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SUNTRUST  ANNUAL REPORT74
Twelve Months Ended December ,  (Unaudited)
National
SunTrust Commerce Pro Forma Pro Forma
(In thousands except per share data) Banks, Inc. Financial Adjustments Combined
Interest and dividend income ,, , (,) ,,
Interest expense ,, , , ,,
Net interest income ,, , (,) ,,
Provision for loan losses , , — ,
Net interest income after provision for loan losses ,, , (,) ,,
Noninterest income ,, , — ,,
Noninterest expense ,, , , ,,
Income before provision for income taxes ,, , (,) ,,
Provision for income taxes , , (,) ,
Net income ,, , (,) ,,
Average shares:
Diluted , — , ,
Basic , — , ,
Income per average common share:
Diluted . — — .
Basic . — — .
The reported results of SunTrust Banks, Inc. for the twelve months ended December ,  include the results of the acquired National Commerce Financial from the October ,  acquisition date.
Represents results of National Commerce Financial from January ,  through September , .
Pro forma adjustments include the following items: amortization of core deposit and other intangibles of . million, net of NCF’s historical amortization of . million, amortization of loan purchase accounting
adjustment of . million, accretion of securities purchase accounting adjustment of . million, accretion of deposit purchase accounting adjustment of . million, and acccretion of short-term and long-term bor-
rowings purchase accounting adjustments of . million. Additionally, interest expense includes . million for funding costs as though the funding for the cash component of the transaction occurred January , .
NOTE  • Acquisitions/Dispositions
On October , , SunTrust acquired National Commerce Financial
Corporation and subsidiaries, a Memphis-based financial services organi-
zation. NCF’s parent company merged into SunTrust in a transaction that
qualified as a tax-free reorganization. The acquisition was accounted for
under the purchase method of accounting with the results of operations for
NCF included in SunTrust’s results beginning October , . Under the
purchase method of accounting the assets and liabilities of the former NCF
were recorded at their respective fair values as of October , .
The consideration for the acquisition was a combination of cash and
stock with an aggregate purchase price of approximately . billion. The
total consideration consisted of approximately . billion in cash and
approximately . million shares of SunTrust common stock.
Based on a valuation of their estimated useful lives, the core deposit
intangibles are being amortized over a  year period using the sum of the
years digit method and the other intangibles are being amortized over a
weighted average of . years using the straight line method. No goodwill
related to NCF was deductible for tax purposes. The Company incurred
.million and .million in merger expenses inand,
respectively, which represent incremental costs to integrate NCF’s opera-
tions. More specifically, these represent costs primarily related to consult-
ing fees for systems and other integration intitiatives, employee-related
charges and marketing expenditures.
The following unaudited condensed income statement discloses
the pro forma results of the Company as though the National Commerce
Financial acquisition had occurred at the beginning of the period presented:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued