Drip Portfolio Report
SunTrust Banks
by Dale Wettlaufer (DaleW@fool.com)


Alexandria, VA (June 30, 1998) --Diving straight into another bank, we head from Manhattan to Atlanta, Georgia, home of SunTrust Banks (NYSE: STI). The present bank descends from The Trust Company of Georgia (which underwrote the initial public offering for the Coca-Cola Company (NYSE: KO) and which still holds all the shares of Coke that it received as payment and still holds the secret formula for Coke in its vault). The Trust Company of Georgia was owned by the father of Robert Woodruff, who ran Coke from 1919 into the 1970s (and had the last say on the board well into the 1980s).

Since more than $3 billion of the company's capital base is represented by Coke stock, that presents an interesting analytical challenge, which we'll certainly have to deal with. In the meantime, here are the numbers on the company for comparison to our other candidates.

Price/Valuation

Share Price.....$81 7/8
Market Cap.....$17,332.45
Price/Book.....3.01
Price/ Tangible Book.....3.13
BVPS.....$27.18
Price/Assets.....28.94%
Price/Net Loans.....42.79%
Price/Deposits.....47.17%
Price/Tangible Assets.....29.05%
Price/Revenues.....5.94

P/E.....25.23
Amortization-Adjusted P/E.....24.79
Discount/Premium to Group.....31.4%
EPS.....$3.25
Cash EPS.....$3.30
Diluted Sharecount.....211.69
1998 EPS Estimate.....$3.47
1999 EPS Estimate.....$3.88
Multiple on 1998 Est......23.60
Multiple on 1999 Est......21.10
Amort-Adjusted Multiple on 1999.....20.79
Discount/Premium to Group.....40.1%

Capital Productivity/Efficiency

Asset Turnover2.....5.16%
Asset Turnover.....5.13%
ROE2.....13.23%
ROE.....13.00%
Amortization Adjusted ROE.....13.82%
ROA.....1.23%
ROA2.....1.236%
Net margin2.....23.97%
Net Margin.....23.55%
Efficiency Ratio.....59.32%
Interest Income/AEA.....6.62%
Interest Expense/AEA.....3.22%
Net Interest Margin.....3.40%
Net Share Buybacks (Including preferred).....$431.1
Dividends on Common.....$199.8
Retention Rate.....71.42%
Payout Ratio on Amort. Adjusted Earnings.....28.58%
Internal Capital Generation Rate.....9.87%
Owners' Yield.....3.64%

Balance Sheet

Cash & Nonearning Assets.....$7,782.5
Cash & Nonearning Last Year.....$6,691.8
Long Term Debt.....$4,189.4
Shareholder's Equity.....$5,753.2
Last Year Equity.....$4,815.9
Tangible Equity.....$5,533.9
Last Year Tangible Equity.....$4,584.3
Tangible Assets.....$59,670.9
Last Year Tangible Assets.....$53,501.68
Total Assets.....$59,890.2
Last Year Assets.....$53,733.3
Total Liabilities.....$54,137.0
Goodwill.....$219.4
Last Year's Goodwill.....$231.6
Gross Loans.....$41,264.0
Loan Loss Reserves.....$758.49
Loan Loss Reserves %.....1.84%

Leverage

Equity/Tangible Assets.....9.64%
Average Equity/Average Assets.....9.30%
Average Equity/Average Assets (Tangible).....8.94%
Assets/Equity.....10.75
Avg. Assets/Avg. Equity (Tangible).....11.19
Loans to Deposits.....112.30%
LT Debt/Equity.....72.82%
Leveraged Capital Ratio.....6.94%
Tier 1 Capital Ratio.....7.63%
Total Risk Based Capital Ratio.....13.04%

Income Statement

Revenues.....$2,917.06
Interest Income (TTM).....$3,747.1
Interest Expense (TTM).....$1,824.7
Net Interest Income.....$1,922.3
Provision for Loan Losses.....$119.48
Noninterest Income (TTM).....$994.8
Noninterest Expense (TTM)$1,742.66
Net Income for Common (TTM).....$687.07
Amortization Adjusted Earnings.....$699.27
Noninterest income/interest income.....26.5%
Noninterest income/revenues.....34.10%
Noninterest income/NII.....51.75%
Amort. Adjusted Net/Revs......23.97%
Amortization of Goodwill.....$12.20

Credit Quality

Nonperforming Loans.....$130.70
Nonperforming Assets.....$162.1
Loan Loss Provision/Net Interest Income.....6.22%
Loan Loss Provision/Gross Loans.....0.29%
Charge Offs.....$150.10
Recoveries.....$54.70
Net Charge Offs.....$95.40
Nonperforming Assets Ratio.....0.39%
Reserves/Nonperforming Loans.....467.91%
Months Charge-Offs in Reserves.....60.6
Loan Loss Provision/Net Charge Offs.....125.24%

Deposits

Deposits.....$36,744.6
Noninterest bearing deposits.....$8,524.4
Noninterest bearing deposits last year.....$8,176.6
Noninterest deposits/deposits.....23.20%
Deposits/Liabilities.....67.87%
Non Jumbo/Jumbo CDs.....2.1

Risk-Based Capital Productivity

ROE2*Tier1.....10.10
Leverage*Turns*Net Margin2.....1.10

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6/29 Close

Stock Close Change CPB $53 1/8 - 7/16 INTC $74 1/8 -1 11/16 JNJ $74 -3
Day Month Year History Drip (2.25%) 3.08% 4.30% (11.18%) S&P 500 (0.41%) 3.94% 16.84% 19.18% Nasdaq 0.19% 6.51% 20.66% 18.88% Last Rec'd Total # Security In At Current 05/29/98 2.269 CPB $54.513 $53.125 06/01/98 9.384 INTC $80.482 $74.125 06/09/98 5.535 JNJ $69.365 $73.750 Last Rec'd Total# Security In At Value Change 05/29/98 2.269 CPB $123.69 $120.54 ($3.15) 06/01/98 9.384 INTC $755.21 $695.55 ($59.66) 06/09/98 5.535 JNJ $383.94 $408.21 $24.27 Base: $1600.00 Cash: $286.07** Total: $1510.37

The Drip Portfolio has been divided into 68.021 shares with an average purchase price of $23.522 per share.

The portfolio began with $500 on July 28, 1997, adds $100 on the 1st of every month, and the goal is to have $150,000 in stock by August of the year 2017.

**Transactions in progress:

6/22/98: Sent $40 to buy more CPB, $35 to buy more JNJ, $25 to buy more INTC.