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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
SUNTRUST 2004 ANNUAL REPORT 79
Twelve months ended December 31, 2003 (Unaudited)
National
SunTrust Commerce Pro Forma Pro Forma
(In thousands except per share data) Banks, Inc.1Financial2Adjustments3Combined
Interest and dividend income $4,768,842 $1,054,136 $ (9,405) $5,813,573
Interest expense 1,448,539 314,626 62,003 1,825,168
Net interest income 3,320,303 739,510 (71,408) 3,988,405
Provision for loan losses 313,550 48,414 — 361,964
Net interest income after provision for loan losses 3,006,753 691,096 (71,408) 3,626,441
Noninterest income 2,303,001 454,722 — 2,757,723
Noninterest expense 3,400,616 724,439 4,362 4,129,417
Income from continuing operations before
provision for income taxes 1,909,138 421,379 (75,770) 2,254,747
Provision for income taxes 576,841 134,614 (28,793) 682,662
Income from continuing operations $1,332,297 $ 286,765 $(46,977) $1,572,085
Average shares:
Diluted 281,434 — 78,363 359,797
Basic 278,295 — 76,415 354,710
Income from continuing operations per
average common share:
Diluted $ 4.73 — — $ 4.37
Basic 4.79 — — 4.43
1Represents the reported results of SunTrust Banks, Inc. for the twelve months ended December 31, 2003.
2Represents the reported results of National Commerce Financial for the twelve months ended December 31, 2003.
3Pro forma adjustments include the following items: amortization of core deposit and other intangibles of $65.7 million, net of NCF’s historical amortization of $61.4 million, amortization of loan purchase
accounting adjustment of $12.0 million, accretion of securities purchase accounting adjustment of $2.6 million, accretion of deposit purchase accounting adjustment of $2.0 million, and accretion of short-term
and long-term borrowings purchase accounting adjustments of $7.6 million.Additionally, interest expense includes $71.7 million for funding costs as though the funding for the cash component of the transac-
tion occurred January 1, 2003.
On May 28, 2004, SunTrust completed the acquisition of substan-
tially all of the assets of Seix Investment Advisors.The Company
acquired approximately $17 billion in assets under management.
The Company paid $190 million in cash, resulting in $84 million of
goodwill and $99 million of other intangible assets, all of which are
deductible for tax purposes. Additional payments may be made in
2007 and 2009, contingent on performance.The additional pay-
ments are currently estimated to total approximately $69.6 million.
SunTrust completed the acquisition of the Florida banking franchise
of Huntington Bancshares, Inc. (Huntington-Florida) on February
15, 2002. The Company acquired approximately $4.7 billion in
assets and liabilities. The transaction resulted in $528 million of
goodwill, $255 million of core deposit intangibles and $13 million
of other intangibles, all of which were deductible for tax purposes.
On June 2, 2003, SunTrust completed the acquisition of Lighthouse
Financial Services, Inc. (Lighthouse) based in Hilton Head Island,
South Carolina.The Company acquired approximately $637 million
in assets, $567 million in loans, and $421 million in deposits. In
addition, SunTrust paid $131 million in a combination of cash and
SunTrust stock.The transaction resulted in $99 million of goodwill
and $23 million of other intangible assets, which were not
deductible for tax purposes.
SunTrust completed the acquisition of Sun America Mortgage
(Sun America), one of the top mortgage lenders in Metro Atlanta, on
July 31, 2003.The transaction resulted in $10 million of goodwill
and $9 million of other intangibles, all of which were deductible for
tax purposes.