SunTrust 2003 Annual Report Download

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Throughout 2003, SunTrust people worked harder
than ever. To expand our product range. Build up our
distribution network. Intensify our sales focus. And do
all the other things that add up to a financial services
institution determined to serve its customers better
than the competition…and deliver the consistently
strong financial performance shareholders expect. In
turn, our people also provided a compelling answer to a
timely question: “Why SunTrust?”
SunTrust Banks, Inc.
2003 Annual Report

Table of contents

  • Page 1
    ... services institution determined to serve its customers better than the competition...and deliver the consistently strong financial performance shareholders expect. In turn, our people also provided a compelling answer to a timely question: "Why SunTrust?" SunTrust Banks, Inc. 2003 Annual Report

  • Page 2
    ... service branches and 2,225 ATMs are located primarily in Florida, Georgia, Maryland, Tennessee, Virginia and the District of Columbia. In addition, SunTrust provides customers with a selection of technology-based banking channels, including Internet, PC and Telephone Banking. Our Internet address...

  • Page 3
    ...focus on sales and service, SunTrust delivers an extensive range of financial products with ties our markets present - and to sustain success the individual customer focus typically associated with much smaller institutions. in a changing industry. ➣ Our relationship-based operating model supports...

  • Page 4
    ... to Atlanta meet the full range of credit, capital markets and investment banking needs of corporate +12% and institutional clients. North Florida +10% +11% HIGH-OPPORTUNITY MARKETS SunTrust's enviable growth prospects are in part attributable to the fact that population in our geographic "footprint...

  • Page 5
    ... communication and coordination of key support functions. These changes help our customer-focused units, especially the more than 50 local banks that represent our primary "face" to our communities, meet client needs with increasing speed and responsiveness. Annual Report 2003 SunTrust Banks...

  • Page 6
    ...Palm Beach and Orlando, FL, Atlanta and Washington, DC reflect AMA's interest in being located where clients live. Our full-service brokerage serving corporate executives and high-net-worth investors, Alexander Key Investments, effectively doubled in size last year with new offices in Washington, DC...

  • Page 7
    ...customer call center in Cookeville, TN. It replaces three older facilities and will efficiently accommodate anticipated growth in telephone sales and service volume. Each month our call centers handle more than 100,000 inbound sales calls - half of which turn into Annual Report 2003 SunTrust Banks...

  • Page 8
    ... Managerâ„¢ solutions from Works, Inc. These Web-based tools allow commercial clients to decrease costs by automating their payment processes and administering card programs online, while also helping us achieve revenue growth targets. For retirement plan sponsors, another targeted SunTrust market...

  • Page 9
    ... long-term care, disability and other advanced insurance solutions. Meanwhile in its core business, SunTrust Securities account assets increased 20% to approximately $18 billion. The appeal of our highly regarded Internet Banking service was enhanced by adding online statements and check images...

  • Page 10
    ... to our SunTrust Securities brokers. Sales of home equity lines and loans exceeded the prior year by $7.3 billion, or 18%. ➣ In Commercial Banking, a newly installed sales process and supporting systems contributed to a 21% deposit balance increase and a 10% increase in loan balances. ➣ In...

  • Page 11
    ... time as SunTrust's overall performance continues to improve - as we believe it will. In addition, the Board of Directors in February 2004 approved an 11% increase in the dividend on SunTrust common stock, bringing the annual dividend to $2.00 per share. Annual Report 2003 SunTrust Banks, Inc. 9

  • Page 12
    ... 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 relative comparison between taxable and non-taxable amounts. 3 The 10 SunTrust Banks, Inc. Annual Report 2003

  • Page 13
    ...income where there was noticeable pick-up in fees related to improving equity markets. Because of investments we made in market-driven businesses, such as wealth management and capital markets services, SunTrust is particularly well positioned to benefit from a stronger stock market. Improved Credit...

  • Page 14
    ... work hard to exceed your expectations. Finally, my thanks goes to all our employees for a job well done in 2003. In the end, they really are the answer to the question: "Why SunTrust?" L. Phillip Humann - Chairman, President and Chief Executive Officer 12 SunTrust Banks, Inc. Annual Report 2003

  • Page 15
    ... DATA MANAGEMENT'S DISCUSSION CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF CASH FLOW NOTES TO CONSOLIDATED FINANCIAL STATEMENTS BOARD OF DIRECTORS GENERAL INFORMATION Annual Report 2003 SunTrust Banks, Inc...

  • Page 16
    ...the acquisition of Crestar. Includes expenses of $32.0 million from the proposal to acquire the former Wachovia Corporation in 2001. Represents the gain on sale of the Company's consumer credit card portfolio in 1999, net of $124.6 million in taxes. 3 4 14 SunTrust Banks, Inc. Annual Report 2003

  • Page 17
    ... new additions to large corporate nonaccrual loans, increased loan sales activity, improvement in credit quality and client repayment. Net SunTrust Banks, Inc. 15 INTRODUCTION Prior to 2003, SunTrust's geographic footprint extended throughout Alabama, Florida, Georgia, Maryland, Tennessee, Virginia...

  • Page 18
    ... increase in personnel expense related to incentive payments resulting from business growth, higher production volumes, and higher revenue in the PCS, CIB and Mortgage lines of business. SunTrust experienced moderate loan growth four consecutive quarters in 2003. Residential mortgage loans increased...

  • Page 19
    ... Also included in this segment are specialty groups that operate both within and outside of the SunTrust footprint such as Affordable Housing (tax credits related to community development) and Premium Assignment Corporation (insurance premium financing). Annual Report 2003 SunTrust Banks, Inc. 17

  • Page 20
    ... information functions; SunTrust Online, which handles customer phone inquiries and phone sales and manages the Internet banking function; human resources, which includes the recruiting, training and employee benefit administration functions; finance, which includes accounting, budgeting, planning...

  • Page 21
    ... Financial Services contributed $234.1 million to the loan growth in 2003. Average deposit balances rose $1.8 billion, or 20.9%, which also contributed to the rise in net interest income. This increase was a result of improved sales efforts and market liquidity. Annual Report 2003 SunTrust Banks...

  • Page 22
    ... tax-effected revenue generated by SunTrust's Community Development Corporation, which was transferred from the Corporate/Other line of business. The remaining noninterest income growth resulted from increased deposit service charges, credit card income and loan fees. Total noninterest expense grew...

  • Page 23
    ... Interest Expense NOW accounts Money Market accounts Savings deposits Consumer time deposits Brokered deposits Foreign deposits Other time deposits Funds purchased and securities sold under agreements to repurchase Other short-term borrowings Long-term debt Total interest expense Net change in net...

  • Page 24
    ... and Shareholders' Equity NOW accounts Money Market accounts Savings Consumer time Other time Total interest-bearing consumer and commercial deposits Brokered deposits Foreign deposits Total interest-bearing deposits Funds purchased and securities sold under agreements to repurchase Other short-term...

  • Page 25
    ... position increased net interest income $64.0 million in 2003, decreased net interest income $50.4 million in 2002, $37.4 million in 2001, and $0.5 million in 2000, and increased net interest income $16.3 million and $0.7 million in 1999 and 1998, respectively. Annual Report 2003 SunTrust Banks...

  • Page 26
    ... revenue, primarily estate fees. Assets under management include individually managed assets, the STI Classic Funds, institutional assets managed by Trusco Capital Management, and participant-directed retirement accounts. SunTrust's total assets under 24 SunTrust Banks, Inc. Annual Report 2003

  • Page 27
    ... Brokered Deposits Foreign Deposits Funds Purchased and Securities Sold Under Agreement to Repurchase Other Short-term Borrowings Long-term Debt TABLE 5 NONINTEREST INCOME (Dollars in millions) Service charges on deposit accounts Trust and investment management income Retail investment services...

  • Page 28
    ... and software Equipment expense Marketing and customer development Credit and collection services Postage and delivery Amortization of intangible assets Communications Other staff expense Consulting and legal Operating supplies FDIC premiums Merger-related expense Other real estate income Other...

  • Page 29
    ... real estate represented 29.9% of total loans at year-end, including $17.3 billion in home mortgages and $6.9 billion in home equity lines. The increase of $1.7 billion in home equity lines was due to the Company's marketing campaigns, appreciation in the housing Annual Report 2003 SunTrust Banks...

  • Page 30
    ... recent twelve month loss experience in relation to internal credit risk ratings over time. Historical loss analyses provide the basis for factors used for more homogenous pools of smaller loans, such as residential real estate and other consumer loan categories. While these analyses that establish...

  • Page 31
    ...133.0 0.17% As of Dec. 31 2003: 80,732.3 Commercial Construction Residential Mortgage Other Real Estate Commercial Credit Card Other Consumer Loans Average for 2003: 80,039.0 NOW Accounts Money Market Accounts Savings Consumer Time Brokered Deposits Foreign Deposits Other Time Non-Interest Bearing...

  • Page 32
    ..., secured loans may be charged down to the estimated value of the collateral with previously accrued unpaid interest reversed. Subsequent charge-offs may be required as a result of changes in the market value of collateral or other repayment prospects. 30 SunTrust Banks, Inc. Annual Report 2003

  • Page 33
    ... from a decline in new additions to large corporate nonaccrual loans, increased loan sales activity, charge-offs, improvement in credit quality and client repayment. Interest income on nonperforming loans, if recognized, is recorded using the cash basis method of accounting. When a loan is placed on...

  • Page 34
    ... sold under agreements to repurchase that mature either overnight or at a fixed maturity generally not exceeding three months. Rates on overnight funds reflect current market rates. Rates on fixed maturity borrowings are set at the time of borrowings. 32 SunTrust Banks, Inc. Annual Report 2003

  • Page 35
    ...15 COMPOSITION OF AVERAGE DEPOSITS (Dollars in millions) Noninterest-bearing NOW accounts Money Market accounts Savings Consumer time Other time Total consumer and commercial deposits Brokered deposits Foreign deposits Total deposits Annual Report 2003 Year Ended December 31 2003 2002 2001 $17,826...

  • Page 36
    ... reviews adherence to these policies. The Company's sources of funds include a large, stable deposit base, secured advances from the Federal Home Loan Bank and access to the capital markets. The Company structures its balance sheet so that illiquid assets, such as loans, are funded through customer...

  • Page 37
    ... Note and Federal Home Loan Bank debt issuances during 2003 to take advantage of the low interest rate environment and to further diversify the Company's funding sources. The Company manages reliance on short-term unsecured borrowings as well as total wholesale funding through policy established and...

  • Page 38
    ... for certain SunTrust customers. Assets under management, which are not included in the Consolidated Balance Sheet, totaled $3.6 billion as of December 31, 2003. In connection with certain acquisitions made by the Company, the terms of the acquisition agreement provide for deferred payments or...

  • Page 39
    ... benefit plans which are included in Note 16. CAPITAL RESOURCES SunTrust's primary regulator, the Federal Reserve Board, measures capital adequacy within a framework that makes capital sensitive to the risk profiles of individual banking institutions. The guidelines weight assets and off-balance...

  • Page 40
    ...in long-term debt and totaled $1.65 billion at December 31, 2003 and 2002. As a result of FASB's Interpretation, questions have been raised whether Trust Preferred Securities would still qualify for treatment as Tier 1 Capital given the new accounting treatment. In July of 2003, the Federal Reserve...

  • Page 41
    ...and other fixed rate debt. Represents the fair value of derivative financial instruments less accrued interest receivable or payable. At December 31, 2003, the net unrealized loss on derivatives included in accumulated other comprehensive income, which is a component of stockholders' equity, was $17...

  • Page 42
    ...- other Weighted-average receive rate 1 Weighted-average pay rate 1 Unrealized gain (loss) 1 All interest rate swaps have variable pay or receive rates with resets of three months or less, and are the pay or receive rates in effect at December 31, 2003. 40 SunTrust Banks, Inc. Annual Report 2003

  • Page 43
    ...analysis (and in the valuation analysis discussed below) relate to the behavior of interest rates and spreads, the changes in product balances and the behavior of loan and deposit customers in different rate environments. Material assumptions include the Annual Report 2003 SunTrust Banks, Inc. 41

  • Page 44
    ...steps have reduced the benefit to rising rates as noted in the table above. SunTrust also performs valuation analysis, which is used for discerning levels of risk present in the balance sheet and derivative positions that might not be taken into account in the net interest income simulation analysis...

  • Page 45
    ... platform as designed by RiskMetrics, â„¢ and for the estimate of the Fixed Income and Equity desks' VaR, the Company uses Bloombergâ„¢ analytics. The Company uses internally developed methodology to estimate VaR for credit derivatives and loan trading. Annual Report 2003 SunTrust Banks, Inc. 43

  • Page 46
    ...credit rate. Also positively impacting noninterest income was a $68.5 million, or 63.1%, increase in investment banking income due to improvements in the performance of the Company's capital markets business and the addition of the institutional business of Robinson Humphrey during the third quarter...

  • Page 47
    ... less net unrealized gains on securities Return on average total shareholders' equity Impact of excluding net unrealized securities gains Return on average realized shareholders' equity Net interest income $ FTE Adjustment Net interest income - FTE $ Annual Report 2003 SunTrust Banks, Inc. 45

  • Page 48
    ...NOW accounts Money Market accounts Savings Consumer time Other time Total interest-bearing consumer and commercial deposits Brokered deposits Foreign deposits Total interest-bearing deposits Funds purchased and securities sold under agreements to repurchase Other short-term borrowings Long-term debt...

  • Page 49
    ...software Equipment expense Marketing and customer development Credit and collection services Postage and delivery Amortization of intangible assets Communications Other staff expense Consulting and legal Operating supplies FDIC premiums Merger-related expense Other real estate expense (income) Other...

  • Page 50
    ... loans to total loans Nonperforming assets to total loans plus OREO and other repossessed assets Accruing Loans Past Due 90 Days or More TABLE 27 QUARTERLY LINE OF BUSINESS RESULTS Retail (Dollars in millions) Average total assets Average total liabilities Average total equity Net interest income...

  • Page 51
    ...2003 Corporate & Investment Banking (Dollars in millions) Average total assets Average total liabilities Average total equity Net interest income (FTE) Provision for loan losses Net interest income after provision for loan losses Noninterest income...2003 Annual Report 2003 SunTrust Banks, Inc. 49

  • Page 52
    ... rate of 30-31%. The lower fourth quarter 2002 effective tax was primarily due to tax benefits resulting from the Company standardizing the recognition of low income housing tax credits and dividends declared by a real estate investment trust subsidiary. 50 SunTrust Banks, Inc. Annual Report 2003

  • Page 53
    ... subject to the regulation and supervision of the Board of Governors of the Federal Reserve System (the Federal Reserve). SunTrust Bank (the Bank) is a Georgia state bank which has branches in Georgia, Florida, Tennessee, Alabama, Virginia, Maryland, South Carolina, and the District of Columbia. The...

  • Page 54
    ..., consisting of line of business heads and geographic group level executives and led by a member of the Company's Policy Committee. SunTrust's financial support for building communities through its extensive lending activities, investments and corporate contributions continued to grow in 2003. The...

  • Page 55
    ... Federal Home Loan Bank as one of the leading lenders in its Affordable Housing Program and Community Investment Program. SunTrust continues to create quality housing for families and seniors of modest means through its SunTrust Community Development Corporation (CDC), which helps them build better...

  • Page 56
    ... 31, 2003, its system of internal controls over consolidated financial reporting met those criteria. L. Phillip Humann Chairman of the Board of Directors, President and Chief Executive Officer John W. Spiegel Vice Chairman and Chief Financial Officer Jorge Arrieta Senior Vice President and...

  • Page 57
    ... that our audits provide a reasonable basis for our opinion. As discussed in Note 1 to the Consolidated Financial Statements, during 2002 the Company changed its method of accounting for goodwill and intangible assets. Atlanta, Georgia January 12, 2004 Annual Report 2003 SunTrust Banks, Inc. 55

  • Page 58
    ... accounts Trust and investment management income Mortgage production Mortgage servicing Other noninterest income Securities gains Total noninterest income Noninterest Expense Employee compensation Employee benefits Net occupancy expense Equipment expense Marketing and customer development Merger...

  • Page 59
    ...-bearing deposits in other banks Funds sold and securities purchased under agreements to resell Trading assets Securities available for sale1 Loans held for sale Loans Allowance for loan losses Net loans Premises and equipment Goodwill Other intangible assets Customers' acceptance liability Other...

  • Page 60
    ...securities, net of taxes Accumulated other comprehensive income related to retirement plans Total comprehensive income Cash dividends declared and paid, $1.80 per share Exercise of stock options and stock compensation element Acquisition of treasury stock Acquisition of Lighthouse Financial Services...

  • Page 61
    ... deposits Net (decrease) increase in foreign and brokered deposits Net decrease in funds purchased and other short-term borrowings Proceeds from the issuance of long-term debt Repayment of long-term debt Proceeds from the exercise of stock options and stock compensation expense Proceeds from...

  • Page 62
    ... certain residential mortgage loans and student loans as loans held for sale. Upon transfer to loans held for sale, any losses are recorded through the allowance for loan losses with subsequent losses recorded as a component of noninterest expense. 60 SunTrust Banks, Inc. Annual Report 2003

  • Page 63
    ... calculated using management's best estimates of key assumptions, including credit losses, loan repayment speeds and discount rates commensurate with the risks involved. Gains or losses on sales and servicing fees are recorded in noninterest income. PREMISES AND EQUIPMENT Premises and equipment are...

  • Page 64
    ..., the Company accounted for the plan under the recognition and measurement provisions of Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and related Interpretations. No stock-based employee compensation cost is reflected in 2001's net income since all...

  • Page 65
    ... methods of transition to SFAS 123's fair-value method of accounting for stock-based compensation. The Statement also amended disclosure provisions of SFAS No. 123 and APB Opinion No. 28, "Interim Financial Reporting," to require additional disclosures in annual and interim financial statements. The...

  • Page 66
    ... an investor's initial investment in loans or debt securities acquired in a transfer if those differences relate to a deterioration of credit quality. The SOP also prohibits companies from "carrying over" or creating a valuation allowance in the initial accounting for loans acquired that meet the...

  • Page 67
    ... Assets U.S. government and agency securities Corporate and other debt securities Equity securities Mortgage-backed securities Derivative contracts Other Total trading assets Trading Liabilities Derivative contracts Other Total trading liabilities Annual Report 2003 SunTrust Banks, Inc. 65

  • Page 68
    ... sales were $1.0, $2.0, and $13.7 million in 2003, 2002, and 2001. Securities available for sale that were pledged to secure public deposits, trust and other funds had fair values of $13.7, $14.2, and $12.9 billion at December 31, 2003, 2002, and 2001. 66 SunTrust Banks, Inc. Annual Report 2003

  • Page 69
    ...million, respectively. In the normal course of business, the Company's banking subsidiary has made loans at prevailing interest rates and terms to directors and executive officers of the Company and its subsidiaries, and to their related interests. The aggregate dollar 2003 $30,681,914 4,479,771 24...

  • Page 70
    ... 2007 2008 Thereafter Total minimum lease payments Amounts representing interest Present value of net minimum lease payments Net premises and equipment included $11.5 million and $12.5 million at December 31, 2003 and 2002, respectively, related to capital leases. Operating Leases $94,816 78,738...

  • Page 71
    ... of this date. The changes in the carrying amount of goodwill by reportable segment for the twelve months ended December 31, 2002 and 2003 are as follows: (Dollars in thousands) Balance, January 1, 2002 Huntington-Florida acquisition Reallocation Contingent consideration Purchase price adjustment...

  • Page 72
    ... Total other short-term borrowings Balance $3,216,678 31,500 311,490 498,979 116,768 $4,175,415 Rates 1.06% - 1.14% 0.88 - 0.97 0.45 0.73 various 2002 Balance Rates $ 50,000 1.25% 41,000 1.12 - 1.72 308,945 0.75 849,346 0.99 119,134 various $1,368,425 70 SunTrust Banks, Inc. Annual Report 2003

  • Page 73
    ... changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments and increased credit losses), which might magnify or counteract the sensitivities. Annual Report 2003 SunTrust Banks...

  • Page 74
    ... are restrictions on mergers, consolidations, certain leases, sales or transfers of assets, minimum shareholders' equity, and maximum borrowings by the Company. As of December 31, 2003, the Company was in compliance with all covenants and provisions of long-term debt agreements. In 2003 and 2002...

  • Page 75
    ...for federal income taxes Provision (benefit) for state income taxes Current Deferred Provision for state income taxes Total provision for income taxes The Company's income from international operations, before provision for income taxes, was not significant. Annual Report 2003 SunTrust Banks, Inc...

  • Page 76
    ... on such shares. (Dollars in thousands) Allowance for loan losses Employee benefits Fixed assets Loans Mortgage Leasing Accrued expenses Unrealized gains on securities available for sale Other Net deferred tax liability SunTrust and its subsidiaries file consolidated income tax returns where...

  • Page 77
    ... vested in his or her performance stock or (2) the date of a change in control. Dividend equivalents will be paid at the same rate as the shares of performance stock; however, these units do not carry voting privileges. Compensation expense related to the incentive plans for the three years ended...

  • Page 78
    ... Banks, Inc. 401(k) Plan. SunTrust maintains a funded, noncontributory qualified retirement plan covering all employees meeting certain service requirements. The plan provides benefits based on salary and years of service. SunTrust performed a benefits study in 2002 to determine the long-term...

  • Page 79
    ..., end of year) Discount rate Rate of compensation increase Retirement Benefits 2003 2002 6.25% 6.75% 3.50 3.50 Assumed healthcare cost trend rates have a significant effect on the amounts reported for the postretirement healthcare plans. As of December 31, 2003, SunTrust assumed that retiree...

  • Page 80
    ...SunTrust stock is included in equity securities. The Company's Investment Strategy with respect to other Postretirement Benefits is to create a stream of investment return sufficient to provide for current and future liabilities at a reasonable level of risk. 78 SunTrust Banks, Inc. Annual Report...

  • Page 81
    ... corporate assets. The 2004 expected contribution for the Other Postretirement Benefit Plans represents the expected benefit payments under the medical plans only. The expected benefits under postretirement benefits are shown net of participant contributions. 2 3 Annual Report 2003 SunTrust Banks...

  • Page 82
    ... normal course of business, the Company utilizes various financial instruments to meet the needs of customers and to manage the Company's exposure to interest rate and other market risks. These financial instruments, which consist of derivatives contracts and credit-related arrangements, involve, to...

  • Page 83
    ... Commitments to extend credit Standby letters of credit and similar arrangements Total credit-related arrangements $56,584 9,843 $66,427 $66,972 $49,557 9,362 $58,919 $59,294 Total Credit Risk Amount 1 Includes both long and short derivative contracts. Annual Report 2003 SunTrust Banks, Inc. 81

  • Page 84
    ... and for its own trading account. These trading positions primarily include interest rate swaps, equity derivatives, credit default swaps, futures, options and foreign currency contracts. CREDIT-RELATED ARRANGEMENTS In meeting the financing needs of its customers, the Company issues commitments to...

  • Page 85
    ... direct purchases of financial assets originated and serviced by SunTrust's corporate customers. Three Pillars finances this activity by issuing A-1/P-1 rated commercial paper. The result is a favorable funding arrangement for these SunTrust customers. As of December 31, 2002, accounting principles...

  • Page 86
    ... 30 years. SunTrust Securities, Inc. (STS) and SunTrust Capital Markets, Inc. (STCM), broker-dealer affiliates of SunTrust, use a common third party clearing broker to clear and execute their customers' securities transactions and to hold customer accounts. Under their respective agreements, STS and...

  • Page 87
    ... payable on demand at the reporting date, i.e., their carrying amounts. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies current interest rates to a schedule of aggregated expected maturities. The intangible value of long-term relationships...

  • Page 88
    ... manages the interest rate risk of the Company. Differences in the aggregate amounts of transfer priced funds charges and credits are reflected in the Corporate/Other line of business segment. A system of internal credit transfers is utilized to recognize supportive business services across lines...

  • Page 89
    ... for loan losses includes a credit risk premium charge for the lines of business. Includes regular income tax provision and taxable-equivalent income adjustment reversal of $39,522 and $40,764 for the twelve months ended December 31, 2002 and 2001, respectively. Annual Report 2003 SunTrust Banks...

  • Page 90
    ...instruments Accumulated other comprehensive income related to retirement plans Total accumulated other comprehensive income 2003 $1,699,344 (17,257) (17,995) $1,644,092 2002 $1,584,091 (46,745) (27,876) $1,509,470 2001 $1,710,982 (55,729) - $1,655,253 88 SunTrust Banks, Inc. Annual Report 2003

  • Page 91
    ...and other charges in the Consolidated Statements of Income include: Other charges and fees Investment banking income Retail investment services Credit card and other fees Total fees and other charges 2003 $109,878 150,980 $260,858 $326,311 192,480 161,753 119,585 $800,129 $296,860 176,960 136,659...

  • Page 92
    ... 26 SUNTRUST BANKS, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION STATEMENTS OF INCOME - PARENT COMPANY ONLY Year Ended December 31 2002 (Dollars in thousands) 2003 2001 Operating Income From subsidiaries: Dividends - substantially all from the Bank Service fees Interest on loans Other income...

  • Page 93
    ... in banks Funds sold and securities purchased under agreements to resell Trading account Securities available for sale Loans to subsidiaries Investment in capital stock of subsidiaries stated on the basis of the Company's equity in subsidiaries' capital accounts Banking subsidiaries Nonbanking...

  • Page 94
    ... operating activities: Equity in undistributed income of subsidiaries Depreciation, amortization and accretion Deferred income tax provision (benefit) Amortization of compensation element of performance stock Securities gains Net decrease (increase) in other assets Net increase in other liabilities...

  • Page 95
    ... Securities Exchange Act of 1934 For the Fiscal Year Ended December 31, 2003 Commission file number 1-8918 SunTrust Banks, Inc. Incorporated in the State of Georgia IRS Employer Identification Number 58-1575035 Address: 303 Peachtree Street, NE, Atlanta, GA 30308 Telephone: (404) 588-7711 Securities...

  • Page 96
    ... Not Applicable Controls and Procedures 53 Item 13 Item 14 Directors and Executive Officers of the Registrant Executive Compensation Security Ownership of Certain Beneficial Owners and Management Certain Relationships and Related Transactions Principal Accountant Fees and Services Proxy Statement...

  • Page 97
    ...by reference herein pursuant to the Securities Exchange Act of 1934. Shareholders may obtain the list of such Exhibits and copies of such documents upon request to Corporate Secretary, SunTrust Banks, Inc., Mail Code 643, P .O. Box 4418, Atlanta, Georgia, 30302. A copying fee will be charged for the...

  • Page 98
    ... R. Randall Rollins2 Director since 1995 Chairman of the Board Rollins, Inc. and Chairman of the Board and Chief Executive Officer RPC, Inc. Atlanta, GA 3 David H. Hughes3, 4 Director since 1984 Chairman of the Board Hughes Supply, Inc. Orlando, FL 4 96 SunTrust Banks, Inc. Annual Report 2003

  • Page 99
    ...Director of Human Resources 25 years of service. John W. Spiegel Vice Chairman and Chief Financial Officer Accounting, Funds Management, Risk Management, Strategic Finance & Taxes, Investor Relations, and Treasury 39 years of service. Craig J. Kelly Executive Vice President Chief Marketing Officer...

  • Page 100
    ...• SunTrust Bank, North Florida • SunTrust Bank, North Central Florida • SunTrust Bank, Northwest Florida • SunTrust Bank, Pensacola • SunTrust Bank, Gainesville • SunTrust Bank, Panama City Orlando Orlando Orlando Lakeland Daytona Beach Melbourne Leesburg Jacksonville Jacksonville Ocala...

  • Page 101
    ...• SunTrust Bank, North Pinellas Co./Clearwater • SunTrust Bank, South Pinellas Co./St. Petersburg LOCATION Ft. Lauderdale Ft. Lauderdale Palm Beach Miami Sarasota Sarasota Ft. Myers Naples Tampa Tampa Brooksville Clearwater St. Petersburg KEY EXECUTIVE(S) Thomas G. Kuntz Thomas G. Kuntz Robert...

  • Page 102
    ...well as accident and health insurance policies. SunTrust Leasing Corporation Provides equipment-related lease financing to businesses. SunTrust Mortgage, Inc. One of the nation's largest bank-owned mortgage companies. Originates, purchases, sells and services mortgage loans. SunTrust Securities, Inc...

  • Page 103
    .... CORPORATE HEADQUARTERS SunTrust Banks, Inc. 303 Peachtree Street, NE Atlanta, GA 30308 404/588-7711 SHAREHOLDER SERVICES Shareholders who wish to change the name, address or ownership of stock, to report lost certificates or to consolidate accounts should contact the Transfer Agent: SunTrust Bank...

  • Page 104
    SunTrust Banks, Inc. 303 Peachtree Street Atlanta, GA 30308