SunTrust Reports First Quarter 2005 Earnings

ATLANTA, April 18 /PRNewswire-FirstCall/ -- SunTrust Banks, Inc. today reported net income for the first quarter of 2005 of $492.3 million, up from $361.8 million in the first quarter of 2004. Net income per diluted share was $1.36, up 6% from the $1.28 per diluted share earned in the first quarter of 2004. Operating income per diluted share was $1.40, up 9% from the first quarter of 2004. Operating income does not include $16.0 million of after-tax merger charges incurred in the first quarter associated with SunTrust's acquisition of National Commerce Financial Corporation (NCF), which closed on October 1, 2004. Included in the net income and operating income per diluted share for the first quarter was a net gain on the sale of factoring assets from a division of SunTrust, Receivables Capital Management (RCM), to CIT Group, Inc. The net gain on a pre-tax basis was $19.9 million and on an after-tax basis was $12.3 million, and it accounted for a $.03 increase in net income and operating net income per diluted share in the first quarter of 2005.

"We are pleased to report that during the first quarter SunTrust continued to build on the positive trends established in 2004," said L. Phillip Humann, SunTrust Chairman and Chief Executive Officer. "Our first quarter results benefited from increasingly robust net interest income growth, excellent credit quality and a continuation of effective cost control." Mr. Humann said net interest income growth in the first quarter resulted from a continuation of strong overall loan growth. He also noted that credit quality trends are the best experienced in a number of years, and that noninterest expenses decreased from the prior quarter.

Mr. Humann also noted that the NCF merger integration is proceeding according to plan and reiterated the Company's expectation that all business, customer and financial merger goals will be met.

Discussion of Historical Results and Estimated Historical Combined Results

In order to assist investors in comparing the financial results of the now-combined SunTrust and National Commerce Financial Corporation, estimated historical combined information for first quarter 2004 is presented as if the merger had been completed at the beginning of the period presented. In management's view, the estimated historical combined financial results assist investors in better understanding the comparative performance and underlying growth dynamics of the combined Company. For further information regarding the estimated historical combined financial information, including reconciliations of certain financial information, please see Appendix B.

First Quarter 2005 Summary: Estimated Historical Combined Estimated 1st 1st 1st Historical Quarter Quarter Reported Quarter Combined 2005 2004 % Change 2004 % Change Income statement (Dollars in millions except per share data) Net income $492.3 $361.8 36 % $452.1 9 % Operating net income (1) 508.3 361.8 40 % 452.1 12 % Adjusted operating net income(2) 495.9 361.8 37 % 452.1 10 % Net income per diluted share $1.36 $1.28 6 % NR Operating net income per diluted share (3) 1.40 1.28 9 % NR Adjusted operating net income per diluted share (4) 1.37 1.28 7 % NR Revenue $1,883.0 $1,459.0 29 % $1,772.1 6 % Revenue excluding securities gains and losses and net gain on RCM $1,868.8 $1,454.1 29 % $1,756.3 6 % Efficiency ratio % 60.22 60.98 NR Adjusted operating efficiency ratio % (5) 59.48 60.98 NR Balance Sheet (Dollars in billions) Average loans $103.2 $79.9 29 % $93.1 11 % Average customer deposits 91.0 70.4 29 % 83.6 9 % Asset Quality Net charge-offs as a % of average loans 0.14 % 0.30 % NR Net charge-offs $36.8 $58.8 (37)% NR * Net income increased 9% from the first quarter of 2004 on an estimated historical combined basis. Adjusted operating net income, which excludes merger expenses and the net gain on sale of factoring assets, increased 10% from the first quarter of 2004 on an estimated historical combined basis. * Total revenue increased 6% from the first quarter of 2004 on an estimated historical combined basis, driven principally by strong loan and deposit growth. Noninterest income contributed $38.8 million or 35% of the growth. * Total average loans increased 11% from the first quarter of 2004 on an estimated historical combined basis, driven by strong home equity line and residential real estate loan growth of 31% and 25%, respectively. * Average commercial and commercial real estate and construction loan growth accelerated in the first quarter of 2005, growing at 15% and 12% sequential annualized rates, respectively. * Total average consumer and commercial deposits increased 9% from the first quarter of 2004 on an estimated historical combined basis, driven by strong NOW and DDA growth of 21% and 11%, respectively, reflecting the effectiveness of SunTrust's company-wide sales focus. * The efficiency ratio for the first quarter of 2005 was 60.22%, a 156 basis point improvement from the fourth quarter of 2004. The adjusted operating efficiency ratio, which excludes merger expenses and the net gain on sale of factoring assets, was 59.48%, a 77 basis point improvement from the operating efficiency ratio in the fourth quarter of 2004. * Credit quality was outstanding during the quarter; net charge-offs were 0.14% of average loans, down from 0.21% of average loans in the fourth quarter of 2004. (1) Excludes 1st quarter 2005 merger related expenses, net of taxes, which totaled $16.0 million. (2) Excludes 1st quarter 2005 merger related expenses, net of taxes, which totaled $16.0 million and the net gain on the sale of factoring assets (RCM), net of taxes, which totaled $12.3 million. (3) Excludes 1st quarter 2005 merger related expenses, net of taxes, per diluted share of $.04. (4) Excludes 1st quarter 2005 merger related expenses, net of taxes, per diluted share of $.04 and the net gain on the sale of factoring assets, net of taxes, per diluted share of $.03. (5) Excludes 1st quarter 2005 merger related expenses of $25.7 million and the net gain on the sale of factoring assets of $19.9 million. NR - Not reported. Financial Performance

For the quarter, reported return on average total assets (ROA) was 1.24%, and return on average total equity (ROE) was 12.39%. Excluding realized and unrealized securities gains and losses and dividends from The Coca-Cola Company, return on average total assets was 1.23% and return on average total realized equity was 13.23%. Operating ROA and ROE, which excludes merger charges, was 1.28% and 12.79%, respectively.

Revenue

Total revenue was $1,883.0 million for the first quarter of 2005, up $424.1 million from the first quarter of 2004. On an estimated historical combined basis, total revenue was up 6% from the first quarter of 2004. On an estimated historical combined basis, total revenue excluding securities gains and losses and the net gain on sale of factoring assets was up 6% from the first quarter of 2004. Revenue growth was driven by improvements in both net interest income and noninterest income.

Net Interest Income

Fully taxable net interest income was $1,129.2 million in the first quarter of 2005, up from $863.9 million in the first quarter of 2004. On an estimated historical combined basis, fully taxable net interest income was up 7% from the first quarter of 2004. Factors driving the net interest income growth have been the improving net interest margin, strong loan growth particularly in residential real estate and home equity lending, and growth in low cost deposits. The net interest margin for the first quarter of 2005 was 3.25%, up four basis points from the fourth quarter of 2004 due to the difference in the number of days in the first quarter as compared to the fourth quarter.

Noninterest Income

Total noninterest income was $753.8 million for the first quarter of 2005, up from $595.1 million for the first quarter of 2004. On an estimated historical combined basis, total noninterest income for the first quarter was up 5% from the first quarter of 2004. Noninterest income excluding securities gains and losses was $759.5 million for the first quarter of 2005, up from $590.2 million for the first quarter of 2004. On an estimated historical combined basis, noninterest income excluding securities gains and losses for the first quarter was up 9% from the first quarter of 2004.

Included in noninterest income in the first quarter of 2005 was the net gain on the sale of factoring assets, which totaled $19.9 million. Noninterest income excluding securities gains and losses and the net gain on the sale of factoring assets for the first quarter of 2005 was up 6% from the first quarter of 2004 on an estimated historical combined basis.

A significant driver of the increase in noninterest income has been growth in trust and investment management income, which was up 8% in the first quarter of 2005 from the first quarter of 2004 on an estimated historical combined basis.

Noninterest Expense

Total noninterest expense in the first quarter of 2005 was $1,133.9 million, up from $889.7 million for the first quarter of 2004 and down from $1,149.0 in the fourth quarter of 2004. On an estimated historical combined basis, total noninterest expense was up 8% in the first quarter of 2005 from the first quarter of 2004. On an estimated historical combined basis, noninterest expense before amortization of intangible assets and merger expenses in the first quarter of 2005 was $1,077.0 million, up 5% from $1,024.2 million in the first quarter of 2004 and down 1% from $1,088.8 million in the fourth quarter of 2004. Compared to the fourth quarter, cost control effectiveness was evident in several noninterest expense categories, with decreases in net occupancy and marketing and customer development. Cost savings from the merger integration amounted to $8 million in the first quarter of 2005. The Company's reported efficiency ratio was 60.22% for the first quarter of 2005, and its operating efficiency ratio was 58.85%. The adjusted operating efficiency ratio, which excludes merger expenses and the net gain on the sale of factoring assets, was 59.48%.

Balance Sheet

At March 31, 2005, SunTrust had total assets of $164.8 billion. Equity capital of $16.1 billion represented 10% of total assets. Book value per share was $44.59, up from $44.30 on December 31, 2004.

Loans

Average loans for the first quarter of 2005 were $103.2 billion, up from $79.9 billion for the first quarter of 2004. On an estimated historical combined basis, average loans were up 11% from the first quarter of 2004. Loan growth was strong across-the-board, with home equity and residential real estate segments continuing to be particularly robust. Commercial and commercial real estate and construction loan growth accelerated in the first quarter of 2005, growing at 15% and 12% on a sequential annualized basis, respectively. Commercial loan growth was experienced in all segments, including large corporate loans that had stabilized in the second half of 2004 and increased in the first quarter of 2005.

Deposits

Average consumer and commercial deposits for the first quarter of 2005 were $91.0 billion, up 29% from $70.4 billion for the first quarter of 2004. On an estimated historical combined basis, average consumer and commercial deposits for the first quarter were up 9% from the first quarter of 2004. The growth in deposits was driven by increases in low cost deposit segments, with NOW balances increasing 21% and DDA balances increasing 11% over the first quarter of 2004 on an estimated historical combined basis. Consumer and other time balances also experienced growth, increasing 12% over the first quarter of 2004 on an estimated historical combined basis. A significant portion of this growth can be attributed to the effective implementation of the Company's sales and customer retention initiatives.

Asset Quality

Due to the continued strength of the credit quality in SunTrust's loan and lease portfolio, there was a $26.3 million reduction in the allowance for loan and lease losses from December 31, 2004 to March 31, 2005. Net charge-offs were $36.8 million in the first quarter of 2005 and the provision for loan losses was $10.6 million. Net charge-offs in the first quarter of 2005 were 0.14% of average loans, down from 0.30% of average loans in the first quarter of 2004.

Nonperforming assets were $392.3 million at March 31, 2005 or 0.37% of loans, other real estate owned and other repossessed assets, as compared to $331.9 million or 0.42% of loans, other real estate owned and other repossessed assets at March 31, 2004. On an estimated historical combined basis, nonperforming assets were down 1% from March 31, 2004. Nonperforming assets at March 31, 2005 included $357.1 million in nonperforming loans, $27.6 million in other real estate owned and $7.7 million in other repossessed assets. The allowance for loan and lease losses at March 31, 2005 was $1,023.7 million and represented 0.98% of loans and 286.7% of nonperforming loans. SunTrust believes its net charge-off and nonperforming asset levels continue to compare very favorably with the most recently published industry averages.

Corresponding Financial Tables and Information

To view the corresponding financial tables and information, please refer to the Investor Relations section located under "About SunTrust" on our Web site at http://www.suntrust.com/. This information may also be directly accessed via the quick link entitled "1st Quarter Earnings Release" located at the lower right hand corner of the SunTrust homepage.

Conference Call

SunTrust management will host a conference call on April 18, 2005 at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals are encouraged to call in beginning at 7:45 a.m. (Eastern Time) by dialing 1-888-972-7805 (Passcode: 1Q05; Leader: Greg Ketron). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 1Q05; Leader: Greg Ketron). A replay of the call will be available beginning April 18, 2005 and ending May 2, 2005 at 5:00 p.m. (Eastern Time) by dialing 1-866-380-6722 (domestic) or 1-203-369-0343 (international).

Alternatively, individuals may listen to the live webcast of the presentation by visiting the SunTrust Web site at http://www.suntrust.com/. The webcast will be hosted under "Investor Relations" located under "About SunTrust" or may be accessed directly from the SunTrust home page by clicking on the earnings-related link, "1st Quarter Earnings Release". Beginning the afternoon of April 18, 2005, 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 an extensive distribution network primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and the District of Columbia, and also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the company provides credit cards, mortgage banking, insurance, brokerage and capital markets services. SunTrust's Internet address is http://www.suntrust.com/.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, SunTrust's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of SunTrust's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause SunTrust's results to differ materially from those described in the forward-looking statements can be found in the 2004 Annual Report on Form 10-K of SunTrust, in the Quarterly Reports on Form 10-Q and 10- Q/A of SunTrust and the Quarterly Reports on Form 10-Q of NCF, and in the Current Reports filed on Form 8-K of SunTrust and NCF filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission's internet site (http://www.sec.gov/). The forward-looking statements in this press release speak only as of the date of the filing, and SunTrust does not assume any obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements.

This press release contains certain non-GAAP measures to describe our Company's performance. The reconciliation of those measures to the most directly comparable GAAP measures can be found in the financial information contained in Appendix A of this press release.

SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE PRESS RELEASE NON-GAAP MEASURES PRESENTED IN THE PRESS RELEASE (Dollars in thousands) Quarter - to - Quarter Comparison 1st Quarter 4th Quarter 3rd Quarter 2005 2004 2004 Net income $492,294 $455,729 $368,766 Securities losses/(gains), net of tax 3,509 12,595 11,825 Net income excluding securities gains and losses 495,803 468,324 380,591 The Coca-Cola Company dividend, net of tax (12,028) (10,739) (10,740) Net income excluding securities gains and losses and The Coca-Cola Company dividend $483,775 $457,585 $369,851 Total average assets $161,218,222 $156,570,092 $127,127,968 Average net unrealized securities gains (2,032,787) (2,056,737) (2,054,978) Average assets less net unrealized securities gains $159,185,435 $154,513,355 $125,072,990 Total average equity $16,119,430 $15,818,968 $9,992,905 Average accumulated other comprehensive income (1,285,278) (1,304,553) (1,318,332) Total average realized equity $14,834,152 $14,514,415 $8,674,573 Return on average total assets 1.24 % 1.16 % 1.15 % Impact of excluding net realized and unrealized securities gains/losses and The Coca-Cola Company dividend (0.01) 0.02 0.03 Return on average total assets less net unrealized securities gains(1) 1.23 % 1.18 % 1.18 % Return on average total shareholders' equity 12.39 % 11.46 % 14.68 % Impact of excluding net unrealized securities gains 0.84 1.08 2.28 Return on average realized shareholders' equity(2) 13.23 % 12.54 % 16.96 % Net interest income $1,111,560 $1,084,204 $876,874 FTE adjustment 17,666 16,684 16,821 Net interest income - FTE 1,129,226 1,100,888 893,695 Noninterest income 753,814 759,003 627,692 Total revenue 1,883,040 1,859,891 1,521,387 Securities losses/(gains) 5,659 19,377 18,193 Gain on sale of RCM assets, net of related expenses (19,874) - - Total revenue excluding securities gains and losses and net gain on sale of RCM assets(3) $1,868,825 $1,879,268 $1,539,580 Quarter - to - Quarter Comparison 2nd Quarter 1st Quarter 2004 2004 Net income $386,571 $361,835 Securities losses/(gains), net of tax 5,881 (3,203) Net income excluding securities gains and losses 392,452 358,632 The Coca-Cola Company dividend, net of tax (10,739) (10,740) Net income excluding securities gains and losses and The Coca-Cola Company dividend $381,713 $347,892 Total average assets $127,287,458 $123,853,747 Average net unrealized securities gains (2,803,917) (2,580,304) Average assets less net unrealized securities gains $124,483,541 $121,273,443 Total average equity $10,194,201 $9,840,282 Average accumulated other comprehensive income (1,804,833) (1,645,712) Total average realized equity $8,389,368 $8,194,570 Return on average total assets 1.22 % 1.18 % Impact of excluding net realized and unrealized securities gains/losses and The Coca-Cola Company dividend 0.01 (0.03) Return on average total assets less net unrealized securities gains(1) 1.23 % 1.15 % Return on average total shareholders' equity 15.25 % 14.79 % Impact of excluding net unrealized securities gains 3.05 2.28 Return on average realized shareholders' equity(2) 18.30 % 17.07 % Net interest income $872,429 $851,648 FTE adjustment 12,637 12,256 Net interest income - FTE 885,066 863,904 Noninterest income 622,665 595,086 Total revenue 1,507,731 1,458,990 Securities losses/(gains) 9,048 (4,927) Gain on sale of RCM assets, net of related expenses - - Total revenue excluding securities gains and losses and net gain on sale of RCM assets(3) $1,516,779 $1,454,063 Quarter - to - Quarter Comparison 1st 4th Quarter Quarter Change 2005 2004 %(4) AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT (Dollars in thousands) Noninterest bearing deposits $23,723,080 $24,181,729 (1.9) NOW accounts 17,479,848 16,940,751 3.2 Savings 7,506,923 8,139,263 (7.8) Total average low cost consumer and commercial deposits $48,709,851 $49,261,743 (1.1) 1st Quarter 1st Quarter Change 2005 2004 % Noninterest bearing deposits $23,723,080 $18,896,711 25.5 NOW accounts 17,479,848 12,332,083 41.7 Savings 7,506,923 6,334,231 18.5 Total average low cost consumer and commercial deposits $48,709,851 $37,563,025 29.7 1st Quarter 1st Quarter Change 2005 2004 % NON-GAAP DISCLOSURES FOR IMPACTS OF THREE PILLARS(5) (Dollars in millions) Average loans - reported $103,216 $79,905 29.2 Impact of Three Pillars - (1,430) (100.0) Average loans excluding Three Pillars $103,216 $78,475 31.5 Average commercial loans - reported $33,424 $28,464 17.4 Impact of Three Pillars - (1,430) (100.0) Average commercial loans excluding Three Pillars $33,424 $27,034 23.6 Estimated Historical Combined(6) 1st Quarter 1st Quarter Change 2005 2004 % NON-GAAP DISCLOSURES FOR IMPACTS OF THREE PILLARS(5) (Dollars in millions) Average loans - reported $103,216 $93,145 10.8 Impact of Three Pillars - (1,430) (100.0) Average loans excluding Three Pillars $103,216 $91,715 12.5 Average commercial loans - reported $33,518 $32,598 2.8 Impact of Three Pillars - (1,430) (100.0) Average commercial loans excluding Three Pillars $33,518 $31,168 7.5 (1) SunTrust presents a return on average assets less net unrealized gains on securities. The foregoing numbers reflect primarily adjustments to remove the effects of the Company's securities portfolio which includes the ownership by the Company of 48.3 million shares of The Coca-Cola Company. The Company uses this information internally to gauge its actual performance in the industry. The Company believes that the return on average assets less the net unrealized securities gains is more indicative of the Company's return on assets because it more accurately reflects the return on the assets that are related to the Company's core businesses which are primarily customer relationship and customer transaction driven. The return on average assets less net unrealized gains on securities is computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average assets less net unrealized securities gains. (2) 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. The return on average realized shareholders' equity is computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average realized shareholders' equity. (3) SunTrust presents total revenue excluding realized securities gains and losses and the net gain on the sale of RCM assets. 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. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain is more indicative of normalized operations. (4) Multiply by 4 to calculate sequential annualized growth or reductions discussed in the earnings call. (5) 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. (6) SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation. SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE PRESS RELEASE, continued 1st Quarter 4th Quarter 2005 2004 SELECTED NON-GAAP OPERATING MEASURES AND ADJUSTED OPERATING MEASURES PRESENTED IN THE PRESS RELEASE(1) (Dollars in thousands) Net income $492,294 $455,729 Merger expense, net of tax 15,958 18,461 Operating net income 508,252 $474,190 Net gain on sale of RCM assets, net of tax (12,322) - Adjusted operating net income $495,930 $474,190 Diluted earnings per share $1.36 $1.26 Impact of excluding merger expense 0.04 0.05 Operating diluted earnings per share 1.40 1.31 Impact of net gain on sale of RCM assets (0.03) - Adjusted operating diluted earnings per share $1.37 $1.31 Total revenue $1,883,040 Securities losses 5,659 Net gain on sale of RCM assets (19,874) Adjusted total revenue $1,868,825 Noninterest income $753,814 Net gain on sale of RCM assets (19,874) Noninterest income excluding net gain on sale of RCM assets $733,940 Noninterest expense $1,133,906 $1,148,992 Merger expense (25,738) (28,401) Noninterest expense excluding merger expense $1,108,168 $1,120,591 Efficiency ratio 60.22 % 61.78 % Impact of excluding merger expense (1.37) (1.53) Operating efficiency ratio 58.85 % 60.25 % Impact of net gain on sale of RCM assets 0.63 - Adjusted operating efficiency ratio 59.48 % 60.25 % Return on average total assets 1.24 % 1.16 % Impact of excluding merger expense 0.04 0.04 Operating return on average total assets(2) 1.28 % 1.20 % Return on average total shareholders' equity 12.39 % 11.46 % Impact of excluding merger expense 0.40 0.47 Operating return on average total shareholders' equity(3) 12.79 % 11.93 % (1) SunTrust presents selected financial data on an operating basis that excludes merger charges, which represent incremental costs to integrate NCF's operations. The Company also presents selected financial data on an adjusted operating basis, which further excludes the net gain related to the sale of RCM assets. The Company believes the exclusion of these two measures is more reflective of normalized operations. (2) Computed by dividing annualized operating net income by average total assets. (3) Computed by dividing annualized operating net income by average total shareholders' equity. SunTrust Banks, Inc. and Subsidiaries QUARTER-TO-QUARTER COMPARISON - ACTUAL AND HISTORICAL COMBINED GROWTH APPENDIX B TO THE PRESS RELEASE

The 1st quarter 2004 figures represent SunTrust and NCF on a historical combined basis. See page 13 for a reconcilement of these historical combined amounts.

ACTUAL Increase/ Sequential 1st Quarter 4th quarter (Decrease) Annualized 2005 2004 Amount % % STATEMENTS OF INCOME (Dollars in thousands) NET INTEREST INCOME $1,111,560 $1,084,204 $27,356 2.5 % 10.1 % Provision for loan losses 10,556 37,099 (26,543) (71.5) (286.2) NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,101,004 1,047,105 53,899 5.1 20.6 NONINTEREST INCOME Deposit and other fees(1) 343,634 356,777 (13,143) (3.7) (14.7) Trust and investment management income 164,515 160,526 3,989 2.5 9.9 Broker / dealer revenue(2) 149,196 158,888 (9,692) (6.1) (24.4) Other noninterest income 82,254 102,189 (19,935) (19.5) (78.0) Noninterest income before securities (losses)/gains and net gain on sale of RCM assets(3) 739,599 778,380 (38,781) (5.0) (19.9) Gain on sale of RCM assets, net of related expenses 19,874 - 19,874 100.0 400.0 Noninterest income before securities (losses)/gains 759,473 778,380 (18,907) (2.4) (9.7) Securities (losses) /gains (5,659) (19,377) 13,718 70.8 283.2 Total noninterest income 753,814 759,003 (5,189) (0.7) (2.7) NONINTEREST EXPENSE Personnel expense 634,793 612,861 21,932 3.6 14.3 Net occupancy expense 75,851 78,218 (2,367) (3.0) (12.1) Outside processing and software 82,848 81,368 1,480 1.8 7.3 Equipment expense 52,882 50,765 2,117 4.2 16.7 Marketing and customer development 31,629 34,389 (2,760) (8.0) (32.1) Other noninterest expense 198,948 231,231 (32,283) (14.0) (55.8) Noninterest expense before amortization of intangible assets and merger expense(4) 1,076,951 1,088,832 (11,881) (1.1) (4.4) Amortization of intangible assets 31,217 31,759 (542) (1.7) (6.8) Merger expense 25,738 28,401 (2,663) (9.4) (37.5) Total noninterest expense 1,133,906 1,148,992 (15,086) (1.3) (5.3) INCOME BEFORE INCOME TAXES 720,912 657,116 63,796 9.7 38.8 Provision for income taxes 228,618 201,387 27,231 13.5 54.1 NET INCOME 492,294 455,729 36,565 8.0 32.1 Merger expense, net of tax 15,958 18,461 (2,503) (13.6) (54.2) OPERATING NET INCOME 508,252 474,190 34,062 7.2 28.7 Net gain on sale of RCM assets, net of tax (12,322) - (12,322) 100.0 400.0 ADJUSTED OPERATING NET INCOME $495,930 $474,190 $21,740 4.6 % 18.3 % REVENUE (Dollars in thousands) Net interest income $1,111,560 $1,084,204 $27,356 2.5 % 10.1 % FTE adjustment(5) 17,666 16,684 982 5.9 23.5 Net interest income - FTE 1,129,226 1,100,888 28,338 2.6 10.3 Noninterest income 753,814 759,003 (5,189) (0.7) (2.7) Total revenue 1,883,040 1,859,891 23,149 1.2 5.0 Securities losses/ (gains) 5,659 19,377 (13,718) (70.8) (283.2) Net gain on sale of RCM assets (19,874) - (19,874) 100.0 400.0 Total revenue excluding securities gains and losses and net gain on sale of RCM assets $1,868,825 $1,879,268 ($10,443) (0.6)% (2.2)% SELECTED AVERAGE BALANCES (Dollars in millions) Average Loans(6) Commercial $33,518 $32,343 $1,175 3.6 % 14.5 % Real estate 1-4 family 23,527 22,535 992 4.4 17.6 Real estate commercial and construction 19,224 18,660 564 3.0 12.1 Real estate equity 11,574 11,016 558 5.1 20.3 Consumer(7) 15,175 15,390 (215) (1.4) (5.6) Credit cards 198 193 5 2.4 9.6 Total loans $103,216 $100,137 $3,079 3.1 % 12.3 % Average deposits Noninterest bearing deposits $23,723 $24,182 ($459) (1.9)% (7.6)% NOW accounts 17,480 16,941 539 3.2 12.7 Money market accounts 24,767 24,507 260 1.1 4.2 Savings 7,507 8,139 (632) (7.8) (31.1) Consumer and other time 17,491 16,832 659 3.9 15.7 Total consumer and commercial deposits 90,968 90,601 367 0.4 1.6 Brokered and foreign deposits 13,424 10,671 2,753 25.8 103.2 Total deposits $104,392 $101,272 $3,120 3.1 % 12.3 % SELECTED CREDIT DATA (Dollars in thousands) Nonaccrual loans $337,057 $354,241 ($17,184) (4.9)% (19.4)% Restructured loans 20,071 19,049 1,022 5.4 21.5 Total nonperforming loans 357,128 373,290 (16,162) (4.3) (17.3) Other real estate owned (OREO) 27,555 28,619 (1,064) (3.7) (14.9) Other repossessed assets 7,662 8,749 (1,087) (12.4) (49.7) Total nonperforming assets $392,345 $410,658 ($18,313) (4.5)% (17.8)% Allowance for loan and lease losses ($1,023,746) ($1,050,024) $26,278 (2.5)% (10.0)% HISTORICAL COMBINED 1st Quarter 1st Quarter Increase/(Decrease) 2005 2004 Amount % STATEMENTS OF INCOME (Dollars in thousands) NET INTEREST INCOME $1,111,560 $1,042,719 $68,841 6.6 % Provision for loan losses 10,556 65,925 (55,369) (84.0) NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,101,004 976,794 124,210 12.7 NONINTEREST INCOME Deposit and other fees(1) 343,634 337,122 6,512 1.9 Trust and investment management income 164,515 152,716 11,799 7.7 Broker / dealer revenue(2) 149,196 145,703 3,493 2.4 Other noninterest income 82,254 63,638 18,616 29.3 Noninterest income before securities (losses)/gains and net gain on sale of RCM assets(3) 739,599 699,179 40,420 5.8 Gain on sale of RCM assets, net of related expenses 19,874 - 19,874 100.0 Noninterest income before securities (losses)/gains 759,473 699,179 60,294 8.6 Securities (losses)/gains (5,659) 15,845 (21,504) (135.7) Total noninterest income 753,814 715,024 38,790 5.4 NONINTEREST EXPENSE Personnel expense 634,793 585,917 48,876 8.3 Net occupancy expense 75,851 75,266 585 0.8 Outside processing and software 82,848 72,216 10,632 14.7 Equipment expense 52,882 52,318 564 1.1 Marketing and customer development 31,629 33,248 (1,619) (4.9) Other noninterest expense 198,948 205,230 (6,282) (3.1) Noninterest expense before amortization of intangible assets and merger expense(4) 1,076,951 1,024,195 52,756 5.2 Amortization of intangible assets 31,217 29,279 1,938 6.6 Merger expense 25,738 - 25,738 100.0 Total noninterest expense 1,133,906 1,053,474 80,432 7.6 INCOME BEFORE INCOME TAXES 720,912 638,344 82,568 12.9 Provision for income taxes 228,618 186,265 42,353 22.7 NET INCOME 492,294 452,079 40,215 8.9 Merger expense, net of tax 15,958 - 15,958 100.0 OPERATING NET INCOME 508,252 452,079 56,173 12.4 Net gain on sale of RCM assets, net of tax (12,322) - (12,322) 100.0 ADJUSTED OPERATING NET INCOME $495,930 $452,079 $43,851 9.7 % REVENUE (Dollars in thousands) Net interest income $1,111,560 $1,042,719 $68,841 6.6 % FTE adjustment(5) 17,666 14,361 3,305 23.0 Net interest income - FTE 1,129,226 1,057,080 72,146 6.8 Noninterest income 753,814 715,024 38,790 5.4 Total revenue 1,883,040 1,772,104 110,936 6.3 Securities losses/(gains) 5,659 (15,845) 21,504 135.7 Net gain on sale of RCM assets (19,874) - (19,874) 100.0 Total revenue excluding securities gains and losses and net gain on sale of RCM assets $1,868,825 $1,756,259 $112,566 6.4 % SELECTED AVERAGE BALANCES (Dollars in millions) Average Loans(6) Commercial $33,518 $32,598 $920 2.8 % Real estate 1-4 family 23,527 18,804 4,723 25.1 Real estate commercial and construction 19,224 17,670 1,554 8.8 Real estate equity 11,574 8,844 2,730 30.9 Consumer(7) 15,175 15,074 101 0.7 Credit cards 198 155 43 27.7 Total loans $103,216 $93,145 $10,071 10.8 % Average deposits Noninterest bearing deposits $23,723 $21,412 $2,311 10.8 % NOW accounts 17,480 14,494 2,986 20.6 Money market accounts 24,767 24,071 696 2.9 Savings 7,507 8,054 (547) (6.8) Consumer and other time 17,491 15,575 1,916 12.3 Total consumer and commercial deposits 90,968 83,606 7,362 8.8 Brokered and foreign deposits 13,424 12,292 1,132 9.2 Total deposits $104,392 $95,898 $8,494 8.9 % SELECTED CREDIT DATA (Dollars in thousands) Nonaccrual loans $337,057 $318,643 $18,414 5.8 % Restructured loans 20,071 18,661 1,410 7.6 Total nonperforming loans 357,128 337,304 19,824 5.9 Other real estate owned (OREO) 27,555 41,605 (14,050) (33.8) Other repossessed assets 7,662 17,061 (9,399) (55.1) Total nonperforming assets $392,345 $395,970 ($3,625) (0.9)% Allowance for loan and lease losses ($1,023,746) ($1,110,356) $86,610 (7.8)% (1) Includes service charges on deposits, card and other charges and fees. (2) Includes retail investment services, investment banking income and trading account profits and commissions. (3) SunTrust presents noninterest income before securities (losses)/gains and the net gain on the sale of RCM assets. The Company believes noninterest income before 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. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain provides better comparability and is more indicative of normalized operations. (4) The Company presents noninterest expense before amortization of intangible assets and merger expense. The Company believes the exclusion of these measures provides better comparability and is more reflective of normalized operations. (5) NCF's FTE adjustments were reduced $4,712 from the first quarter of 2004 to conform to SunTrust's methodology. (6) SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation. (7) Includes consumer direct and consumer indirect loans. SunTrust Banks, Inc. and Subsidiaries SUNTRUST / NCF - SELECTED HISTORICAL FINANCIAL DATA APPENDIX B TO THE PRESS RELEASE, continued 1st Quarter 2004 Pro Forma SunTrust NCF Combined STATEMENTS OF INCOME (Dollars in thousands) NET INTEREST INCOME $851,648 $191,071 $1,042,719 Provision for loan losses 53,837 12,088 65,925 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 797,811 178,983 976,794 NONINTEREST INCOME Deposit and other fees (1) 287,659 49,463 337,122 Trust and investment management income 136,218 16,498 152,716 Broker / dealer revenue (2) 119,941 25,762 145,703 Other noninterest income 46,341 17,297 63,638 Noninterest income before securities (losses)/gains 590,159 109,020 699,179 Securities gains 4,927 10,918 15,845 Total noninterest income 595,086 119,938 715,024 NONINTEREST EXPENSE Personnel expense 506,796 79,121 585,917 Net occupancy expense 61,859 13,407 75,266 Outside processing and software 65,626 6,590 72,216 Equipment expense 45,085 7,233 52,318 Marketing and customer development 30,219 3,029 33,248 Other noninterest expense 164,523 40,707 205,230 Noninterest expense before amortization of intangible assets 874,108 150,087 1,024,195 Amortization of intangible assets 15,640 13,639 29,279 Total noninterest expense 889,748 163,726 1,053,474 INCOME BEFORE INCOME TAXES 503,149 135,195 638,344 Provision for income taxes 141,314 44,951 186,265 NET INCOME $361,835 $90,244 $452,079 REVENUE (Dollars in thousands) Net interest income $851,648 $191,071 $1,042,719 FTE adjustment(3) 12,256 2,105 14,361 Net interest income - FTE 863,904 193,176 1,057,080 Noninterest income 595,086 119,938 715,024 Total revenue 1,458,990 313,114 1,772,104 Securities (gains) (4,927) (10,918) (15,845) Total revenue excluding securities gains and losses $1,454,063 $302,196 $1,756,259 SELECTED AVERAGE BALANCES (Dollars in millions) Average Loans(4) Commercial $28,599 $3,999 $32,598 Real estate 1-4 family 17,850 954 18,804 Real estate commercial and construction 13,910 3,760 17,670 Real estate equity 7,112 1,732 8,844 Consumer(5) 12,294 2,780 15,074 Credit cards 140 15 155 Total loans $79,905 $13,240 $93,145 Average deposits Noninterest bearing deposits $18,897 $2,515 $21,412 NOW accounts 12,332 2,162 14,494 Money market accounts 22,137 1,934 24,071 Savings 6,334 1,720 8,054 Consumer and other time 10,661 4,914 15,575 Total consumer and commercial deposits 70,361 13,245 83,606 Brokered and foreign deposits 10,001 2,291 12,292 Total deposits $80,362 $15,536 $95,898 SELECTED CREDIT DATA (Dollars in thousands) Nonaccrual loans $283,918 $34,725 $318,643 Restructured loans 18,661 - 18,661 Total nonperforming loans 302,579 34,725 337,304 Other real estate owned (OREO) 18,380 23,225 41,605 Other repossessed assets 10,953 6,108 17,061 Total nonperforming assets $331,912 $64,058 $395,970 Allowance for loan and lease losses ($936,972) ($173,384) ($1,110,356) (1) Includes service charges on deposits, card and other charges and fees. (2) Includes retail investment services, investment banking income and trading account profits and commissions. (3) NCF's FTE adjustments were reduced $4,712 from the 1st quarter of 2004 to conform to SunTrust methodology. (4) SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation. (5) Includes consumer direct and consumer indirect loans.