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SunTrust Reports Record Second Quarter Earnings

Strong Results Reflect Healthy Revenue Growth, Good Balance of Earnings Components

PRNewswire-FirstCall
ATLANTA
Jul 12, 2004

SunTrust Banks, Inc. today reported net income for the second quarter of 2004 of $364.8 million, up 10% from the $330.4 million earned in second quarter of 2003. Net income per diluted share was $1.29, up 10% from the $1.17 per diluted share earned in the second quarter of 2003.

"SunTrust's capacity to translate the attractive demographics and high- growth profile of our markets into strong, sustainable and well-balanced earnings growth was amply demonstrated in the second quarter," noted L. Phillip Humann, SunTrust Chairman, President and Chief Executive Officer. "Healthy revenue growth, reflecting a good balance of net interest income and fee income, coupled with excellent credit quality, produced strong bottom line results that confirm the validity of our distinctive, customer-focused business strategy."

Mr. Humann noted that improved performance by each of SunTrust's key business lines -- retail banking, commercial banking, corporate and investment banking, mortgage banking and wealth management -- contributed to the quarter's results. Mr. Humann also said that integration planning is "well underway, on track and on schedule" for scheduled closing in the fourth quarter of the Company's previously announced merger with Memphis-based National Commerce Financial Corporation.

For the second quarter of 2004, reported return on average total assets (ROA) was 1.15%, and return on average total equity (ROE) was 14.39%. Return on average assets less net unrealized gains on securities was 1.20% and return on average realized equity was 17.77%. The Company believes ROA and ROE excluding net unrealized gains from the Company's securities portfolio is the more indicative performance measure in this area due to SunTrust's ownership of 48 million shares of The Coca-Cola Company.

For the first six months of 2004, net income was $723.3 million, up 10% from the same period in 2003. Net income per diluted share was $2.55, up 9% from the first six months of 2003. ROA was 1.16%, and ROE was 14.52%. Return on average assets less net unrealized gains on securities was 1.19% and return on average realized equity was 17.61%.

Fully taxable net interest income was $885.1 million in the second quarter, up 9% from the second quarter of 2003. The net interest margin for the quarter was 3.13%, comparable to the first quarter of 2004, up from 3.05% a year ago and in line with SunTrust's expectations.

Average loans for the second quarter were $80.9 billion, up 9% from the second quarter of 2003, and average earning assets were $113.7 billion, up 7% from the second quarter of 2003. SunTrust noted that both consumer and overall commercial loans displayed growth momentum in the second quarter despite a continued lack of demand for bank loans by large corporate borrowers.

Average consumer and commercial deposits for the second quarter were $73.2 billion, up 6% from the second quarter of 2003. Average low cost consumer and commercial deposits for the second quarter were $40.4 billion, up 14% from the second quarter of 2003.

Total noninterest income was $622.7 million for the quarter, up 4% from the second quarter of 2003. Noninterest income, excluding net securities gains, of $631.7 million in the quarter, was up 12% from the second quarter of 2003.

Net charge-offs in the second quarter were $37.6 million or 0.19% of average loans, down from 0.30% of average loans in the first quarter of 2004. SunTrust noted that the second quarter charge off level, while consistent with the Company's generally improving credit quality picture, was nonetheless "unusually low." The provision for loan losses was $38.8 million for the second quarter. In addition, the Company added $9.4 million to reserves for unfunded loan commitments during the quarter. This charge is reflected in "other noninterest expense."

Nonperforming assets were $324.4 million at quarter end or 0.39% of loans, other real estate owned and repossessed assets, down from $331.9 million as of March 31, 2004. Nonperforming assets at June 30, 2004 included $301.1 million in nonperforming loans, $14.2 million in other real estate owned and $9.1 million in other repossessed assets. The allowance for loan losses at June 30, 2004 was $943.7 million and represented 1.14% of period-end loans and 313.4% of nonperforming loans. SunTrust's nonperforming asset levels continue to compare very favorably with the most recently published industry averages.

Total noninterest expense in the second quarter was $928.4 million, up 11% from the second quarter of 2003. Excluding incremental incentive compensation costs related to higher business volumes and the expense to reserve for unfunded loan commitments in the second quarter of 2004, expenses for the quarter were held to first quarter levels.

At June 30, 2004, SunTrust had total assets of $128.1 billion. Equity capital of $10.0 billion represented 7.8% of total assets. Book value per share was $35.49, up 9% from June 30, 2003.

To view the corresponding financial tables and information, please refer to the Investor Relations section located under "About SunTrust" on our Web site at http://www.suntrust.com/. This information may also be directly accessed via the quick link entitled "2nd Quarter Earnings Release" located at the lower right hand corner of the SunTrust homepage.

SunTrust management will host a conference call on July 12, 2004 at 8:30 a.m. (Eastern Time) to review earnings and performance trends. Individuals are encouraged to call in beginning at 8:15 a.m. (Eastern Time) by dialing 1-888-822-9863 (Passcode: 2Q04; Leader: Gary Peacock.). Individuals calling from outside the United States should dial 1-484-630-1854 (Passcode: 2Q04; Leader: Gary Peacock). A replay of the call will be available beginning July 12, 2004 and ending July 26, 2004 at 5:00 p.m. (Eastern Time) by dialing 1-800-282-5736 (domestic) or 1-402-220-9727 (international).

Alternatively, individuals may listen to the live webcast of the presentation by visiting the SunTrust Web site at http://www.suntrust.com/. The webcast will be hosted under "Investor Relations" located under "About SunTrust" or may be accessed directly from the SunTrust home page by clicking on the earnings related link, "2nd Quarter Earnings Release". Beginning the afternoon of July 12, 2004, listeners may access an archived version of the presentation in the "Webcasts and Presentations" subsection found under "Investor Relations." A link to the Investor Relations page is also found in the footer of the SunTrust home page.

SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest commercial banking organizations. The Company operates through an extensive distribution network primarily in Florida, Georgia, Maryland, Tennessee, Virginia and the District of Columbia and also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the company provides credit cards, mortgage banking, insurance, brokerage and capital markets services. SunTrust's Internet address is http://www.suntrust.com/.

The information provided herein, including related questions and answers, may contain forward looking statements. Statements that are not historical facts, including statements about SunTrust's beliefs and expectations, are forward-looking statements. These statements are based on beliefs and assumptions by SunTrust's management, and on information currently available to such management. The forward-looking statements are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements preceded by, followed by or that include the words "believes," "expects," "anticipates," "plans," "estimates," or similar expressions or future conditional verbs such as "will," "should," "would," and "could." Forward-looking statements speak only as of the date they are made, and SunTrust undertakes no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. Management cautions that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Examples of such factors include, but are not limited to: changes in interest rates; changes in accounting principles, policies or guidelines; changes in the securities markets; changes in regulatory requirements; competitive pressures and changes in the economy. For a more thorough discussion of factors that could impact actual results, see the "A Warning About Forward-Looking Information" section of SunTrust's 2003 annual report filed on Form 10-K with the SEC. For further information regarding SunTrust, please read the SunTrust reports filed with the SEC and available at http://www.sec.gov/.

This press release could include some non-GAAP measures to describe our Company's performance. The reconciliation of those measures to GAAP measures can be found in the financial information contained at the end of this press release.

                  SunTrust Banks, Inc. and Subsidiaries
                    RECONCILEMENT OF NON-GAAP MEASURES
                     APPENDIX A TO THE PRESS RELEASE

                                           Quarter - to - Quarter Comparison
                                              2nd Quarter      1st Quarter
                                                2004              2004
    NON-GAAP MEASURES PRESENTED
     IN THE PRESS RELEASE
    (Dollars in thousands)

    Net income                                $364,837          $358,477
    Securities losses/(gains), net of
     tax                                         9,048            (4,927)
    Net income excluding securities
     gains and losses                         $373,885          $353,550

    Total average assets                  $127,287,458      $123,853,747
    Average net unrealized gains on
     securities                             (2,803,917)       (2,580,304)
    Average assets less net unrealized
     gains on securities                  $124,483,541      $121,273,443

    Total average equity                   $10,194,201        $9,840,282
    Average other comprehensive income      (1,804,833)       (1,645,712)
    Total average realized equity           $8,389,368        $8,194,570

    Return on average total assets                1.15 %            1.16 %
    Impact of excluding net unrealized
     securities gains                             0.05              0.02
    Return on average total assets less
     net unrealized gains on securities(1)        1.20 %            1.18 %

    Return on average total
     shareholders' equity                        14.39 %           14.65 %
    Impact of excluding net unrealized
     securities gains                             3.38              2.79
    Return on average realized
     shareholders' equity(2)                     17.77 %           17.44 %

    Net interest income                       $872,429          $851,648
    FTE adjustment                              12,637            12,256
    Net interest income - FTE                  885,066           863,904
    Noninterest income                         622,665           595,086
    Total revenue                            1,507,731         1,458,990
    Securities losses/(gains)                    9,048            (4,927)
    Total revenue excluding securities
     gains and losses                       $1,516,779        $1,454,063


                                    Quarter - to - Quarter Comparison
                                4th Quarter    3rd Quarter     2nd Quarter
                                  2003            2003            2003

    NON-GAAP MEASURES PRESENTED
     IN THE PRESS RELEASE
    (Dollars in thousands)

    Net income                   $342,507        $331,583        $330,359
    Securities
     losses/(gains), net of tax   (19,501)        (31,098)        (31,238)
    Net income excluding
     securities gains and
     losses                      $323,006        $300,485        $299,121

    Total average assets     $124,756,099    $126,701,810    $119,448,042
    Average net unrealized
     gains on securities       (2,363,948)     (2,401,899)     (2,293,359)
    Average assets less net
     unrealized gains on
     securities              $122,392,151    $124,299,911    $117,154,683

    Total average equity       $9,435,794      $9,236,849      $8,864,063
    Average other
     comprehensive income      (1,503,355)     (1,526,448)     (1,450,356)
    Total average realized
     equity                    $7,932,439      $7,710,401      $7,413,707

    Return on average total
     assets                          1.09 %          1.04 %          1.11 %
    Impact of excluding net
     unrealized securities gains    (0.02)          (0.05)          (0.05)
    Return on average total
     assets less net unrealized
     gains on securities(1)          1.07 %          0.99 %          1.06 %

    Return on average total
     shareholders' equity           14.40 %         14.24 %         14.95 %
    Impact of excluding net
     unrealized securities
     gains                           2.10            1.78            1.82
    Return on average
     realized shareholders'
     equity(2)                      16.50 %         16.02 %         16.77 %

    Net interest income          $865,520        $832,800        $799,513
    FTE adjustment                 11,981          11,588          10,902
    Net interest income -
     FTE                          877,501         844,388         810,415
    Noninterest income            584,072         574,478         596,792
    Total revenue               1,461,573       1,418,866       1,407,207
    Securities
     losses/(gains)               (19,501)        (31,098)        (31,238)
    Total revenue excluding
     securities gains and
     losses                    $1,442,072      $1,387,768      $1,375,969


                                                      YTD Comparison

                                                          June 30
                                                   2004              2003

    NON-GAAP MEASURES PRESENTED
     IN THE PRESS RELEASE
    (Dollars in thousands)

    Net income                                 $723,314          $658,207
    Securities losses/(gains), net of
     tax                                          4,121           (73,277)
    Net income excluding securities
     gains and losses                          $727,435          $584,930

    Total average assets                   $125,570,602      $118,865,352
    Average net unrealized gains on
     securities                              (2,692,110)       (2,302,444)
    Average assets less net unrealized
     gains on securities                   $122,878,492      $116,562,908

    Total average equity                    $10,017,242        $8,825,530
    Average other comprehensive income       (1,725,273)       (1,456,871)
    Total average realized equity            $8,291,969        $7,368,659

    Return on average total assets                 1.16 %            1.12 %
    Impact of excluding net unrealized
     securities gains                              0.03             (0.06)
    Return on average total assets less
     net unrealized gains on securities(1)         1.19 %            1.06 %

    Return on average total
     shareholders' equity                         14.52 %           15.04 %
    Impact of excluding net unrealized
     securities gains                              3.09              1.67
    Return on average realized
     shareholders' equity(2)                      17.61 %           16.71 %

    Net interest income                      $1,724,077        $1,621,983
    FTE adjustment                               24,893            21,445
    Net interest income - FTE                 1,748,970         1,643,428
    Noninterest income                        1,217,751         1,144,451
    Total revenue                             2,966,721         2,787,879
    Securities losses/(gains)                     4,121           (73,277)
    Total revenue excluding securities
     gains and losses                        $2,970,842        $2,714,602


                                          Quarter - to - Quarter Comparison
                                         2nd Quarter   1st Quarter    Change
                                             2004          2004         %(4)

    NON-GAAP DISCLOSURES FOR IMPACTS OF
     THREE PILLARS(3)
    (Dollars in millions)

    Average loans -- reported              $80,936       $79,905       1.3
    Impact of Three Pillars                      -        (1,430)
    Average loans excluding Three
     Pillars                               $80,936       $78,475       3.1

    Average earning assets --reported     $113,657      $111,038       2.4
    Impact of Three Pillars                      -        (1,715)
    Average earning assets excluding
     Three Pillars                        $113,657      $109,323       4.0

    Average commercial loans -- reported   $27,511       $28,464      (3.3)
    Impact of Three Pillars                      -        (1,430)
    Average commercial loans excluding
     Three Pillars                         $27,511       $27,034       1.8

    Average commercial loan yield --
     reported                                 3.62 %        3.54 %     2.3
    Impact of Three Pillars                      -          0.06
    Average commercial loan yield
     excluding Three Pillars                  3.62 %        3.60 %     0.6

    Net interest margin -- reported           3.13 %        3.13 %       -
    Impact of Three Pillars                      -          0.04
    Net interest margin excluding Three
     Pillars                                  3.13 %        3.17 %    (1.3)


                                           Quarter - to - Quarter Comparison
                                           2nd Quarter   1st Quarter  Change
                                              2004          2004       %(4)

    REVENUE AND EXPENSE GROWTH RATES
    (Dollars in thousands)

    Total revenue excluding securities
     gains and losses

    Total noninterest expense
    Expense for unfunded loan
     commitments
    Adjusted noninterest expense

    AVERAGE LOW COST CONSUMER AND
     COMMERCIAL DEPOSIT RECONCILEMENT
    (Dollars in thousands)

    Demand deposits                      $20,591,615   $18,896,711    9.0
    NOW/money market                      12,811,554    12,332,083    3.9
    Savings                                6,990,929     6,334,231   10.4
    Total average low cost consumer and
     commercial deposits                 $40,394,098   $37,563,025    7.5


                                          Quarter - to - Quarter Comparison
                                          2nd Quarter   2nd Quarter  Change
                                             2004          2003        %

    REVENUE AND EXPENSE GROWTH RATES
    (Dollars in thousands)

    Total revenue excluding securities
     gains and losses                      $1,516,779    $1,375,969   10.2

    Total noninterest expense                $928,449      $837,728   10.8
    Expense for unfunded loan
     commitments                               (9,424)            -
    Adjusted noninterest expense             $919,025      $837,728    9.7

    Demand deposits                       $20,591,615   $17,548,140   17.3
    NOW/money market                       12,811,554    11,576,819   10.7
    Savings                                 6,990,929     6,253,304   11.8
    Total average low cost consumer and
     commercial deposits                  $40,394,098   $35,378,263   14.2


    (1) Computed by dividing annualized net income, excluding tax effected
        securities gains and losses, by average assets less net unrealized
        gains on securities.
    (2) Computed by dividing annualized net income, excluding tax effected
        securities gains and losses, by average realized shareholder's
        equity.
    (3) 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.
    (4) Multiply by 4 to calculate sequential annualized growth or
        reductions discussed in the earnings call.

SOURCE: SunTrust Banks, Inc.

CONTACT: Investors - Gary Peacock, +1-404-658-4879, or Media - Barry
Koling, +1-404-230-5268; both of SunTrust Banks, Inc.