,633

1,325,518

Core Revenue*

19,377

18,193

9,048

(4,927)

(19,501)

(31,098)

(31,238)

(42,039)

(39,547)

Securities losses/(gains)

1,859,891

1,521,387

1,507,731

1,458,990

1,461,573

1,418,866

1,407,207

1,380,672

1,365,065

Total Revenue

1,100,888

893,695

885,066

863,904

877,501

844,388

810,415

833,013

837,341

Net Interest Income-FTE

16,684

16,821

12,637

12,256

11,981

11,588

10,902

10,543

10,240

FTE adjustment

778,380

645,885

631,713

590,159

564,571

543,380

565,554

505,620

488,177

19,377

18,193

9,048

(4,927)

(19,501)

(31,098)

(31,238)

(42,039)

(39,547)

Securities losses/(gains)

759,003

627,692

622,665

595,086

584,072

574,478

596,792

547,659

527,724

Fee Income

1,084,204

876,874

872,429

851,648

865,520

832,800

799,513

822,470

827,101

Net Interest Income

5.18

5.43

5.36

5.13

5.10

4.93

4.91

4.76

4.67

Core Revenue Per Share

362,661

283,502

283,116

283,523

282,537

281,567

280,287

281,330

283,595

1,879,268

1,539,580

1,516,779

1,454,063

1,442,072

1,387,768

1,375,969

1,338,633

1,325,518

Core Revenue*

1,100,888

893,695

885,066

863,904

877,501

844,388

810,415

833,013

837,341

Net Interest Income-FTE

$778,380

$645,885

$631,713

$590,159

$564,571

$543,380

$565,554

$505,620

$488,177

4Q 04

3Q 04

2Q 04

1Q 04

4Q 03

3Q 03

2Q 03

1Q 03

4Q 02

(Dollars and shares in thousands except per share amounts)

* Also known as total revenue excluding securities gains and losses

gains and losses


RECONCILIATIONS APPENDIX

* Also known as total revenue excluding securities gains and losses

6,389.7

5,544.4

5,347.5

5,192.2

4,915.4

4,923.0

4,619.2

Core Revenue*

6,389.7

5,544.4

5,347.5

5,192.2

4,915.4

4,923.0

4,619.2

Core Revenue*

41.7

(123.9)

(204.5)

(153.1)

(6.6)

109.1

(8.2)

Securities losses/(gains)

6,348.0

5,668.3

5,552.0

5,345.3

4,922.0

4,813.9

4,627.4

Total Revenue

58.4

45.0

39.5

40.8

39.9

42.5

44.4

FTE Adjustment

3,685.2

3,320.3

3,243.7

3,252.6

3,108.5

3,145.5

2,929.1

Net Interest Income

41.7

(123.9)

(204.5)

(153.1)

(6.6)

109.1

(8.2)

Securities losses/(gains)

$2,604.4

$2,303.0

$2,268.8

$2,051.9

$1,773.6

$1,625.9

$1,653.9

Fee Income

2004

2003

2002

2001

2000

1999

1998

(Dollars in millions)


RECONCILIATIONS APPENDIX













Quarter - to - Quarter Comparison

 

 

YTD Comparison

 

 

 

 

4th Quarter
           2004

 

 

3rd Quarter
           2004

 

 

2nd Quarter
           2004

 

 

1st Quarter
           2004

 

 

4th Quarter
           2003

 

 

 

December 31

 

 

2004

 

 

 

2003

NON-GAAP MEASURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

455,729

 

 

$

368,766

 

 

$

386,571

 

 

$

361,835

 

 

$

342,507

 

 

$

1,572,901

 

 

$

1,332,297

 

 

Securities losses/(gains), net of tax

 

 

12,595

 

 

 

11,825

 

 

 

5,881

 

 

 

(3,203

)

 

 

(12,676

)

 

 

27,099

 

 

 

(80,519

)

 

Net income excluding securities gains and losses

 

 

468,324

 

 

 

380,591

 

 

 

392,452

 

 

 

358,632

 

 

 

329,831

 

 

 

1,600,000

 

 

 

1,251,778

 

 

The Coca-Cola Company dividend, net of tax

 

 

(10,739

)

 

 

(10,740

)

 

 

(10,739

)

 

 

(10,740

)

 

 

(9,451

)

 

 

(42,957

)

 

 

(37,803

)

 

Net income excluding securities gains and losses and The Coca-Cola Company dividend

 

$

457,585

 

 

$

369,851

 

 

$

381,713

 

 

$

347,892

 

 

$

320,380

 

 

$

1,557,043

 

 

$

1,213,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets

 

$

156,570,092

 

 

$

127,127,968

 

 

$

127,287,458

 

 

$

123,853,747

 

 

$

124,756,099

 

 

$

133,754,293

 

 

$

122,325,361

 

 

Average net unrealized securities gains

 

 

(2,056,737

)

 

 

(2,054,978

)

 

 

(2,803,917

)

 

 

(2,580,304

)

 

 

(2,363,948

)

 

 

(2,372,246

)

 

 

(2,343,015

)

 

Average assets less net unrealized securities gains

 

$

154,513,355

 

 

$

125,072,990

 

 

$

124,483,541

 

 

$

121,273,443

 

 

$

122,392,151

 

 

$

131,382,047

 

 

$

119,982,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average equity             

 

$

15,818,968

 

 

$

9,992,905

 

 

$

10,194,201

 

 

$

9,840,282

 

 

$

9,435,794

 

 

$

11,469,482

 

 

$

9,083,026

 

 

Average other comprehensive income

 

 

(1,304,553

)

 

 

(1,318,332

)

 

 

(1,804,833

)

 

 

(1,645,712

)

 

 

(1,503,355

)

 

 

(1,517,227

)

 

 

(1,486,125

)

 

Total average realized equity

 

$

14,514,415

 

 

$

8,674,573

 

 

$

8,389,368

 

 

$

8,194,570

 

 

$

7,932,439

 

 

$

9,952,255

 

 

$

7,596,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

1.16

 

%

 

1.15

 

%

 

1.22

 

%

 

1.18

 

%

 

1.09

 

%

 

1.18

 

%

 

1.09

 

%

Impact of excluding net realized and unrealized securities gains/losses and The Coca-Cola Company dividend

 

 

0.02

 

 

 

0.03

 

 

 

0.01

 

 

 

(0.03

)

 

 

(0.05

)

 

 

0.01

 

 

 

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets less net realized and unrealized securities gains/losses and The Coca-Cola Company dividend 1

 

 

1.18

 

%

 

1.18

 

%

 

1.23

 

%

 

1.15

 

%

 

1.04

 

%

 

1.19

 

%

 

1.01

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total shareholders’ equity

 

 

11.46

 

%

 

14.68

 

%

 

15.25

 

%

 

14.79

 

%

 

14.40

 

%

 

13.71

 

%

 

14.67

 

%

Impact of excluding net unrealized securities gains

 

 

1.08

 

 

 

2.28

 

 

 

3.05

 

 

 

2.28

 

 

 

1.62

 

 

 

1.94

 

 

 

1.31

 

 

Return on average realized shareholders’ equity 2

 

 

12.54

 

%

 

16.96

 

%

 

18.30

 

%

 

17.07

 

%

 

16.02

 

%

 

15.65

 

%

 

15.98

 

%

Net interest income

 

$

1,084,204

 

 

$

876,874

 

 

$

872,429

 

 

$

851,648

 

 

$

865,520

 

 

$

3,685,155

 

 

$

3,320,303

 

 

FTE adjustment

 

 

16,684

 

 

 

16,821

 

 

 

12,637

 

 

 

12,256

 

 

 

11,981

 

 

 

58,398

 

 

 

45,014

 

 

Net interest income - FTE

 

 

1,100,888

 

 

 

893,695

 

 

 

885,066

 

 

 

863,904

 

 

 

877,501

 

 

 

3,743,553

 

 

 

3,365,317

 

 

Noninterest income

 

 

759,003

 

 

 

627,692

 

 

 

622,665

 

 

 

595,086

 

 

 

584,072

 

 

 

2,604,446

 

 

 

2,303,001

 

 

Total revenue

 

 

1,859,891

 

 

 

1,521,387

 

 

 

1,507,731

 

 

 

1,458,990

 

 

 

1,461,573

 

 

 

6,347,999

 

 

 

5,668,318

 

 

Securities losses/(gains)

 

 

19,377

 

 

 

18,193

 

 

 

9,048

 

 

 

(4,927

)

 

 

(19,501

)

 

 

41,691

 

 

 

(123,876

)

 

Total revenue excluding securities gains and losses

 

$

1,879,268

 

 

$

1,539,580

 

 

$

1,516,779

 

 

$

1,454,063

 

 

$

1,442,072

 

 

$

6,389,690

 

 

$

5,544,442

 

 

1

Computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average assets less net unrealized securities gains.

2

Computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average realized shareholders’ equity.


RECONCILIATIONS APPENDIX













 

 

4th Quarter

2004

 

 

 

YTD
December 31
2004

 

 

SELECTED NON-GAAP OPERATING MEASURES 3

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

455,729

 

 

 

   

$

1,572,901

 

 

Merger expense, net of tax

 

 

 

18,461

 

 

 

 

 

18,461

 

 

Operating net income

 

 

 

474,190

 

 

 

 

 

1,591,362

 

 

Securities losses/(gains), net of tax

 

 

 

12,595

 

 

 

 

 

27,099

 

 

The Coca-Cola Company dividend, net of tax

 

 

 

(10,739

)  

 

  

 

 

(42,957

)  

 

Operating net income excluding securities gains/

 

 

 

 

 

 

 

 

 

 

 

 

losses and The Coca-Cola Company dividend

 

 

$

476,046

 

 

 

 

$

1,575,504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

$

1,148,992

 

 

 

 

$

3,897,038

 

 

Merger expense

 

 

 

(28,401

)

 

 

 

 

(28,401

)

 

Noninterest expense excluding merger expense

 

 

$

1,120,591

 

 

 

 

$

3,868,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

 

1.16

 

%

 

 

 

1.18

 

%

Impact of excluding merger expense

 

 

 

0.04

 

 

 

 

 

0.01

 

 

Operating return on average total assets 4       

 

 

 

1.20

 

%

  

 

 

1.19

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total shareholders’ equity

 

 

 

11.46

 

%

 

 

 

13.71

 

%

Impact of excluding merger expense

 

 

 

0.47

 

 

 

 

 

0.16

 

 

Operating return on average total shareholders’ equity 5             

 

 

 

11.93

 

%

 

 

 

13.87

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

 

61.78

 

%

 

 

 

61.39

 

%

Impact of excluding merger expense

 

 

 

(1.53

)

 

 

 

 

(0.45

)

 

Operating efficiency ratio

 

 

 

60.25

 

%

   

 

 

60.94

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

$

1.26

 

 

 

 

$

5.19

 

 

Impact of excluding merger expense

 

 

 

0.05

 

 

 

 

 

0.06

 

 

Operating diluted earnings per share

 

 

$

1.31

 

 

 

 

$

5.25

 

 

  

3

SunTrust presents selected financial data on an operating basis that excludes merger charges. The Company believes the exclusion of the merger charges, which represent incremental costs to integrate NCF's operations, is more reflective of normalized operations.

4

Computed by dividing annualized operating net income by average total assets.

5

Computed by dividing annualized operating net income by average total shareholders' equity.





RECONCILIATIONS APPENDIX













Quarter - to - Quarter Comparison

 

 

 

4th Quarter
2004

 

 

 

4th Quarter
2003

 

 

Change
%

 

 

NON-GAAP DISCLOSURES FOR IMPACTS OF THREE

 

 

 

 

 

 

 

 

 

 

 

 

 

PILLARS 1

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans - reported

 

$

100,137

 

 

 

$

79,370

 

 

26.2

 

 

Impact of Three Pillars

 

 

-

 

 

 

 

(2,243

)

 

 

 

 

Average loans excluding Three Pillars

 

$

100,137

 

 

 

$

77,127

 

 

29.8

 

 

Average earning assets - reported

 

$

136,450

 

 

 

$

112,730

 

 

21.0

 

 

Impact of Three Pillars

 

 

-

 

 

 

 

(2,699

)

 

 

 

 

Average earning assets excluding Three Pillars

 

$

136,450

 

 

 

$

110,031

 

 

24.0

 

 

Average commercial loans - reported

 

$

32,223

 

 

 

$

29,289

 

 

10.0

 

 

Impact of Three Pillars

 

 

-

 

 

 

 

(2,243

)

 

 

 

 

Average commercial loans excluding Three Pillars

 

$

32,223

 

 

 

$

27,046

 

 

19.1

 

 

Average commercial loan yield - reported

 

 

4.45

 

%

 

 

3.58

 

%

24.3

 

 

Impact of Three Pillars

 

 

-

 

 

 

 

0.11

 

 

 

 

 

Average commercial loan yield excluding Three Pillars

 

 

4.45

 

%

 

 

3.69

 

%

20.6

 

 

Net interest margin - reported

 

 

3.21

 

%

 

 

3.09

 

%

3.9

 

 

Impact of Three Pillars

 

 

-

 

 

 

 

0.06

 

 

 

 

 

Net interest margin excluding Three Pillars

 

 

3.21

 

%

 

 

3.15

 

%

1.9

 

 

Quarter - to - Quarter Comparison

 

 

4th Quarter
2004

 

3rd Quarter
2004

 

Change %2

 

 

4th Quarter
2004

 

 

4th Quarter
2004

 

Change %

REVENUE GROWTH RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue excluding securities gains and losses

 

$

1,879,268

 

$

1,539,580

 

22.1

 

$

1,879,268

 

$

1,442,072

 

30.3

AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

24,181,729

 

$

20,490,191

 

18.0

 

$

24,181,729

 

$

18,586,159

 

30.1

NOW accounts

 

 

16,940,751

 

 

12,999,444

 

30.3

 

 

16,940,751

 

 

12,102,292

 

40.0

Savings

 

 

8,139,263

 

 

7,424,698

 

9.6

 

 

8,139,263

 

 

6,248,917

 

30.3

Total average low cost consumer and commercial deposits

 

$

49,261,743

 

$

40,914,333

 

20.4

 

$

49,261,743

 

$

36,937,368

 

33.4

 

1

Under the provisions of FASB Interpretation No. 46, SunTrust consolidated its commercial paper conduit, Three Pillars, effective July 1, 2003.
As of March 1, 2004, Three Pillars was restructured and deconsolidated. Adjustments were made to reported figures for comparability purposes.

2

Multiply by 4 to calculate sequential annualized growth or reductions discussed in the earnings call.

 

 

 


RECONCILIATIONS APPENDIX













 

 

Quarter - to - Quarter Comparison

 

Quarter - to - Quarter Comparison

 

 

 

4th Quarter
2004

 

3rd Quarter
2004

 

Increase/(Decrease)

 

4th Quarter
2004

 

4th Quarter
2003

 

Increase/(Decrease)

 

 

 

 

 

Amount

 

%

 

 

Amount

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENTS OF INCOME (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

$

1,084,204

 

$

1,071,689

 

$

12,515

 

1.2

  % 4

$

1,084,204

 

$

1,060,948

 

$

23,256

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

37,099

 

 

60,818

 

 

(23,719)

 

(39.0

)

 

37,099

 

 

82,668

 

 

(45,569)

 

(55.1

)

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

 

1,047,105

 

 

1,010,871

 

 

36,234

 

3.6

 

 

1,047,105

 

 

978,280

 

 

68,825

 

7.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit and other fees 1

 

 

356,777

 

 

353,573

 

 

3,204

 

0.9

 

 

356,777

 

 

323,081

 

 

33,696

 

10.4

 

Trust and investment management income

 

 

160,526

 

 

165,603

 

 

(5,077)

 

(3.1

)

 

160,526

 

 

145,856

 

 

14,670

 

10.1

 

Broker / dealer revenue 2

 

 

158,888

 

 

132,650

 

 

26,238

 

19.8

 

 

158,888

 

 

141,677

 

 

17,211

 

12.1

 

Other noninterest income

 

 

102,189

 

 

106,550

 

 

(4,361)

 

(4.1

)

 

102,189

 

 

62,324

 

 

39,865

 

64.0

 

Noninterest income before securities (losses)/gains

 

 

778,380

 

 

758,376

 

 

20,004

 

2.6

 

 

778,380

 

 

672,938

 

 

105,442

 

15.7

 

Securities (losses)/gains

 

 

(19,377)

 

 

(16,565)

 

 

(2,812)

 

(17.0

)

 

(19,377)

 

 

22,839

 

 

(42,216)

 

(184.8

)

Total noninterest income

 

 

759,003

 

 

741,811

 

 

17,192

 

2.3

 

 

759,003

 

 

695,777

 

 

63,226

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

 

612,861

 

 

605,325

 

 

7,536

 

1.2

 

 

612,861

 

 

591,575

 

 

21,286

 

3.6

 

Net occupancy expense

 

 

78,218

 

 

79,875

 

 

(1,657)

 

(2.1

)

 

78,218

 

 

73,766

 

 

4,452

 

6.0

 

Outside processing and software

 

 

81,368

 

 

75,449

 

 

5,919

 

7.8

 

 

81,368

 

 

69,871

 

 

11,497

 

16.5

 

Equipment expense

 

 

50,765

 

 

50,904

 

 

(139)

 

(0.3

)

 

50,765

 

 

52,926

 

 

(2,161)

 

(4.1

)

Marketing and customer development

 

 

34,389

 

 

34,975

 

 

(586)

 

(1.7

)

 

34,389

 

 

27,574

 

 

6,815

 

24.7

 

Other noninterest expense

 

 

231,231

 

 

242,693

 

 

(11,462)

 

(4.7

)

 

231,231

 

 

200,602

 

 

30,629

 

15.3

 

Noninterest expense before amortization of intangible assets and merger expense

 

 

1,088,832

 

 

1,089,221

 

 

(389)

 

(0.0

)

 

1,088,832

 

 

1,016,314

 

 

72,518

 

7.1

 

Amortization of intangible assets

 

 

31,759

 

 

28,132

 

 

3,627

 

12.9

 

 

31,759

 

 

30,716

 

 

1,043

 

3.4

 

Merger expense

 

 

28,401

 

 

-    

 

 

28,401

 

100.0

 

 

28,401

 

 

-    

 

 

28,401

 

100.0

 

Total noninterest expense

 

 

1,148,992

 

 

1,117,353

 

 

31,639

 

2.8

 

 

1,148,992

 

 

1,047,030

 

 

101,962

 

9.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

657,116

 

 

635,329

 

 

21,787

 

3.4

 

 

657,116

 

 

627,027

 

 

30,089

 

4.8

 

Provision for income taxes

 

 

201,387

 

 

198,926

 

 

2,461

 

1.2

 

 

201,387

 

 

195,019

 

 

6,368

 

3.3

 

NET INCOME FROM CONTINUING OPERATIONS

 

 

455,729

 

 

436,403

 

 

19,326

 

4.4

 

 

455,729

 

 

432,008

 

 

23,721

 

5.5

 

Income from discontinued operations, net of tax

 

 

-

 

 

-    

 

 

-   

 

-    

 

 

-    

 

 

767

 

 

(767)

 

(100.0

)

NET INCOME

 

 

455,729

 

 

436,403

 

 

19,326

 

4.4

 

 

455,729

 

 

432,775

 

 

22,954

 

5.3

 

Merger expense, net of tax

 

 

18,461

 

 

-    

 

 

18,461

 

100.0

 

 

18,461

 

 

-    

 

 

18,461

 

100.0

 

OPERATING NET INCOME

 

$

474,190

 

$

436,403

 

$

37,787

 

8.7

  %

$

474,190

 

$

432,775

 

$

41,415

 

9.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

1,084,204

 

$

1,071,689

 

$

12,515

 

1.2

  %

$

1,084,204

 

$

1,060,948

 

$

23,256

 

2.2

 

FTE adjustment 3

 

 

16,684

 

 

19,063

 

 

(2,379)

 

(12.5

)

 

16,684

 

 

14,027

 

 

2,657

 

18.9

 

Net interest income – FTE

 

 

1,100,888

 

 

1,090,752

 

 

10,136

 

0.9

 

 

1,100,888

 

 

1,074,975

 

 

25,913

 

2.4

 

Noninterest income

 

 

759,003

 

 

741,811

 

 

17,192

 

2.3

 

 

759,003

 

 

695,777

 

 

63,226

 

9.1

 

Total revenue

 

 

1,859,891

 

 

1,832,563

 

 

27,328

 

1.5

 

 

1,859,891

 

 

1,770,752

 

 

89,139

 

5.0

 

Securities losses/(gains)

 

 

19,377

 

 

16,565

 

 

2,812

 

17.0

 

 

19,377

 

 

(22,839)

 

 

42,216

 

184.8

 

Total revenue excluding securities gains and losses

 

$

1,879,268

 

$

1,849,128

 

$

30,140

 

1.6

  %

$

1,879,268

 

$

1,747,913

 

$

131,355

 

7.5

 

1

Includes service charges on deposit, cards and other charges and fees.

2

Includes retail investment services, investment banking income and trading account profits and commissions.

3

NCF's FTE adjustments where reduced $4,001 from the third quarter 2004 and $4,917 from the fourth quarter of 2003 to confirm to SunTrust's methodology.

4

Multiply by 4 to calculate sequential annualized growth or reductions


RECONCILIATIONS APPENDIX













 

 

Quarter - to - Quarter Comparison

 

Quarter - to - Quarter Comparison

 

 

 

4th Quarter
2004

 

3rd Quarter
2004

 

Increase/(Decrease)

 

4th Quarter
2004

 

4th Quarter
2003

 

Increase/(Decrease)

 

 

 

 

Amount

 

%

 

 

 

Amount

 

%

 

SELECTED AVERAGE BALANCES (Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial 5

 

$

32,343

 

$

31,977

 

$

366

 

1.1

    %7

$

32,343

 

$

33,344

 

$

(1,001

)

(3.0)

    %

Real estate 1-4 family

 

 

22,535

 

 

21,963

 

 

572

 

2.6

 

 

22,535

 

 

18,213

 

 

4,322

 

23.7

 

Real estate commercial and construction

 

 

18,660

 

 

18,155

 

 

505

 

2.8

 

 

18,660

 

 

17,489

 

 

1,171

 

6.7

 

Real estate equity

 

 

11,016

 

 

10,295

 

 

721

 

7.0

 

 

11,016

 

 

8,350

 

 

2,666

 

31.9

 

Consumer 6

 

 

15,390

 

 

15,520

 

 

(130

)

(0.8

)

 

15,390

 

 

14,812

 

 

578

 

3.9

 

Credit cards

 

 

193

 

 

175

 

 

18

 

10.3

 

 

193

 

 

155

 

 

38

 

24.5

 

Total loans

 

$

100,137

 

$

98,085

 

$

2,052

 

2.1

    %

$

100,137

 

$

92,363

 

$

7,774

 

8.4

    %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

$

24,182

 

$

23,239

 

$

943

 

4.1

    %

$

24,182

 

$

21,141

 

$

3,041

 

14.4

    %

NOW accounts

 

 

16,941

 

 

15,335

 

 

1,606

 

10.5

 

 

16,941

 

 

14,139

 

 

2,802

 

19.8

 

Money market accounts

 

 

24,507

 

 

24,211

 

 

296

 

1.2

 

 

24,507

 

 

24,304

 

 

203

 

0.8

 

Savings

 

 

8,139

 

 

9,099

 

 

(960

)

(10.6

)

 

8,139

 

 

7,982

 

 

157

 

2.0

 

Consumer time

 

 

12,084

 

 

11,882

 

 

202

 

1.7

 

 

12,084

 

 

12,390

 

 

(306

)

(2.5

)

Other time

 

 

4,748

 

 

4,112

 

 

636

 

15.5

 

 

4,748

 

 

3,833

 

 

915

 

23.9

 

Total consumer and commercial deposits

 

 

90,601

 

 

87,878

 

 

2,723

 

3.1

 

 

90,601

 

 

83,789

 

 

6,812

 

8.1

 

Brokered and foreign deposits

 

 

10,671

 

 

11,496

 

 

(825

)

(7.2

)

 

10,671

 

 

12,645

 

 

(1,974

)

(15.6

)

Total deposits

 

$

101,272

 

$

99,374

 

$

1,898

 

1.9

    %

$

101,272

 

$

96,434

 

$

4,838

 

5.0

    %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CREDIT DATA (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

354,241

 

$

329,340

 

$

24,901

 

7.6

    %

$

354,241

 

$

367,276

 

$

(13,035

)

(3.5)

    %

Restructured loans

 

 

19,049

 

 

19,724

 

 

(675

)

(3.4

)

 

19,049

 

 

14,782

 

 

4,267

 

28.9

 

Total nonperforming loans

 

 

373,290

 

 

349,064

 

 

24,226

 

6.9

 

 

373,290

 

 

382,058

 

 

(8,768

)

(2.3

)

Other real estate owned (OREO)

 

 

28,619

 

 

27,126

 

 

1,493

 

5.5

 

 

28,619

 

 

44,654

 

 

(16,035

)

(35.9

)

Other repossessed assets

 

 

8,749

 

 

15,082

 

 

(6,333

)

(42.0

)

 

8,749

 

 

14,908

 

 

(6,159

)

(41.3

)

Total nonperforming assets 

 

$

410,658

 

$

391,272

 

$

19,386

 

5.0

    %

$

410,658

 

$

441,620

 

$

(30,962

)

(7.0)

    %

4

SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.

5

The historical combined 4th quarter 2003 includes $2,243 related to the consolidation of SunTrust's commercial paper conduit, Three Pillars.

6

Includes consumer direct and consumer indirect loans.

7

Multiply by 4 to calculate sequential annualized growth or reductions

 

 

 

 

 


RECONCILIATIONS APPENDIX













 

 

3rd Quarter
2004

 

 

4th Quarter
2003

 

 

SunTrust

 

 

NCF

 

 

Historical
Combined

 

 

SunTrust

 

 

NCF

 

 

Historical
Combined

STATEMENTS OF INCOME (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

$

876,874

 

 

$

194,815

 

 

$

1,071,689

 

 

$

865,520

 

 

$

195,428

 

 

$

1,060,948

 

Provision for loan losses

 

 

41,774

 

 

 

19,044

 

 

 

60,818

 

 

 

70,286

 

 

 

12,382

 

 

 

82,668

 

NET INTEREST INCOME AFTER PROVISION
   FOR LOAN LOSSES

 

 

835,100

 

 

 

175,771

 

 

 

1,010,871

 

 

 

795,234

 

 

 

183,046

 

 

 

978,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit and other fees 1

 

 

298,328

 

 

 

55,245

 

 

 

353,573

 

 

 

273,567

 

 

 

49,514

 

 

 

323,081

 

Trust and investment management income

 

 

149,673

 

 

 

15,930

 

 

 

165,603

 

 

 

129,622

 

 

 

16,234

 

 

 

145,856

 

Broker / dealer revenue 2

 

 

113,308

 

 

 

19,342

 

 

 

132,650

 

 

 

120,117

 

 

 

21,560

 

 

 

141,677

 

Other noninterest income

 

 

84,576

 

 

 

21,974

 

 

 

106,550

 

 

 

41,265

 

 

 

21,059

 

 

 

62,324

 

   Noninterest income before securities (losses)/gains

 

 

645,885

 

 

 

112,491

 

 

 

758,376

 

 

 

564,571

 

 

 

108,367

 

 

 

672,938

 

Securities (losses)/gains

 

 

(18,193

)

 

 

1,628

 

 

 

(16,565

)

 

 

19,501

 

 

 

3,338

 

 

 

22,839

 

   Total noninterest income

 

 

627,692

 

 

 

114,119

 

 

 

741,811

 

 

 

584,072

 

 

 

111,705

 

 

 

695,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

 

527,734

 

 

 

77,591

 

 

 

605,325

 

 

 

516,171

 

 

 

75,404

 

 

 

591,575

 

Net occupancy expense

 

 

66,542

 

 

 

13,333

 

 

 

79,875

 

 

 

60,522

 

 

 

13,244

 

 

 

73,766

 

Outside processing and software

 

 

68,657

 

 

 

6,792

 

 

 

75,449

 

 

 

63,176

 

 

 

6,695

 

 

 

69,871

 

Equipment expense

 

 

43,275

 

 

 

7,629

 

 

 

50,904

 

 

 

45,527

 

 

 

7,399

 

 

 

52,926

 

Marketing and customer development

 

 

32,028

 

 

 

2,947

 

 

 

34,975

 

 

 

24,830

 

 

 

2,744

 

 

 

27,574

 

Other noninterest expense

 

 

176,020

 

 

 

66,673

 

 

 

242,693

 

 

 

158,189

 

 

 

42,413

 

 

 

200,602

 

   Noninterest expense before amortization of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   intangible assets

 

 

914,256

 

 

 

174,965

 

 

 

1,089,221

 

 

 

868,415

 

 

 

147,899

 

 

 

1,016,314

 

Amortization of intangible assets

 

 

15,593

 

 

 

12,539

 

 

 

28,132

 

 

 

16,379

 

 

 

14,337

 

 

 

30,716

 

     Total noninterest expense

 

 

929,849

 

 

 

187,504

 

 

 

1,117,353

 

 

 

884,794

 

 

 

162,236

 

 

 

1,047,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

532,943

 

 

 

102,386

 

 

 

635,329

 

 

 

494,512

 

 

 

132,515

 

 

 

627,027

 

Provision for income taxes

 

 

164,177

 

 

 

34,749

 

 

 

198,926

 

 

 

152,005

 

 

 

43,014

 

 

 

195,019

 

NET INCOME FROM CONTINUING OPERATIONS

 

 

368,766

 

 

 

67,637

 

 

 

436,403

 

 

 

342,507

 

 

 

89,501

 

 

 

432,008

 

Income from discontinued operations, net of tax

 

 

-    

 

 

 

-    

 

 

 

-    

 

 

 

-    

 

 

 

767

 

 

 

767

 

NET INCOME

 

$

368,766

 

 

$

67,637

 

 

$

436,403

 

 

$

342,507

 

 

$

90,268

 

 

$

432,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

876,874

 

 

$

194,815

 

 

$

1,071,689

 

 

$

865,520

 

 

$

195,428

 

 

$

1,060,948

 

FTE adjustment 3

 

 

16,821

 

 

 

2,242

 

 

 

19,063

 

 

 

11,981

 

 

 

2,046

 

 

 

14,027

 

Net interest income – FTE

 

 

893,695

 

 

 

197,057

 

 

 

1,090,752

 

 

 

877,501

 

 

 

197,474

 

 

 

1,074,975

 

Noninterest income

 

 

627,692

 

 

 

114,119

 

 

 

741,811

 

 

 

584,072

 

 

 

111,705

 

 

 

695,777

 

Total revenue

 

 

1,521,387

 

 

 

311,176

 

 

 

1,832,563

 

 

 

1,461,573

 

 

 

309,179

 

 

 

1,770,752

 

Securities losses/(gains)

 

 

18,193

 

 

 

(1,628

)

 

 

16,565

 

 

 

(19,501

)

 

 

(3,338

)

 

 

(22,839

)

Total revenue excluding securities gains and losses

 

$

1,539,580

 

 

$

309,548

 

 

$

1,849,128

 

 

$

1,442,072

 

 

$

305,841

 

 

$

1,747,913

 

1

Includes service charges on deposits, card and other charges and fees.

2

Includes retail investment services, investment banking income and trading account profits and commissions.

3

NCF’s FTE adjustments were reduced $4,001 from the third quarter 2004 and $4,917 from the fourth quarter of 2003 to conform to SunTrust’s methodology.



RECONCILIATIONS APPENDIX













 

 

3rd Quarter
2004

 

4th Quarter
2003

 

 

 

SunTrust

 

NCF

 

Historical
Combined

 

SunTrust

 

NCF

 

Historical
Combined

 

SELECTED AVERAGE BALANCES (Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial 5

 

$

27,753

 

$

4,224

 

$

31,977

 

$

29,484

 

$

3,860

 

$

33,344

 

Real estate 1-4 family

 

 

20,798

 

 

1,165

 

 

21,963

 

 

17,218

 

 

995

 

 

18,213

 

Real estate commercial and construction

 

 

14,231

 

 

3,924

 

 

18,155

 

 

13,713

 

 

3,776

 

 

17,489

 

Real estate equity

 

 

8,239

 

 

2,056

 

 

10,295

 

 

6,741

 

 

1,609

 

 

8,350

 

Consumer 6

 

 

12,574

 

 

2,946

 

 

15,520

 

 

12,074

 

 

2,738

 

 

14,812

 

Credit cards

 

 

158

 

 

17

 

 

175

 

 

140

 

 

15

 

 

155

 

     Total loans

 

$

83,753

 

$

14,332

 

$

98,085

 

$

79,370

 

$

12,993

 

$

92,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

$

20,490

 

$

2,749

 

$

23,239

 

$

18,586

 

$

2,555

 

$

21,141

 

NOW accounts

 

 

13,000

 

 

2,335

 

 

15,335

 

 

12,102

 

 

2,037

 

 

14,139

 

Money market accounts

 

 

22,434

 

 

1,777

 

 

24,211

 

 

22,274

 

 

2,030

 

 

24,304

 

Savings

 

 

7,425

 

 

1,674

 

 

9,099

 

 

6,249

 

 

1,733

 

 

7,982

 

Consumer time

 

 

6,967

 

 

4,915

 

 

11,882

 

 

7,601

 

 

4,789

 

 

12,390

 

Other time

 

 

3,806

 

 

306

 

 

4,112

 

 

3,501

 

 

332

 

 

3,833

 

   Total consumer and commercial deposits

 

 

74,122

 

 

13,756

 

 

87,878

 

 

70,313

 

 

13,476

 

 

83,789

 

Brokered and foreign deposits

 

 

9,341

 

 

2,155

 

 

11,496

 

 

10,769

 

 

1,876

 

 

12,645

 

     Total deposits

 

$

83,463

 

$

15,911

 

$

99,374

 

$

81,082

 

$

15,352

 

$

96,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED CREDIT DATA (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

263,127

 

$

66,213

 

$

329,340

 

$

336,587

 

$

30,689

 

$

367,276

 

Restructured loans

 

 

19,724

 

 

-

 

 

19,724

 

 

14,782

 

 

-

 

 

14,782

 

   Total nonperforming loans

 

 

282,851

 

 

66,213

 

 

349,064

 

 

351,369

 

 

30,689

 

 

382,058

 

Other real estate owned (OREO)

 

 

10,934

 

 

16,192

 

 

27,126

 

 

16,458

 

 

28,196

 

 

44,654

 

Other repossessed assets

 

 

10,431

 

 

4,651

 

 

15,082

 

 

10,270

 

 

4,638

 

 

14,908

 

     Total nonperforming assets

 

$

304,216

 

$

87,056

 

$

391,272

 

$

378,097

 

$

63,523

 

$

441,620

 

4

SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.

5

SunTrust's 4th quarter 2003 includes $2,243 related to the consolidation of its commercial paper conduit, Three Pillars.

6

Includes consumer direct and consumer indirect loans.

 

 

 

 

 




L. Phillip Humann
Chairman and CEO

Smith Barney Citigroup

Financial Services Conference

January 2005