Laws On Bank Account Liens

SunTrust Reports Fourth Quarter 2012 Results.

Noninterest Income and Expense Improvements Contributed to Core
Earnings Growth

ATLANTA
 , city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847.
, Jan. 18, 2013 /PRNewswire/ —
SunTrust Banks

, Inc. (
NYSE

:

STI
 systolic time intervals.
) today reported net income available to common shareholders of $350
million, or $0.65 per average common
diluted
  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 share, for the fourth
quarter of 2012. This compares to earnings per share of $0.13 in the
fourth quarter of last year and $1.98 per share in the prior quarter,
which included $1.40 per share related to third quarter actions the
Company announced to improve its risk profile and strengthen its balance
sheet. For 2012, SunTrust earned $3.59 per share compared to $0.94 per
share in 2011.


Favorable
  
adj.
1. Advantageous; helpful:

2. Encouraging; propitious:

3.
 performance trends continued, including strong
noninterest income and lower expenses, marking another quarter of core
earnings expansion,” said
William
 or  1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack
 H. Rogers, Jr., chairman and
chief executive officer of SunTrust Banks, Inc. “We concluded the
year in an even stronger position, driving higher revenue and efficiency
gains, while further improving our overall risk profile.”

Fourth Quarter 2012 Financial Highlights

Income Statement

* Continued favorable core performance trends helped drive net
income available to common shareholders of $350 million, or $0.65 per
average common diluted share.

* Reported revenue decreased $1.6 billion from the prior quarter due
to the third quarter gain associated with the accelerated
termination

 of
the agreements regarding The
Coca-Cola

 Company (“KO”) common
stock.

* Excluding securities gains, revenue increased $388 million from
the prior quarter and $262 million from the prior year.

** Noninterest income increased $413 million from the prior quarter
due to record investment banking income and a lower mortgage
repurchase
  
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es
To buy (something) again.

n.
The act of buying something that one previously sold or owned.

Noun 1.
 provision. These items, together with higher core mortgage production
income, also drove the $310 million growth from the prior year.

** Net interest income decreased $25 million from the prior quarter,
primarily due to the previously announced loan sales, and the net
interest margin declined 2 basis points. Net interest income decreased
$48 million compared to the fourth quarter of last year due to lower

earning asset

 yields.

* Noninterest expense decreased $216 million from the prior quarter,
due to the third quarter
write-down

 of affordable housing investments
and the
charitable contribution
 n. in taxation, a contribution to an organization which is officially created for charitable, religious, educational, scientific, artistic, literary, or other good works.
 of KO shares to the SunTrust Foundation,
as well as lower employee compensation and reduced credit-related
expenses. Noninterest expense decreased $157 million from the fourth
quarter of last year due to a decline in cyclically-high costs and the
fourth quarter 2011 expense related to the potential national
mortgage
servicing

 settlement.

* Fourth quarter 2012 noninterest expense included a charge
associated with the recent agreement in principle regarding the
Independent
Foreclosure

 Review.

* Current quarter results benefited from favorable
discrete

 tax
items.

Balance Sheet

* Average performing loans decreased $1.7 billion, or 1%, compared
to the prior quarter primarily due to the sales of government guaranteed
mortgage and student loans. Average performing loans increased $3.6
billion, or 3%, over the fourth quarter of last year, due to targeted
growth, particularly in commercial and industrial loans.

* Average client deposits increased $2.6 billion, or 2%, from the
prior quarter, and $2.8 billion, or 2%, from the fourth quarter of last
year. The favorable shift in the deposit mix toward lower-cost demand
deposits continued.

Capital

* Estimated capital ratios continue to be well above current

regulatory
  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 requirements. The Tier 1 common equity ratio increased to an
estimated 10.00%, up from 9.82% at the end of the prior quarter.

* In
December
 see month.
, the Company issued $450 million of Series E
preferred
stock

.

Asset Quality

* The overall risk profile of the balance sheet continued to
improve. Nonperforming loans declined $184 million, or 11%,
sequentially
  
adj.
1. Forming or characterized by a sequence, as of units or musical notes.

2. Sequent.


se·quen
 and were 1.27% of total loans as of year-end, compared to 1.42% last
quarter and 2.37% a year ago.

* During the quarter, the Company reclassified consumer and mortgage
loans that were
discharged

 as a result of Chapter 7
bankruptcy
 in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt’s assets equitably among creditors and, in most
. This
resulted in a $232 million addition to nonperforming loans and $79
million in charge-offs and loan loss provision.

* Provision for credit losses and net charge-offs were essentially
flat compared to the prior quarter, after adjusting for unusual items
recognized in both quarters.

(1) Current period Tier 1 capital and Tier 1 common equity ratios
are estimated as of the date of this news release.

Consolidated
  
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine:
 Financial Performance Details (Presented on a fully
taxable-equivalent basis unless otherwise noted)

Revenue

Total revenue was $2.3 billion for the fourth quarter of 2012, a
decrease of $1.6 billion compared to the prior quarter and a $244
million, or 12%, increase compared to the fourth quarter of last year.
Excluding net securities gains, total revenue increased $388 million and
$262 million compared to the prior quarter and fourth quarter of last
year, respectively. The
sequential

 quarter increase was primarily
related to actions recognized in the prior quarter, which included a
higher provision for mortgage repurchases and losses related to the
transfer to held for sale of
delinquent
 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent.


DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty.
, government guaranteed student
and mortgage loans. The increase over the fourth quarter of 2011 was
primarily due to higher mortgage-related revenue and investment banking
income.

For 2012, total revenue was $10.6 billion, up $2.0 billion from
2011. Excluding securities gains and losses, full year revenue was $8.6
billion, up $141 million compared to 2011. The increase was primarily
driven by net interest income, mortgage-related revenue, and investment
banking income, partially offset by a decline in card fees related to

debit card
 card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser’s checking account. They can also be used at automated teller machines for withdrawing cash from the user’s checking account.
 interchange regulations that became effective in the fourth
quarter of 2011.

Net Interest Income

Net interest income was $1,276 million for the fourth quarter of
2012 compared to $1,301 million for the prior quarter and $1,324 million
for the fourth quarter of last year. The $25 million decline from the
prior quarter was largely driven by the reduction in average loans,

attributable

 to loan sales announced during the third quarter and
completed in the current quarter. The $48 million decrease compared to
the fourth quarter of last year was due to lower yields on
earning
assets

, a decline in commercial loan-related swap income, and the

foregone

v.
Past participle of forego1.

adj.
Having gone before; previous.

Usage Note: The word foregone has recently developed a new meaning as a truncation of the phrase
 dividend income as a result of the accelerated termination of
the agreements regarding the KO shares, partially offset by lower rates
paid on deposits and a reduction in wholesale funding.

Net interest margin for the fourth quarter of 2012 was 3.36%, a
decline of 2 basis points from the prior quarter and a decline of 10
basis points from the fourth quarter of last year. On a sequential
quarter basis, lower loan and investment securities yields resulted in
an eight basis point decline in earning asset yields. This decline was
partially offset by an eight basis point reduction in rates paid on

interest-bearing

 liabilities due to lower client deposit and long-term
debt rates. Compared to the fourth quarter of last year, the decline in
net interest margin was primarily due to a 37 basis point decline in
loan yields, as a result of the
continuation

 of the low interest rate
environment and a decline of $40 million in commercial loan-related swap
income. Declines in earning asset yields were partially offset by a 32
basis point decline in rates paid on interest-bearing liabilities,
primarily on time deposits and long-term debt.

For the year, net interest income was $5.2 billion, an increase of
$46 million compared to 2011. The primary drivers of the increase in net
interest income were growth in average loans, a favorable shift in the
deposit mix, lower average long-term debt balances, and lower rates paid
on deposits and wholesale borrowings, partially offset by lower earning
asset yields. Net interest margin was 3.40% in 2012 compared to 3.50% in
2011. The decline in net interest margin was due to lower yields on
loans and investment securities, partially offset by lower rates paid on
deposits and wholesale borrowings.

Noninterest Income

Total noninterest income was $1,015 million for the fourth quarter
of 2012 compared to $2,542 million for the prior quarter and $723
million for the fourth quarter of last year. The $1.5 billion decrease
from the prior quarter was driven by a $1.9 billion decline in
securities gains, due to the accelerated termination of the agreements
regarding the KO stock, partially offset by a lower mortgage repurchase
provision, higher investment banking income, and lower losses related to
the transfer to held for sale of certain delinquent, government
guaranteed student and mortgage loans. The increase from the fourth
quarter of last year was primarily due to higher mortgage-related and
investment banking revenue.

Mortgage production income for the fourth quarter of 2012 was $241
million compared to a loss of $64 million for the prior quarter and a
loss of $62 million for the fourth quarter of last year. The $305
million sequential quarter increase was driven by a $359 million decline
in the mortgage repurchase provision, partially offset by declines in
loan production and margins. As of December 31, 2012, the reserve for
mortgage repurchases totaled $632 million, a decrease of $62 million
from the prior quarter. Mortgage repurchase demands declined 5% compared
to the prior quarter. Compared to the fourth quarter of last year,
mortgage production income increased $303 million, due to the $203
million decrease in the mortgage repurchase provision and higher loan
production and margins in the fourth quarter of 2012.

Mortgage servicing income was $45 million for the fourth quarter of
2012 compared to $64 million for the prior quarter and $22 million for
the fourth quarter of last year. The $19 million sequential quarter
decline was due to less favorable net hedge performance. The $23 million
increase from the prior year was due to a $38 million HARP 2.0-related
mortgage servicing rights write-down recognized in the prior year,
partially offset by lower servicing fees in the current quarter due to a
smaller servicing portfolio. As of December 31, 2012, the servicing
portfolio was $145 billion compared to $158 billion at December 31,
2011.

Investment banking income was a record $112 million for the fourth
quarter of 2012 compared to $83 million for the prior quarter and $87
million for the fourth quarter of last year. The increase compared to
prior quarters was due to higher syndicated finance and bond
origination
fee

 income.

Trading income was $65 million for the fourth quarter of 2012
compared to $19 million for the prior quarter and $77 million for the
fourth quarter of last year. Core trading income was essentially stable
across these quarterly periods. The $46 million sequential quarter
increase was primarily attributable to a $24 million reduction in
mark-to-market losses on the Company’s fair value debt and
index-linked CDs and a reduction in trading-related
litigation

 reserves.
The $12 million decline in trading income compared to the fourth quarter
of last year was largely driven by mark-to-market losses of $23 million
on the Company’s fair value debt and index-linked CDs compared to
gains of $17 million in the fourth quarter of last year, as well as
lower valuation gains in the current quarter related to
illiquid

 securities, partially offset by the
aforementioned
  
adj.
Mentioned previously.

n.
The one or ones mentioned previously.


Adjective

mentioned before

Adj. 1.
 reduction in
litigation reserves.

Other noninterest income for the fourth quarter of 2012 was $18
million compared to a loss of $31 million in the prior quarter and
income of $39 million in the fourth quarter of last year. The $49
million increase from the prior quarter was due to lower losses from
loan sales. During the fourth quarter, the Company recognized $25
million of net losses, primarily related to additional sales of
Ginnie
Mae

 see Federal National Mortgage Association.
 loans, as compared to $92 million in losses during the prior
quarter. The $21 million decline in other noninterest income from the
fourth quarter of last year was primarily due to the current quarter
losses associated with the aforementioned sale of loans.

For the year, noninterest income was $5.4 billion compared to $3.4
billion in 2011. The $2.0 billion increase was primarily driven by
higher securities gains and increased mortgage-related income, partially
offset by lower card fees and losses from the loan sales described
above.

Noninterest Expense

Noninterest expense was $1,510 million for the fourth quarter of
2012 compared to $1,726 million for the prior quarter and $1,667 million
for the fourth quarter of last year. The sequential quarter decrease of
$216 million was primarily due to expenses recognized in the third
quarter, including the loss related to the expected sale of affordable
housing investments, the charitable contribution of the KO shares to the
SunTrust Foundation, and
severance

 expense. Also contributing to the
decline was lower employee compensation and benefits in the current
quarter. Compared to the fourth quarter of 2011, the $157 million
noninterest expense decline was due to lower operating losses, including
an
accrual

n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest.
 for a potential national mortgage servicing settlement
recognized last year, as well as decreases in credit-related expenses.
This was partially offset by higher personnel expenses.

Employee compensation and benefits expense decreased $42 million on
a sequential quarter basis, primarily due to a reduction in contract
labor costs, lower salaries attributable to a reduction of over 1,200
full-time equivalent employees during the quarter, and lower incentive
compensation associated with the third quarter accelerated
vesting

 of
certain benefits due to organizational changes. Compared to the fourth
quarter of last year, the $114 million increase in employee compensation
and benefits expense was due in part to the fourth quarter of 2011 gain
of $60 million recognized in connection with the
curtailment

 of the
Company’s defined benefit pension plans, net of a discretionary
401(k) contribution. Incentive compensation was also higher in 2012, as
the fourth quarter of 2011 included a year-end reduction to incentive
pools, and 2012 business performance was improved. These increases were
partially offset by lower salaries due to the reduction of over 2,400
full-time equivalent employees since December 31, 2011.

Operating losses increased $6 million compared to the prior quarter
and decreased $139 million compared to the fourth quarter of last year.
During the fourth quarter, SunTrust and nine other mortgage servicing
companies entered into an agreement in principle with the Federal
Reserve Board and the
Office of the Comptroller of the Currency

 regarding the Independent Foreclosure Review. SunTrust’s cash
portion of the settlement was $63 million; $32 million was recognized as
an
operating loss

The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income.
 during the current quarter, and $31 million had been

accrued
  
v. ac·crued, ac·cru·ing, ac·crues

v.intr.
1. To come to one as a gain, addition, or increment:

2.
 previously. The Company’s portion of the settlement also
includes providing $100 million in relief to borrowers. No accrual has
been made for this portion of the settlement, as it is expected to
substantially be covered via the Company’s allowance for loan
losses and other activities. The decrease in operating losses from the
fourth quarter of last year primarily relates to the recognition of a
$120 million liability related to the potential national mortgage
servicing settlement established during the prior year, as well as lower
mortgage servicing-related
compensatory
 /com·pen·sa·to·ry/ () making good a defect or loss; restoring a lost balance.


adj.
Relating to or characterized by compensation.
 fees in the current quarter.

Other noninterest expense decreased $141 million from the prior
quarter and $127 million from the fourth quarter of last year. The
sequential quarter decline was primarily due to the third quarter $96
million loss related to the affordable housing investments and the third
quarter $29 million severance expense. Additionally, credit-related
expenses, which are comprised of other real estate expenses and credit
and collection costs, declined $30 million compared to the prior
quarter, primarily due to lower OREO losses. The decline from the prior
year was primarily due to a $95 million reduction in credit-related
expenses, as well as lower severance expense.

FDIC

See Federal Deposit Insurance Corporation (FDIC).
 premiums and regulatory assessments decreased $13 million on a
sequential quarter basis and declined $14 million compared to the fourth
quarter of last year due to fluctuations in the Company’s
assessment rate. Outside processing and software increased $12 million
on a sequential quarter basis and $14 million compared to the fourth
quarter of last year, largely due to increased
outsourced

 processing
services. Amortization of intangible assets decreased $10 million on a
sequential quarter basis primarily due to goodwill
impairment

 associated
with a wealth management business recognized in the prior quarter.

For the year, noninterest expense was $6.3 billion compared to $6.2
billion in 2011. The $89 million, or 1%, increase was primarily due to
employee compensation and benefits expense and the affordable housing
write-down, partially offset by lower credit-related expenses and the
impact of the 2011 accrual for the potential national mortgage servicing
settlement.

Income Taxes

For the fourth quarter of 2012, the Company recorded an income tax
provision of $62 million compared to $551 million for the prior quarter
and an income tax benefit of $57 million in the fourth quarter of last
year. The effective tax rate was 15% in the fourth quarter of 2012
compared to 34% in the prior quarter. The decline in the effective tax
rate from the prior quarter was primarily due to lower pre-tax earnings
and the favorable impact in the fourth quarter associated with certain
discrete tax items.

U.S. Treasury Preferred Dividends

The Company paid dividends to the U.S. Treasury on its $4.85 billion
of TARP preferred securities through the first quarter of 2011. The
Company
redeemed
  
tr.v. re·deemed, re·deem·ing, re·deems
1. To recover ownership of by paying a specified sum.

2. To pay off (a promissory note, for example).

3.
 these shares at the end of the first quarter of 2011
and, therefore, did not pay such dividends during 2012 or the last three
quarters of 2011. The year ended December 31, 2011 included $66 million
of preferred dividends paid to the U.S. Treasury and a $74 million, or
$0.14 per common share,
non-cash charge

 related to the unamortized
discount that was recognized upon the
redemption

 of the TARP
preferred
shares

.

Balance Sheet

As of December 31, 2012, the Company had total assets of $173.4
billion and shareholders’ equity of $21.0 billion, representing 12%
of total assets. Both book value and
tangible

 
book value per common
share

 increased modestly compared to
September
 see month.
 30, 2012, and were $37.59
and $25.98, respectively.

Loans

During the current quarter, the remaining sales of the loans
announced as part of the Company’s third quarter strategic actions
were completed. This included the sale of $2.0 billion of student loans
($1.4 billion of which was classified as loans held for sale at the end
of the third quarter and $0.6 billion of which was classified as loans
held for investment), as well as the sale of $450 million of Ginnie Mae
loans (which were classified as loans held for sale at the end of the
third quarter). Additionally, the Company
elected
  
v. e·lect·ed, e·lect·ing, e·lects

v.tr.
1. To select by vote for an office or for membership.

2. To pick out; select:
 to sell an incremental

approximate

v.
To bring together, as cut edges of tissue.

adj.
1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate.

2. Close together.
 $175 million of Ginnie Mae loans, as well as $160 million in
nonperforming mortgage and
CRE

CRE CCD  and Readout Electronics
CRE Camp Response Element
 loans. These loan sales resulted in
average loans for the fourth quarter of 2012 declining to $121.6 billion
from $124.1 billion during the prior quarter. This $2.5 billion, or 2%,
decline was partially offset by increases in commercial and industrial
and consumer indirect loans.

Average loans increased $2.1 billion, or 2%, over the fourth quarter
of last year. Growth was primarily driven by commercial and industrial
loans, which increased $4.2 billion, or 9%, as well as high
credit-quality nonguaranteed residential loans and indirect loans that
increased by $1.1 billion and $0.8 billion, respectively. Partially
offsetting these increases were declines in commercial real estate, home
equity loans, government guaranteed residential and student loans, and
nonaccrual loans.

Securities Available for Sale

As of December 31, 2012, the Company’s securities available for
sale portfolio was $22.0 billion, an increase of $0.5 billion from
September 30, 2012, and a decrease of $6.2 billion from December 31,
2011. The decline from the prior year related to the KO transaction and
reduced holdings of agency
mortgage-backed securities

. For the fourth
quarter of 2012, the yield on the securities portfolio declined 10 basis
points sequentially to 2.68% and declined 46 basis points from the
fourth quarter of last year.
Approximately
  
adj.
1. Almost exact or correct:

2.
 29 basis points of the
decline from the fourth quarter of last year was due to the forgone
dividend income associated with the KO transaction.

Deposits

Average consumer and commercial deposits for the fourth quarter of
2012 were $127.9 billion compared to $125.4 billion and $125.1 billion
for the prior quarter and fourth quarter of last year, respectively. The
favorable shift in the deposit mix toward lower-cost accounts continued
during the quarter, with a $1.6 billion, or 4%, increase in demand
deposits, a $0.8 billion, or 3%, increase in interest bearing
transaction accounts, and a $0.9 billion, or 2%, increase in money
market accounts. These increases, a portion of which were likely due to
year-end seasonality, were partially offset by a $0.8 billion, or 5%,
decline in time deposits.

Compared to the fourth quarter of last year, average consumer and
commercial deposits increased $2.8 billion, or 2%. Average demand
deposits increased $5.4 billion, or 16%, interest bearing transaction
accounts increased $0.6 billion, or 2%, and savings accounts increased
$0.6 billion, or 12%. The increases were partially offset by a decline
of $3.3 billion, or 18%, in time deposits and $0.4 billion, or 1%, in
money market accounts.

Capital and Liquidity

The Company’s estimated capital ratios are well above current
regulatory requirements with Tier 1 capital and Tier 1 common ratios
increasing to an estimated 11.10% and 10.00%, respectively, at year-end.
The ratios of total average equity to total average assets and tangible
equity to tangible assets were 11.82% and 8.82%, respectively, as of
December 31, 2012, each increasing from the prior quarter and fourth
quarter of last year. The Company continues to have substantial
available liquidity provided in the form of its client deposit base and
other available funding resources, as well as its portfolio of
high-quality government-backed securities and cash.

During December 2012, the Company issued 4,500 shares, or $450
million, of Series E Preferred Stock. The stock has no par value, a

liquidation

 preference of $100,000 per share, and pays dividends
quarterly, if and when
declared
  
v. de·clared, de·clar·ing, de·clares

v.tr.
1. To make known formally or officially. See Synonyms at announce.

2. To state emphatically or authoritatively; affirm.

3.
, at an annual rate of 5.875%. Dividends
may not be declared or paid on SunTrust common stock in any quarter that
dividends have not been paid or declared and funds set aside for the
Series E preferred stock. Additionally, dividends are noncumulative, and
the Company has the ability to
redeem
 v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun.
 the shares in whole or in part
beginning on March 15, 2018.

Asset Quality

Asset quality continued to improve during the quarter, with declines
in nonperforming loans and nonperforming assets. Nonperforming loans
totaled $1.5 billion as of December 31, 2012, down $184 million, or 11%,
relative to the prior quarter. Commercial loans were the primary driver
of the decline. During the current quarter, the Company reclassified
mortgage and consumer loans that were discharged as a result of Chapter
7 bankruptcy, resulting in a $232 million increase to nonperforming
loans. Although the vast majority of the post-Chapter 7 bankruptcy loans
are current, these loans were moved to nonperforming in order to
align
,
v to move the teeth into their proper positions to conform to the line of occlusion.
 the Company’s accounting with others in the industry who adopted
this treatment in the third quarter as result of guidance issued by the
OCC. As previously noted, approximately $160 million of nonperforming
mortgage and CRE loans were sold during the quarter.

Compared to December 31, 2011, nonperforming loans declined $1.4
billion, or 47%, with reductions across all loan categories, most
significantly in residential mortgages, commercial construction, and
commercial real estate. At the end of the fourth quarter of 2012, the
percentage of nonperforming loans to total loans was 1.27%, down from
1.42% and 2.37% at the end of the prior quarter and the fourth quarter
of last year, respectively. Other real estate owned totaled $264 million
at the end of the current quarter, down 13% on a sequential quarter
basis and down 45% since December 31, 2011.

Net charge-offs were $398 million in the fourth quarter of 2012
compared to $511 million for the prior quarter and $472 million for the
fourth quarter of last year. The current quarter charge-offs included
$79 million related to the discharged Chapter 7 bankruptcy loans and $39
million associated with the aforementioned nonperforming loan sales.
Third quarter net charge-offs included $172 million related to
nonperforming loan sales and $65 million related to a junior
lien
 claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party.
 credit
policy change. Excluding the impacts of nonperforming loan sales and
policy changes from both quarters, net charge-offs were relatively
stable between the third and fourth quarters. The decline in net
charge-offs from the prior year was primarily driven by commercial
loans, partially offset by the items noted above.

The ratio of annualized net charge-offs to total average loans was
1.30% for the current quarter, 1.64% in the prior quarter, and 1.57% in
the fourth quarter of last year. Charge-offs resulting from the sales of
nonperforming loans and credit policy changes in the current and prior
quarters added 38 basis points and 76 basis points, respectively, to the
ratio. The provision for credit losses was $328 million, a decrease of
$122 million from the prior quarter and stable compared to the fourth
quarter of last year. The aforementioned nonperforming loan sales and
credit policy changes increased the provision in both the third and
fourth quarters.

As of December 31, 2012, the allowance for loan losses was $2.2
billion and represented 1.80% of total loans, down four basis points
from September 30, 2012. Excluding government guaranteed loans, the
allowance for loan losses was 1.95% of total loans. The $65 million
decline in the allowance for loan losses during the fourth quarter of
2012 reflects the continued improvement in asset quality.

Early stage delinquencies decreased two basis points from the end of
the prior quarter to 0.93% at December 31, 2012. The decline was
primarily due to residential mortgages. Excluding government-guaranteed
loans, early stage delinquencies were 0.48%, a decrease of five basis
points from September 30, 2012.

Accruing restructured loans totaled $2.5 billion, and nonaccruing
restructured loans totaled $0.6 billion as of December 31, 2012. The
Chapter 7 bankruptcy policy change resulted in nonaccruing restructured
loans increasing from $0.5 billion at the end of the prior quarter. $2.8
billion of restructured loans related to residential loans, $0.2 billion
were commercial loans, and $0.1 billion related to consumer loans.

LINE OF BUSINESS FINANCIAL PERFORMANCE

Line of Business Results

The Company has included line of business financial tables as part
of this release on the
Investor Relations

 portion of its website at
www.suntrust.com/investorrelations. The Company’s business segments
include: Consumer Banking and Private Wealth Management, Wholesale
Banking, and Mortgage Banking. All revenue in the line of business
tables is reported on a fully taxable-equivalent basis. For the lines of
business, results include net interest income, which is computed using
matched-maturity
funds transfer pricing

. Further, provision for loan
losses is represented by net charge-offs. SunTrust also reports results
for Corporate Other, which includes the Treasury department as well as
the
residual

 expense associated with operational and support expense
allocations. The Corporate Other segment also includes differences
created between internal management accounting practices and
generally
accepted accounting principles

 (”
GAAP

See generally accepted accounting principles (GAAP).
“), certain
matched-maturity funds transfer pricing credits and charges, differences
in provision for loan losses compared to net charge-offs, as well as
equity and its related impact. A detailed discussion of the line of
business results will be included in the Company’s forthcoming
Annual Report on Form 10-K.

Corresponding Financial Tables and Information

Investors are encouraged to review the foregoing summary and
discussion of SunTrust’s earnings and financial condition in

conjunction
 in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun.
 with the detailed financial tables and information which
SunTrust has also published today and SunTrust’s forthcoming Annual
Report on Form 10-K. Detailed financial tables and other information are
also available on the Investor Relations portion of the Company’s
website at www.suntrust.com/investorrelations. This information is also
included in a current report on
Form 8-K

See 8-K.
 
furnished
  
tr.v. fur·nished, fur·nish·ing, fur·nish·es
1. To equip with what is needed, especially to provide furniture for.

2.
 with the Securities
and Exchange Commission today.

Conference Call

SunTrust management will host a conference call on
January
 see month.
 18, 2013,
at 8:00 a.m. (Eastern Time) to discuss the earnings results and business
trends. Individuals may call in beginning at 7:45 a.m. (Eastern Time) by
dialing 1-888-972-7805 (Passcode: 4Q12). Individuals calling from
outside the
United States
 officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world’s third largest country in population and the fourth largest country in area.
 should dial 1-517-308-9091 (Passcode: 4Q12). A
replay of the call will be available approximately one hour after the
call ends on January 18, 2013, and will remain available until
February
 see month.
 18, 2013, by dialing 1-800-813-5534 (domestic) or 1-203-369-3348
(international). Alternatively, individuals may listen to the live
webcast of the presentation by visiting the SunTrust investor relations
website at www.suntrust.com/investorrelations. Beginning the afternoon
of January 18, 2013, listeners may access an archived version of the
webcast in the “Recent Earnings and Conference Presentations”

subsection

Noun

any of the smaller parts into which a section may be divided

Noun 1. subsection – a section of a section; a part of a part; i.e.
 found on the investor relations webpage. This webcast will be
archived and available for one year. 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 banking organizations, serving a broad range of
consumer, commercial, corporate and institutional clients. The Company
operates an extensive branch and ATM network throughout the Southeast
and Mid-Atlantic States and a full array of technology-based, 24-hour
delivery channels. The Company also serves clients in selected markets
nationally. Its primary businesses include deposit, credit, and trust
and investment management services. Through various subsidiaries, the
Company provides mortgage banking, insurance,
brokerage

,
equipment
leasing

, and capital markets services. SunTrust’s
Internet address

 is www.suntrust.com.

Important Cautionary Statement About Forward-Looking Statements

This news release includes non-GAAP financial measures to describe
SunTrust’s performance. The reconciliations of those measures to
GAAP measures are provided within or in the
appendix
 small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity.
 to this news
release. In this news release, the Company presents net interest income
and net interest margin on a fully taxable-equivalent (”
FTE

FTE Fund for Theological Education
“)
basis, and ratios on an 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.

This news release may contains forward-looking statements.
Statements that do not describe historical or current facts, is a
forward-looking statement. These statements often include the words
“believes,” “expects,” “anticipates,”
“estimates,” “intends,” “plans,”
“goals,” “targets,” “initiatives,”
“potentially,” “probably,” “projects,”
“outlook” or similar expressions or future
conditional

 verbs
such as “may,” “will,” “should,”
“would,” and “could.” Forward-looking statements are
based upon the current beliefs and expectations of management and on
information currently available to management. Our statements speak as
of the date
hereof
  
adv.
Of this.


Adverb

Formal or law of or concerning this

Adv. 1. hereof – of or concerning this; “the twigs hereof are physic”
, and we do not assume any obligation to update these
statements or to update the reasons why actual results could differ from
those contained in such statements in light of new information or future
events.

Forward-looking statements are subject to significant risks and
uncertainties. Investors are cautioned against placing undue reliance on
such statements. Actual results may differ materially from those set
forth in the forward-looking statements. Factors that could cause actual
results to differ materially from those described in the forward-looking
statements can be found in Part I, “Item 1A. Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2011 and
in other periodic reports that we file with the SEC.

SOURCE SunTrust Banks, Inc.