<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 September 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 October 31, 1996, 223,014,624 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
Nine months ended September 30, 1996 and 1995 4
Consolidated Balance Sheets
September 30, 1996, December 31, 1995 and 5
September 30, 1995
Consolidated Statements of Cash Flow
Nine months ended September 30, 1996 and 1995 6
Consolidated Statements of Shareholders' Equity
Nine months ended September 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 nine months ended September 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 Nine Months
Ended September 30 Ended September 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 $ 675,846 $ 632,413 $ 1,980,204 $ 1,852,985
Interest and dividends on investment securities
Taxable interest 115,108 99,743 331,496 301,793
Tax-exempt interest 11,148 13,714 35,188 42,708
Dividends (1) 7,927 6,920 24,256 20,991
Interest on funds sold 9,127 6,348 25,006 23,944
Interest on deposits in other banks 285 280 846 780
Other interest 917 461 2,400 1,609
Total interest income 820,358 759,879 2,399,396 2,244,810
Interest Expense
Interest on deposits 273,788 251,367 811,616 738,975
Interest on funds purchased 60,778 58,750 171,195 170,331
Interest on other short-term borrowings 9,327 14,818 36,003 40,854
Interest on long-term debt 22,076 17,034 58,737 50,378
Total interest expense 365,969 341,969 1,077,551 1,000,538
Net Interest Income 454,389 417,910 1,321,845 1,244,272
Provision for loan losses 29,933 29,131 81,155 80,820
Net interest income after provision for loan losses 424,456 388,779 1,240,690 1,163,452
Noninterest Income
Trust income 68,170 64,762 209,320 195,123
Service charges on deposit accounts 57,929 54,000 171,745 158,135
Other charges and fees 42,259 33,321 126,727 94,898
Credit card fees 15,720 15,095 49,298 46,968
Securities gains (losses) (500) 1,054 14,593 605
Other noninterest income 13,720 14,385 39,365 38,016
Total noninterest income 197,298 182,617 611,048 533,745
Noninterest Expense
Salaries and other compensation 194,647 170,079 563,767 496,675
Employee benefits 25,999 25,138 81,757 78,420
Net occupancy expense 34,897 33,637 103,034 96,925
Equipment expense 29,526 25,763 85,022 78,728
Operating supplies 8,938 8,006 28,523 23,654
Marketing and community relations 19,227 10,272 53,087 37,621
Postage and delivery 10,490 8,811 30,143 27,135
Other noninterest expense 65,919 81,374 238,704 231,746
Total noninterest expense 389,643 363,080 1,184,037 1,070,904
Income before income taxes 232,111 208,316 667,701 626,293
Provision for income taxes 76,523 64,616 209,597 205,681
Net Income $ 155,588 $ 143,700 $ 458,104 $ 420,612
Average common equivalent shares 222,682,956 226,515,071 224,038,986 227,324,916
Net income per average common share $ 0.70 $ 0.63 $ 2.04 $ 1.83
Dividends declared per common share 0.20 0.18 0.60 0.54
(1) Includes dividends on common stock of
The Coca-Cola Company 6,033 5,309 18,100 15,928
<FN>
<F1>See notes to consolidated financial statements
</TABLE>
Page 3
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30 December 31 September 30
(Dollars in thousands)<F1> 1996 1995 1995
<S> <C> <C> <C>
Assets
Cash and due from banks $ 2,460,275 $ 2,641,365 $ 1,995,426
Interest-bearing deposits in other banks 12,700 28,787 12,342
Trading account 164,363 96,613 34,354
Investment securities (1) 10,759,252 9,676,934 9,589,466
Funds sold 768,427 1,299,407 388,860
Loans 33,824,308 31,301,389 30,000,794
Reserve for loan losses (724,677) (698,864) (692,828)
Net loans 33,099,631 30,602,525 29,307,966
Premises and equipment 753,664 729,731 728,810
Intangible assets 280,264 271,926 257,131
Customers' acceptance liability 441,584 234,809 200,027
Other assets 892,532 889,375 842,745
Total assets $ 49,632,692 $ 46,471,472 $ 43,357,127
Liabilities
Noninterest-bearing deposits $ 7,940,714 $ 7,821,377 $ 6,835,552
Interest-bearing deposits 27,033,446 25,361,817 24,480,719
Total deposits 34,974,160 33,183,194 31,316,271
Funds purchased 5,346,619 5,483,751 4,503,980
Other short-term borrowings 878,118 894,470 939,325
Long-term debt 1,563,906 1,002,397 1,002,150
Acceptances outstanding 441,584 234,809 200,027
Other liabilities 1,649,592 1,403,270 1,328,531
Total liabilities 44,853,979 42,201,891 39,290,284
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) 225,608 243,644 243,644
Additional paid in capital 313,584 321,541 322,438
Retained earnings 2,864,131 3,417,801 3,317,985
Treasury stock and other (3) (131,799) (871,953) (848,838)
Realized shareholders' equity 3,271,524 3,111,033 3,035,229
Unrealized gains (losses) on investment
securities, net of taxes 1,507,189 1,158,548 1,031,614
Total shareholders' equity 4,778,713 4,269,581 4,066,843
Total liabilities and shareholders' equity $ 49,632,692 $ 46,471,472 $ 43,357,127
(1) Includes unrealized gains (losses) on
investment securities $ 2,435,138 $ 1,873,141 $ 1,667,724
(2) Common shares outstanding 222,967,776 225,725,779 226,100,925
(3) Treasury shares of common stock 2,640,281 17,918,505 17,543,359
<FN>
<F1>See notes to consolidated financial statements.
</TABLE>
Page 4
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
Nine Months
Ended September 30
(In thousands)<F1> 1996 1995
<S> <C> <C>
Cash flow from operating activities:
Net income $ 458,104 $ 420,612
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 95,741 100,359
Provision for loan losses 81,155 80,820
Provision for losses on other real estate 2,974 2,911
Amortization of compensation element of
restricted stock 7,372 4,185
Securities (gains) and losses, net (14,593) (605)
(Gains) and losses on sale of equipment, other
real estate and repossessed assets, net (6,372) (14,287)
Recognition of unearned loan income (151,780) (85,516)
Change in period-end balances of:
Trading account (67,750) 63,756
Interest receivable (9,939) (12,128)
Prepaid expenses (35,531) (16,526)
Other assets 32,152 (30,908)
Taxes payable (10,019) 22,124
Interest payable (31,886) 32,445
Other accrued expenses 82,290 64,212
Net cash provided by operating activities 431,918 631,454
Cash flow from investing activities:
Proceeds from maturities of investment securities 1,363,706 1,073,480
Proceeds from sales of investment securities 714,355 298,319
Purchase of investment securities (2,573,527) (768,281)
Net (increase) decrease in loans (2,349,224) (1,338,212)
Capital expenditures (93,233) (93,641)
Proceeds from sale of equipment, other real estate
and repossessed assets 4,495 92,213
Net inflow (outflow) from bank acquisitions (1,207) (25,493)
Other (24,276) (5,456)
Net cash provided(used) by investing activities (2,958,911) (767,071)
Cash flow from financing activities:
Net increase (decrease) in deposits 1,712,587 (1,132,788)
Net increase (decrease) in funds purchased and
other short-term borrowings (156,391) 298,196
Proceeds from the issuance of long-term debt 661,888 106,495
Repayment of long-term debt (100,327) (34,792)
Proceeds from the exercise of stock options 4,409 4,043
Payments to acquire treasury stock (189,168) (177,064)
Dividends paid (134,162) (123,612)
Net cash provided by financing activities 1,798,836 (1,059,522)
Net decrease in cash and cash equivalents (728,157) (1,195,139)
Cash and cash equivalents at beginning of period 3,969,559 3,591,767
Cash and cash equivalents at end of period $ 3,241,402 $ 2,396,628
Supplemental Disclosure
Interest paid $ 1,109,437 $ 1,032,983
Taxes paid 220,130 191,506
<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 - - 420,612 - - 420,612
Cash dividends declared on common
stock, $0.54 per share - - (123,612) - - (123,612)
Proceeds from exercise of stock options - (7,154) - 11,197 - 4,043
Acquisition of treasury stock - - - (177,064) - (177,064)
Issuance of treasury stock for 401(k) - 1,104 - 9,011 - 10,115
Issuance, net of forfeitures, of treasury
stock as restricted stock - 3,362 - 12,863 - 16,225
Issuance of treasury stock for acquisition - - - 13,695 - 13,695
Compensation element of restricted stock - - - (16,226) - (16,226)
Amortization of compensation element
of restricted stock - - - 4,185 - 4,185
Change in unrealized gains (losses)
on securities, net of taxes - - - 461,539 461,539
Balance, September 30, 1995 $ 243,644 $ 322,438 $ 3,317,985 $ (848,838) $ 1,031,614 $ 4,066,843
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 - - 458,104 - - 458,104
Cash dividends declared on common
stock, $0.60 per share - - (134,150) - - (134,150)
Proceeds from exercise of stock options - (10,536) - 14,945 - 4,409
Acquisition of treasury stock - - - (189,168) - (189,168)
Issuance of treasury stock for 401(k) - 1,605 - 6,683 - 8,288
Issuance, net of forfeitures, of treasury
stock as restricted stock - 974 - 18,523 - 19,497
Issuance of treasury stock for acquisition - - - 5,636 - 5,636
Compensation element of restricted stock - - - (19,497) - (19,497)
Retirement of treasury stock (18,036) - (877,624) 895,660 - -
Amortization of compensation element
of restricted stock - - - 7,372 - 7,372
Change in unrealized gains (losses)
on securities, net of taxes - - - - 348,641 348,641
Balance, September 30, 1996 $ 225,608 $ 313,584 $ 2,864,131 $ (131,799) $ 1,507,189 $ 4,778,713
<FN>
<F1>See notes to consolidated financial statements.
<F2>
</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
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<TABLE>
TABLE 1 - SELECTED QUARTERLY FINANCIAL DATA
(Dollars in millions except per share data)
<CAPTION>
Quarters
1996 1995
3 2 1 4 3
<S> <C> <C> <C> <C> <C>
Summary of Operations
Interest and dividend income $ 820.4 $ 798.6 $ 780.5 $ 782.4 $ 759.9
Interest expense 366.0 354.3 357.3 350.2 342.0
Net interest income 454.4 444.3 423.2 432.2 417.9
Provision for loan losses 30.0 26.2 25.0 31.3 29.1
Net interest income after provision for loan losses 424.4 418.1 398.2 400.9 388.8
Noninterest income 197.2 200.1 213.7 179.4 182.6
Noninterest expense 389.6 393.4 401.0 380.6 363.1
Income before provision for income taxes 232.0 224.8 210.9 199.7 208.3
Provision for income taxes 76.4 72.7 60.5 54.8 64.6
Net income $155.6 $152.1 $ 150.4 $ 144.9 $ 143.7
Per common share
Net income $ 0.70 $ 0.68 $ 0.66 $ 0.64 $ 0.63
Dividends declared 0.20 0.20 0.20 0.20 0.18
Book value 21.43 20.73 19.60 18.91 17.99
Common stock market price
High 41 1/2 38 38 3/8 35 3/8 33 7/8
Low 34 7/8 33 1/4 32 31 5/8 28 1/2
Close 41 37 35 34 1/4 33
Selected Average Balances
Total assets $48,122.6 $47,019.5 $45,641.9 $44,616.4 $43,072.4
Earning assets 42,179.2 41,241.8 40,114.0 39,391.9 38,198.8
Loans 33,029.6 32,265.2 31,437.9 30,688.7 29,771.1
Total deposits 34,652.8 34,378.8 33,081.9 31,925.4 31,516.6
Realized shareholders' equity 3,281.7 3,232.0 3,206.8 3,081.8 3,092.9
Total shareholders' equity 4,713.7 4,522.2 4,405.3 4,163.4 4,090.3
Common equivalent shares (thousands) 222,683 224,061 225,388 225,574 226,515
Financial Ratios and Other
ROA<F1> 1.35 % 1.36 % 1.38 % 1.34 % 1.38 %
ROE<F1> 18.86 18.93 18.87 18.65 18.43
Net interest margin<F1> 4.38 4.43 4.35 4.47 4.47
Net interest income - taxable-equivalent $ 464.2 $ 454.2 $ 433.7 $ 443.9 $ 430.1
<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>
The following is an analysis of the financial performance of SunTrust Banks,
Inc. (SunTrust or Company) for the third 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 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
September 30, 1996 June 30, 1996 September 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 $32,389.3 $666.9 8.19 % $31,645.9 $649.3 8.25 % $29,116.9 $622.5 8.48 %
Tax-exempt<F2> 640.3 13.4 8.28 619.3 13.0 8.42 654.2 15.3 9.29
Total loans 33,029.6 680.3 8.19 32,265.2 662.3 8.26 29,771.1 637.8 8.50
Investment securities:
Taxable 7,648.4 123.1 6.41 7,605.0 120.8 6.39 7,081.7 106.8 5.98
Tax-exempt<F2> 747.2 16.5 8.76 783.9 17.4 8.91 870.3 20.4 9.30
Total investment securities 8,395.6 139.6 6.62 8,388.9 138.2 6.63 7,952.0 127.2 6.35
Funds sold 670.3 9.1 5.42 515.7 6.9 5.39 422.0 6.3 5.96
Other short-term investments<F2> 83.7 1.2 5.80 72.0 1.1 6.14 53.7 0.8 5.57
Total earning assets 42,179.2 830.2 7.83 41,241.8 808.5 7.88 38,198.8 772.1 8.02
Reserve for loan losses (723.1) (715.6) (684.2)
Cash and due from banks 2,167.9 2,256.2 2,033.7
Premises and equipment 750.6 742.4 724.3
Other assets 1,435.6 1,408.3 1,186.7
Unrealized gains(losses) on
investment securities 2,312.4 2,086.4 1,613.1
Total assets $48,122.6 $47,019.5 $43,072.4
Liabilities and Shareholders' Equity
Interest-bearing deposits:
NOW/Money market accounts $10,270.4 $ 69.8 2.70 % $10,488.3 $ 73.4 2.82 % $ 9,329.7 $ 63.0 2.68 %
Savings 5,580.5 49.9 3.56 5,769.2 53.8 3.75 3,552.2 23.0 2.57
Consumer time 7,120.1 91.9 5.13 7,231.3 92.5 5.14 8,078.0 111.0 5.45
Other time<F3> 4,579.7 62.3 5.40 3,705.0 50.3 5.46 3,792.9 54.4 5.69
Total interest-bearing deposits 27,550.7 273.9 3.95 27,193.8 270.0 3.99 24,752.8 251.4 4.03
Funds purchased 4,782.0 60.8 5.06 4,352.3 54.5 5.04 4,148.0 58.8 5.62
Other short-term borrowings 658.7 9.3 5.63 848.4 11.4 5.41 949.6 14.8 6.19
Long-term debt 1,333.0 22.0 6.59 1,106.6 18.4 6.68 957.1 17.0 7.06
Total interest-bearing liabiliti 34,324.4 366.0 4.24 33,501.1 354.3 4.25 30,807.5 342.0 4.40
Noninterest-bearing deposits 7,102.1 7,185.0 6,763.7
Other liabilities 1,982.4 1,811.2 1,410.9
Realized shareholders' equity 3,281.7 3,232.0 3,092.9
Net unrealized gains(losses)
on investment securities 1,432.0 1,290.2 997.4
Total liabilities and
shareholders' equity $48,122.6 $47,019.5 $43,072.4
Interest rate spread 3.59 % 3.63 % 3.62 %
Net Interest Income $464.2 $454.2 $430.1
Net Interest Margin 4.38 % 4.43 % 4.47 %
Page 9
<PAGE>
<FN>
<F1> Interest income includes loan fees of $24.1, $24.7, and $22.9 in the
quarters ended September 30, and June 30, 1996 and September 30, 1995 and
$70.6 and $64.6 in the nine months ended September 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 $9.8, $9.9 and $12.2 in the quarters ended September 30 and
June 30, 1996 and September 30, 1995 and $30.2 and $37.9 in the nine
months ended September 30, 1996 and 1995.
<F3> Interest rate swap transactions used to help balance the Company's
interest-sensitivity position increased interest expense by $0.4, and
$0.5, in the quarters ended September 30 and June 30, 1996 and $1.2 in the
nine months ended September 30, 1996 and reduced interest expense by $1.5
in the quarter ended September 30, 1995 and $8.9 in the nine months ended
September 30, 1995. Without these swaps, the rate on other time deposits
and the net interest margin would have been 5.35% and 4.37%, 5.39% and
4.42%, and 5.84% and 4.45% in the quarters ended September 30 and June 30,
1996 and September 30, 1995 and 5.43% and 4.38%, and 5.79% and 4.47% in
the nine months ended September 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>
Nine Months Ended
September 30, 1996 September 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 $31,616.5 $1,953.7 8.25 % $28,689.1 $1,822.6 8.49 %
Tax-exempt<F2> 630.6 39.8 8.42 690.2 47.0 9.10
Total loans 32,247.1 1,993.5 8.26 29,379.3 1,869.6 8.51
Investment securities:
Taxable 7,462.1 356.0 6.37 7,214.3 323.2 5.99
Tax-exempt<F2> 780.4 51.9 8.88 886.1 63.5 9.58
Total investment securities 8,242.5 407.9 6.61 8,100.4 386.7 6.38
Funds sold 618.5 25.0 5.40 530.7 23.9 6.03
Other short-term investments<F2> 73.9 3.3 5.97 57.2 2.5 5.92
Total earning assets 41,182.0 2,429.7 7.88 38,067.6 2,282.7 8.02
Reserve for loan losses (714.6) (669.1)
Cash and due from banks 2,213.3 2,078.4
Premises and equipment 741.9 721.1
Other assets 1,397.8 1,099.9
Unrealized gains(losses) on
investment securities 2,112.0 1,254.4
Total assets $46,932.4 $42,552.3
Liabilities and Shareholders' Equity
Interest-bearing deposits:
NOW/Money market accounts $10,271.7 $215.8 2.81 % $ 9,385.0 $ 193.4 2.75 %
Savings 5,352.6 147.8 3.69 3,669.7 73.2 2.67
Consumer time 7,356.2 285.8 5.19 7,830.5 306.9 5.24
Other time<F3> 3,949.8 162.3 5.49 4,029.7 165.5 5.49
Total interest-bearing deposits 26,930.3 811.7 4.03 24,914.9 739.0 3.97
Funds purchased 4,496.3 171.2 5.09 3,994.1 170.3 5.70
Other short-term borrowings 855.8 36.0 5.62 891.1 40.9 6.13
Long-term debt 1,168.1 58.7 6.72 943.5 50.4 7.14
Total interest-bearing liabiliti 33,450.5 1,077.6 4.30 30,743.6 1,000.6 4.35
Noninterest-bearing deposits 7,109.8 6,854.4
Other liabilities 1,824.4 1,136.1
Realized shareholders' equity 3,240.3 3,042.3
Net unrealized gains(losses)
on investment securities 1,307.4 775.9
Total liabilities and
shareholders' equity $46,932.4 $42,552.3
Interest rate spread 3.58 % 3.67 %
Net Interest Income $1,352.1 $1,282.1
Net Interest Margin 4.39 % 4.50 %
<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 4.38% for
the third quarter of 1996 was 9 basis points lower than the third quarter of
last year. The rate on earning assets decreased 19 basis points, fueled by a
31 basis point decrease in the yield on loans. At the same time, the rate on
interest-bearing liabilities decreased 16 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 nine 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
nine months 1995. Table 2 contains more detailed information concerning
average balances and interest yields earned and rates paid.
Noninterest Income. Noninterest income in the third quarter and the first
nine months of 1996, adjusted to exclude the effect of securities gains
(losses), increased 8.9% and 11.9% from the comparable periods a year ago.
Trust income, the Company's largest source of noninterest income, increased
5.3% and 7.3% over the same periods. Other charges and fees were 18.0% higher
in the third 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 4.1% and 5.0%.
<TABLE>
TABLE 3 - NONINTEREST INCOME
(In millions)
<CAPTION>
Quarters
1996 1995
3 2 1 4 3
<S> <C> <C> <C> <C> <C>
Trust income $ 68.1 $ 70.5 $ 70.7 $ 64.6 $ 64.7
Service charges on deposit accounts 57.9 58.1 55.7 54.5 54.0
Corporate and institutional investment 3.4 3.3 2.8 4.9 2.4
Retail investment income 6.3 6.2 4.6 3.6 3.3
Other charges and fees 32.5 35.4 32.2 28.4 27.6
Credit card fees 15.7 16.6 17.0 15.6 15.1
Securities gains (losses) (0.5) (2.2) 17.3 (7.2) 1.0
Trading account profits and commissions 3.5 3.1 2.6 3.3 2.5
Other income 10.3 9.1 10.8 11.7 12.0
Total noninterest income $197.2 $200.1 $213.7 $179.4 $182.6
</TABLE>
Page 12
<PAGE>
Noninterest Expense. Noninterest expense increased 7.3% and 10.6% in the
third quarter and first nine months of 1996 compared to the same periods last
year. Personnel expense, consisting of salaries, other compensation and
employee benefits, increased 13.0% and 12.3% over the aforementioned periods.
Other noninterest expense increased substantially in the third quarter of
this year as compared to the third quarter of 1995, due to expenditures made
in connection with various projects to stimulate business growth and
development. The FDIC has advised it will levy a special assessment to
recapitalize the Savings Association Insurance Fund (SAIF) as a result of
legislation signed into law on September 30, 1996. At September 30, 1996
the Company has $5.6 million accrued in other liabilities for this assessment.
<TABLE>
TABLE 4 - NONINTEREST EXPENSE
(In millions)
<CAPTION>
Quarters
1996 1995
3 2 1 4 3
<S> <C> <C> <C> <C> <C>
Salaries $161.7 $156.0 $151.7 $149.7 $144.8
Other compensation 32.9 32.3 29.1 27.0 25.3
Employee benefits 26.0 26.4 29.4 27.2 25.1
Net occupancy expense 34.9 34.4 33.7 33.2 33.6
Equipment expense 29.5 28.0 27.5 26.4 25.7
FDIC premiums 1.3 1.4 1.2 3.9 (0.6)
Marketing and community relations 19.2 18.7 15.2 12.4 10.3
Postage and delivery 10.5 9.7 10.0 9.3 8.8
Operating supplies 8.9 9.9 9.7 8.5 8.1
Other real estate expense 0.4 (0.5) 0.8 (3.9) (1.1)
Communications 8.3 7.8 7.7 6.6 7.3
Consulting and legal 5.8 6.1 5.1 5.0 5.5
Amortization of intangible assets 6.8 6.5 6.1 6.0 5.4
Other expense 43.4 56.7 73.8 69.3 64.9
Total noninterest expense $389.6 $393.4 $401.0 $380.6 $363.1
Efficiency ratio 58.9 % 60.1 % 62.0 % 61.1 % 59.3 %
</TABLE>
Provision for Loan Losses. The provision for loan losses in the third
quarter of 1996 was $30.0 million compared to $29.1 million in 1995. Net
loan charge-offs were $56.6 million in the first nine months of this year,
representing 0.23% of average loans. The comparable net charge-off amount
for 1995 was $37.4 million or 0.17% 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 $724.7 million at
September 30, 1996, which was 2.14% of quarter-end loans and 386.2% of total
nonperforming loans. These ratios at December 31, 1995 were 2.23% and 363.6%
and at September 30, 1995 were 2.31% and 390.8%.
Page 13
<PAGE>
<TABLE>
TABLE 5 - SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in millions)
<CAPTION>
Quarters
1996 1995
3 2 1 4 3
<S> <C> <C> <C> <C> <C>
Reserve for Loan Losses
Balances - beginning of quarter $ 722.6 $ 712.4 $ 698.9 $ 692.8 $ 676.9
Reserve of purchased banks 1.2 3.9 0.7
Provision for loan losses 30.0 26.2 25.0 31.3 29.1
Charge-offs:
Domestic:
Commercial (12.2) (5.2) (4.4) (13.1) (4.0)
Real estate:
Construction (0.2) (0.1) (0.1) (0.1)
Mortgage, 1-4 family (2.3) (1.1) (1.4) (1.8) (2.3)
Other (2.8) (1.5) (0.9) (6.3) (3.9)
Lease financing (0.2) (0.4) (0.3) (0.3) (0.2)
Credit card (10.6) (9.5) (9.0) (7.5) (6.8)
Other consumer loans (12.6) (10.9) (10.5) (11.8) (10.0)
International
Total charge-offs (40.9) (28.6) (26.6) (40.9) (27.3)
Recoveries:
Domestic:
Commercial 4.6 3.1 4.2 3.8 3.2
Real estate:
Construction 0.1 0.1 0.1 0.3 1.9
Mortgage, 1-4 family 0.3 0.5 0.3 0.4 0.2
Other 1.2 2.1 2.7 1.0 1.4
Lease financing 0.1 0.2 0.1 0.1 0.2
Credit card 1.7 1.7 1.8 1.7 2.0
Other consumer loans 5.0 4.9 4.7 4.5 4.3
International 0.2
Total recoveries 13.0 12.6 13.9 11.8 13.4
Net charge-offs (27.9) (16.0) (12.7) (29.1) (13.9)
Balance - end of quarter $ 724.7 $ 722.6 $ 712.4 $ 698.9 $ 692.8
Quarter-end loans outstanding:
Domestic $33,567.4 $32,124.4 $31,517.2 $30,966.0 $29,702.6
International 256.9 276.8 268.9 335.4 298.2
Total $33,824.3 $32,401.2 $31,786.1 $31,301.4 $30,000.8
Ratio of reserve to quarter-end loans 2.14 % 2.23 % 2.24 % 2.23 % 2.31 %
Average loans $33,029.6 $32,265.2 $31,437.9 $30,688.7 $29,771.1
Ratio of net charge-offs (annualized)
to average loans 0.34 % 0.20 % 0.16 % 0.38 % 0.18 %
</TABLE>
Page 14
<PAGE>
<TABLE>
TABLE 6 - NONPERFORMING ASSETS
(Dollars in millions)
<CAPTION>
1996 1995
September 30 June 30 March 31 December 31 September 30
<S> <C> <C> <C> <C> <C>
Nonperforming Assets
Nonaccrual loans:
Domestic:
Commercial $ 29.1 $ 34.6 $ 36.0 $ 28.3 $ 27.6
Real Estate:
Construction 14.9 3.7 4.7 4.9 6.9
Mortgage, 1-4 family 49.7 49.5 50.6 45.7 44.2
Other 80.1 93.2 86.9 99.3 84.0
Lease financing 0.2 0.1 0.2 0.1
Consumer loans 10.9 10.9 9.3 11.0 11.6
Total nonaccrual loans 184.9 192.0 187.7 189.3 174.3
Restructured loans 2.7 2.8 2.9 2.9 3.0
Total nonperforming loans 187.6 194.8 190.6 192.2 177.3
Other real estate owned 51.9 53.5 58.8 58.8 66.2
Total Nonperforming Assets $ 239.5 $ 248.3 $ 249.4 $ 251.0 $ 243.5
Ratios:
Nonperforming loans to total loans 0.55 % 0.60 % 0.60 % 0.61 % 0.59 %
Nonperforming assets to total loans
plus other real estate owned 0.71 0.77 0.78 0.80 0.81
Reserve to nonperforming loans 386.23 371.01 373.78 363.60 390.78
Accruing Loans Past Due 90 Days or More 28.0 29.9 26.0 24.3 26.0
</TABLE>
Nonperforming Assets. Nonperforming assets consist of nonaccrual and
restructured loans and other real estate owned. Nonperforming assets have
decreased $11.5 million since December 31, 1995 and $4.0 million since
September 30, 1995. Since December 31, 1995, nonperforming assets decreased
$9.0 million in Florida banks, $9.7 million in Georgia banks, $0.1 million at
Suntrust Mortgage, and increased $7.3 million in Tennessee banks. Included in
nonperforming loans at September 30, 1996 are loans aggregating $29.9 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 nine months of 1996, the gross amount of interest
income that would have been recorded on nonaccrual loans and restructured
loans at September 30, 1996, if all such loans had been accruing interest at
the original contractual rate, was $13.4 million. Interest income recognized
in the nine months ended September 30, 1996 on all such nonperforming loans
at September 30, 1996, was $6.1 million.
Page 15
<PAGE>
<TABLE>
Table 7 - Loan Portfolio by Types of Loans (in millions)
<CAPTION>
1996 1995
September 30 June 30 March 31 December 31 September 30
<S> <C> <C> <C> <C> <C>
Commercial:
Domestic $10,985.2 $10,405.4 $10,449.4 $10,222.5 $ 9,374.4
International 247.7 269.4 270.5 337.5 299.6
Real estate:
Construction 1,330.2 1,246.4 1,239.3 1,216.6 1,176.6
Mortgage, 1-4 family 11,018.1 10,524.1 10,087.9 9,732.8 9,431.4
Other 4,547.6 4,540.3 4,526.9 4,477.7 4,567.4
Lease financing 598.3 569.4 565.2 561.2 507.6
Credit card 857.2 770.6 732.0 774.0 713.9
Other consumer loans 4,240.0 4,075.6 3,914.9 3,979.1 3,929.9
Loans $33,824.3 $32,401.2 $31,786.1 $31,301.4 $30,000.8
</TABLE>
Loans. During the third quarter and first nine months of 1996, average loans
increased 10.9% and 9.8% over the same periods a year ago, however, loan
growth slowed during the third 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 95.3% and 94.7% in
the third quarter and first nine months of 1996 compared with 94.5% and 92.5%
in the same periods of 1995.
At September 30, 1996, international outstandings, which include loans,
acceptances, deposits in other banks, foreign guarantees and accrued
interest, totaled $301.2 million, a decrease of 24.1% from $396.8 million at
December 31, 1995.
Income Taxes. The provision for income taxes was $76.4 and $209.6 million in
the third quarter and first nine months of 1996 compared to $64.6 and $205.6
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 6.35%
in the third quarter of 1995 to 6.62% in the third quarter of this year. The
portfolio size has increased by $511 million since the beginning of the year
to $8.16 billion at the end of the quarter. The average life of the
portfolio was approximately 2.6 years and its duration, the average time to
the receipt of the present value of the portfolio's expected cash flow, was
2.1 years at September 30, 1996. At September 30, 1996, approximately 32.7%
of the portfolio consisted of U.S. Treasury securities, 11.2% U.S. government
agency securities, 46.7% mortgage-backed securities, 9.0% municipal
securities, and 0.4% 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 September 30, 1996, the carrying
value of the securities portfolio was $2.4 billion over its amortized cost,
including a $2.5 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 third quarter and first nine months of
1996 increased 10.0% and 7.15% over the same periods a year ago. Interest-
bearing deposits represented 79.5% and 79.1% of average deposits for the
third quarter and first nine months of 1996, compared to 78.5% and 78.4% for
the same periods in 1995. In the third quarter of 1996, average net
purchased funds (average funds purchased less average funds sold) increased
$0.4 billion over the same period in 1995. Net purchased funds were 9.8% and
9.4% of average earning assets for the third quarter and first nine months of
1996 as compared to 9.8% and 9.1% 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 September 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 September 30, 1996 Value Value In Months Paid Received
<S> <C> <C> <C> <C> <C>
Gain position:
Receive fixed $ 458.0 $ 4.9 118.1 5.62 % 7.18 %
Pay fixed 176.2 6.7 84.8 6.28 5.41
Total gain position 634.2 11.6
Loss position:
Receive fixed 1,478.9 (15.1) 20.5 0.30 5.47
Pay fixed 106.8 (2.1) 21.6 6.60 5.68
Total loss position 1,585.7 (17.2)
Total $2,219.9 $ (5.6)
</TABLE>
The majority of the swaps are designated as hedges on deposits and other
interest-bearing liabilities. During the nine months ended September 30,
1996, hedge swaps decreased net interest income by $1.2, compared with a $8.9
benefit in the corresponding 1995 period.
Page 17
<PAGE>
<TABLE>
TABLE 9 - CAPITAL RATIOS
(Dollars in millions)
<CAPTION>
1996 1995
September 30 June 30 March 31 December 31 September 30
<S> <C> <C> <C> <C> <C>
Tier 1 capital:
Realized shareholders' equity $ 3,271.5 $ 3,193.7 $ 3,165.6 $ 3,111.0 $ 3,035.2
Intangible assets other than servicing rights (249.0) (251.3) (255.7) (252.3) (239.5)
Total Tier 1 capital 3,022.5 2,942.4 2,909.9 2,858.7 2,795.7
Tier 2 capital:
Allowable reserve for loan losses 487.8 470.8 461.8 462.2 437.6
Allowable long-term debt 877.9 557.2 554.2 246.8 247.6
Total Tier 2 capital 1,365.7 1,028.0 1,016.0 709.0 685.2
Total capital $ 4,388.2 $ 3,970.4 $ 3,925.9 $ 3,567.7 $ 3,480.9
Risk-weighted assets $38,788.8 $37,413.6 $36,694.7 $36,742.0 $34,756.2
Risk-based ratios:
Tier 1 capital 7.78 % 7.86 % 7.92 % 7.78 % 8.04 %
Total capital 11.30 10.60 10.69 9.71 10.01
Tier 1 leverage ratio 6.63 6.58 6.69 6.70 6.78
Total shareholders' equity to assets 9.63 9.64 9.48 9.19 9.38
</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 September 30, 1996, the Company's Tier 1 capital,
total risk-based capital and Tier 1 leverage ratios were 7.78%, 11.30% and
6.63%, respectively.
In 1995, the Board of Directors authorized the Company to repurchase up
to 20,000,000 shares of SunTrust common stock. At September 30, 1996, the
Company has a remaining 11,555,918 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 September 30, 1996, the servicing
portfolio was $13.6 billion, which includes $8.4 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) $ 705.5 $ 694.0 $ 446.2 $ 427.3 $ 205.1 $ 207.9
Provision for loan losses 32.0 49.2 18.5 22.2 6.7 9.1
Trust income 106.5 104.1 75.9 66.7 26.6 24.4
Other noninterest income 199.4 171.2 129.2 110.3 57.3 48.7
Personnel expense 241.3 221.3 151.2 135.6 76.7 71.2
Other noninterest expense 334.0 344.4 188.4 190.7 85.4 93.8
Net income 247.5 220.3 189.0 165.2 73.8 65.1
Selected Average Balances<F2>
Total assets 22,845 21,131 17,189 14,714 6,809 6,521
Earning assets 21,370 19,847 13,721 12,332 6,528 6,217
Loans 16,159 15,246 10,968 9,573 4,899 4,518
Total deposits 18,280 16,978 10,317 9,729 5,495 5,120
Realized shareholders' equity 1,971 1,851 1,344 1,193 563 542
At September 30
Total assets 23,307 21,500 19,252 15,181 7,133 6,590
Earning assets 21,688 20,162 15,143 12,410 6,793 6,254
Loans 16,737 15,525 11,731 9,739 5,185 4,663
Reserve for loan losses 380 372 197 200 116 120
Total deposits 18,104 17,079 11,420 9,108 5,578 5,143
Realized shareholders' equity 2,037 1,943 1,405 1,241 585 554
Total shareholders' equity 2,024 1,937 2,918 2,267 582 556
Credit Quality
Net loan charge-offs<F1> 14.2 22.3 13.1 10.1 5.2 4.6
Nonperforming loans<F2> 117.5 113.5 48.7 51.6 21.2 11.9
Other real estate owned<F2> 31.2 36.3 5.6 10.3 15.1 19.6
Ratios
ROA<F3> 1.45 % 1.39 % 1.67 % 1.65 % 1.45 % 1.33 %
ROE<F3> 16.77 15.91 18.78 18.51 17.51 16.07
Net interest margin<F3> 4.41 4.68 4.34 4.63 4.20 4.47
Efficiency ratio<F3> 56.88 58.36 52.13 54.00 56.14 58.71
Total shareholders' equity/assets<F2> 8.68 9.01 15.16 14.93 8.17 8.43
Net loan charge-offs to average loans<F3> 0.12 0.20 0.16 0.14 0.15 0.14
Nonperforming loans to total loans<F2> 0.72 0.73 0.42 0.53 0.42 0.26
Nonperforming assets to total loans plus
other real estate owned<F2> 0.91 0.96 0.47 0.63 0.71 0.67
Reserve to loans<F2> 2.33 2.40 1.71 2.05 2.29 2.57
Reserve to nonperforming loans<F2> 323.6 327.7 405.2 387.8 548.5 1,007.0
<FN>
<F1>For the nine month period ended September 30.
<F2>At September 30.
<F3>Annualized for the first nine 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 third 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 14th day of November, 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 Nine Months
Ended September 30 Ended September 30
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Primary
Net income $155,588 $143,700 $458,104 $420,612
Average common shares outstanding 223,178 226,724 224,528 227,542
Average common share equivalents outstanding (1) :
Stock options 1,352 1,484 1,361 1,480
Restricted stock (1,847) (1,693) (1,850) (1,697)
Average primary common shares 222,683 226,515 224,039 227,325
Earnings per common share - Primary $ 0.70 $ 0.63 $ 2.04 $ 1.83
Fully Diluted
Net income $155,588 $143,700 $458,104 $420,612
Average common shares outstanding 223,178 226,724 224,528 227,542
Average common share equivalents outstanding (1) :
Stock options 1,372 1,506 1,380 1,505
Restricted stock (1,847) (1,692) (1,847) (1,694)
Average fully diluted common shares 222,703 226,538 224,061 227,353
Earnings per common share - Fully Diluted $ 0.70 $ 0.63 $ 2.04 $ 1.83
<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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,460,275
<INT-BEARING-DEPOSITS> 12,700
<FED-FUNDS-SOLD> 768,427
<TRADING-ASSETS> 164,363
<INVESTMENTS-HELD-FOR-SALE> 10,759,252
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 33,824,308
<ALLOWANCE> 724,677
<TOTAL-ASSETS> 49,632,692
<DEPOSITS> 34,974,160
<SHORT-TERM> 6,224,737
<LIABILITIES-OTHER> 2,091,176
<LONG-TERM> 1,563,906
<COMMON> 225,608
0
0
<OTHER-SE> 4,553,105
<TOTAL-LIABILITIES-AND-EQUITY> 49,632,692
<INTEREST-LOAN> 1,980,203
<INTEREST-INVEST> 390,940
<INTEREST-OTHER> 28,253
<INTEREST-TOTAL> 2,399,396
<INTEREST-DEPOSIT> 811,616
<INTEREST-EXPENSE> 1,077,551
<INTEREST-INCOME-NET> 1,321,845
<LOAN-LOSSES> 81,155
<SECURITIES-GAINS> 14,593
<EXPENSE-OTHER> 1,184,037
<INCOME-PRETAX> 667,701
<INCOME-PRE-EXTRAORDINARY> 458,104
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 458,104
<EPS-PRIMARY> 2.04
<EPS-DILUTED> 2.04
<YIELD-ACTUAL> 4.39
<LOANS-NON> 184,856
<LOANS-PAST> 28,040
<LOANS-TROUBLED> 2,772
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 698,864
<CHARGE-OFFS> 96,126
<RECOVERIES> 39,541
<ALLOWANCE-CLOSE> 724,677
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 724,677
</TABLE>
