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Exhibit 99.1
Second Quarter 2017 Financial Highlights
(Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a tax equivalent basis, net interest income, net interest margin, total revenue, and efficiency ratios are provided on a fully taxable-equivalent basis, which generally assumes a 35% marginal federal tax rate and state income taxes, where applicable. We provide unadjusted amounts in the table on page 3 of this document and detailed reconciliations and additional information in Appendix A on pages 21 and 22.)

Income Statement
Net income available to common shareholders was $505 million, or $1.03 per average common diluted share, compared to $0.91 for the prior quarter and $0.94 for the second quarter of 2016.
Total revenue increased 1% compared to the prior quarter and 2% compared to the second quarter of 2016.
These increases were driven largely by higher net interest income as a result of net interest margin expansion and growth in earning assets.
Net interest margin was 3.14% in the current quarter, up 5 basis points sequentially and up 15 basis points compared to the prior year, driven by higher earning asset yields arising from higher benchmark interest rates, continued positive mix shift in the loan portfolio, and lower premium amortization in the securities portfolio.
Provision for credit losses decreased $29 million sequentially and $56 million year-over-year primarily as a result of lower net charge-offs.
Noninterest expense declined 5% sequentially and increased 3% compared to the prior year.
The sequential decrease was driven primarily by a seasonal decline in personnel costs, higher branch closure and severance costs recognized in the prior quarter, and lower operating losses.
The increase relative to the prior year was driven primarily by the recent acquisition of Pillar & Cohen Financial ("Pillar/Cohen"), higher compensation (as a result of improved business performance), higher net occupancy expense, and higher FDIC premiums, partially offset by lower other noninterest expense.
The efficiency and tangible efficiency ratios in the current quarter were 61.2% and 60.6%, respectively, which represent significant improvements compared to the prior quarter, driven primarily by seasonal declines in employee benefits costs, ongoing expense management initiatives, and solid revenue growth.

Balance Sheet
Average loan balances increased 1% sequentially and 2% year-over-year, driven primarily by growth in consumer lending.
Average consumer and commercial deposits increased slightly sequentially and increased 3% compared to the second quarter of 2016, driven by growth in demand and time deposits.

Capital
Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 ("CET1") ratio was estimated to be 9.7% as of June 30, 2017, and 9.5% on a fully phased-in basis.
During the quarter, the Company:
Issued $750 million of 5.05% preferred stock (Series G) and repurchased $240 million of its outstanding common stock, which completed its share repurchases under its 2016 Capital Plan.
Announced its 2017 Capital Plan, which includes:
The purchase of up to $1.32 billion of its outstanding common stock between the third quarter of 2017 and the second quarter of 2018 (representing a 38% increase).
A 54% increase in the quarterly common stock dividend from $0.26 per share to $0.40 per share, beginning in the third quarter of 2017, subject to approval by the Company's Board of Directors.
Book value per common share was $46.51 and tangible book value per common share was $33.83, both up 2% from March 31, 2017, driven primarily by growth in retained earnings.


1



Asset Quality
Nonperforming loans decreased $35 million from the prior quarter and represented 0.52% of total loans at June 30, 2017. The sequential decrease was driven by the return to accrual status of certain nonperforming energy-related loans during the current quarter.
Net charge-offs for the current quarter were $70 million, or 0.20% of average loans on an annualized basis, down $42 million sequentially and $67 million year-over-year driven by overall asset quality improvements for both periods as well as lower energy-related net charge-offs year-over-year.
The provision for credit losses decreased $29 million sequentially as a result of lower net charge-offs.
At June 30, 2017, the allowance for loan and lease losses ("ALLL") to period-end loans held for investment ("LHFI") ratio was 1.20%, stable compared to the prior quarter.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Statement (Dollars in millions, except per share data)
2Q 2017
 
1Q 2017
 
4Q 2016
 
2Q 2016
Net interest income
$1,403
 
$1,366
 
$1,343
 
$1,288
Net interest income-FTE 2
1,439
 
1,400
 
1,377
 
1,323
Net interest margin
3.06
%
 
3.02
%
 
2.93
%
 
2.91
%
Net interest margin-FTE 2
3.14

 
3.09

 
3.00

 
2.99

Noninterest income
$827
 
$847
 
$815
 
$898
Total revenue
2,230

 
2,213

 
2,158

 
2,186

Total revenue-FTE 2
2,266

 
2,247

 
2,192

 
2,221

Noninterest expense
1,388

 
1,465

 
1,397

 
1,345

Provision for credit losses
90

 
119

 
101

 
146

Net income available to common shareholders
505

 
451

 
448

 
475

Earnings per average common diluted share
1.03

 
0.91

 
0.90

 
0.94

 
 
 
 
 
 
 
 
Balance Sheet (Dollars in billions)
 
 
 
 
 
 
 
Average loans held for investment ("LHFI")

$144.4

 

$143.7

 

$142.6

 

$141.2

Average consumer and commercial deposits
159.1

 
158.9

 
158.0

 
154.2

 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
Capital ratios at period end 1 :
 
 
 
 
 
 
 
Tier 1 capital (transitional)
10.81
%
 
10.40
%
 
10.28
%
 
10.57
%
Common Equity Tier 1 ("CET1") (transitional)
9.68

 
9.69

 
9.59

 
9.84

Common Equity Tier 1 ("CET1") (fully phased-in) 2
9.53

 
9.54

 
9.43

 
9.73

Total average shareholders’ equity to total average assets
11.80

 
11.59

 
11.84

 
12.11

 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
Net charge-offs to average LHFI (annualized)
0.20
%
 
0.32
%
 
0.38
%
 
0.39
%
ALLL to period-end LHFI
1.20

 
1.20

 
1.19

 
1.25

Nonperforming loans to total loans
0.52

 
0.55

 
0.59

 
0.67

1 Current period Tier 1 capital and CET1 ratios are estimated as of the date of this document.
2 See Appendix A on pages 21 and 22 for non-U.S. GAAP reconciliations and additional information.



2



Consolidated Financial Performance Details
(Commentary is on a fully taxable-equivalent basis unless otherwise noted)
Revenue
Total revenue was $2.3 billion for the current quarter, an increase of $19 million compared to the prior quarter. Net interest income increased $39 million sequentially due to a higher net interest margin and growth in average earning assets. Noninterest income decreased $20 million sequentially driven primarily by lower capital markets and mortgage-related income. Compared to the second quarter of 2016, total revenue increased $45 million, driven by a $116 million increase in net interest income, which was partially offset by a $63 million decrease in mortgage-related income.
Net Interest Income
Net interest income was $1.4 billion for the current quarter, an increase of $39 million and $116 million compared to the prior quarter and prior year, respectively. Both increases were driven primarily by net interest margin expansion and growth in earning assets.
Net interest margin for the current quarter was 3.14%, compared to 3.09% in the prior quarter and 2.99% in the second quarter of 2016. The 5 and 15 basis point increases relative to the prior quarter and prior year were driven primarily by higher earning asset yields arising from higher benchmark interest rates, continued positive mix shift in the loan portfolio, and lower premium amortization in the securities portfolio, partially offset by higher deposit costs.
For the six months ended June 30, 2017, net interest income was $2.8 billion, a $199 million increase compared to the first six months of 2016. The net interest margin was 3.11% for the first half of 2017, a 10 basis point increase compared to the same period in 2016. The increases in both net interest income and net interest margin were driven by the same factors that impacted the prior year comparison discussed above.
Noninterest Income
Noninterest income was $827 million for the current quarter, compared to $847 million for the prior quarter and $898 million for the second quarter of 2016. The $20 million sequential decrease was due primarily to lower capital markets and mortgage-related income. Compared to the second quarter of 2016, noninterest income decreased $71 million, driven largely by lower mortgage-related income and reduced service charges on deposit accounts, as well as the $44 million of net asset-related gains recognized during the second quarter of 2016. These year-over-year decreases were partially offset by higher capital markets and commercial real estate related income (which is favorably impacted by the acquisition of Pillar/Cohen in December 2016).
Investment banking income was $147 million for the current quarter, compared to $167 million in the prior quarter and $126 million in the second quarter of 2016. The $20 million decrease compared to the prior quarter is due to lower capital market originations (specifically in syndicated finance) in the current quarter following record performance in the prior quarter. The $21 million increase compared to the second quarter of 2016 was due to strong deal flow activity, particularly in syndicated finance and M&A advisory.
Trading income was $46 million for the current quarter, compared to $51 million in the prior quarter and $34 million in the second quarter of 2016. The sequential decrease was due to lower client-related interest rate hedging activity during the current quarter. The increase compared to the second quarter of 2016 was driven largely by the recognition of higher counterparty credit valuation reserves (as a result of an adjustment to the internal reserve methodology) in the second quarter of 2016.
Mortgage production income for the current quarter was $56 million, compared to $53 million for the prior quarter and $111 million for the second quarter of 2016. The $55 million decrease from the second quarter of 2016 was due to lower production volume and lower gain-on-sale margins. Mortgage application volume increased 7% sequentially and decreased 26% compared to the second quarter of 2016. Closed loan volume increased 17% sequentially, but decreased 12% compared to the second quarter of 2016.

3



Mortgage servicing income was $44 million for the current quarter, compared to $58 million in the prior quarter and $52 million in the second quarter of 2016. The $14 million sequential decrease was due to higher servicing asset decay and lower net hedge performance. The $8 million decrease compared to the second quarter of 2016 was due largely to lower net hedge performance and higher servicing asset decay, partially offset by higher servicing fees. At June 30, 2017 and 2016, the servicing portfolio totaled $165.6 billion and $154.5 billion, respectively, and was $164.5 billion at March 31, 2017.
Retail investment income was $70 million for the current quarter, compared to $68 million in the prior quarter and $72 million in the second quarter of 2016. The $2 million increase compared to the prior quarter is due to growth in retail brokerage managed assets. The $2 million decrease compared to the prior year was a result of reduced client transactional activity.
Client transaction-related fees (namely service charges on deposits, other charges and fees, and card fees) increased $16 million compared to the prior quarter due largely to higher client spend activity, increased incidence rates on deposit accounts and higher commitment fees. Compared to second quarter of 2016, client transaction-related fees decreased $8 million due to the impact of the enhanced posting order process instituted during the fourth quarter of 2016.
Commercial real estate related income was $24 million for the current quarter, compared to $20 million for the prior quarter and $10 million for the second quarter of 2016. The $4 million sequential increase was due primarily to higher structured real estate-related gains. The $14 million increase compared to the second quarter of 2016 was attributable to revenue from Pillar/Cohen, which the Company acquired in December 2016.
Other noninterest income was $22 million for the current quarter, compared to $30 million in the prior quarter and $65 million in the second quarter of 2016. The $8 million decrease compared to the sequential quarter was due primarily to gains on the sale of affordable housing investments recognized during the prior quarter. The $43 million decrease compared to the prior year was due primarily to the $44 million of net asset-related gains recognized during the second quarter of 2016.
For the six months ended June 30, 2017, noninterest income was $1.7 billion, a decrease of $6 million compared to the first six months of 2016 as higher capital markets and commercial real estate related income were offset by lower mortgage-related and other noninterest income as well as reduced service charges on deposit accounts.
Noninterest Expense
Noninterest expense was $1.4 billion in the current quarter, representing a sequential decline of $77 million and an increase of $43 million compared to the second quarter of 2016. The sequential decrease was driven primarily by the seasonal decline in personnel costs, higher branch closure and severance costs recognized in the prior quarter (recorded in other noninterest expense), and lower operating losses. The increase relative to the prior year was driven primarily by the recent acquisition of Pillar/Cohen, higher compensation (as a result of improved business performance), higher net occupancy expense, and higher FDIC premiums, partially offset by lower other noninterest expense.
Employee compensation and benefits expense was $796 million in the current quarter, compared to $852 million in the prior quarter and $763 million in the second quarter of 2016. The sequential decrease of $56 million was due to the seasonal decrease in employee benefits costs. The $33 million increase compared to the second quarter of 2016 was due primarily to incremental compensation costs associated with the acquisition of Pillar/Cohen and higher compensation costs associated with revenue growth.
Operating losses were $19 million in the current quarter, compared to $32 million in the prior quarter and $25 million in the second quarter of 2016. The decrease relative to the first quarter was largely due to higher legal accruals recognized during the prior quarter. The year-over-year decrease was due to higher regulatory, compliance and legal-related charges recognized in the prior year.
Outside processing and software expense was $204 million in the current quarter, stable compared to $205 million in the prior quarter and $202 million in the second quarter of 2016.

4



FDIC premium and regulatory expense was $49 million in the current quarter, compared to $48 million in the prior quarter and $44 million in the second quarter of 2016. The $5 million increase compared to the prior year was driven by the FDIC surcharge on large banks, which became effective during the third quarter of 2016, and a larger assessment base attributable to balance sheet growth.
Marketing and customer development expense was $42 million in the current quarter, compared to $42 million in the prior quarter and $38 million in the second quarter of 2016. The increase relative to the prior year was driven by normal variability in advertising and client development costs.
Net occupancy expense was $94 million in the current quarter, compared to $92 million in the prior quarter and $78 million in the second quarter of 2016.  The year-over-year increase was due primarily to a reduction in amortized gains from prior sale leaseback transactions.
Other noninterest expense was $126 million in the current quarter, compared to $142 million in both the prior quarter and second quarter of 2016. The sequential decrease was primarily due to higher branch closure and severance costs incurred in the prior quarter. The year-over-year decrease was driven primarily by lower severance and credit collection-related expenses.
For the six months ended June 30, 2017, noninterest expense was $2.9 billion compared to $2.7 billion for the first six months of 2016. The $190 million increase was driven largely by higher employee compensation expense (primarily related to higher revenue and the acquisition of Pillar/Cohen), net occupancy costs, FDIC premium and regulatory expense, and other noninterest expense (related primarily to branch closure costs and legal and consulting fees).
Income Taxes
For the current quarter, the Company recorded an income tax provision of $222 million, compared to $159 million for the prior quarter and $201 million for the second quarter of 2016. The prior quarter was favorably impacted by $23 million in discrete tax benefits. The effective tax rate for the current quarter was 30%, compared to 25% in the prior quarter and 29% in the second quarter of 2016.

Balance Sheet
At June 30, 2017, the Company had total assets of $207.2 billion and total shareholders’ equity of $24.5 billion, representing 12% of total assets. Book value per common share was $46.51 and tangible book value per common share was $33.83, both up 2% compared to March 31, 2017 driven primarily by growth in retained earnings and a lower accumulated other comprehensive loss.
Loans
Average performing loans were $143.7 billion for the current quarter, a 1% increase over the prior quarter and a 2% increase over the second quarter of 2016. The sequential and year-over-year growth was driven largely by increases in consumer lending, offset partially by declines in home equity products.
Deposits
Average consumer and commercial deposits for the current quarter were $159.1 billion, a slight increase over the prior quarter and a 3% increase over the second quarter of 2016. The sequential growth was due largely to a 5% increase in time deposits and a 1% increase in demand deposits, offset partially by declines in both NOW and money market account balances. Compared to the second quarter of 2016, growth was driven primarily by increases in NOW and money market account balances.

5



Capital and Liquidity
The Company’s estimated capital ratios were well above current regulatory requirements with the Common Equity Tier 1 ratio estimated to be 9.7% at June 30, 2017, and 9.5% on a fully phased-in basis. The ratios of average total equity to average total assets and tangible common equity to tangible assets were 11.8% and 8.1%, respectively, at June 30, 2017. The Company continues to have substantial available liquidity in the form of cash, high-quality government-backed or government-sponsored securities, and other available contingency funding sources.
The Company declared a common stock dividend of $0.26 per common share and repurchased $240 million of its outstanding common stock in the second quarter of 2017, which completed its authorized common equity repurchases as approved by the Board in conjunction with the 2016 Capital Plan. Additionally, the Company issued $750 million of 5.05% noncumulative perpetual preferred stock, Series G, in May 2017.
In June 2017, the Company announced that the Federal Reserve had no objections to its 2017 Capital Plan. This plan includes the repurchase of up to $1.32 billion of the Company's outstanding common stock between the third quarter of 2017 and the second quarter of 2018 (representing a 38% increase in the average quarterly repurchase amount compared to the previous authorization). Additionally, subject to Board approval, the Company intends to increase its quarterly common stock dividend 54% to $0.40 per common share beginning in the third quarter of 2017 and to maintain the current level of dividend payments on its preferred stock.
Asset Quality
Total nonperforming assets were $821 million at June 30, 2017, down $37 million compared to the prior quarter and $180 million compared to the second quarter of 2016. The decrease in nonperforming assets compared to both the prior quarter and the prior year was due primarily to the continued resolution of problem energy credits. The ratio of nonperforming loans to total loans held for investment was 0.52%, 0.55%, and 0.67% at June 30, 2017, March 31, 2017, and June 30, 2016, respectively.
Net charge-offs were $70 million during the current quarter, a decrease of $42 million compared to the prior quarter and $67 million compared to the second quarter of 2016. The decrease was primarily driven by overall asset quality improvements for both periods as well as lower energy-related net charge-offs year-over-year. The ratio of annualized net charge-offs to total average loans held for investment was 0.20% during the current quarter, compared to 0.32% during the prior quarter and 0.39% during the second quarter of 2016. The provision for credit losses was $90 million in the current quarter, a decrease of $29 million compared to the prior quarter and $56 million compared to the second quarter of 2016.
At June 30, 2017, the ALLL was $1.7 billion, which represented 1.20% of total loans, stable relative to March 31, 2017.
Early stage delinquencies decreased 6 basis points from the prior quarter to 0.66% at June 30, 2017. Excluding government-guaranteed loans which account for 0.44%, early stage delinquencies were 0.22%, unchanged compared to the prior quarter and down 1 basis point from a year ago.
Accruing restructured loans totaled $2.5 billion and nonaccruing restructured loans totaled $321 million at June 30, 2017, of which $2.5 billion were residential loans, $177 million were consumer loans, and $128 million were commercial loans.

6



OTHER INFORMATION

About SunTrust Banks, Inc.
SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. Headquartered in Atlanta, the Company has two business segments: Consumer and Wholesale. Its flagship subsidiary, SunTrust Bank, operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. As of June 30, 2017, SunTrust had total assets of $207 billion and total deposits of $160 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.
Business Segment Results
The Company has included its business segment financial tables as part of this document. Revenue and income amounts labeled "FTE" in the business segment tables are reported on a fully taxable-equivalent basis. In the second quarter of 2017, the Company realigned its business segment structure from three segments to two segments based on, among other things, the manner in which financial information is evaluated by management and in conjunction with Company-wide organizational changes that were announced during the first quarter of 2017. Specifically, the Company retained the previous composition of the Wholesale Banking segment and changed the basis of presentation of the Consumer Banking and Private Wealth Management segment and Mortgage Banking segment such that those segments were combined into a single Consumer segment. In conjunction with this business segment structure realignment, the Company made certain adjustments to its internal funds transfer pricing methodology. Prior period information was revised to conform to the new business segment structure and the updated internal funds transfer pricing methodology.
For the business segments, net interest income is computed using matched-maturity funds transfer pricing and noninterest income includes federal and state tax credits that are grossed-up on a pre-tax equivalent basis. Further, provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision/(benefit) attributable to each segment's quarterly change in the allowance for loan and lease losses and unfunded commitments reserve balances. 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 U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and certain matched-maturity funds transfer pricing credits and charges. A detailed discussion of the business segment results will be included in the Company’s forthcoming Form 10-Q.
Corresponding Financial Tables and Information
Investors are encouraged to review the foregoing summary and discussion of SunTrust’s earnings and financial condition in conjunction with the detailed financial tables and information which SunTrust has also published today and SunTrust’s forthcoming Form 10-Q. Detailed financial tables and other information are also available at investors.suntrust.com. This information is also included in a current report on Form 8-K filed with the SEC today.
Conference Call
SunTrust management hosted a conference call on July 21, 2017, at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals were able to call in beginning at 7:45 a.m. (Eastern Time) by dialing 1-877-209-9920 (Passcode: SunTrust). Individuals calling from outside the United States should dial 1-612-332-1210 (Passcode: SunTrust). A replay of the call was available approximately one hour after the call ended on July 21, 2017, and remains available until August 21, 2017, by dialing 1-800-475-6701 (domestic) or 1-320-365-3844 (international) (Passcode: 425463). Alternatively, individuals were able to listen to the live webcast of the presentation by visiting the SunTrust investor relations website at investors.suntrust.com. Beginning the afternoon of July 21, 2017, listeners may access an archived version of the webcast in the “Events & Presentations” section of the investor relations website. This webcast will be archived and available for one year.

7



Non-GAAP Financial Measures
This document 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 to this document beginning at page 21.
In this document, consistent with Securities and Exchange Commission Industry Guide 3, the Company presents total revenue, net interest income, net interest margin, and efficiency ratios on a fully taxable equivalent (“FTE”) basis, and ratios on an annualized basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. Total revenue-FTE equals net interest income-FTE plus noninterest income.
The Company presents the following additional non-GAAP measures because many investors find them useful. Specifically:
The Company presents certain capital information on a tangible basis, including tangible equity, tangible common equity, the ratio of tangible equity to tangible assets, the ratio of tangible common equity to tangible assets, tangible book value per share, and the return on tangible common shareholders’ equity, which removes the after-tax impact of purchase accounting intangible assets from shareholders' equity and removes related intangible asset amortization from net income available to common shareholders. The Company believes these measures are useful to investors because, by removing the amount of intangible assets that result from merger and acquisition activity and amortization expense (the level of which may vary from company to company), it allows investors to more easily compare the Company’s capital position and return on average tangible common shareholders' equity to other companies in the industry who present similar measures. The Company also believes that removing these items provides a more relevant measure of the return on the Company's common shareholders' equity. These measures are utilized by management to assess the capital adequacy and profitability of the Company.
Similarly, the Company presents an efficiency ratio-FTE and a tangible efficiency ratio-FTE. The efficiency ratio is computed by dividing noninterest expense by total revenue. Efficiency ratio-FTE is computed by dividing noninterest expense by total revenue-FTE. The tangible efficiency ratio-FTE excludes the amortization related to intangible assets and certain tax credits. The Company believes this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare the Company’s efficiency to other companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.
The Company presents the Basel III Common Equity Tier 1 (CET1) ratio, on a fully phased-in basis. Fully phased-in ratios consider a 250% risk-weighting for MSRs and deduction from capital of certain carryforward DTAs, the overfunded pension asset, and other intangible assets. The Company believes this measure is useful to investors who wish to understand the Company's current compliance with future regulatory requirements.
Important Cautionary Statement About Forward-Looking Statements
This document contains forward-looking statements. Statements regarding potential future share repurchases and future expected dividends are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “opportunity,” “focus,” “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, 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. Future dividends, and the amount of any such dividend, must be declared by our board of directors in the future in their discretion. Also, future share repurchases and the timing of any such repurchase are subject to market conditions and management's discretion. Additional 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, 2016 and in other periodic reports that we file with the SEC.

8



SunTrust Banks, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
(Dollars in millions and shares in thousands, except per share data) (Unaudited) 
Three Months Ended June 30
 
Six Months Ended June 30
2017

2016
 
2017

2016
EARNINGS & DIVIDENDS
 

 
 
 

 
Net income

$528

 

$492

 

$995

 

$939

Net income available to common shareholders
505

 
475

 
956

 
906

Total revenue
2,230

 
2,186

 
4,443

 
4,249

Total revenue-FTE 1
2,266

 
2,221

 
4,513

 
4,320

Net income per average common share:
 
 
 
 
 
 
 
Diluted

$1.03



$0.94

 

$1.94



$1.78

Basic
1.05


0.95

 
1.97


1.80

Dividends paid per common share
0.26


0.24

 
0.52


0.48

CONDENSED BALANCE SHEETS
 
 
 
 
 
 
 
Selected Average Balances:
 
 
 
 
 
 
 
Total assets

$204,494



$198,305

 

$204,374



$195,660

Earning assets
184,057


178,055

 
183,833


176,122

Loans held for investment ("LHFI")
144,440


141,238

 
144,058


139,805

Intangible assets including mortgage servicing rights ("MSRs")
8,024


7,543

 
8,025


7,556

MSRs
1,603


1,192

 
1,603


1,203

Consumer and commercial deposits
159,136


154,166

 
159,006


151,698

Total shareholders’ equity
24,139


24,018

 
23,906


23,907

Preferred stock
1,720


1,225

 
1,474


1,225

Period End Balances:
 
 
 
 
 
 
 
Total assets
 
 
 
 

$207,223



$198,892

Earning assets
 
 
 
 
184,518


178,852

LHFI
 
 
 
 
144,268


141,656

Allowance for loan and lease losses ("ALLL")
 
 
 
 
1,731


1,774

Consumer and commercial deposits
 
 
 
 
158,319


151,779

Total shareholders’ equity
 
 
 
 
24,477


24,464

FINANCIAL RATIOS & OTHER DATA
 
 
 
 
 
 
 
Return on average total assets
1.03
%

1.00
%
 
0.98
%

0.97
%
Return on average common shareholders’ equity
9.08


8.43

 
8.64


8.07

Return on average tangible common shareholders' equity 1
12.51


11.54

 
11.90


11.07

Net interest margin
3.06


2.91

 
3.04


2.93

Net interest margin-FTE 1
3.14

 
2.99

 
3.11

 
3.01

Efficiency ratio
62.24

 
61.53

 
64.21

 
62.67

Efficiency ratio-FTE 1
61.24


60.56

 
63.21


61.65

Tangible efficiency ratio-FTE 1
60.59


60.05

 
62.59


61.16

Effective tax rate 
30


29

 
28


30

Basel III capital ratios at period end (transitional) 2:
 
 
 
 
 
 
 
Common Equity Tier 1 ("CET1")
 
 
 
 
9.68
%
 
9.84
%
Tier 1 capital
 
 
 
 
10.81

 
10.57

Total capital
 
 
 
 
12.75

 
12.68

Leverage
 
 
 
 
9.55

 
9.35

Basel III fully phased-in CET1 ratio 1, 2
 
 
 
 
9.53

 
9.73

Total average shareholders’ equity to total average assets
11.80
%

12.11
%
 
11.70


12.22

Tangible equity to tangible assets 1
 
 
 
 
9.15


9.54

Tangible common equity to tangible assets 1
 
 
 
 
8.11

 
8.85

Book value per common share
 
 
 
 

$46.51



$46.14

Tangible book value per common share 1
 
 
 
 
33.83


33.98

Market capitalization
 
 
 
 
27,319


20,598

Average common shares outstanding:
 
 
 
 
 
 
 
Diluted
488,020


505,633

 
491,989


508,012

Basic
482,913


501,374

 
486,482


503,428

Full-time equivalent employees
 
 
 
 
24,278


23,940

Number of ATMs
 
 
 
 
2,104


2,144

Full service banking offices
 
 
 
 
1,281


1,389

 
 
 
 
 
 
 
 
1 
See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.
2 
Current period capital ratios are estimated as of the document date.

9



SunTrust Banks, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS, continued
 
Three Months Ended
 
June 30
 
March 31
 
December 31
 
June 30
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
2017
 
2017
 
2016
 
2016
EARNINGS & DIVIDENDS
 
 
 
 
 
 
 
Net income

$528

 

$468

 

$465

 

$492

Net income available to common shareholders
505

 
451

 
448

 
475

Total revenue
2,230

 
2,213

 
2,158

 
2,186

Total revenue-FTE 1
2,266

 
2,247

 
2,192

 
2,221

Net income per average common share:
 
 
 
 
 
 
 
Diluted

$1.03

 

$0.91

 

$0.90

 

$0.94

Basic
1.05

 
0.92

 
0.91

 
0.95

Dividends paid per common share
0.26

 
0.26

 
0.26

 
0.24

CONDENSED BALANCE SHEETS
 
 
 
 
 
 
 
Selected Average Balances:
 
 
 
 
 
 
 
Total assets

$204,494

 

$204,252

 

$203,146

 

$198,305

Earning assets
184,057

 
183,606

 
182,475

 
178,055

LHFI
144,440

 
143,670

 
142,578

 
141,238

Intangible assets including MSRs
8,024

 
8,026

 
7,654

 
7,543

MSRs
1,603

 
1,604

 
1,291

 
1,192

Consumer and commercial deposits
159,136

 
158,874

 
157,996

 
154,166

Total shareholders’ equity
24,139

 
23,671

 
24,044

 
24,018

Preferred stock
1,720

 
1,225

 
1,225

 
1,225

Period End Balances:
 
 
 
 
 
 
 
Total assets

$207,223

 

$205,642

 

$204,875

 

$198,892

Earning assets
184,518

 
183,279

 
184,610

 
178,852

LHFI
144,268

 
143,529

 
143,298

 
141,656

ALLL
1,731

 
1,714

 
1,709

 
1,774

Consumer and commercial deposits
158,319

 
161,531

 
158,864

 
151,779

Total shareholders’ equity
24,477

 
23,484

 
23,618

 
24,464

FINANCIAL RATIOS & OTHER DATA
 
 
 
 
 
 
 
Return on average total assets
1.03
%
 
0.93
%
 
0.91
%
 
1.00
%
Return on average common shareholders’ equity
9.08

 
8.19

 
7.85

 
8.43

Return on average tangible common shareholders' equity 1
12.51

 
11.28

 
10.76

 
11.54

Net interest margin
3.06

 
3.02

 
2.93

 
2.91

Net interest margin-FTE 1
3.14

 
3.09

 
3.00

 
2.99

Efficiency ratio
62.24

 
66.20

 
64.74

 
61.53

Efficiency ratio-FTE 1
61.24

 
65.19

 
63.73

 
60.56

Tangible efficiency ratio-FTE 1
60.59

 
64.60

 
63.08

 
60.05

Effective tax rate
30

 
25

 
29

 
29

Basel III capital ratios at period end (transitional) 2:
 
 
 
 
 
 
 
CET1
9.68
%
 
9.69
%
 
9.59
%
 
9.84
%
Tier 1 capital
10.81

 
10.40

 
10.28

 
10.57

Total capital
12.75

 
12.37

 
12.26

 
12.68

Leverage
9.55

 
9.08

 
9.22

 
9.35

Basel III fully phased-in CET1 ratio 1, 2
9.53

 
9.54

 
9.43

 
9.73

Total average shareholders’ equity to total average assets
11.80

 
11.59

 
11.84

 
12.11

Tangible equity to tangible assets 1
9.15

 
8.72

 
8.82

 
9.54

Tangible common equity to tangible assets 1
8.11

 
8.06

 
8.15

 
8.85

Book value per common share

$46.51

 

$45.62

 

$45.38

 

$46.14

Tangible book value per common share 1
33.83

 
33.05

 
32.95

 
33.98

Market capitalization
27,319

 
26,860

 
26,942

 
20,598

Average common shares outstanding:
 
 
 
 
 
 
 
Diluted
488,020

 
496,002

 
497,055

 
505,633

Basic
482,913

 
490,091

 
491,497

 
501,374

Full-time equivalent employees
24,278

 
24,215

 
24,375

 
23,940

Number of ATMs
2,104

 
2,132

 
2,165

 
2,144

Full service banking offices
1,281

 
1,316

 
1,367

 
1,389

 
 
 
 
 
 
 
 
1 
See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.
2 
Current period capital ratios are estimated as of the document date.


10



SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
 
Three Months Ended
 
Six Months Ended
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
June 30
 
June 30
2017

2016
 
2017

2016
Interest income

$1,583



$1,424

 

$3,111



$2,834

Interest expense
180


136

 
342


265

NET INTEREST INCOME
1,403


1,288

 
2,769


2,569

Provision for credit losses
90


146

 
209


246

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
1,313


1,142

 
2,560


2,323

NONINTEREST INCOME
 
 
 
 
 
 
 
Service charges on deposit accounts
151

 
162

 
299


315

Other charges and fees
103

 
104

 
198


197

Card fees
87

 
83

 
169


160

Investment banking income
147

 
126

 
314


225

Trading income
46

 
34

 
97


89

Trust and investment management income
76

 
75

 
151

 
150

Retail investment services
70

 
72

 
139

 
141

Mortgage production related income
56

 
111

 
109


171

Mortgage servicing related income
44

 
52

 
102


114

Commercial real estate related income 1
24

 
10

 
44

 
28

Net securities gains
1

 
4

 
1


4

Other noninterest income 1
22

 
65

 
51


86

Total noninterest income
827


898

 
1,674


1,680

NONINTEREST EXPENSE
 
 
 
 
 

 
Employee compensation and benefits
796

 
763

 
1,648


1,536

Outside processing and software
204

 
202

 
409


400

Net occupancy expense
94

 
78

 
185


163

Equipment expense
43

 
42

 
83

 
82

FDIC premium/regulatory exams
49

 
44

 
97

 
80

Marketing and customer development
42

 
38

 
84


82

Operating losses
19

 
25

 
51


50

Amortization
15

 
11

 
28

 
21

Other noninterest expense
126

 
142

 
268


249

Total noninterest expense
1,388


1,345

 
2,853


2,663

INCOME BEFORE PROVISION FOR INCOME TAXES
752


695

 
1,381


1,340

Provision for income taxes
222


201

 
381


396

NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
530


494

 
1,000


944

Net income attributable to noncontrolling interest
2


2

 
5


5

NET INCOME

$528



$492

 

$995



$939

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$505



$475

 

$956



$906

Net interest income-FTE 2
1,439


1,323

 
2,839


2,640

Total revenue
2,230

 
2,186

 
4,443

 
4,249

Total revenue-FTE 2
2,266

 
2,221

 
4,513

 
4,320

Net income per average common share:
 
 
 
 
 
 
 
Diluted
1.03


0.94

 
1.94


1.78

Basic
1.05


0.95

 
1.97


1.80

Cash dividends paid per common share
0.26


0.24

 
0.52


0.48

Average common shares outstanding:
 
 
 
 
 
 
 
Diluted
488,020


505,633

 
491,989


508,012

Basic
482,913


501,374

 
486,482


503,428

 
 
 
 
 
 
 
 
1 Beginning January 1, 2017, the Company began presenting income related to the Company's Pillar & Cohen Financial, Community Capital, and Structured Real Estate businesses as a separate line item on the Consolidated Statements of Income titled Commercial real estate related income. For periods prior to January 1, 2017, these amounts were previously presented in Other noninterest income and have been reclassified to Commercial real estate related income for comparability.
2 See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.

11



SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME, continued
 
Three Months Ended
(Dollars in millions and shares in thousands, except per share data)
(Unaudited)
June 30
 
March 31
 
December 31
 
June 30
2017
 
2017
 
2016
 
2016
Interest income

$1,583

 

$1,528

 

$1,492

 

$1,424

Interest expense
180

 
162

 
149

 
136

NET INTEREST INCOME
1,403

 
1,366

 
1,343

 
1,288

Provision for credit losses
90

 
119

 
101

 
146

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
1,313

 
1,247

 
1,242

 
1,142

NONINTEREST INCOME
 
 
 
 
 
 
 
Service charges on deposit accounts
151

 
148

 
154

 
162

Other charges and fees
103

 
95

 
90

 
104

Card fees
87

 
82

 
84

 
83

Investment banking income
147

 
167

 
122

 
126

Trading income
46

 
51

 
58

 
34

Trust and investment management income
76

 
75

 
73

 
75

Retail investment services
70

 
68

 
69

 
72

Mortgage production related income
56

 
53

 
78

 
111

Mortgage servicing related income
44

 
58

 
25

 
52

Commercial real estate related income 1
24

 
20

 
33

 
10

Net securities gains
1

 

 

 
4

Other noninterest income 1
22

 
30

 
29

 
65

Total noninterest income
827

 
847

 
815

 
898

NONINTEREST EXPENSE
 
 
 
 
 
 
 
Employee compensation and benefits
796

 
852

 
762

 
763

Outside processing and software
204

 
205

 
209

 
202

Net occupancy expense
94

 
92

 
94

 
78

Equipment expense
43

 
39

 
43

 
42

FDIC premium/regulatory exams
49

 
48

 
46

 
44

Marketing and customer development
42

 
42

 
52

 
38

Operating losses
19

 
32

 
23

 
25

Amortization
15

 
13

 
14

 
11

Other noninterest expense
126

 
142

 
154

 
142

Total noninterest expense
1,388

 
1,465

 
1,397

 
1,345

INCOME BEFORE PROVISION FOR INCOME TAXES
752

 
629

 
660

 
695

Provision for income taxes
222

 
159

 
193

 
201

NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
530

 
470

 
467

 
494

Net income attributable to noncontrolling interest
2

 
2

 
2

 
2

NET INCOME

$528

 

$468

 

$465

 

$492

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$505

 

$451

 

$448

 

$475

Net interest income-FTE 2
1,439

 
1,400

 
1,377

 
1,323

Total revenue
2,230

 
2,213

 
2,158

 
2,186

Total revenue-FTE 2
2,266

 
2,247

 
2,192

 
2,221

Net income per average common share:
 
 
 
 
 
 
 
Diluted
1.03

 
0.91

 
0.90

 
0.94

Basic
1.05

 
0.92

 
0.91

 
0.95

Cash dividends paid per common share
0.26

 
0.26

 
0.26

 
0.24

Average common shares outstanding:
 
 
 
 
 
 
 
Diluted
488,020

 
496,002

 
497,055

 
505,633

Basic
482,913

 
490,091

 
491,497

 
501,374

 
 
 
 
 
 
 
 
 
1 Beginning January 1, 2017, the Company began presenting income related to the Company's Pillar & Cohen Financial, Community Capital, and Structured Real Estate businesses as a separate line item on the Consolidated Statements of Income titled Commercial real estate related income. For periods prior to January 1, 2017, these amounts were previously presented in Other noninterest income and have been reclassified to Commercial real estate related income for comparability.
2 See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.

12



SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
 
June 30
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
2017
 
2016
ASSETS
 
 
 
Cash and due from banks

$6,968

 

$4,134

Federal funds sold and securities borrowed or purchased under agreements to resell
1,249

 
1,107

Interest-bearing deposits in other banks
24

 
24

Trading assets and derivative instruments
5,847

 
6,850

Securities available for sale
31,142

 
29,336

Loans held for sale ("LHFS")
2,826

 
2,468

Loans held for investment ("LHFI"):
 
 
 
Commercial and industrial ("C&I")
68,511

 
68,603

Commercial real estate ("CRE")
5,250

 
6,228

Commercial construction
4,019

 
2,617

Residential mortgages - guaranteed
501

 
534

Residential mortgages - nonguaranteed
26,594

 
26,037

Residential home equity products
11,173

 
12,481

Residential construction
364

 
397

Consumer student - guaranteed
6,543

 
5,562

Consumer other direct
8,249

 
6,825

Consumer indirect
11,639

 
11,195

Consumer credit cards
1,425

 
1,177

Total LHFI
144,268

 
141,656

Allowance for loan and lease losses ("ALLL")
(1,731
)
 
(1,774
)
Net loans held for investment
142,537

 
139,882

Goodwill
6,338

 
6,337

MSRs
1,608

 
1,061

Other assets
8,684

 
7,693

Total assets 1

$207,223

 

$198,892

LIABILITIES
 
 
 
Deposits:
 
 
 
Noninterest-bearing consumer and commercial deposits

$44,006

 

$42,466

Interest-bearing consumer and commercial deposits:
 
 
 
NOW accounts
43,973

 
39,869

Money market accounts
53,000

 
53,410

Savings
6,599

 
6,343

Consumer time
5,610

 
5,836

Other time
5,131

 
3,855

Total consumer and commercial deposits
158,319

 
151,779

Brokered time deposits
944

 
972

Foreign deposits
610

 

Total deposits
159,873

 
152,751

Funds purchased
3,007

 
1,352

Securities sold under agreements to repurchase
1,503

 
1,622

Other short-term borrowings
2,640

 
1,883

Long-term debt
10,511

 
12,264

Trading liabilities and derivative instruments
1,090

 
1,245

Other liabilities
4,122

 
3,311

Total liabilities
182,746

 
174,428

SHAREHOLDERS' EQUITY
 
 
 
Preferred stock, no par value
1,975

 
1,225

Common stock, $1.00 par value
550

 
550

Additional paid-in capital
8,973

 
9,003

Retained earnings
16,701

 
15,353

Treasury stock, at cost, and other
(2,945
)
 
(1,900
)
Accumulated other comprehensive (loss)/income, net of tax
(777
)
 
233

Total shareholders' equity
24,477

 
24,464

Total liabilities and shareholders' equity

$207,223

 

$198,892

 
 
 
 
Common shares outstanding
481,644

 
501,412

Common shares authorized
750,000

 
750,000

Preferred shares outstanding
20

 
12

Preferred shares authorized
50,000

 
50,000

Treasury shares of common stock
68,369

 
48,509

1 Includes earning assets of $184,518 and $178,852 at June 30, 2017 and 2016, respectively.


13



SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS, continued
(Dollars in millions and shares in thousands, except per share data) (Unaudited)
June 30
 
March 31
 
December 31
 
June 30
2017
 
2017
 
2016
 
2016
ASSETS
 
 
 
 
 
 
 
Cash and due from banks

$6,968

 

$6,957

 

$5,091

 

$4,134

Federal funds sold and securities borrowed or purchased under agreements to resell
1,249

 
1,292

 
1,307

 
1,107

Interest-bearing deposits in other banks
24

 
25

 
25

 
24

Trading assets and derivative instruments
5,847

 
6,007

 
6,067

 
6,850

Securities available for sale
31,142

 
31,127

 
30,672

 
29,336

LHFS
2,826

 
2,109

 
4,169

 
2,468

LHFI:
 
 
 
 
 
 
 
C&I
68,511

 
68,971

 
69,213

 
68,603

CRE
5,250

 
5,067

 
4,996

 
6,228

Commercial construction
4,019

 
4,215

 
4,015

 
2,617

Residential mortgages - guaranteed
501

 
549

 
537

 
534

Residential mortgages - nonguaranteed
26,594

 
26,110

 
26,137

 
26,037

Residential home equity products
11,173

 
11,511

 
11,912

 
12,481

Residential construction
364

 
380

 
404

 
397

Consumer student - guaranteed
6,543

 
6,396

 
6,167

 
5,562

Consumer other direct
8,249

 
7,904

 
7,771

 
6,825

Consumer indirect
11,639

 
11,067

 
10,736

 
11,195

Consumer credit cards
1,425

 
1,359

 
1,410

 
1,177

Total LHFI
144,268

 
143,529

 
143,298

 
141,656

ALLL
(1,731
)
 
(1,714
)
 
(1,709
)
 
(1,774
)
Net loans held for investment
142,537

 
141,815

 
141,589

 
139,882

Goodwill
6,338

 
6,338

 
6,337

 
6,337

MSRs
1,608

 
1,645

 
1,572

 
1,061

Other assets
8,684

 
8,327

 
8,046

 
7,693

Total assets 1

$207,223

 

$205,642

 

$204,875

 

$198,892

LIABILITIES
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
Noninterest-bearing consumer and commercial deposits

$44,006

 

$43,437

 

$43,431

 

$42,466

Interest-bearing consumer and commercial deposits:
 
 
 
 
 
 

NOW accounts
43,973

 
46,222

 
45,534

 
39,869

Money market accounts
53,000

 
55,261

 
54,166

 
53,410

Savings
6,599

 
6,668

 
6,266

 
6,343

Consumer time
5,610

 
5,495

 
5,534

 
5,836

Other time
5,131

 
4,448

 
3,933

 
3,855

Total consumer and commercial deposits
158,319

 
161,531

 
158,864

 
151,779

Brokered time deposits
944

 
917

 
924

 
972

Foreign deposits
610

 
405

 
610

 

Total deposits
159,873

 
162,853

 
160,398

 
152,751

Funds purchased
3,007

 
1,037

 
2,116

 
1,352

Securities sold under agreements to repurchase
1,503

 
1,704

 
1,633

 
1,622

Other short-term borrowings
2,640

 
1,955

 
1,015

 
1,883

Long-term debt
10,511

 
10,496

 
11,748

 
12,264

Trading liabilities and derivative instruments
1,090

 
1,225

 
1,351

 
1,245

Other liabilities
4,122

 
2,888

 
2,996

 
3,311

Total liabilities
182,746

 
182,158

 
181,257

 
174,428

SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
Preferred stock, no par value
1,975

 
1,225

 
1,225

 
1,225

Common stock, $1.00 par value
550

 
550

 
550

 
550

Additional paid-in capital
8,973

 
8,966

 
9,010

 
9,003

Retained earnings
16,701

 
16,322

 
16,000

 
15,353

Treasury stock, at cost, and other
(2,945
)
 
(2,712
)
 
(2,346
)
 
(1,900
)
Accumulated other comprehensive (loss)/income, net of tax
(777