Filed by SunTrust Banks, Inc.
pursuant to Rule 425
under the Securities Act of
1933, as amended and deemed
filed under Rule 14a-12
under the Securities Exchange Act
of 1934, as amended
Subject Company: National
Commerce Financial Corporation
Exchange Act File Number of
Subject Company: 001-16607
ON JULY 12, 2004, SUNTRUST BANKS, INC. ISSUED THE FOLLOWING PRESS RELEASE
RELATED TO ITS RESULTS OF OPERATIONS FOR ITS SECOND FISCAL QUARTER OF 2004:
[SunTrust Banks, Inc. logo]
SUNTRUST REPORTS RECORD SECOND QUARTER EARNINGS
Strong Results Reflect Healthy Revenue Growth, Good Balance of Earnings
Components
ATLANTA - SunTrust Banks, Inc. (NYSE: STI) today reported net income for the
second quarter of 2004 of $364.8 million, up 10% from the $330.4 million earned
in second quarter of 2003. Net income per diluted share was $1.29, up 10% from
the $1.17 per diluted share earned in the second quarter of 2003.
"SunTrust's capacity to translate the attractive demographics and
high-growth profile of our markets into strong, sustainable and well-balanced
earnings growth was amply demonstrated in the second quarter," noted L. Phillip
Humann, SunTrust Chairman, President and Chief Executive Officer. "Healthy
revenue growth, reflecting a good balance of net interest income and fee income,
coupled with excellent credit quality, produced strong bottom line results that
confirm the validity of our distinctive, customer-focused business strategy."
Mr. Humann noted that improved performance by each of SunTrust's key
business lines -- retail banking, commercial banking, corporate and investment
banking, mortgage banking and wealth management - contributed to the quarter's
results. Mr. Humann also said that integration planning is "well underway, on
track and on schedule" for scheduled closing in the fourth quarter of the
Company's previously announced merger with Memphis-based National Commerce
Financial Corporation.
For the second quarter of 2004, reported return on average total assets
(ROA) was 1.15%, and return on average total equity (ROE) was 14.39%. Return on
average assets less net unrealized gains on securities was 1.20% and return on
average realized equity was 17.77%. The Company believes ROA and ROE excluding
net unrealized gains from the Company's securities portfolio is the more
indicative performance measure in this area due to SunTrust's ownership of 48
million shares of The Coca-Cola Company.
For the first six months of 2004, net income was $723.3 million, up 10%
from the same period in 2003. Net income per diluted share was $2.55, up 9% from
the first six months of 2003. ROA was 1.16%, and ROE was 14.52%. Return on
average assets less net unrealized gains on securities was 1.19% and return on
average realized equity was 17.61%.
Fully taxable net interest income was $885.1 million in the second
quarter, up 9% from the second quarter of 2003. The net interest margin for the
quarter was 3.13%, comparable to the first quarter of 2004, up from 3.05% a year
ago and in line with SunTrust's expectations.
Average loans for the second quarter were $80.9 billion, up 9% from the
second quarter of 2003, and average earning assets were $113.7 billion, up 7%
from the second quarter of 2003. SunTrust noted that both consumer and overall
commercial loans displayed growth momentum in the second quarter despite a
continued lack of demand for bank loans by large corporate borrowers.
Average consumer and commercial deposits for the second quarter were
$73.2 billion, up 6% from the second quarter of 2003. Average low cost consumer
and commercial deposits for the second quarter were $40.4 billion, up 14% from
the second quarter of 2003.
Total noninterest income was $622.7 million for the quarter, up 4% from
the second quarter of 2003. Noninterest income, excluding net securities gains,
of $631.7 million in the quarter, was up 12% from the second quarter of 2003.
Net charge-offs in the second quarter were $37.6 million or 0.19% of
average loans, down from 0.30% of average loans in the first quarter of 2004.
SunTrust noted that the second quarter charge off level, while consistent with
the Company's generally improving credit quality picture, was nonetheless
"unusually low." The provision for loan losses was $38.8 million for the second
quarter. In addition, the Company added $9.4 million to reserves for unfunded
loan commitments during the quarter. This charge is reflected in "other
noninterest expense."
Nonperforming assets were $324.4 million at quarter end or 0.39% of
loans, other real estate owned and repossessed assets, down from $331.9 million
as of March 31, 2004. Nonperforming assets at June 30, 2004 included $301.1
million in nonperforming loans, $14.2 million in other real estate owned and
$9.1 million in other repossessed assets. The allowance for loan losses at June
30, 2004 was $943.7 million and represented 1.14% of period-end loans and 313.4%
of nonperforming loans. SunTrust's nonperforming asset levels continue to
compare very favorably with the most recently published industry averages.
Total noninterest expense in the second quarter was $928.4 million, up
11% from the second quarter of 2003. Excluding incremental incentive
compensation costs related to higher business volumes and the expense to reserve
for unfunded loan commitments in the second quarter of 2004, expenses for the
quarter were held to first quarter levels.
At June 30, 2004, SunTrust had total assets of $128.1 billion. Equity
capital of $10.0 billion represented 7.8% of total assets. Book value per share
was $35.49, up 9% from June 30, 2003.
To view the corresponding financial tables and information, please
refer to the Investor Relations section located under "About SunTrust" on our
Web site at www.suntrust.com. This information may also be directly accessed via
the quick link entitled "2nd Quarter Earnings Release" located at the lower
right hand corner of the SunTrust homepage.
SunTrust management will host a conference call on July 12, 2004 at
8:30 a.m. (Eastern Time) to review earnings and performance trends. Individuals
are encouraged to call in beginning at 8:15 a.m. (Eastern Time) by dialing
1-888-822-9863 (Passcode: 2Q04; Leader: Gary Peacock.). Individuals calling from
outside the United States should dial 1-484-630-1854 (Passcode: 2Q04; Leader:
Gary Peacock). A replay of the call will be available beginning July 12, 2004
and ending July 26, 2004 at 5:00 p.m. (Eastern Time) by dialing 1-800-282-5736
(domestic) or 1-402-220-9727 (international).
Alternatively, individuals may listen to the live webcast of the
presentation by visiting the SunTrust Web site at www.suntrust.com. The webcast
will be hosted under "Investor Relations" located under "About SunTrust" or may
be accessed directly from the SunTrust home page by clicking on the earnings
related link, "2nd Quarter Earnings Release". Beginning the afternoon of July
12, 2004, listeners may access an archived version of the presentation in the
"Webcasts and Presentations" subsection found under "Investor Relations". A link
to the Investor Relations page is also found in the footer of the SunTrust home
page.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's
largest commercial banking organizations. The Company operates through an
extensive distribution network primarily in Florida, Georgia, Maryland,
Tennessee, Virginia and the District of Columbia and also serves customers in
selected markets nationally. Its primary businesses include deposit, credit,
trust and investment services. Through various subsidiaries the company provides
credit cards, mortgage banking, insurance, brokerage and capital markets
services. SunTrust's Internet address is www.suntrust.com.
###
The information provided herein, including related questions and
answers, may contain forward looking statements. Statements that are not
historical facts, including statements about SunTrust's beliefs and
expectations, are forward-looking statements. These statements are based on
beliefs and assumptions by SunTrust's management, and on information currently
available to such management. The forward-looking statements are intended to be
subject to the safe harbor protection provided by Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements include statements preceded by, followed by or that
include the words "believes," "expects," "anticipates," "plans," "estimates," or
similar expressions or future conditional verbs such as "will," "should,"
"would," and "could." Forward-looking statements speak only as of the date they
are made, and SunTrust undertakes no obligation to update publicly any of them
in light of new information or future events. Forward-looking statements involve
inherent risks and uncertainties. Management cautions that a number of important
factors could cause actual results to differ materially from those contained in
any forward-looking statement. Examples of such factors include, but are not
limited to: changes in interest rates; changes in accounting principles,
policies or guidelines; changes in the securities markets; changes in regulatory
requirements; competitive pressures and changes in the economy. For a more
thorough discussion of factors that could impact actual results, see the "A
Warning About Forward-Looking Information" section of SunTrust's 2003 annual
report filed on Form 10-K with the SEC. For further information regarding
SunTrust, please read the SunTrust reports filed with the SEC and available at
www.sec.gov.
This press release could include some non-GAAP measures to describe our
Company's performance. The reconciliation of those measures to GAAP measures can
be found in the financial information contained at the end of this press
release.
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED % SIX MONTHS ENDED %
------------------- ----------------
2004 2003 CHANGE 2004 2003 CHANGE
---- ---- ------ ---- ---- ------
EARNINGS & DIVIDENDS
Period Ended June 30
(Dollars in millions except per share data)
Net income $ 364.8 $ 330.4 10.4% $ 723.3 $ 658.2 9.9%
Total revenue 1,507.7 1,407.2 7.1 2,966.7 2,787.9 6.4
Total revenue excluding securities gains and losses(1) 1,516.8 1,376.0 10.2 2,970.8 2,714.6 9.4
Earnings per share
Diluted $ 1.29 $ 1.17 10.3 $ 2.55 $ 2.34 9.0
Basic 1.31 1.19 10.1 2.59 2.37 9.3
Dividends paid per common share 0.50 0.45 11.1 1.00 0.90 11.1
Average shares outstanding (000s)
Diluted 283,116 280,287 1.0 283,320 280,806 0.9
Basic 279,840 277,397 0.9 279,682 278,011 0.6
KEY RATIOS
Return on average total assets 1.15% 1.11% 3.6% 1.16% 1.12% 3.6%
Return on average assets less net unrealized gains on
securities (2) 1.20 1.06 13.2 1.19 1.06 12.3
Return on average total equity 14.39 14.95 (3.7) 14.52 15.04 (3.5)
Return on average realized equity (2) 17.77 16.77 6.0 17.61 16.71 5.4
Total average shareholders' equity to total average assets 8.01 7.42 8.0 7.98 7.42 7.5
Net interest margin (3) 3.13 3.05 2.6 3.13 3.13 --
Efficiency ratio (3) 61.58 59.53 3.4 61.29 59.40 3.2
Period Ended June 30
Book value per share 35.49 32.62 8.8
Tier 1 capital ratio 8.204 7.44 10.2
Total capital ratio 12.004 11.38 5.4
Tier 1 leverage ratio 7.604 7.27 4.5
CONDENSED BALANCE SHEETS (DOLLARS IN MILLIONS)
Average Balances
Securities available for sale $ 26,035 $ 22,952 13.4% $ 25,721 $ 23,103 11.3%
Loans held for sale 6,141 8,255 (25.6) 5,729 8,151 (29.7)
Loans 80,936 74,311 8.9 80,421 73,684 9.1
Other earning assets 3,349 3,381 (0.9) 3,169 3,296 (3.9)
Allowance for loan losses (954) (952) 0.2 (954) (947) 0.7
Intangible assets 1,760 1,586 11.0 1,730 1,570 10.2
Other assets 10,020 9,915 1.1 9,755 10,008 (2.5)
--------- -------- -------- --------
Total assets $ 127,287 $119,448 6.6 $125,571 $118,865 5.6
--------- -------- -------- --------
Consumer and commercial deposits $ 73,166 $ 69,097 5.9 $ 71,764 $ 68,286 5.1
Purchased liabilities(5) 21,322 23,005 (7.3) 22,118 23,386 (5.4)
Long-term debt 16,784 11,860 41.5 16,099 11,822 36.2
Other liabilities 5,821 6,622 (12.1) 5,573 6,545 (14.9)
--------- -------- -------- --------
Total liabilities 117,093 110,584 5.9 115,554 110,039 5.0
Shareholder's equity 10,194 8,864 15.0 10,017 8,826 13.5
--------- -------- -------- --------
Total liabilities and shareholders' equity $ 127,287 $119,448 6.6 $125,571 $118,865 5.6
--------- -------- -------- --------
Period Ended June 30
Securities available for sale $ 25,588 $ 22,211 15.2
Loans held for sale 5,031 9,037 (44.3)
Loans 82,540 75,262 9.7
Other earning assets 3,504 4,283 (18.2)
Allowance for loan losses (944) (941) 0.3
Intangible assets 1,886 1,676 12.5
Other assets 10,530 9,329 12.9
--------- --------
Total assets $ 128,135 $120,857 6.0
--------- --------
Consumer and commercial deposits $ 73,855 $ 71,133 3.8
Purchased liabilities(5) 21,212 22,228 (4.6)
Long-term debt 17,441 11,990 45.5
Other liabilities 5,592 6,328 (11.6)
--------- --------
Total liabilities 118,100 111,679 5.7
Shareholder's equity 10,035 9,179 9.3
--------- --------
Total liabilities and shareholders' equity $ 128,135 $120,858 6.0
--------- --------
(1) SunTrust presents total revenue excluding realized securities gains and
losses. The Company believes total revenue without securities gains and
losses is more indicative
of the Company's performance because it isolates income that is primarily
customer relationship and customer transaction driven. See Appendix A for a
reconcilement of this non-GAAP performance measure.
(2) SunTrust presents a return on average assets less net unrealized gains on
securities and a return on average realized equity. The foregoing numbers
reflect primarily adjustments to remove the effects of the Company's
securities portfolio which includes the ownership by the Company of 48.3
million shares of The Coca-Cola Company. The Company uses this information
internally to gauge its actual performance in the industry. The Company
believes that the return on average assets less the net unrealized gains on
the securities portfolio is more indicative of the Company's return on
assets because it more accurately reflects the return on the assets that
are related to the Company's core businesses which are primarily customer
relationship and customer transaction driven. The Company also believes
that the return on average realized equity is more indicative of the
Company's return on equity because the excluded equity relates primarily to
a long term holding of a specific security. See Appendix A for a
reconcilement of these non-GAAP performance measures.
(3) The net interest margin and efficiency ratios are presented on a full
taxable-equivalent (FTE) basis. The FTE basis adjusts for the tax-favored
status of income from certain loans and investments. The Company believes
this measure to be the preferred industry measurement of net interest
income and provides relevant comparison between taxable and non-taxable
amounts.
(4) Current period tier 1 capital, total capital and tier 1 leverage ratios are
estimated as of the press release date.
(5) Purchased liabilities include foreign and brokered deposits, funds
purchased and other short-term borrowings.
SUNTRUST BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED % SIX MONTHS ENDED %
------------------ ----------------
2004 2003 CHANGE 2004 2003 CHANGE
---- ---- ------ ---- ---- ------
CREDIT DATA (DOLLARS IN THOUSANDS)
Period Ended June 30
Allowance for loan losses - beginning $ 942,523 $931,080 1.2% $941,922 $930,114 1.3%
Allowance from acquisitions and other activity - net -- 9,324 (100.0) -- 9,324 (100.0)
Provision for loan losses 38,751 82,662 (53.1) 98,139 163,465 (40.0)
Net charge-offs
Consumer 21,990 24,702 (11.0) 48,080 60,476 (20.5)
Real estate 8,062 4,607 75.0 18,836 6,901 172.9
Commercial 7,504 52,868 (85.8) 29,427 94,637 (68.9)
--------- -------- -------- --------
Allowance for loan losses - ending $ 943,718 $940,889 0.3 $943,718 $940,889 0.3
--------- -------- -------- --------
Total net charge-offs $ 37,556 $ 82,177 (54.3)$ 96,343 $162,014 (40.5)
Net charge-offs to average loans 0.19% 0.44% (56.8) 0.24% 0.44% (45.5)
Period Ended June 30
Nonaccrual loans $ 282,909 $480,582 (41.1)
Restructured loans 18,189 2,500 627.6
--------- --------
Total nonperforming loans 301,098 483,082 (37.7)
Other real estate owned (OREO) 14,246 20,887 (31.8)
Other repossessed assets 9,076 11,421 (20.5)
--------- --------
Total nonperforming assets $ 324,420 $515,390 (37.1)
--------- --------
Total nonperforming loans to total loans 0.36% 0.64% (43.8)
Total nonperforming assets to total loans plus OREO and other repossessed assets 0.39 0.68 (42.6)
Allowance to period-end loans 1.14 1.25 (8.8)
Allowance to nonperforming loans 313.4 194.8 60.9
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
AS OF JUNE 30 INCREASE/(DECREASE)
------------- -------------------
2004 2003 AMOUNT %
---- ---- ------
ASSETS
Cash and due from banks $ 4,068,693 $ 4,098,009 $ (29,316) (0.7)%
Interest-bearing deposits in other banks 17,196 8,701 8,495 97.6
Trading assets 1,807,320 2,122,225 (314,905)(14.8)
Securities available for sale (1) 25,587,978 22,211,036 3,376,942 15.2
Funds sold and securities purchased under agreements to resell 1,679,403 2,151,606 (472,203)(21.9)
Loans held for sale 5,030,617 9,037,490 (4,006,873)(44.3)
Loans 82,540,230 75,261,756 7,278,474 9.7
Allowance for loan losses (943,718) (940,889) (2,829) 0.3
------------ ------------ -------------
Net loans 81,596,512 74,320,867 7,275,645 9.8
Goodwill 1,164,846 1,059,720 105,126 9.9
Other intangible assets 721,428 616,137 105,291 17.1
Other assets 6,461,055 5,231,508 1,229,547 23.5
------------ ------------ -------------
TOTAL ASSETS (2) $128,135,048 $120,857,299 $ 7,277,749 6.0
------------ ------------ -------------
LIABILITIES
Noninterest-bearing consumer and commercial deposits $ 20,610,429 $ 19,077,066 $ 1,533,363 8.0
Interest-bearing consumer and commercial deposits 53,244,549 52,055,755 1,188,794 2.3
------------ ------------ -------------
Total consumer and commercial deposits 73,854,978 71,132,821 2,722,157 3.8
Brokered deposits 4,050,525 3,207,876 842,649 26.3
Foreign deposits 7,623,200 2,934,963 4,688,237 159.7
------------ ------------ -------------
Total deposits 85,528,703 77,275,660 8,253,043 10.7
Funds purchased and securities sold under agreements to repurchase 8,099,685 15,089,770 (6,990,085)(46.3)
Other short-term borrowings 1,438,908 995,147 443,761 44.6
Long-term debt 17,441,487 11,989,592 5,451,895 45.5
Trading liabilities 1,072,125 1,179,121 (106,996) (9.1)
Other liabilities 4,519,473 5,149,306 (629,833)(12.2)
------------ ------------ -------------
TOTAL LIABILITIES 118,100,381 111,678,596 6,421,785 5.8
------------ ------------ -------------
SHAREHOLDERS' EQUITY
Preferred stock, no par value -- -- -- --
Common stock, $1.00 par value 294,163 294,163 -- --
Additional paid in capital 1,297,555 1,288,657 8,898 0.7
Retained earnings 7,590,411 6,727,923 862,488 12.8
Treasury stock and other (625,137) (696,517) 71,380 (10.2)
Accumulated other comprehensive income 1,477,675 1,564,477 (86,802) (5.5)
------------ ------------ -------------
TOTAL SHAREHOLDERS' EQUITY 10,034,667 9,178,703 855,964 9.3
------------ ------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $128,135,048 $120,857,299 $ 7,277,749 6.0
------------ ------------ -------------
Common shares outstanding 282,726,614 281,392,725 1,333,889 0.5
Common shares authorized 750,000,000 750,000,000 -- --
Treasury shares of common stock 11,436,143 12,770,032 (1,333,889)(10.4)
(1) Includes net unrealized gains of: $ 2,258,984 $ 2,474,229 $ (215,245) (8.7)
(2) Includes earning assets of: 114,403,760 108,318,585 6,085,175 5.6
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------------------------- --------------------------------------
JUNE 30 INCREASE/(DECREASE) JUNE 30 INCREASE/(DECREASE)
-------------------- --------------------- ------------------- -------------------
2004 2003 AMOUNT % 2004 2003 AMOUNT %
---- ---- ------ - ---- ---- ------ -
Interest income $1,188,074 $1,174,040 $ 14,034 1.2% $2,361,938 $2,392,161 $ (30,223) (1.3)%
Interest expense 315,645 374,527 (58,882) (15.7) 637,861 770,178 (132,317) (17.2)
---------- -------------------- ---------- ---------------------
NET INTEREST INCOME 872,429 799,513 72,916 9.1 1,724,077 1,621,983 102,094 6.3
Provision for loan losses 38,751 82,662 (43,911) (53.1) 98,139 163,465 (65,326) (40.0)
---------- -------------------- ---------- ---------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 833,678 716,851 116,827 16.3 1,625,938 1,458,518 167,420 11.5
---------- -------------------- ---------- ---------------------
NONINTEREST INCOME
Service charges on deposit
accounts 168,704 157,954 10,750 6.8 331,922 315,775 16,147 5.1
Trust and investment
management income 140,366 124,215 16,151 13.0 276,584 245,010 31,574 12.9
Retail investment services 49,839 41,991 7,848 18.7 95,577 79,459 16,118 20.3
Other charges and fees 94,766 82,574 12,192 14.8 187,513 160,845 26,668 16.6
Investment banking income 54,330 57,167 (2,837) (5.0) 99,143 90,979 8,164 9.0
Trading account profits and
commissions 31,034 29,583 1,451 4.9 60,424 60,376 48 0.1
Credit card and other fees 37,721 32,376 5,345 16.5 69,415 61,049 8,366 13.7
Other noninterest income 54,953 39,694 15,259 38.4 101,294 57,681 43,613 75.6
Securities (losses)/gains (9,048) 31,238 (40,286) (129.0) (4,121) 73,277 (77,398) (105.6)
---------- -------------------- ---------- ---------------------
Total noninterest income 622,665 596,792 25,873 4.3 1,217,751 1,144,451 73,300 6.4
---------- -------------------- ---------- ---------------------
NONINTEREST EXPENSE
Personnel expense 520,922 482,599 38,323 7.9 1,027,718 956,324 71,394 7.5
Net occupancy expense 61,629 58,563 3,066 5.2 123,488 116,285 7,203 6.2
Outside processing and
software 70,619 61,022 9,597 15.7 136,245 118,076 18,169 15.4
Equipment expense 45,740 44,546 1,194 2.7 90,825 88,016 2,809 3.2
Marketing and customer
development 31,655 25,583 6,072 23.7 61,874 50,462 11,412 22.6
Amortization of intangible
assets 14,590 15,208 (618) (4.1) 30,230 31,925 (1,695) (5.3)
Other noninterest expense 183,294 150,207 33,087 22.0 347,817 294,869 52,948 18.0
---------- -------------------- ---------- ---------------------
Total noninterest expense 928,449 837,728 90,721 10.8 1,818,197 1,655,957 162,240 9.8
---------- -------------------- ---------- ---------------------
INCOME BEFORE INCOME TAXES 527,894 475,915 51,979 10.9 1,025,492 947,012 78,480 8.3
Provision for income taxes 163,057 145,556 17,501 12.0 302,178 288,805 13,373 4.6
---------- -------------------- ---------- ---------------------
NET INCOME $ 364,837 $ 330,359$ 34,478 10.4 $ 723,314 $ 658,207$ 65,107 9.9
---------- -------------------- ---------- ---------------------
Net interest income
(taxable-equivalent) (1) $ 885,066 $ 810,415$ 74,651 9.2 $1,748,970 $1,643,428$ 105,542 6.4
Earnings per share
Diluted 1.29 1.17 0.12 10.3 2.55 2.34 0.21 9.0
Basic 1.31 1.19 0.12 10.1 2.59 2.37 0.22 9.3
Cash dividends paid per common
share 0.50 0.45 0.05 11.1 1.00 0.90 0.10 11.1
Average shares outstanding (000s)
Diluted 283,116 280,287 2,829 1.0 283,320 280,806 2,514 0.9
Basic 279,840 277,397 2,443 0.9 279,682 278,011 1,671 0.6
(1) Net interest income includes the effects of taxable-equivalent adjustments
using a federal tax rate of 35% and state income taxes where applicable to
increase tax-exempt interest income to a taxable-equivalent basis.
SUNTRUST BANKS, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
SIX MONTHS ENDED
--------------------
2ND QUARTER 1ST QUARTER 4TH QUARTER 3RD QUARTER 2ND QUARTER JUNE 30 JUNE 30
2004 2004 2003 2003 2003 2004 2003
----------- ----------- ----------- ----------- ----------- ---------- ----------
RESULTS OF OPERATIONS
(Dollars in thousands, except per share data)
Net interest income $ 872,429 $ 851,648 $ 865,520 $ 832,800 $ 799,513 $1,724,077 $1,621,983
Provision for loan losses 38,751 59,388 70,286 79,799 82,662 98,139 163,465
----------- ----------- ----------- ----------- ----------- ---------- ----------
Net credit income 833,678 792,260 795,234 753,001 716,851 1,625,938 1,458,518
Securities (losses)/gains (9,048) 4,927 19,501 31,098 31,238 (4,121) 73,277
Other noninterest income 631,713 590,159 564,571 543,380 565,554 1,221,872 1,071,174
----------- ----------- ----------- ----------- ----------- ---------- ----------
Net credit and noninterest income 1,456,343 1,387,346 1,379,306 1,327,479 1,313,643 2,843,689 2,602,969
Noninterest expense 928,449 889,748 884,794 859,865 837,728 1,818,197 1,655,957
----------- ----------- ----------- ----------- ----------- ---------- ----------
Income before income taxes 527,894 497,598 494,512 467,614 475,915 1,025,492 947,012
Provision for income taxes 163,057 139,121 152,005 136,031 145,556 302,178 288,805
----------- ----------- ----------- ----------- ----------- ---------- ----------
NET INCOME $ 364,837 $ 358,477 $ 342,507 $ 331,583 $ 330,359 $ 723,314 $ 658,207
----------- ----------- ----------- ----------- ----------- ---------- ----------
Net interest income (taxable-equivalent) $ 885,066 $ 863,904 $ 877,501 $ 844,388 $ 810,415 $1,748,970 $1,643,428
Total revenue 1,507,731 1,458,990 1,461,573 1,418,866 1,407,207 2,966,721 2,787,879
Total revenue excluding securities gains and
Losses (1) 1,516,779 1,454,063 1,442,072 1,387,768 1,375,969 2,970,842 2,714,602
Earnings per share
Diluted $ 1.29 $ 1.26 $ 1.21 $ 1.18 $ 1.17 $ 2.55 $ 2.34
Basic 1.31 1.28 1.23 1.19 1.19 2.59 2.37
Dividends paid per common share 0.50 0.50 0.45 0.45 0.45 1.00 0.90
Average shares outstanding (000s)
Diluted 283,116 283,523 282,537 281,567 280,287 283,320 280,806
Basic 279,840 279,523 278,852 278,296 277,397 279,682 278,011
-----------------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
-------------------------
(Dollars in millions)
Total assets $ 127,287 $ 123,854 $ 124,756 $ 126,702 $ 119,448 $ 125,571 $ 118,865
Earning assets 113,657 111,038 112,730 112,329 106,606 112,348 105,931
Unrealized gains on securities available for sale 2,804 2,580 2,364 2,402 2,293 2,692 2,302
Loans 80,936 79,905 79,370 77,733 74,311 80,421 73,684
Interest-bearing liabilities 90,680 89,792 91,213 90,464 86,414 90,236 86,623
Total deposits 83,320 80,362 81,082 81,373 79,804 81,841 78,831
Shareholders' equity 10,194 9,840 9,436 9,237 8,864 10,017 8,826
-----------------------------------------------------------------------------------------------------------------------------------
SELECTED RATIOS
Net interest margin (1) 3.13% 3.13% 3.09% 2.98% 3.05% 3.13% 3.13%
Return on average total assets 1.15 1.16 1.09 1.04 1.11 1.16 1.12
Return on average assets less net unrealized gains
on securities (3) 1.20 1.18 1.07 0.99 1.06 1.19 1.06
Return on average total equity 14.39 14.65 14.40 14.24 14.95 14.52 15.04
Return on average realized equity (3) 17.77 17.44 16.50 16.02 16.77 17.61 16.71
-----------------------------------------------------------------------------------------------------------------------------------
CREDIT DATA
-----------
(Dollars in thousands)
Allowance for loan losses - beginning $ 942,523 $ 941,922 $ 941,423 $ 940,889 $ 931,080 $ 941,922 $ 930,114
Allowance from acquisitions and other activity -
net -- -- -- -- 9,324 -- 9,324
Provision for loan losses 38,751 59,388 70,286 79,799 82,662 98,139 163,465
Net charge-offs 37,556 58,787 69,787 79,265 82,177 96,343 162,014
----------- ----------- ----------- ----------- ----------- ---------- ----------
Allowance for loan losses-ending $ 943,718 $ 942,523 $ 941,922 $ 941,423 $ 940,889 $ 943,718 $ 940,889
----------- ----------- ----------- ----------- ----------- ---------- ----------
Net charge-offs to average loans 0.19% 0.30% 0.35% 0.40% 0.44% 0.24% 0.44%
Period Ended
Nonaccrual loans $ 282,909 $ 283,918 $ 336,587 $ 423,320 $ 480,582
Restructured loans 18,189 18,661 14,782 9,241 2,500
----------- ----------- ----------- ----------- -----------
Total nonperforming loans 301,098 302,579 351,369 432,561 483,082
Other real estate owned (OREO) 14,246 18,380 16,458 19,607 20,887
Other repossessed assets 9,076 10,953 10,270 11,637 11,421
----------- ----------- ----------- ----------- -----------
Total nonperforming assets $ 324,420 $ 331,912 $ 378,097 $ 463,805 $ 515,390
----------- ----------- ----------- ----------- -----------
Total nonperforming loans to total loans 0.36% 0.38% 0.44% 0.55% 0.64%
Total nonperforming assets to total loans plus
OREO and other repossessed assets 0.39 0.42 0.47 0.59 0.68
Allowance to period-end loans 1.14 1.19 1.17 1.19 1.25
Allowance to nonperforming loans 313.4 311.5 268.1 217.6 194.8
(1) SunTrust presents total revenue excluding realized securities gains and
losses. The Company believes total revenue without securities gains and
losses is more indicative of the Company's performance because it isolates
income that is primarily customer relationship and customer transaction
driven. See Appendix A for a reconcilement of this non-GAAP performance
measure.
(2) The net interest margin is presented on a fully taxable-equivalent (FTE)
and annualized basis. The FTE basis adjusts for the tax-favored status of
income from certain loans and investments. The Company believes this
measure to be the preferred industry measurement of net interest income and
provides relevant comparison between taxable and non-taxable amounts.
(3) SunTrust presents a return on average assets less net unrealized gains on
securities and a return on average realized equity. The foregoing numbers
reflect primarily adjustments to remove the effects of the Company's
securities portfolio which includes the ownership by the Company of 48.3
million shares of The Coca-Cola Company. The Company uses this information
internally to gauge its actual performance in the industry. The Company
believes that the return on average assets less the net unrealized gains on
the securities portfolio is more indicative of the Company's return on
assets because it more accurately reflects the return on the assets that
are related to the Company's core businesses which are primarily customer
relationship and customer transaction driven. The Company also believes
that the return on average realized equity is more indicative of the
Company's return on equity because the excluded equity relates primarily to
a long term holding of a specific security. See Appendix A for a
reconcilement of these non-GAAP performance measures.
SUNTRUST BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED DAILY AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND RATES PAID
(DOLLARS IN MILLIONS; YIELDS ON TAXABLE-EQUIVALENT BASIS)
THREE MONTHS ENDED
-----------------------------------------------------
JUNE 30, 2004 JUNE 30, 2003
-------------------------- --------------------------
INTEREST INTEREST
AVERAGE INCOME/ YIELDS/ AVERAGE INCOME/ YIELDS/
BALANCES EXPENSE RATES BALANCES EXPENSE RATES
---------- -------- ------ ---------- ------- -------
ASSETS
Loans:
Real estate 1-4 family $ 18,870.1 $ 235.9 5.00% $15,064.2 $ 224.1 5.95%
Real estate construction 4,558.9 49.5 4.37 4,057.8 47.7 4.72
Real estate equity 7,619.1 78.1 4.12 5,874.6 66.1 4.51
Real estate commercial 9,426.0 106.2 4.53 9,192.9 115.7 5.05
Commercial 27,510.8 247.4 3.62 27,810.4 263.9 3.81
Business credit card 151.0 2.5 6.55 126.4 2.1 6.84
Consumer - direct 3,576.9 41.6 4.68 3,693.7 47.5 5.16
Consumer - indirect 8,938.3 126.6 5.70 7,993.1 139.0 6.98
Nonaccrual and restructured 285.3 5.8 8.14 498.4 3.0 2.39
---------- --------- ----- ---------- --------- -----
Total loans 80,936.4 893.6 4.44 74,311.5 909.1 4.91
Securities available for sale:
Taxable 22,781.2 213.7 3.75 20,276.8 152.1 3.00
Tax-exempt 449.7 6.5 5.81 381.4 6.2 6.53
---------- --------- ----- ---------- --------- -----
Total securities available for sale 23,230.9 220.2 3.79 20,658.2 158.3 3.07
Funds sold and securities purchased under agreement to resell 1,562.8 4.1 1.04 1,476.2 4.3 1.17
Loans held for sale 6,141.2 76.8 5.01 8,255.4 108.4 5.25
Interest-bearing deposits 17.9 -- 0.76 10.7 0.1 1.27
Trading assets 1,767.9 6.0 1.36 1,894.4 4.7 0.99
---------- --------- ----- ---------- --------- -----
Total earning assets 113,657.1 1,200.7 4.25 106,606.4 1,184.9 4.46
Allowance for loan losses (953.7) (952.0)
Cash and due from banks 3,732.5 3,300.5
Premises and equipment 1,617.4 1,582.1
Other assets 6,430.3 6,617.6
Unrealized gains on securities available for sale 2,803.9 2,293.4
---------- ----------
Total assets $127,287.5 $119,448.0
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $ 12,811.6 $ 13.4 0.42% $11,576.8 $ 13.6 0.47%
Money Market accounts 22,367.4 42.9 0.77 22,284.1 57.0 1.03
Savings 6,990.9 12.7 0.73 6,253.3 12.7 0.82
Consumer time 6,988.0 34.5 1.98 8,039.4 51.7 2.58
Other time 3,416.6 19.7 2.32 3,395.4 23.1 2.73
---------- --------- ------ ---------- -------- -----
Total interest-bearing consumer and commercial deposits 52,574.5 123.2 0.94 51,549.0 158.1 1.23
Brokered deposits 3,668.2 17.1 1.84 3,573.5 30.7 3.40
Foreign deposits 6,485.7 17.1 1.04 7,133.7 22.2 1.23
---------- --------- ----- ---------- --------- -----
Total interest-bearing deposits 62,728.4 157.4 1.01 62,256.2 211.0 1.36
Funds purchased and securities sold under agreements to repurchase 10,163.3 19.9 0.78 11,694.4 29.8 1.01
Other short-term borrowings 1,004.6 3.6 1.44 603.2 1.8 1.17
Long-term debt 16,784.1 134.7 3.23 11,860.1 131.9 4.46
---------- --------- ----- ---------- --------- -----
Total interest-bearing liabilities 90,680.4 315.6 1.40 86,413.9 374.5 1.74
Noninterest-bearing deposits 20,591.6 17,548.1
Other liabilities 5,821.3 6,621.9
Shareholders' equity 10,194.2 8,864.1
---------- ----------
Total liabilities and shareholders' equity $127,287.5 $119,448.0
---------- ------- ---------- -------
Interest rate spread 2.85% 2.72%
------------------------- --------------------------
NET INTEREST INCOME $ 885.1 $ 810.4
------------------------- -------------------------
NET INTEREST MARGIN 3.13% 3.05%
------------------------- --------------------------
SIX MONTHS ENDED
------------------------------------------------------
JUNE 30, 2004 JUNE 30, 2003
-------------------------- ---------------------------
INTEREST INTEREST
AVERAGE INCOME/ YIELDS/ AVERAGE INCOME/ YIELDS/
BALANCES EXPENSE RATES BALANCES EXPENSE RATES
---------- -------- ------- --------- -------- -------
ASSETS
Loans:
Real estate 1-4 family $ 18,314.0 $ 466.4 5.09% $14,844.6 $ 454.4 6.12%
Real estate construction 4,552.6 98.8 4.36 4,002.9 95.2 4.79
Real estate equity 7,365.5 152.0 4.15 5,647.5 127.7 4.56
Real estate commercial 9,360.5 213.1 4.58 9,149.3 233.5 5.15
Commercial 27,987.5 497.6 3.58 27,824.0 534.3 3.87
Business credit card 145.5 4.8 6.64 123.1 4.3 7.04
Consumer - direct 3,555.0 83.8 4.74 3,724.3 97.2 5.26
Consumer - indirect 8,832.9 256.9 5.85 7,852.8 278.2 7.14
Nonaccrual and restructured 307.2 11.8 7.71 515.6 5.6 2.20
---------- --------- ----- ---------- --------- -----
Total loans 80,420.7 1,785.2 4.46 73,684.1 1,830.4 5.01
Securities available for sale:
Taxable 22,621.9 426.6 3.77 20,414.8 333.4 3.27
Tax-exempt 407.1 12.2 5.99 385.7 12.6 6.55
---------- --------- ----- ---------- --------- -----
Total securities available for sale 23,029.0 438.8 3.81 20,800.5 346.0 3.33
Funds sold and securities purchased under agreement to resell 1,401.7 7.4 1.05 1,474.6 9.0 1.21
Loans held for sale 5,728.6 144.0 5.03 8,150.7 219.4 5.38
Interest-bearing deposits 16.6 0.1 0.80 11.2 0.1 1.21
Trading assets 1,751.1 11.3 1.30 1,810.4 8.7 0.97
---------- --------- ----- ---------- --------- -----
Total earning assets 112,347.7 2,386.8 4.27 105,931.5 2,413.6 4.59
Allowance for loan losses (953.7) (947.0)
Cash and due from banks 3,551.8 3,387.5
Premises and equipment 1,614.7 1,592.7
Other assets 6,318.0 6,598.3
Unrealized gains on securities available for sale 2,692.1 2,302.4
---------- ----------
Total assets $125,570.6 $118,865.4
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
NOW accounts $ 12,571.8 $ 25.1 0.40% $11,452.4 $ 28.4 0.50%
Money Market accounts 22,252.1 85.2 0.77 22,071.4 117.4 1.07
Savings 6,662.6 22.9 0.69 6,236.0 26.7 0.86
Consumer time 7,128.4 72.1 2.03 8,236.2 112.7 2.76
Other time 3,404.5 39.6 2.34 3,418.7 39.1 2.31
---------- --------- ----- ---------- --------- -----
Total interest-bearing consumer and commercial
deposits 52,019.4 244.9 0.95 51,414.7 324.3 1.27
Brokered deposits 3,785.6 39.6 2.07 3,743.1 64.7 3.44
Foreign deposits 6,291.7 33.5 1.05 6,801.4 42.2 1.23
---------- --------- ----- ---------- --------- -----
Total interest-bearing deposits 62,096.7 318.0 1.03 61,959.2 431.2 1.40
Funds purchased and securities sold under agreements to repurchase 10,169.4 39.7 0.77 12,166.9 62.3 1.02
Other short-term borrowings 1,871.5 14.6 1.57 674.8 3.9 1.16
Long-term debt 16,098.5 265.5 3.32 11,821.7 272.8 4.65
---------- --------- ----- ---------- --------- -----
Total interest-bearing liabilities 90,236.1 637.8 1.42 86,622.6 770.2 1.79
Noninterest-bearing deposits 19,744.2 16,871.7
Other liabilities 5,573.1 6,545.6
Shareholders' equity 10,017.2 8,825.5
---------- ----------
Total liabilities and shareholders' equity $125,570.6 $118,865.4
---------- ------- ---------- -------
Interest rate spread 2.85% 2.80%
-------------------------- --------------------------
NET INTEREST INCOME $1,749.0 $1,643.4
-------------------------- --------------------------
NET INTEREST MARGIN 3.13% 3.13%
-------------------------- --------------------------
SUNTRUST BANKS, INC. AND SUBSIDIARIES
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A TO THE PRESS RELEASE
QUARTER - TO - QUARTER COMPARISON YTD COMPARISON
---------------------------------------------------------------- -------------------------
JUNE 30
2ND QUARTER 1ST QUARTER 4TH QUARTER 3RD QUARTER 2ND QUARTER -------------------------
2004 2004 2003 2003 2003 2004 2003
------------ ------------ ------------ ------------ ------------ ------------ ------------
NON-GAAP MEASURES PRESENTED IN THE PRESS
RELEASE
-------
(Dollars in thousands)
Net income $ 364,837 $ 358,477 $ 342,507 $ 331,583 $ 330,359 $ 723,314 $ 658,207
Securities losses/(gains), net of tax 9,048 (4,927) (19,501) (31,098) (31,238) 4,121 (73,277)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net income excluding securities gains and
losses $ 373,885 $ 353,550 $ 323,006 $ 300,485 $ 299,121 $ 727,435 $ 584,930
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total average assets $127,287,458 $123,853,747 $124,756,099 $126,701,810 $119,448,042 $125,570,602 $118,865,352
Average net unrealized gains on
securities (2,803,917) (2,580,304) (2,363,948) (2,401,899) (2,293,359) (2,692,110) (2,302,444)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Average assets less net unrealized gains
on securities $124,483,541 $121,273,443 $122,392,151 $124,299,911 $117,154,683 $122,878,492 $116,562,908
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total average equity $ 10,194,201 $ 9,840,282 $ 9,435,794 $ 9,236,849 $ 8,864,063 $ 10,017,242 $ 8,825,530
Average other comprehensive income (1,804,833) (1,645,712) (1,503,355) (1,526,448) (1,450,356) (1,725,273) (1,456,871)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total average realized equity $ 8,389,368 $ 8,194,570 $ 7,932,439 $ 7,710,401 $ 7,413,707 $ 8,291,969 $ 7,368,659
------------ ------------ ------------ ------------ ------------ ------------ ------------
Return on average total assets 1.15% 1.16% 1.09% 1.04% 1.11% 1.16% 1.12%
Impact of excluding net unrealized
securities gains 0.05 0.02 (0.02) (0.05) (0.05) 0.03 (0.06)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Return on average total assets less net
unrealized gains on securities (1) 1.20% 1.18% 1.07% 0.99% 1.06% 1.19% 1.06%
------------ ------------ ------------ ------------ ------------ ------------ ------------
Return on average total shareholders'
equity 14.39% 14.65% 14.40% 14.24% 14.95% 14.52% 15.04%
Impact of excluding net unrealized
securities gains 3.38 2.79 2.10 1.78 1.82 3.09 1.67
------------ ------------ ------------ ------------ ------------ ------------ ------------
Return on average realized shareholders'
equity (2) 17.77% 17.44% 16.50% 16.02% 16.77% 17.61% 16.71%
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net interest income $ 872,429 $ 851,648 $ 865,520 $ 832,800 $ 799,513 $ 1,724,077 $ 1,621,983
FTE adjustment 12,637 12,256 11,981 11,588 10,902 24,893 21,445
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net interest income - FTE 885,066 863,904 877,501 844,388 810,415 1,748,970 1,643,428
Noninterest income 622,665 595,086 584,072 574,478 596,792 1,217,751 1,144,451
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total revenue 1,507,731 1,458,990 1,461,573 1,418,866 1,407,207 2,966,721 2,787,879
Securities losses/(gains) 9,048 (4,927) (19,501) (31,098) (31,238) 4,121 (73,277)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total revenue excluding securities gains
and losses $ 1,516,779 $ 1,454,063 $ 1,442,072 $ 1,387,768 $ 1,375,969 $ 2,970,842 $ 2,714,602
------------ ------------ ------------ ------------ ------------ ------------ ------------
QUARTER - TO - QUARTER COMPARISON
-----------------------------------
2ND QUARTER 1ST QUARTER CHANGE
2004 2004 %(4)
----------- ----------- -------
NON-GAAP DISCLOSURES FOR IMPACTS OF THREE PILLARS (3)
-----------------------------------------------------
(Dollars in millions)
Average loans - reported $ 80,936 $ 79,905 1.3
Impact of Three Pillars - (1,430)
----------- -----------
Average loans excluding Three Pillars $ 80,936 $ 78,475 3.1
----------- -----------
Average earning assets - reported $ 113,657 $ 111,038 2.4
Impact of Three Pillars - (1,715)
----------- -----------
Average earning assets excluding Three Pillars $ 113,657 $ 109,323 4.0
----------- -----------
Average commercial loans - reported $ 27,511 $ 28,464 (3.3)
Impact of Three Pillars - (1,430)
----------- -----------
Average commercial loans excluding Three Pillars $ 27,511 $ 27,034 1.8
----------- -----------
Average commercial loan yield - reported 3.62% 3.54% 2.3
Impact of Three Pillars - 0.06
----------- -----------
Average commercial loan yield excluding Three Pillars 3.62% 3.60% 0.6
----------- -----------
Net interest margin - reported 3.13% 3.13% --
Impact of Three Pillars - 0.04
----------- -----------
Net interest margin excluding Three Pillars 3.13% 3.17% (1.3)
----------- -----------
QUARTER - TO - QUARTER COMPARISON
---------------------------------------------------------
2ND QUARTER 1ST QUARTER CHANGE 2ND QUARTER 2ND QUARTER CHANGE
2004 2004 %(4) 2004 2003 %
--------- ----------- ------ ----------- --------- ------
REVENUE AND EXPENSE GROWTH RATES
--------------------------------
(Dollars in thousands)
Total revenue excluding securities gains and losses $ 1,516,779 $ 1,375,969 10.2
----------- -----------
Total noninterest expense $ 928,449 $ 837,728 10.8
Expense for unfunded loan commitments (9,424) --
----------- -----------
Adjusted noninterest expense $ 919,025 $ 837,728 9.7
----------- -----------
AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT
--------------------------------------------------------------
(Dollars in thousands)
Demand deposits $20,591,615 $18,896,711 9.0 $20,591,615 $17,548,140 17.3
NOW/money market 12,811,554 12,332,083 3.9 12,811,554 11,576,819 10.7
Savings 6,990,929 6,334,231 10.4 6,990,929 6,253,304 11.8
----------- ----------- ----------- -----------
Total average low cost consumer and commercial deposits $40,394,098 $37,563,025 7.5 $40,394,098 $35,378,263 14.2
----------- ----------- ----------- -----------
(1) Computed by dividing annualized net income, excluding tax effected
securities gains and losses, by average assets less net unrealized gains on
securities.
(2) Computed by dividing annualized net income, excluding tax effected
securities gains and losses, by average realized shareholder's equity.
(3) Under the provisions of FASB Interpretation No. 46, SunTrust consolidated
its commercial paper conduit, Three Pillars, effective July 1, 2003. As of
March 1, 2004, Three Pillars was restructured and deconsolidated.
Adjustments were made to reported figures for comparability purposes.
(4) Multiply by 4 to calculate sequential annualized growth or reductions
discussed in the earnings call.
Appendix A
Additional Information and Where to Find It:
STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING
THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN
IMPORTANT INFORMATION. Stockholders will be able to obtain a free copy of the
joint proxy statement/prospectus, as well as other filings containing
information about SunTrust and NCF, without charge, at the Securities and
Exchange Commission's internet site (http://www.sec.gov). Copies of the joint
proxy statement/prospectus and the filings with the Securities and Exchange
Commission that will be incorporated by reference in the joint proxy
statement/prospectus can also be obtained, without charge, by directing a
request to SunTrust Banks, Inc., 303 Peachtree St., N.E., Atlanta, Georgia
30308; Attention: Investor Relations; or National Commerce Financial
Corporation, One Commerce Square, Memphis, Tennessee, 38159; Attention: Investor
Relations.
The respective directors and executive officers of SunTrust and NCF and other
persons may be deemed to be participants in the solicitation of proxies in
respect of the proposed merger. INFORMATION REGARDING SUNTRUST'S DIRECTORS AND
EXECUTIVE OFFICERS IS AVAILABLE IN THE PROXY STATEMENT FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION BY SUNTRUST ON MARCH 2, 2004, AND INFORMATION REGARDING
NCF'S DIRECTORS AND EXECUTIVE OFFICERS IS AVAILABLE IN THE PROXY STATEMENT FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION BY NCF ON MARCH 17, 2004. Other
information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise, will be contained in the joint proxy statement/prospectus and other
relevant materials to be filed with the Securities and Exchange Commission when
they become available.