<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended June 30, 1996
Commission File Number 1-8918
SUNTRUST BANKS, INC.
(Exact name of registrant as specified in its charter)
Georgia 58-1575035
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
303 Peachtree Street, N.E., Atlanta, Georgia 30308
(Address of principal executive offices) (Zip Code)
(404) 588-7711
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes __X__ No _____
At July 31, 1996, 223,115,672 shares of the Registrant's Common Stock, $1.00
par value were outstanding.
Page 1
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Statement Description Page No.
Consolidated Statements of Income
Six months ended June 30, 1996 and 1995 4
Consolidated Balance Sheets
June 30, 1996, December 31, 1995 and June 30, 5
1995
Consolidated Statements of Cash Flow
Six months ended June 30, 1996 and 1995 6
Consolidated Statements of Shareholders' Equity
Six months ended June 30, 1996 and 1995 7
The above mentioned financial statements have been prepared in accordance
with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and
accordingly do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
However, in the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the six months ended June 30, 1996 are not
necessarily indicative of the results that may be expected for the full year
1996.
Fully diluted per common share data have not been presented because there
were no material differences between such amounts and the per common share
data as presented. Earnings per common share were based on the weighted
average common equivalent shares outstanding for the periods presented.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
MD&A of the Registrant is included on pages 9 through 20.
Page 2
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
(Dollars in thousands except per share data)<F1> 1996 1995 1996 1995
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $ 657,953 $ 625,599 $ 1,304,358 $ 1,220,572
Interest and dividends on investment securities
Taxable interest 112,534 100,282 216,388 202,050
Tax-exempt interest 11,803 14,519 24,040 28,994
Dividends (1) 8,240 7,406 16,329 14,071
Interest on funds sold 6,909 9,941 15,879 17,596
Interest on deposits in other banks 300 195 561 500
Other interest 777 464 1,483 1,148
Total interest income 798,516 758,406 1,579,038 1,484,931
Interest Expense
Interest on deposits 269,948 251,700 537,828 487,608
Interest on funds purchased 54,533 60,673 110,417 111,581
Interest on other short-term borrowings 11,412 14,598 26,676 26,036
Interest on long-term debt 18,365 16,950 36,661 33,344
Total interest expense 354,258 343,921 711,582 658,569
Net Interest Income 444,258 414,485 867,456 826,362
Provision for loan losses 26,194 26,220 51,222 51,689
Net interest income after provision for loan losses 418,064 388,265 816,234 774,673
Noninterest Income
Trust income 70,478 65,231 141,150 130,361
Service charges on deposit accounts 58,111 50,348 113,816 104,135
Other charges and fees 35,377 26,001 67,557 51,378
Credit card fees 16,561 15,667 33,578 31,873
Securities gains (losses) (2,169) (106) 15,093 (449)
Other noninterest income 21,716 17,104 42,556 33,830
Total noninterest income 200,074 174,245 413,750 351,128
Noninterest Expense
Salaries and other compensation 188,290 164,177 369,120 326,596
Employee benefits 26,334 24,771 55,758 53,282
Net occupancy expense 34,454 31,821 68,137 63,288
Equipment expense 27,980 26,470 55,496 52,965
FDIC premiums 1,432 16,578 2,639 33,084
Marketing and community relations 18,615 13,397 33,860 27,349
Postage and delivery 9,634 8,858 19,653 18,324
Other noninterest expense 86,640 63,646 189,731 132,936
Total noninterest expense 393,379 349,718 794,394 707,824
Income before income taxes 224,759 212,792 435,590 417,977
Provision for income taxes 72,662 71,916 133,074 141,065
Net Income $ 152,097 $ 140,876 $ $302,516 $ 276,912
Average common equivalent shares 224,060,675 227,484,344 224,724,452 227,736,550
Net income per average common share $ 0.68 $ 0.61 $ 1.34 $ 1.20
Dividends declared per common share 0.20 0.18 0.40 0.36
(1) Includes dividends on common stock of
The Coca-Cola Company 6,033 5,309 12,067 10,619
<FN>
<F1>See notes to consolidated financial statements
</TABLE>
Page 3
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30 December 31 June 30
(Dollars in thousands)<F1> 1996 1995 1995
<S> <C> <C> <C>
Assets
Cash and due from banks $ 2,419,853 $ 2,641,365 $ 2,418,011
Interest-bearing deposits in other banks 22,365 28,787 11,902
Trading account 70,160 96,613 104,868
Investment securities (1) 10,779,101 9,676,934 9,526,392
Funds sold 852,061 1,299,407 835,946
Loans 32,401,234 31,301,389 30,079,902
Reserve for loan losses (722,569) (698,864) (676,899)
Net loans 31,678,665 30,602,525 29,403,003
Premises and equipment 744,984 729,731 724,460
Intangible assets 280,711 271,926 240,163
Customers' acceptance liability 375,486 234,809 199,654
Other assets 843,598 889,375 783,893
Total assets $ 48,066,984 $ 46,471,472 $ 44,248,292
Liabilities
Noninterest-bearing deposits $ 7,533,998 $ 7,821,377 $ 7,489,547
Interest-bearing deposits 27,481,619 25,361,817 24,193,020
Total deposits 35,015,617 33,183,194 31,682,567
Funds purchased 4,548,778 5,483,751 5,237,219
Other short-term borrowings 816,132 894,470 993,080
Long-term debt 1,104,932 1,002,397 948,343
Acceptances outstanding 375,486 234,809 199,654
Other liabilities 1,570,205 1,403,270 1,185,851
Total liabilities 43,431,150 42,201,891 40,246,714
Shareholders' Equity
Preferred stock, no par value; 50,000,000 shares
authorized; none issued - - -
Common stock, $1.00 par value; 350,000,000
shares authorized (2) 243,644 243,644 243,644
Additional paid in capital 318,349 321,541 320,899
Retained earnings 3,630,419 3,417,801 3,215,060
Treasury stock and other (3) (998,728) (871,953) (743,889)
Realized shareholders' equity 3,193,684 3,111,033 3,035,714
Unrealized gains (losses) on investment
securities, net of taxes 1,442,150 1,158,548 965,864
Total shareholders' equity 4,635,834 4,269,581 4,001,578
Total liabilities and shareholders' equity $ 48,066,984 $ 46,471,472 $ 44,248,292
(1) Includes unrealized gains (losses) on
investment securities $ 2,329,819 $ 1,873,141 $ 1,560,981
(2) Common shares outstanding 223,652,957 225,725,779 227,662,590
(3) Treasury shares of common stock 19,991,327 17,918,505 15,981,694
<FN>
<F1>See notes to consolidated financial statements.
</TABLE>
Page 4
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
Six Months
Ended June 30
(In thousands)<F1> 1996 1995
<S> <C> <C>
Cash flow from operating activities:
Net income $ 302,516 $ 276,912
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 62,791 64,999
Provision for loan losses 51,222 51,689
Provision for losses on other real estate 1,797 2,157
Amortization of compensation element of
restricted stock 4,854 2,813
Securities (gains) and losses, net (15,092) 450
(Gains) and losses on sale of equipment, other
real estate and repossessed assets, net (4,317) (9,101)
Recognition of unearned loan income (93,704) (46,491)
Change in period-end balances of:
Trading account 26,453 (6,758)
Interest receivable (10,736) 452
Prepaid expenses (38,246) (31,835)
Other assets 86,911 37,482
Taxes payable (4,964) 30,407
Interest payable (23,881) 30,020
Other accrued expenses 29,081 (43,940)
Net cash provided by operating activities 374,685 359,256
Cash flow from investing activities:
Proceeds from maturities of investment securities 1,001,870 548,474
Proceeds from sales of investment securities 534,292 147,359
Purchase of investment securities (2,156,758) (221,795)
Net (increase) decrease in loans (957,710) (1,455,783)
Capital expenditures (59,081) (58,866)
Proceeds from sale of equipment, other real estate
and repossessed assets 2,954 46,404
Net inflow (outflow) from bank acquisitions (1,207) 0
Other (17,134) (3,098)
Net cash provided(used) by investing activities (1,652,774) (997,305)
Cash flow from financing activities:
Net increase (decrease) in deposits 1,754,044 (645,702)
Net increase (decrease) in funds purchased and
other short-term borrowings (1,016,218) 1,089,990
Proceeds from the issuance of long-term debt 200,433 30,317
Repayment of long-term debt (97,846) (12,421)
Proceeds from the exercise of stock options 3,328 2,910
Payments to acquire treasury stock (151,034) (70,115)
Dividends paid (89,898) (82,837)
Net cash provided by financing activities 602,809 312,142
Net decrease in cash and cash equivalents (675,280) (325,907)
Cash and cash equivalents at beginning of period 3,969,559 3,591,767
Cash and cash equivalents at end of period $3,294,279 $3,265,860
Supplemental Disclosure
Interest paid 735,463 688,589
Taxes paid 138,482 121,882
<FN>
<F1>See notes to consolidated financial statements.
</TABLE>
Page 5
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
<CAPTION> Unrealized
Additional Treasury Gains (Losses)
Common Paid in Retained Stock and on Securities
(In thousands)<F1> Stock Capital Earnings Other<F2> Net of Taxes Total
<S> <C> <C> <C> <C> <C> <C>
Balance, January 1, 1995 $ 130,461 $ 438,309 $ 3,020,985 $ (706,499) $ 570,075 $ 3,453,331
Stock dividend 113,183 (113,183) - - - -
Balance, January 1, 1995, restated 243,644 325,126 3,020,985 (706,499) 570,075 3,453,331
Net income - - 276,912 - - 276,912
Cash dividends declared on common
stock, $0.36 per share - - (82,837) - - (82,837)
Proceeds from exercise of stock options - (6,285) - 9,195 - 2,910
Acquisition of treasury stock - - - (70,115) - (70,115)
Issuance of treasury stock for 401(k) - 884 - 8,196 - 9,080
Issuance, net of forfeitures, of treasury
stock as restricted stock - 1,174 - 6,331 - 7,505
Issuance of treasury stock for acquisition - - - 13,695 - 13,695
Compensation element of restricted stock - - - (7,505) - (7,505)
Amortization of compensation element
of restricted stock - - - 2,813 - 2,813
Change in unrealized gains (losses)
on securities, net of taxes - - - - 395,789 395,789
Balance, June 30, 1995 $ 243,644 $ 320,899 $ 3,215,060 $ (743,889) $ 965,864 $ 4,001,578
Balance, January 1, 1996 $ 130,461 $ 434,724 $ 3,417,801 $ (871,953) $ 1,158,548 $ 4,269,581
Stock dividend 113,183 (113,183) - - - -
Balance, January 1, 1996, restated 243,644 321,541 3,417,801 (871,953) 1,158,548 4,269,581
Net income - - 302,516 - - 302,516
Cash dividends declared on common
stock, $0.40 per share - - (89,898) - - (89,898)
Proceeds from exercise of stock options - (8,584) - 11,912 - 3,328
Acquisition of treasury stock - - - (151,034) - (151,034)
Issuance of treasury stock for 401(k) - 1,873 - 5,376 - 7,249
Issuance, net of forfeitures, of treasury
stock as restricted stock - 3,519 - 5,802 - 9,321
Issuance of treasury stock for acquisition - - - 5,636 - 5,636
Compensation element of restricted stock - - - (9,321) - (9,321)
Amortization of compensation element
of restricted stock - - - 4,854 - 4,854
Change in unrealized gains (losses)
on securities, net of taxes - - - - 283,602 283,602
Balance, June 30, 1996 $ 243,644 $ 318,349 $ 3,630,419 $ (998,728) $ 1,442,150 $ 4,635,834
<FN>
<F1>See notes to consolidated financial statements.
<F2>Balance at June 30, 1996 includes $953,309 for Treasury Stock and $45,419 for Deferred Compensation.
</TABLE>
Page 6
<PAGE>
Notes to Consolidated Financial Statements
Note 1 - Accounting Policies
The consolidated financial statements include the accounts of the Company and
its subsidiaries. All significant intercompany accounts and transactions have
been eliminated. These financial statements should be read in conjunction
with the Company's annual financial statements and related notes for the year
ended December 31, 1995.
Note 2 - Stock Dividend
On May 21, 1996, the Company paid a stock dividend of one share of SunTrust
common stock for each outstanding share of SunTrust common stock to
shareholders of record on May 1, 1996. The consolidated financial statements
for prior periods have been restated for the effect of this stock dividend.
Page 7
<PAGE>
The following is an analysis of the financial performance of SunTrust Banks,
Inc. (SunTrust or Company) for the second quarter of 1996 and provides
comments on earlier periods. In this discussion net interest income and net
interest margin are presented on a taxable-equivalent basis. Also all ratios
are presented on an annualized basis.
<TABLE>
TABLE 1 - SELECTED QUARTERLY FINANCIAL DATA
(Dollars in millions except per share data)
<CAPTION>
Quarters
1996 1995
2 1 4 3 2
<S> <C> <C> <C> <C> <C>
Summary of Operations
Interest and dividend income $ 798.6 $ 780.5 $ 782.4 $ 759.9 $ 758.4
Interest expense 354.3 357.3 350.2 342.0 343.9
Net interest income 444.3 423.2 432.2 417.9 414.5
Provision for loan losses 26.2 25.0 31.3 29.1 26.2
Net interest income after provision for loan losses 418.1 398.2 400.9 388.8 388.3
Noninterest income 200.1 213.7 179.4 182.6 174.2
Noninterest expense 393.4 401.0 380.6 363.1 349.7
Income before provision for income taxes 224.8 210.9 199.7 208.3 212.8
Provision for income taxes 72.7 60.5 54.8 64.6 71.9
Net income $ 152.1 $ 150.4 $ 144.9 $ 143.7 $ 140.9
Per common share
Net income $ 0.68 $ 0.66 $ 0.64 $ 0.63 $ 0.61
Dividends declared 0.20 0.20 0.20 0.18 0.18
Book value 20.67 19.54 18.86 17.94 17.53
Common stock market price
High 38 38 3/8 35 3/8 33 7/8 29 7/8
Low 33 1/4 32 31 5/8 28 1/2 26 5/8
Close 37 35 34 1/4 33 29 1/8
Selected Average Balances
Total assets $47,019.5 $45,641.9 $44,616.4 $43,072.4 $42,762.2
Earning assets 41,241.8 40,114.0 39,391.9 38,198.8 38,344.3
Loans 32,265.2 31,437.9 30,688.7 29,771.1 29,582.1
Total deposits 34,378.8 33,081.9 31,925.4 31,516.6 31,852.5
Realized shareholders' equity 3,232.0 3,206.8 3,081.8 3,092.9 3,043.8
Total shareholders' equity 4,522.2 4,405.3 4,163.4 4,090.3 3,797.4
Common equivalent shares (thousands) 224,061 225,388 225,574 226,515 227,484
Financial Ratios and Other
ROA<F1> 1.36 % 1.38 % 1.34 % 1.38 % 1.36 %
ROE<F1> 18.93 18.87 18.65 18.43 18.56
Net interest margin<F1> 4.43 4.35 4.47 4.47 4.47
Net interest income - taxable-equivalent $ 454.2 $ 433.7 $ 443.9 $ 430.1 $ 427.1
<FN>
<F1>ROA, ROE and net interest margin are calculated excluding unrealized gains
on investment securities because the unrealized gains are not included in
income.
</TABLE>
Page 8
<PAGE>
<TABLE>
TABLE 2A - CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE AND AVERAGE
YIELDS EARNED AND RATES PAID
(Dollars in millions; yields on a taxable-equivalent basis)
<CAPTION>
Quarter Ended
June 30, 1996 March 31, 1996 June 30, 1995
Average Income/ Yields/ Average Income/ Yields/ Average Income/ Yields/
Balances Expense Rates Balances Expense Rates Balances Expense Rates
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Loans<F1>
Taxable $31,645.9 $649.3 8.25 % $30,805.7 $637.4 8.32 % $28,886.4 $615.8 8.55 %
Tax-exempt<F2> 619.3 13.0 8.42 632.2 13.5 8.57 695.7 15.2 8.76
Total loans 32,265.2 662.3 8.26 31,437.9 650.9 8.33 29,582.1 631.0 8.56
Investment securities:
Taxable 7,605.0 120.8 6.39 7,131.0 112.1 6.32 7,185.0 107.8 6.02
Tax-exempt<F2> 783.9 17.4 8.91 810.4 18.0 8.95 875.0 21.6 9.90
Total investment securities 8,388.9 138.2 6.63 7,941.4 130.1 6.59 8,060.0 129.4 6.44
Funds sold 515.7 6.9 5.39 668.7 9.0 5.40 655.0 9.9 6.09
Other short-term investments<F2> 72.0 1.1 6.14 66.0 1.0 6.00 47.2 0.7 5.98
Total earning assets 41,241.8 808.5 7.88 40,114.0 791.0 7.93 38,344.3 771.0 8.07
Reserve for loan losses (715.6) (704.9) (668.2)
Cash and due from banks 2,256.2 2,216.2 2,078.0
Premises and equipment 742.4 732.6 720.7
Other assets 1,408.3 1,349.0 1,068.4
Unrealized gains(losses) on
investment securities 2,086.4 1,935.0 1,219.0
Total assets $47,019.5 $45,641.9 $42,762.2
Liabilities and Shareholders' Equity
Interest-bearing deposits:
NOW/Money market accounts $10,488.3 $ 73.4 2.82 % $10,056.4 $ 72.6 2.90 % $ 9,359.3 $ 65.5 2.81 %
Savings 5,769.2 53.8 3.75 4,705.7 44.1 3.77 3,637.3 24.4 2.70
Consumer time 7,231.3 92.5 5.14 7,719.8 101.4 5.28 7,927.4 105.5 5.33
Other time<F3> 3,705.0 50.3 5.46 3,557.7 49.8 5.63 4,018.2 56.3 5.62
Total interest-bearing deposits 27,193.8 270.0 3.99 26,039.6 267.9 4.14 24,942.2 251.7 4.05
Funds purchased 4,352.3 54.5 5.04 4,351.5 55.9 5.17 4,167.7 60.7 5.84
Other short-term borrowings 848.4 11.4 5.41 1,062.4 15.2 5.78 914.3 14.6 6.40
Long-term debt 1,106.6 18.4 6.68 1,063.0 18.3 6.92 943.0 16.9 7.21
Total interest-bearing liabilities 33,501.1 354.3 4.25 32,516.5 357.3 4.42 30,967.2 343.9 4.45
Noninterest-bearing deposits 7,185.0 7,042.3 6,910.3
Other liabilities 1,811.2 1,677.8 1,087.3
Realized shareholders' equity 3,232.0 3,206.8 3,043.8
Net unrealized gains(losses)
on investment securities 1,290.2 1,198.5 753.6
Total liabilities and
shareholders' equity $47,019.5 $45,641.9 $42,762.2
Interest rate spread 3.63 % 3.51 % 3.62 %
Net Interest Income $454.2 $433.7 $427.1
Net Interest Margin 4.43 % 4.35 % 4.47 %
Page 9
<PAGE>
<FN>
<F1> Interest income includes loan fees of $24.7, $21.8, and $21.3 in the
quarters ended June 30, and March 31, 1996 and June 30, 1995 and $46.5 and
$41.8 in the six months ended June 30, 1996 and 1995. Nonaccrual loans are
included in average balances and income on such loans, if recognized, is
recorded on a cash basis.
<F2> Interest income includes the effects of taxable-equivalent adjustments
(reduced by the nondeductible portion of interest expense) using a federal
income tax rate of 35%, and, where applicable, state income taxes, to
increase tax-exempt interest income to a taxable-equivalent basis. The net
taxable-equivalent adjustment amounts included in the above table
aggregated $9.9, $10.5 and $12.6 in the quarters ended June 30 and March
31, 1996 and June 30, 1995 and $20.4 and $25.7 in the six months ended
June 30, 1996 and 1995.
<F3> Interest rate swap transactions used to help balance the Company's
interest-sensitivity position increased interest expense by $0.5, and
$0.3, in the quarters ended June 30 and March 31, 1996 and $0.8 in the six
months ended June 30, 1996 and reduced interest expense by $3.0 in the
quarter ended June 30, 1995 and $7.4 in the six months ended June 30,
1995. Without these swaps, the rate on other time deposits and the net
interest margin would have been 5.39% and 4.42%, 5.58% and 4.34%, and
5.92% and 4.44% in the quarters ended June 30 and March 31, 1996 and June
30, 1995 and 5.48% and 4.38%, and 5.76% and 4.48% in the six months ended
June 30, 1996 and 1995.
</TABLE>
Page 10
<PAGE>
<TABLE>
TABLE 2b - CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE AND AVERAGE
YIELDS EARNED AND RATES PAID
(Dollars in millions; yields on a taxable-equivalent basis)
<CAPTION>
Six Months Ended
June 30, 1996 June 30, 1995
Average Income/ Yields/ Average Income/ Yields/
Balances Expense Rates Balances Expense Rates
<S> <C> <C> <C> <C> <C> <C>
Assets
Loans<F1>
Taxable $31,225.8 $1,286.8 8.29 % $28,471.7 $1,200.1 8.50 %
Tax-exempt<F2> 625.7 26.4 8.50 708.4 31.7 9.01
Total loans 31,851.5 1,313.2 8.29 29,180.1 1,231.8 8.51
Investment securities:
Taxable 7,368.0 232.9 6.36 7,281.7 216.4 5.99
Tax-exempt<F2> 797.2 35.4 8.93 894.2 43.1 9.72
Total investment securities 8,165.2 268.3 6.61 8,175.9 259.5 6.40
Funds sold 592.2 15.9 5.39 585.9 17.6 6.06
Other short-term investments<F2> 69.0 2.1 6.08 59.0 1.7 6.08
Total earning assets 40,677.9 1,599.5 7.91 38,000.9 1,510.6 8.02
Reserve for loan losses (710.3) (661.4)
Cash and due from banks 2,236.2 2,101.1
Premises and equipment 737.5 719.4
Other assets 1,378.7 1,055.8
Unrealized gains(losses) on
investment securities 2,010.7 1,072.1
Total assets $46,330.7 $42,287.9
Liabilities and Shareholders' Equity
Interest-bearing deposits:
NOW/Money market accounts $10,272.3 $ 146.0 2.86 % $ 9,413.1 $ 130.4 2.79 %
Savings 5,237.5 97.9 3.76 3,729.4 50.1 2.71
Consumer time 7,475.5 193.9 5.22 7,704.7 196.0 5.13
Other time<F3> 3,631.4 100.0 5.54 4,150.1 111.1 5.40
Total interest-bearing deposits 26,616.7 537.8 4.06 24,997.3 487.6 3.93
Funds purchased 4,351.9 110.4 5.10 3,915.8 111.6 5.75
Other short-term borrowings 955.4 26.7 5.61 861.5 26.0 6.09
Long-term debt 1,084.8 36.7 6.80 936.6 33.3 7.18
Total interest-bearing liabilities 33,008.8 711.6 4.34 30,711.2 658.5 4.32
Noninterest-bearing deposits 7,113.6 6,900.5
Other liabilities 1,744.6 996.3
Realized shareholders' equity 3,219.4 3,016.6
Net unrealized gains(losses)
on investment securities 1,244.3 663.3
Total liabilities and
shareholders' equity $46,330.7 $42,287.9
Interest rate spread 3.57 % 3.70 %
Net Interest Income $ 887.9 $ 852.1
Net Interest Margin 4.39 % 4.52 %
<FN>
<F1>See note <F1> on table 2A.
<F2>See note <F2> on table 2A.
<F3>See note <F3> on table 2A.
</TABLE>
Page 11
<PAGE>
Net Interest Income/Margins. The Company's net interest margin of 4.43% for
the second quarter of 1996 was 4 basis points lower than the second quarter
of last year. The rate on earning assets decreased 19 basis points, fueled
by a 30 basis point decrease in the yield on loans. At the same time, the
rate on interest-bearing liabilities decreased 20 basis points. Interest rate
swaps also helped increase last year's net interest margin (see the
discussion entitled "Derivatives" on page 17).
Interest income which the Company was unable to recognize on nonperforming
loans in the first six months of 1996 had a negative impact of 2 basis points
on the net interest margin as compared to 3 basis points in the first six
months 1995. Table 2 contains more detailed information concerning average
balances and interest yields earned and rates paid.
Noninterest Income. Noninterest income in the second quarter and the first
six months of 1996, adjusted to exclude the effect of securities gains
(losses), increased 16.0% and 13.4% from the comparable periods a year ago.
Trust income, the Company's largest source of noninterest income, increased
8.0% and 8.3% over the same periods. Other charges and fees were 36.1% higher
in the second quarter of this year compared to the same period last year due
to higher volume in our mortgage banking business. Credit card fees also
increased 5.7% and 5.4%.
<TABLE>
TABLE 3 - NONINTEREST INCOME
(In millions)
<CAPTION>
Quarters
1996 1995
2 1 4 3 2
<S> <C> <C> <C> <C> <C>
Trust income $ 70.5 $ 70.7 $ 64.6 $ 64.7 $ 65.3
Service charges on deposit accounts 58.1 55.7 54.5 54.0 50.5
Other charges and fees 35.4 32.2 28.4 27.6 26.0
Credit card fees 16.6 17.0 15.6 15.1 15.7
Securities gains (losses) (2.2) 17.3 (7.2) 1.0 (0.1)
Trading account profits and commissi 3.1 2.6 3.3 2.5 2.4
Corporate and institutional investme 3.3 2.8 4.9 2.4 1.1
Retail investment income 6.2 4.6 3.6 3.3 4.2
Other income 9.1 10.8 11.7 12.0 9.1
Total noninterest income $200.1 $213.7 $179.4 $182.6 $174.2
</TABLE>
Page 12
<PAGE>
Noninterest Expense. Noninterest expense increased 12.5% and 12.2% in the
second quarter and first six months of 1996 compared to the same periods last
year. Personnel expense, consisting of salaries, other compensation and
employee benefits, increased 13.6% and 11.9% over the aforementioned periods.
Other noninterest expense increased substantially in the second quarter of
this year due to expenditures made in connection with various projects to
stimulate business growth and development.
<TABLE>
TABLE 4 - NONINTEREST EXPENSE
(In millions)
<CAPTION>
Quarters
1996 1995
2 1 4 3 2
<S> <C> <C> <C> <C> <C>
Salaries $156.0 $151.7 $149.7 $144.8 $143.1
Other compensation 32.3 29.1 27.0 25.3 21.1
Employee benefits 26.4 29.4 27.2 25.1 24.8
Net occupancy expense 34.4 33.7 33.2 33.6 31.8
Equipment expense 28.0 27.5 26.4 25.7 26.5
FDIC premiums 1.4 1.2 3.9 (0.6) 16.6
Marketing and community relations 18.7 15.2 12.4 10.3 13.3
Postage and delivery 9.7 10.0 9.3 8.8 8.8
Operating supplies 9.9 9.7 8.5 8.1 7.7
Other real estate expense (0.5) 0.8 (3.9) (1.1) (2.3)
Communications 7.8 7.7 6.6 7.3 7.1
Consulting and legal 6.1 5.1 5.0 5.5 5.5
Amortization of intangible assets 6.5 6.1 6.0 5.4 5.0
Other expense 56.7 73.8 69.3 64.9 40.7
Total noninterest expense $393.4 $401.0 $380.6 $363.1 $349.7
Efficiency ratio 60.1 % 62.0 % 61.1 % 59.3 % 58.2 %
</TABLE>
Provision for Loan Losses. The provision for loan losses in the second
quarter of both 1996 and 1995 was $26.2 million. Net loan charge-offs were
$28.7 million in the first six months of this year, representing 0.18% of
average loans. The comparable net charge-off amount for 1995 was $23.5
million or 0.16% of average loans. Consumer loan charge-offs increased
slightly yet remain low compared to historical standards.
The Company maintains a reserve for loan losses to absorb possible
losses in the loan portfolio. The reserve consists of three elements; (i)
reserves established on specific loans, (ii) reserves based on historical
loan loss experience, and (iii) reserves based on economic conditions in the
Company's individual markets. The specific reserve element is based on a
regular analysis of all loans and commitments over a fixed dollar amount
where the internal credit rating is at or below a pre-determined
classification. The historical loan loss element represents a projection of
future credit problems and is determined statistically using a loss migration
analysis that examines loss experience and the related internal gradings of
loans charged-off. The general economic condition element is determined by
management at the individual subsidiary banks and is based on a subjective
evaluation of specific economic factors in their markets that might affect
the collectibility of loans. SunTrust is committed to the early recognition
of possible problems and to a strong, conservative reserve.
The Company's reserve for loan losses totaled $722.6 million at June 30,
1996, which was 2.23% of quarter-end loans and 371.0% of total nonperforming
loans. These ratios at December 31, 1995 were 2.23% and 363.6% and at June
30, 1995 were 2.25% and 370.6%.
Page 13
<PAGE>
<TABLE>
TABLE 5 - SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in millions)
<CAPTION>
Quarters
1996 1995
2 1 4 3 2
<S> <C> <C> <C> <C> <C>
Reserve for Loan Losses
Balances - beginning of quarter $ 712.4 $ 698.9 $ 692.8 $ 676.9 $ 661.0
Reserve of purchased banks 1.2 3.9 0.7 1.7
Provision for loan losses 26.2 25.0 31.3 29.1 26.2
Charge-offs:
Domestic:
Commercial (5.2) (4.4) (13.1) (4.0) (5.0)
Real estate:
Construction (0.1) (0.1) (0.1) (0.2)
Mortgage, 1-4 family (1.1) (1.4) (1.8) (2.3) (1.5)
Other (1.5) (0.9) (6.3) (3.9) (4.0)
Lease financing (0.4) (0.3) (0.3) (0.2) (0.2)
Credit card (9.5) (9.0) (7.5) (6.8) (6.8)
Other consumer loans (10.9) (10.5) (11.8) (10.0) (8.0)
International
Total charge-offs (28.6) (26.6) (40.9) (27.3) (25.7)
Recoveries:
Domestic:
Commercial 3.1 4.2 3.8 3.2 7.4
Real estate:
Construction 0.1 0.1 0.3 1.9 (1.6)
Mortgage, 1-4 family 0.5 0.3 0.4 0.2 0.5
Other 2.1 2.7 1.0 1.4 1.5
Lease financing 0.2 0.1 0.1 0.2 0.1
Credit card 1.7 1.8 1.7 2.0 1.8
Other consumer loans 4.9 4.7 4.5 4.3 4.0
International 0.2
Total recoveries 12.6 13.9 11.8 13.4 13.7
Net charge-offs (16.0) (12.7) (29.1) (13.9) (12.0)
Balance - end of quarter $ 722.6 $ 712.4 $ 698.9 $ 692.8 $ 676.9
Quarter-end loans outstanding:
Domestic $32,124.4 $31,517.2 $30,966.0 $29,702.6 $29,802.3
International 276.8 268.9 335.4 298.2 277.6
Total $32,401.2 $31,786.1 $31,301.4 $30,000.8 $30,079.9
Ratio of reserve to quarter-end loans 2.23 % 2.24 % 2.23 % 2.31 % 2.25 %
Average loans $32,265.2 $31,437.9 $30,688.7 $29,771.1 $29,582.1
Ratio of net charge-offs (annualized)
to average loans 0.20 % 0.16 % 0.38 % 0.18 % 0.16 %
</TABLE>
Page 14
<PAGE>
<TABLE>
TABLE 6 - NONPERFORMING ASSETS
(Dollars in millions)
<CAPTION>
1996 1995
June 30 March 31 December 31 September 30 June 30
<S> <C> <C> <C> <C> <C>
Nonperforming Assets
Nonaccrual loans:
Domestic:
Commercial $ 34.6 $ 36.0 $ 28.3 $ 27.6 $ 28.7
Real Estate:
Construction 3.7 4.7 4.9 6.9 11.3
Mortgage, 1-4 family 49.5 50.6 45.7 44.2 43.5
Other 93.2 86.9 99.3 84.0 85.3
Lease financing 0.1 0.2 0.1 0.2
Consumer loans 10.9 9.3 11.0 11.6 10.4
Total nonaccrual loans 192.0 187.7 189.3 174.3 179.4
Restructured loans 2.8 2.9 2.9 3.0 3.2
Total nonperforming loans 194.8 190.6 192.2 177.3 182.6
Other real estate owned 53.5 58.8 58.8 66.2 70.1
Total Nonperforming Assets $ 248.3 $ 249.4 $ 251.0 $ 243.5 $ 252.7
Ratios:
Nonperforming loans to total loans 0.60 % 0.60 % 0.61 % 0.59 % 0.61 %
Nonperforming assets to total loans
plus other real estate owned 0.77 0.78 0.80 0.81 0.84
Reserve to nonperforming loans 371.01 373.78 363.60 390.78 370.61
Accruing Loans Past Due 90 Days or More $ 29.9 $ 26.0 $ 24.3 $ 26.0 $ 19.0
</TABLE>
Nonperforming Assets. Nonperforming assets consist of nonaccrual and
restructured loans and other real estate owned. Nonperforming assets have
decreased $2.7 million since December 31, 1995 and $4.4 million since June
30, 1995. Since December 31, 1995, nonperforming assets increased $5.8
million in Florida banks, and decreased $8.4 million in Georgia banks, and
$0.1 million in Tennessee banks. Included in nonperforming loans at June 30,
1996 are loans aggregating $27.0 million which are current as to the payment
of principal and interest but have been placed in nonperforming status
because of uncertainty over the borrowers' ability to make future payments.
In management's opinion, all material potential problem loans are included in
Table 6.
Interest income on nonaccrual loans, if recognized, is recorded on a cash
basis. During the first six months of 1996, the gross amount of interest
income that would have been recorded on nonaccrual loans and restructured
loans at June 30, 1996, if all such loans had been accruing interest at the
original contractual rate, was $9.6 million. Interest income recognized in
the six months ended June 30, 1996 on all such nonperforming loans at June
30, 1996, was $4.7 million.
Page 15
<PAGE>
<TABLE>
Table 7 - Loan Portfolio by Types of Loans (in millions)
<CAPTION>
1996 1995
June 30 March 31 December 31 September 30 June 30
<S> <C> <C> <C> <C> <C>
Commercial:
Domestic $10,405.4 $10,449.4 $10,222.5 $ 9,374.4 $ 9,931.3
International 269.4 270.5 337.5 299.6 298.0
Real estate:
Construction 1,246.4 1,239.3 1,216.6 1,176.6 1,151.0
Mortgage, 1-4 family 10,524.1 10,087.9 9,732.8 9,431.4 9,054.0
Other 4,540.3 4,526.9 4,477.7 4,567.4 4,579.3
Lease financing 569.4 565.2 561.2 507.6 487.5
Credit card 770.6 732.0 774.0 713.9 671.7
Other consumer loans 4,075.6 3,914.9 3,979.1 3,929.9 3,907.1
Loans $32,401.2 $31,786.1 $31,301.4 $30,000.8 $30,079.9
</TABLE>
Loans. During the second quarter and first six months of 1996, average loans
increased 9.1% and 9.2% over the same periods a year ago, however, loan
growth slowed during the second quarter. Since December 31, 1995, the two
loan categories experiencing significant growth were 1-4 family residential
mortgage loans (most of which are variable rate loans) and domestic
commercial loans. The average loan to deposit ratios were 93.9% and 94.4% in
the second quarter and first six months of 1996 compared with 92.9% and 91.5%
in the same periods of 1995.
At June 30, 1996, international outstandings, which include loans,
acceptances, deposits in other banks, foreign guarantees and accrued
interest, totaled $332.5 million, a decrease of 16.2% from $396.8 million at
December 31, 1995.
Income Taxes. The provision for income taxes was $72.7 and $133.2 million in
the second quarter and first six months of 1996 compared to $71.9 and $141.1
million in the same periods last year.
Investment Securities. The investment portfolio continues to be managed to
maximize yield over an entire interest rate cycle while providing liquidity
and minimizing risk. The portfolio yield increased from an average of 6.44%
in the second quarter of 1995 to 6.63% in the second quarter of this year.
The portfolio size increased by $483.9 million from June 30, 1995 to June 30,
1996 as a portion of the deposit increase was invested in securities. The
average life of the portfolio was approximately 2.7 years and its duration,
the average time to the receipt of the present value of the portfolio's
expected cash flow, was 2.3 years at June 30, 1996. At June 30, 1996,
approximately 31.4% of the portfolio consisted of U.S. Treasury securities,
11.4% U.S. government agency securities, 47.7% mortgage-backed securities,
9.2% municipal securities, and 0.3% in other securities (calculated as a
percent of total par value). All of the Company's holdings in mortgage-backed
securities are backed by U.S. government or federal agency guarantees
limiting the credit risk associated with the mortgage loans. At June 30,
1996, the carrying value of the securities portfolio was $2.3 billion over
its amortized cost, including a $2.4 billion unrealized gain on the Company's
investment in common stock of The Coca-Cola Company.
Page 16
<PAGE>
Liquidity Management. Liquidity is managed to ensure there is sufficient
cash flow to satisfy demand for credit, deposit withdrawals and other
attractive market opportunities. A large, stable core deposit base, strong
capital position and excellent credit ratings are the solid foundation for
the Company's liquidity position. It is enhanced by an investment portfolio
structured to provide liquidity as needed, which occurred in 1995 and 1996
when loan demand exceeded deposit growth. Liquidity is also strengthened by
ready access to regional and national wholesale funding sources including fed
funds purchased, securities sold under agreements to repurchase, negotiable
certificates of deposit and offshore deposits, as well as an active bank
deposit note program, commercial paper issuance by the Parent Company, and
Federal Home Loan Bank (FHLB) advances for several subsidiary banks who are
FHLB members.
Average total deposits for the second quarter and first six months of
1996 increased 7.9% and 5.8% over the same periods a year ago. Interest-
bearing deposits represented 79.1% and 78.9% of average deposits for the
second quarter and first six months of 1996, compared to 78.3% and 78.4% for
the same periods in 1995. In the second quarter of 1996, average net
purchased funds (average funds purchased less average funds sold) increased
$0.3 billion over the same period in 1995. Net purchased funds were 9.3% and
9.2% of average earning assets for the second quarter and first six months of
1996 as compared to 9.2% and 8.8% in the same periods a year ago.
Derivatives. The Company enters into various derivatives contracts in a
dealer capacity for customers and in managing its own interest rate risk.
Where contracts have been created for customers, the Company enters into
offsetting positions to eliminate its exposure to market risk. The principal
derivative contract used by the Company is the interest rate swap. Interest
rate swaps are contracts in which a series of interest rate flows, based on a
specific notional amount and a fixed and floating interest rate, are
exchanged over a prescribed period. The Company also monitors its sensitivity
to changes in interest rates and uses interest rate swap contracts to limit
the volatility of net interest income. Table 8 details interest rate swaps as
of June 30, 1996 used for managing interest rate sensitivity.
<TABLE>
TABLE 8 - INTEREST RATE SWAPS
<CAPTION>
Average Average Average
(Dollars in millions) Notional Fair Maturity Rate Rate
At June 30, 1996 Value Value In Months Paid Received
<S> <C> <C> <C> <C> <C>
Gain position:
Receive fixed $ 208.0 $ 2.3 117.4 5.82 % 7.24 %
Pay fixed 163.6 6.6 83.3 6.21 5.54
Total gain position 371.6 8.9
Loss position:
Receive fixed 1,472.9 (19.2) 23.6 0.27 5.47
Pay fixed 106.9 (2.1) 24.7 6.60 5.59
Total loss position 1,579.8 (21.3)
Total $1,951.4 ($12.4)
</TABLE>
The majority of the swaps are designated as hedges on deposits and other
interest-bearing liabilities. During the six months ended June 30, 1996,
hedge swaps decreased net interest income by $0.8, compared with a $7.4
benefit in the corresponding 1995 period.
Page 17
<PAGE>
<TABLE>
TABLE 9 - CAPITAL RATIOS
(Dollars in millions)
<CAPTION>
1996 1995
June 30 March 31 December 31 September 30 June 30
<S> <C> <C> <C> <C> <C>
Tier 1 capital:
Realized shareholders' equity $ 3,193.7 $ 3,165.6 $ 3,111.0 $ 3,035.2 $ 3,035.7
Intangible assets other than servicing rights (251.3) (255.7) (252.3) (239.5) (225.1)
Total Tier 1 capital 2,942.4 2,909.9 2,858.7 2,795.7 2,810.6
Tier 2 capital:
Allowable reserve for loan losses 470.8 461.8 462.2 437.6 437.5
Allowable long-term debt 557.2 554.2 246.8 247.6 247.6
Total Tier 2 capital 1,028.0 1,016.0 709.0 685.2 685.1
Total capital $ 3,970.4 $ 3,925.9 $ 3,567.7 $ 3,480.9 $ 3,495.7
Risk-weighted assets $37,413.6 $36,694.7 $36,742.0 $34,756.2 $34,759.9
Risk-based ratios:
Tier 1 capital 7.86 % 7.92 % 7.78 % 8.04 % 8.08 %
Total capital 10.60 10.69 9.71 10.01 10.05
Tier 1 leverage ratio 6.58 6.69 6.70 6.78 6.80
Total shareholders' equity to assets 9.64 9.48 9.19 9.38 9.04
</TABLE>
Capital Resources. Consistent with the objective of operating a sound
financial organization, SunTrust maintains capital ratios well above
regulatory requirements. The rate of internal capital generation has been
more than adequate to support asset growth. Table 9 presents capital ratios
for the five most recent quarters.
Regulatory agencies measure capital adequacy with a framework that makes
capital requirements sensitive to the risk profiles of individual banking
companies. The guidelines define capital as either Tier 1 (primarily
shareholders' equity excluding unrealized gains and losses on investment
securities) or Tier 2 (certain debt instruments and a portion of the reserve
for loan losses). The Company and its subsidiary banks are subject to a
minimum Tier 1 capital to risk-weighted assets ratio of 4% and total capital
(Tier 1 plus Tier 2) to risk-weighted assets ratio of 8%. The Federal Reserve
Board (Board) has also established an additional capital adequacy guideline
referred to as the Tier 1 leverage ratio which measures the ratio of Tier 1
capital to average quarterly assets.
The Federal Deposit Insurance Corporation Improvement Act of 1991
(FDICIA) requires the establishment of a capital-based supervisory system of
prompt corrective action for all depository institutions. The Board's
implementation of FDICIA defines "well capitalized" institutions as those
whose capital ratios equal or exceed the following minimum ratios: Tier 1
capital ratio of 6%, total risk-based capital ratio of 10%, and a Tier 1
leverage ratio of 5%. At June 30, 1996, the Company's Tier 1 capital, total
risk-based capital and Tier 1 leverage ratios were 7.86%, 10.60% and 6.58%,
respectively.
In 1995, the Board of Directors authorized the Company to repurchase up
to 20,000,000 shares of SunTrust common stock. At June 30, 1996, the Company
has a remaining 11,560,018 shares that may be purchased under this
authorization.
Page 18
<PAGE>
Nonbanking Subsidiaries. SunTrust Mortgage, Inc. originates and services
mortgage loans on both residential and income property, principally
throughout Florida, Georgia and Tennessee. SunTrust Mortgage is primarily a
mortgage banker selling to the secondary market and representing
institutional investors. SunTrust Mortgage also assists various SunTrust
banks in their origination of mortgage loans for sale in the secondary market
and for retention in their portfolio. At June 30, 1996, the servicing
portfolio was $11.9 billion, which includes $7.1 billion in loans serviced
for subsidiary banks of SunTrust. SunTrust Insurance Company operates as a
reinsurer for credit life and accident and health insurance sold to loan
customers of SunTrust. SunTrust Securities engages in securities brokerage
services and conducts incidental activities such as offering custodial and
cash management services. SunTrust Capital Markets, Inc. serves as the
investment banking arm of SunTrust. It's business activities include public
finance, corporate finance and the sale of investment securities to
corporations, institutions and government entities. Personal Express Loans,
Inc. operates as a consumer finance company. STI Credit Corporation operates
as a leasing subsidiary, primarily for commercial customers. Other nonbank
subsidiaries primarily support the Company's banking operations, providing
data processing and other services.
State Summary. SunTrust Banks, Inc. operates through three principal
subsidiaries, SunTrust Banks of Florida, Inc., SunTrust Banks of Georgia,
Inc. and SunTrust Banks of Tennessee, Inc., all well-established bank holding
companies within their respective states. Data in Table 10 does not include
financial results of SunTrust's Parent Company and certain other non-bank
subsidiaries (including SunTrust BankCard N.A. which holds all the credit
card balances of the company). It is also before elimination of certain
intercompany accounts and balances.
Page 19
<PAGE>
<TABLE>
TABLE 10 - FINANCIAL HIGHLIGHTS - BANKING SUBSIDIARIES
(Dollars in Millions)
<CAPTION>
SunTrust Banks SunTrust Banks SunTrust Banks
of Florida, Inc. of Georgia, Inc. of Tennessee, Inc.
1996 1995 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Summary of Operations<F1>
Net interest income (FTE) $465.2 $460.5 $291.1 $284.4 $134.3 $137.8
Provision for loan losses 20.8 30.6 10.7 14.7 4.6 6.1
Trust income 71.9 69.8 50.9 44.2 18.1 16.4
Other noninterest income 134.2 111.0 86.1 71.3 38.1 31.7
Personnel expense 159.2 146.9 99.4 90.1 50.4 47.1
Other noninterest expense 223.5 229.9 123.5 126.7 56.6 61.8
Net income 164.1 145.4 125.4 108.7 48.6 43.1
Selected Average Balances<F2>
Total assets 22,858 21,073 16,614 14,504 6,773 6,509
Earning assets 21,323 19,811 13,322 12,302 6,482 6,198
Loans 16,077 15,181 10,705 9,510 4,847 4,467
Total deposits 18,378 16,956 9,938 9,865 5,457 5,136
Realized shareholders' equity 1,955 1,828 1,328 1,181 557 537
At June 30
Total assets 23,058 21,482 18,143 15,717 6,917 6,692
Earning assets 21,528 19,902 14,309 12,911 6,534 6,324
Loans 16,144 15,413 11,115 9,982 4,895 4,630
Reserve for loan losses 376 360 199 197 117 119
Total deposits 18,403 17,212 11,095 9,395 5,572 5,119
Realized shareholders' equity 2,018 1,883 1,377 1,217 574 544
Total shareholders' equity 2,000 1,886 2,832 2,168 571 546
Credit Quality
Net loan charge-offs<F1> 7.4 15.5 4.3 5.3 2.0 2.4
Nonperforming loans<F2> 131.8 115.1 50.6 53.4 12.1 13.8
Other real estate owned<F2> 31.8 36.0 5.0 12.1 16.7 21.9
Ratios
ROA<F3> 1.44 % 1.38 % 1.72 % 1.65 % 1.44 % 1.33 %
ROE<F3> 16.87 16.05 18.99 18.56 17.52 16.20
Net interest margin<F3> 4.39 4.69 4.39 4.66 4.17 4.48
Efficiency ratio<F3> 57.00 58.75 52.07 54.23 56.13 58.60
Total shareholders' equity/assets<F2> 8.67 8.78 15.61 13.79 8.26 8.16
Net loan charge-offs to average loans<F3> 0.09 0.21 0.08 0.11 0.08 0.11
Nonperforming loans to total loans<F2> 0.84 0.75 0.46 0.54 0.25 0.30
Nonperforming assets to total loans plus
other real estate owned<F2> 1.04 0.98 0.51 0.66 0.60 0.77
Reserve to loans<F2> 2.39 2.33 1.81 1.98 2.45 2.57
Reserve to nonperforming loans<F2> 285.3 312.4 392.3 369.3 969.0 861.6
<FN>
<F1>For the six month period ended June 30.
<F2>At June 30.
<F3>Annualized for the first six months.
</TABLE>
Page 20
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Index:
Exhibit Exhibit No. Page No.
Statement re: Computation of Per Share Earnings 11 22
(b) SunTrust did not file any reports on Form 8-K during the second quarter
of 1996.
SIGNATURES
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 this 6th day of August, 1996.
SunTrust Banks, Inc.
(Registrant)
/s/ W.P. O'Halloran
William P. O'Halloran
Senior Vice President and Controller
(Chief Accounting Officer)
Page 21
<PAGE>
<TABLE>
EXHIBIT 11
Statement re: Computation of Per Share Earnings
(In thousands, except per share data)
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Primary
Net income $152,097 $140,876 $302,516 $276,912
Average common shares outstanding 224,624 227,760 225,210 227,959
Average common share equivalents outstanding <F1>:
Stock options 1,300 1,460 1,365 1,478
Restricted sock (1,863) (1,736) (1,851) (1,700)
Average primary common shares 224,061 227,484 224,724 227,737
Earnings per common share - Primary $ 0.68 $ 0.61 $ 1.34 $ 1.20
Fully Diluted
Net income $152,097 $140,876 $302,516 $276,912
Average common shares outstanding 224,624 227,760 225,210 227,959
Average common share equivalents outstanding <F1>:
Stock options 1,310 1,479 1,384 1,505
Restricted sock (1,863) (1,733) (1,847) (1,695)
Average fully diluted common shares 224,071 227,506 224,747 227,769
Earnings per common share - Fully Diluted $ 0.68 $ 0.61 $ 1.34 $ 1.20
<FN>
<F1>Includes the incremental effect of stock options and restricted
stock outstanding computed under the treasury stock method.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,419,853
<INT-BEARING-DEPOSITS> 22,365
<FED-FUNDS-SOLD> 852,061
<TRADING-ASSETS> 70,160
<INVESTMENTS-HELD-FOR-SALE> 10,779,101
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 32,401,234
<ALLOWANCE> 722,569
<TOTAL-ASSETS> 48,066,984
<DEPOSITS> 35,015,617
<SHORT-TERM> 5,364,910
<LIABILITIES-OTHER> 1,945,691
<LONG-TERM> 1,104,932
<COMMON> 243,644
0
0
<OTHER-SE> 4,392,190
<TOTAL-LIABILITIES-AND-EQUITY> 48,066,984
<INTEREST-LOAN> 1,304,358
<INTEREST-INVEST> 256,757
<INTEREST-OTHER> 17,923
<INTEREST-TOTAL> 1,579,038
<INTEREST-DEPOSIT> 537,828
<INTEREST-EXPENSE> 711,582
<INTEREST-INCOME-NET> 867,456
<LOAN-LOSSES> 51,222
<SECURITIES-GAINS> 15,093
<EXPENSE-OTHER> 794,394
<INCOME-PRETAX> 435,590
<INCOME-PRE-EXTRAORDINARY> 302,516
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 302,516
<EPS-PRIMARY> 1.34
<EPS-DILUTED> 1.34
<YIELD-ACTUAL> 4.39
<LOANS-NON> 191,980
<LOANS-PAST> 29,852
<LOANS-TROUBLED> 2,777
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 698,864
<CHARGE-OFFS> 55,245
<RECOVERIES> 26,485
<ALLOWANCE-CLOSE> 722,569
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 722,569
</TABLE>
