SUNTRUST BANKS INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - SUNTRUST BANKS INC	a2q18earningspresentatio.htm
8-K - 8-K - SUNTRUST BANKS INC	a63018form8-ker.htm

Exhibit 99.1

News Release



Contact:
Investors		Media
Ankur Vyas		Mike McCoy
(404) 827-6714		(404) 588-7230

For Immediate Release

July 20, 2018

SunTrust Reports Second Quarter 2018 Results

Solid Revenue Growth, Improved Efficiency, and

Favorable Operating Environment Drive 45% Year-over-Year EPS Growth

ATLANTA -- SunTrust Banks, Inc. (NYSE: STI) reported net income available to common shareholders of $697 million, or $1.49 per average common diluted share.

Diluted earnings per share increased 16% compared to the prior quarter and 45% compared to the second quarter of 2017. For the first half of 2018, earnings per average common diluted share grew 43% compared to the same period a year ago.

“Our performance continues to improve and this quarter was no exception, with earnings per share increasing by 45% year-over-year," said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. "Importantly, our strategic consistency and improved execution is driving success across multiple fronts: solid revenue growth, improved efficiency, and increased capital returns. We have good momentum going into the second half of the year and I remain confident in our ability to continue to create value for our clients, teammates, communities, and shareholders.”

Second Quarter 2018 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 21% marginal federal tax rate for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018, as well as state income taxes, where applicable. We provide unadjusted amounts in the table on page 3 of this news release and detailed reconciliations and additional information in Appendix A on pages 22 and 23.)

Income Statement


•	Net income available to common shareholders was $697 million, or $1.49 per average common diluted share, compared to $1.29 for the prior quarter and $1.03 for the second quarter of 2017.


•	Total revenue increased 4% sequentially and 3% year-over-year. These increases were driven largely by higher net interest income as a result of net interest margin expansion. The sequential increase was also driven by growth in earnings assets.


•	Net interest margin was 3.28% in the current quarter, up 4 basis points sequentially and up 14 basis points compared to the prior year. The sequential and year-over-year increases were driven primarily by higher earning asset yields arising from higher benchmark interest rates, positive mix shift in the LHFI portfolio, and higher securities yields.


•	Provision for credit losses was relatively stable sequentially and decreased $58 million year-over-year due primarily to a lower allowance for loan and lease losses ("ALLL").


•	Noninterest expense decreased 2% sequentially and remained stable year-over-year. The sequential decrease was driven primarily by a seasonal decline in employee benefits costs.


•	The efficiency and tangible efficiency ratios for the current quarter were 59.4% and 58.7%, respectively, which reflect good improvements compared to the prior quarter and prior year, driven by ongoing expense management initiatives and strong revenue growth. The sequential improvement was also impacted by the seasonal decline in employee benefits costs.

Balance Sheet


•	Average performing LHFI was up 1% compared to the prior quarter and relatively stable year-over-year. The sequential growth was driven by growth in C&I, CRE, and consumer direct loans.


•	Average consumer and commercial deposits remained relatively stable compared to both the prior quarter and the second quarter of 2017.

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, 2018, slightly lower than the prior quarter, due to loan growth.


•	During the quarter, the Company:


◦	Repurchased $330 million of its outstanding common stock, which completed its share repurchases under its 2017 Capital Plan.


◦	Announced its 2018 Capital Plan, which represents a combined 39% increase in total capital returns including:


▪	The purchase of up to $2.0 billion of its outstanding common stock between the third quarter of 2018 and the second quarter of 2019 (representing a 52% increase compared to the previous authorization).


▪	A 25% increase in the quarterly common stock dividend from $0.40 per common share to $0.50 per share, beginning in the third quarter of 2018, subject to approval by the Company's Board of Directors.


•	Book value per common share was $47.70 and tangible book value per common share was $34.40, both up 1% from March 31, 2018, driven primarily by growth in retained earnings, offset by an increase in accumulated other comprehensive loss.

Asset Quality


•	Nonperforming loans ("NPLs") increased $43 million from the prior quarter and represented 0.52% of period-end LHFI at June 30, 2018. The increase was driven primarily by the downgrade of one borrower.


•	Net charge-offs for the current quarter were $73 million, or 0.20% of total average LHFI on an annualized basis, compared to 0.22% during the prior quarter and 0.20% during the second quarter of 2017.


•	At June 30, 2018, the ALLL to period-end LHFI ratio was 1.14%, a 5 basis point decline compared to the prior quarter, driven by lower reserves for hurricane-related losses and continued improvements in asset quality.


•	Provision for credit losses was relatively stable sequentially and decreased $58 million year-over-year due primarily to a lower ALLL.




Income Statement (Dollars in millions, except per share data)	2Q 2018			1Q 2018			4Q 2017			3Q 2017			2Q 2017
Net interest income	$1,488			$1,441			$1,434			$1,430			$1,403
Net interest income-FTE ¹	1,510			1,461			1,472			1,467			1,439
Net interest margin	3.23		%	3.20		%	3.09		%	3.07		%	3.06		%
Net interest margin-FTE ¹	3.28			3.24			3.17			3.15			3.14
Noninterest income	$829			$796			$833			$846			$827
Total revenue	2,317			2,237			2,267			2,276			2,230
Total revenue-FTE ¹	2,339			2,257			2,305			2,313			2,266
Noninterest expense	1,390			1,417			1,520			1,391			1,388
Provision for credit losses	32			28			79			120			90
Net income available to common shareholders	697			612			710			512			505
Earnings per average common diluted share	1.49			1.29			1.48			1.06			1.03

Balance Sheet (Dollars in billions)
Average LHFI		$144.2			$142.9			$144.0			$144.7			$144.4
Average consumer and commercial deposits	159.0			159.2			160.7			159.4			159.1

Capital
Basel III capital ratios at period end ² :
Tier 1 capital	10.86		%	11.00		%	11.15		%	10.74		%	10.81		%
Common Equity Tier 1 ("CET1")	9.73			9.84			9.74			9.62			9.68
Total average shareholders’ equity to total average assets	11.78			12.05			12.09			11.94			11.80

Asset Quality
Net charge-offs to total average LHFI (annualized)	0.20		%	0.22		%	0.29		%	0.21		%	0.20		%
ALLL to period-end LHFI ³	1.14			1.19			1.21			1.23			1.20
NPLs to period-end LHFI	0.52			0.50			0.47			0.48			0.52

¹ See Appendix A on pages 22 and 23 for non-U.S. GAAP reconciliations and additional information.

² Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018. Capital ratios at June 30, 2018 are estimated as of the date of this document.

³ LHFI measured at fair value were excluded from period-end LHFI in the calculation as no allowance is recorded for loans measured at fair value.

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 $82 million compared to the prior quarter. Net interest income increased $49 million sequentially due to a higher net interest margin, a $1.7 billion increase in average earning assets, and one more day in the current quarter. Noninterest income increased $33 million sequentially due largely to higher capital markets-related income, offset partially by lower mortgage servicing related income and other noninterest income. Compared to the second quarter of 2017, total revenue increased by $73 million, driven by a $71 million increase in net interest income.

Net Interest Income

Net interest income was $1.5 billion for the current quarter, an increase of $49 million compared to the prior quarter due primarily to a 4 basis point expansion in the net interest margin, a $1.7 billion increase in average earning assets, and one more day in the current quarter. The $71 million increase relative to the prior year was driven largely by a 14 basis point expansion in the net interest margin.

Net interest margin for the current quarter was 3.28%, compared to 3.24% in the prior quarter and 3.14% in the second quarter of 2017. The 4 and 14 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, positive mix shift in the loan portfolio, and higher securities yields, offset partially by higher deposit costs and higher levels of wholesale funding.

For the six months ended June 30, 2018, net interest income was $3.0 billion, a $132 million increase compared to the six months ended June 30, 2017. The net interest margin was 3.26% for the first half of 2018, a 15 basis point increase compared to the same period in 2017. The increases in both net interest income and net interest margin were driven by the same factors that impacted the sequential and year-over-year comparisons discussed above.

Noninterest Income

Noninterest income was $829 million for the current quarter, compared to $796 million for the prior quarter and $827 million for the second quarter of 2017. The $33 million sequential increase is due primarily to higher capital markets-related income as well as higher client transaction-related fees, offset partially by lower other noninterest income, mortgage servicing related income and commercial real estate related income. Compared to the second quarter of 2017, noninterest income was stable as higher capital markets-related income and other noninterest income was offset by lower mortgage-related income, client transaction-related fees, and commercial real estate related income.

Client transaction-related fees (namely service charges on deposits, other charges and fees, and card fees) increased $8 million sequentially due to an increase in client-related transactional activity. The $19 million year-over-year decrease is due primarily to lower transactional activity and the impact of adopting the revenue recognition accounting standard during the first quarter of 2018, which resulted in the netting of certain expense items against card fees, other charges and fees, and service charges on deposit accounts.

Investment banking income was $167 million for the current quarter, compared to $131 million in the prior quarter and $147 million in the prior year. The $36 million sequential and $20 million year-over-year increases reflected strong deal flow activity across most product categories, led by syndicated finance and equity capital markets.

Trading income was $53 million for the current quarter, compared to $42 million in the prior quarter and $46 million in the second quarter of 2017. The $11 million sequential and $7 million year-over-year increases were due primarily to higher client-related interest rate hedging activity.

Mortgage servicing income was $40 million for the current quarter, compared to $54 million in the prior quarter and $44 million in the second quarter of 2017. The $14 million sequential decrease was due primarily to higher servicing asset decay, arising from seasonally elevated payoffs. The $4 million decrease compared to the second quarter of 2017 was due to higher servicing asset decay and lower net hedge performance, offset partially by higher servicing fee income. At June 30, 2018, the servicing portfolio totaled $170.5 billion, an increase compared to both the prior quarter and prior year due to MSRs purchased in the first quarter of 2018 which transferred in the second quarter.

Mortgage production income for the current quarter was $43 million, compared to $36 million for the prior quarter and $56 million for the second quarter of 2017. The $7 million sequential increase was due primarily to the seasonal increase in purchase volume. The $13 million year-over-year decrease was due largely to lower gain on sale margins and less favorable channel mix. Mortgage application volume increased 18% sequentially and remained stable compared to the second quarter of 2017. Closed loan volume increased 22% sequentially and decreased 3% year-over-year.

Commercial real estate-related income was $18 million for the current quarter, compared to $23 million for the prior quarter and $24 million for the second quarter of 2017. The sequential and year-over-year decreases were driven primarily by lower transactional activity.

Other noninterest income was $38 million for the current quarter, compared to $48 million in the prior quarter and $22 million in the second quarter of 2017. The sequential decrease was due primarily to the recognition of a $23 million remeasurement gain on an equity investment in a fintech company during the prior quarter, offset partially by a $12 million remeasurement gain on an equity investment in GreenSky, Inc. (a financial technology company with which the Company partners) recognized during the current quarter. The $16 million year-over-year increase was due primarily to the aforementioned gain during the current quarter.

For the six months ended June 30, 2018, noninterest income was $1.6 billion, compared to $1.7 billion for the six months ended June 30, 2017. The $48 million decrease compared to the prior year was driven by lower mortgage-related income, client transaction-related fees, and capital markets-related income, offset partially by an increase in other noninterest income driven by the aforementioned remeasurement gains during the first half of 2018.

Noninterest Expense

Noninterest expense was $1.4 billion in the current quarter, down $27 million sequentially and up $2 million compared to the second quarter of 2017. The sequential decrease was driven largely by the seasonal decline in employee benefit costs, offset partially by higher outside processing and software expense and higher operating losses.

Employee compensation and benefits expense was $802 million in the current quarter, compared to $853 million in the prior quarter and $796 million in the second quarter of 2017. The $51 million sequential decrease was due to the seasonal decline in employee benefit costs and FICA taxes. The $6 million year-over-year increase was due primarily to higher compensation costs associated with revenue growth.

Operating losses were $17 million in the current quarter, compared to $6 million in the prior quarter and $19 million in the second quarter of 2017. The sequential increase was due primarily to a $10 million net benefit recognized in the prior quarter related to the progression of certain legal developments.

Outside processing and software expense was $227 million in the current quarter, compared to $206 million in the prior quarter and $204 million in the second quarter of 2017. The increase compared to the prior quarter and prior year was driven primarily by higher software-related costs, related to ongoing investments in technology.

Regulatory assessments expense was $39 million in the current quarter, compared to $41 million in the prior quarter and $49 million in the second quarter of 2017. The year-over-year decrease was driven by a reduced FDIC assessment rate resulting primarily from a lower risk profile.

Other noninterest expense was $114 million in the current quarter, compared to $121 million in the prior quarter and $126 million in the second quarter of 2017. The sequential decrease was driven primarily by the gain on sale of certain real estate assets recognized in the current quarter (recorded as a contra expense), in addition to certain asset impairment-related charges and legal and consulting expenses recognized in the prior quarter. The year-over-year decrease was driven primarily by the aforementioned gain on sale of certain real estate assets in the current quarter, in addition to lower legal and consulting expenses.

For the six months ended June 30, 2018, noninterest expense was $2.8 billion compared to $2.9 billion for the six months ended June 30, 2017. The $46 million decrease was driven largely by lower other noninterest expense, operating losses, and regulatory assessments, offset partially by higher outside processing and software expenses.

Income Taxes

For the current quarter, the Company recorded a provision for income taxes of $171 million compared to $147 million for the prior quarter and $222 million for the second quarter of 2017. The effective tax rate for the current quarter was 19%, compared to 19% in the prior quarter and 30% in the second quarter of 2017. The year-over-year decrease in the effective tax rate was due primarily to the reduction in the U.S. federal corporate income tax rate from 35% to 21%.

Balance Sheet

At June 30, 2018, the Company had total assets of $207.5 billion and total shareholders’ equity of $24.3 billion, representing 12% of total assets. Book value per common share was $47.70 and tangible book value per common share was $34.40, both up 1% compared to March 31, 2018, driven primarily by growth in retained earnings, offset partially by an increase in accumulated other comprehensive loss.

Loans

Average performing LHFI totaled $143.4 billion for the current quarter, up 1% compared to the prior quarter and relatively stable compared to the second quarter of 2017. The sequential growth was driven primarily by increases in C&I, CRE, and consumer direct loans, offset partially by declines in home equity products, consumer indirect, and commercial construction loans.

Deposits

Average consumer and commercial deposits for the current quarter were $159.0 billion, relatively stable compared to the prior quarter and the second quarter of 2017. Sequentially, declines in NOW and money market account balances were offset by growth in time deposits and savings account balances. Year-over-year, declines in money market accounts and demand deposits were offset by increases in time deposits, savings, and NOW account balances.

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, 2018. The ratios of average total equity to average total assets and tangible common equity to tangible assets were 11.8% and 8.0%, respectively, at June 30, 2018. 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 $0.40 per common share and repurchased $330 million of its outstanding common stock in the second quarter of 2018, which completed its 2017 Capital Plan. Additionally, the Company issued $850 million of 7-year parent company senior notes at a fixed annual coupon rate of 4.00% in the second quarter of 2018.

In June 2018, the Company announced that the Federal Reserve had no objections to its 2018 Capital Plan. This plan includes the repurchase of up to $2.0 billion of the Company's outstanding common stock between the third quarter of 2018 and the second quarter of 2019. Additionally, subject to Board approval, the Company intends to increase its quarterly common stock dividend 25% to $0.50 per common share beginning in the third quarter of 2018 and to maintain the current level of dividend payments on its preferred stock.

Asset Quality

Total nonperforming assets ("NPAs") were $814 million at June 30, 2018, up $36 million from the prior quarter and down $7 million year-over-year. The ratio of NPLs to period-end LHFI was 0.52%, 0.50%, and 0.52% at June 30, 2018, March 31, 2018, and June 30, 2017, respectively.

Net charge-offs were $73 million during the current quarter, a decrease of $6 million compared to the prior quarter and an increase of $3 million compared to the second quarter of 2017. The ratio of annualized net charge-offs to total average LHFI was 0.20% during the current quarter, compared to 0.22% during the prior quarter and 0.20% during the second quarter of 2017.

The provision for credit losses was $32 million in the current quarter, a sequential increase of $4 million and a year-over-year decrease of $58 million. The decrease compared to the prior year was driven by a lower ALLL.

At June 30, 2018, the ALLL was $1.7 billion, which represented 1.14% of period-end loans, a 5 basis point decline relative to March 31, 2018, driven by lower reserves for hurricane-related losses and continued improvements in asset quality.

Early stage delinquencies increased 4 basis points from the prior quarter and 6 basis points from June 30, 2017 to 0.72% at June 30, 2018. Excluding government-guaranteed loans which accounted for 0.50% at June 30, 2018, early stage delinquencies were 0.22%, stable compared to the prior quarter and compared to the second quarter of 2017.

OTHER INFORMATION

About SunTrust Banks, Inc.

SunTrust Banks, Inc. (NYSE: STI) is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. 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, 2018, SunTrust had total assets of $208 billion and total deposits of $161 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. Learn more at suntrust.com.

Business Segment Results

The Company has included its business segment financial tables as part of this release. Revenue and income amounts labeled "FTE" in the business segment tables are reported on a fully taxable-equivalent basis. 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 ("ALLL") 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 Total Corporate Other results presented in this document also include Reconciling Items, which are comprised of 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 furnished with the SEC today.

Conference Call

SunTrust management will host a conference call on July 20, 2018, at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals may call in beginning at 7:15 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 will be available approximately one hour after the call ends on July 20, 2018, and will remain available until August 20, 2018, by dialing 1-800-475-6701 (domestic) or 1-320-365-3844 (international) (Passcode: 450198). Alternatively, individuals may listen to the live webcast of the presentation by visiting the SunTrust investor relations website at investors.suntrust.com. Beginning the afternoon of July 20, 2018, individuals may access an archived version of the webcast in the “Events & Presentations” section of the SunTrust investor relations website. This webcast will be archived and available for one year.

Non-GAAP Financial Measures

This news release includes non-GAAP financial measures to describe SunTrust’s performance. Additional information and reconciliations of those measures to GAAP measures are provided in the appendix to this news release beginning at page 22.

In this news release, consistent with SEC 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 21% for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018, as well as 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 capital adequacy and profitability of the Company.

•

Similarly, the Company presents Efficiency ratio-FTE, Tangible efficiency ratio-FTE, and Adjusted 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. 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. Adjusted tangible efficiency ratio-FTE removes the pre-tax impact of Form 8-K items announced on December 4, 2017 and the impacts of tax reform-related items from the calculation of Tangible efficiency ratio-FTE. The Company believes this measure is useful to investors because it is more reflective of normalized operations as it reflects results that are primarily client relationship and client transaction driven. These measures are utilized by management to assess the efficiency of the Company and its lines of business.

Important Cautionary Statement About Forward-Looking Statements

This news release contains forward-looking statements. Statements regarding potential future dividends and share repurchases 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 their discretion. Also, future share repurchases and the timing of any such repurchases 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, 2017 and in other periodic reports that we file with the SEC.

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						%
	2018			2017			Change		2018			2017			Change
EARNINGS & DIVIDENDS
Net income		$722			$528		37	%		$1,365			$995		37	%
Net income available to common shareholders	697			505			38		1,310			956			37
Total revenue	2,317			2,230			4		4,554			4,443			2
Total revenue-FTE ¹	2,339			2,266			3		4,597			4,513			2
Net income per average common share:
Diluted		$1.49			$1.03		45	%		$2.78			$1.94		43	%
Basic	1.50			1.05			43		2.80			1.97			42
Dividends paid per common share	0.40			0.26			54		0.80			0.52			54
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$204,548			$204,494		—	%		$204,341			$204,374		—	%
Earning assets	184,566			184,057			—		183,725			183,833			—
Loans held for investment ("LHFI")	144,156			144,440			—		143,542			144,058			—
Intangible assets including residential mortgage servicing rights ("MSRs")	8,355			8,024			4		8,300			8,025			3
Residential MSRs	1,944			1,603			21		1,889			1,603			18
Consumer and commercial deposits	158,957			159,136			—		159,063			159,006			—
Total shareholders’ equity	24,095			24,139			—		24,349			23,906			2
Preferred stock	2,025			1,720			18		2,206			1,474			50
Period End Balances:
Total assets										$207,505			$207,223		—	%
Earning assets									185,304			184,518			—
LHFI									144,935			144,268			—
Allowance for loan and lease losses ("ALLL")									1,650			1,731			(5	)
Consumer and commercial deposits									160,410			158,319			1
Total shareholders’ equity									24,316			24,477			(1	)
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.42		%	1.03		%	38	%	1.35		%	0.98		%	38	%
Return on average common shareholders’ equity	12.73			9.08			40		11.98			8.64			39
Return on average tangible common shareholders' equity ¹	17.74			12.51			42		16.67			11.90			40
Net interest margin	3.23			3.06			6		3.21			3.04			6
Net interest margin-FTE ¹	3.28			3.14			4		3.26			3.11			5
Efficiency ratio	59.98			62.24			(4	)	61.63			64.21			(4	)
Efficiency ratio-FTE ¹	59.41			61.24			(3	)	61.06			63.21			(3	)
Tangible efficiency ratio-FTE ¹	58.69			60.59			(3	)	60.37			62.59			(4	)
Effective tax rate	19			30			(37	)	19			28			(32	)
Basel III capital ratios at period end ²:
Common Equity Tier 1 ("CET1")									9.73		%	9.68		%	1	%
Tier 1 capital									10.86			10.81			—
Total capital									12.67			12.75			(1	)
Leverage									9.82			9.55			3
Total average shareholders’ equity to total average assets	11.78		%	11.80		%	—	%	11.92			11.70			2
Tangible equity to tangible assets ¹									9.01			9.15			(2	)
Tangible common equity to tangible assets ¹									7.96			8.11			(2	)
Book value per common share										$47.70			$46.51		3
Tangible book value per common share ¹									34.40			33.83			2
Market capitalization									30,712			27,319			12
Average common shares outstanding:
Diluted	469,339			488,020			(4	)	471,468			491,989			(4	)
Basic	465,529			482,913			(4	)	467,117			486,482			(4	)
Full-time equivalent employees									23,199			24,278			(4	)
Number of ATMs									2,062			2,104			(2	)
Full service banking offices									1,222			1,281			(5	)


¹	See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.


²	Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018. Capital ratios at June 30, 2018 are estimated as of the date of this release.

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER FINANCIAL HIGHLIGHTS



	Three Months Ended
	June 30			March 31			December 31			September 30			June 30
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2018			2018			2017			2017			2017
EARNINGS & DIVIDENDS
Net income		$722			$643			$740			$538			$528
Net income available to common shareholders	697			612			710			512			505
Total revenue	2,317			2,237			2,267			2,276			2,230
Total revenue-FTE ¹	2,339			2,257			2,305			2,313			2,266
Net income per average common share:
Diluted		$1.49			$1.29			$1.48			$1.06			$1.03
Basic	1.50			1.31			1.50			1.07			1.05
Dividends paid per common share	0.40			0.40			0.40			0.40			0.26
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$204,548			$204,132			$205,219			$205,738			$204,494
Earning assets	184,566			182,874			184,306			184,861			184,057
LHFI	144,156			142,920			144,039			144,706			144,440
Intangible assets including residential MSRs	8,355			8,244			8,077			8,009			8,024
Residential MSRs	1,944			1,833			1,662			1,589			1,603
Consumer and commercial deposits	158,957			159,169			160,745			159,419			159,136
Total shareholders’ equity	24,095			24,605			24,806			24,573			24,139
Preferred stock	2,025			2,390			2,236			1,975			1,720
Period End Balances:
Total assets		$207,505			$204,885			$205,962			$208,252			$207,223
Earning assets	185,304			182,913			182,710			185,071			184,518
LHFI	144,935			142,618			143,181			144,264			144,268
ALLL	1,650			1,694			1,735			1,772			1,731
Consumer and commercial deposits	160,410			161,357			159,795			161,778			158,319
Total shareholders’ equity	24,316			24,269			25,154			24,522			24,477
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.42		%	1.28		%	1.43		%	1.04		%	1.03		%
Return on average common shareholders’ equity	12.73			11.23			12.54			9.03			9.08
Return on average tangible common shareholders' equity ¹	17.74			15.60			17.24			12.45			12.51
Net interest margin	3.23			3.20			3.09			3.07			3.06
Net interest margin-FTE ¹	3.28			3.24			3.17			3.15			3.14
Efficiency ratio	59.98			63.35			67.03			61.12			62.24
Efficiency ratio-FTE ¹	59.41			62.77			65.94			60.14			61.24
Tangible efficiency ratio-FTE ¹	58.69			62.11			64.84			59.21			60.59
Adjusted tangible efficiency ratio-FTE ¹	58.69			62.11			59.85			59.21			60.59
Effective tax rate	19			19			(11		)	29			30
Basel III capital ratios at period end ²:
CET1	9.73		%	9.84		%	9.74		%	9.62		%	9.68		%
Tier 1 capital	10.86			11.00			11.15			10.74			10.81
Total capital	12.67			12.90			13.09			12.69			12.75
Leverage	9.82			9.75			9.80			9.50			9.55
Total average shareholders’ equity to total average assets	11.78			12.05			12.09			11.94			11.80
Tangible equity to tangible assets ¹	9.01			9.11			9.50			9.12			9.15
Tangible common equity to tangible assets ¹	7.96			8.04			8.21			8.10			8.11
Book value per common share		$47.70			$47.14			$47.94			$47.16			$46.51
Tangible book value per common share ¹	34.40			33.97			34.82			34.34			33.83
Market capitalization	30,712			31,959			30,417			28,451			27,319
Average common shares outstanding:
Diluted	469,339			473,620			480,359			483,640			488,020
Basic	465,529			468,723			474,300			478,258			482,913
Full-time equivalent employees	23,199			23,208			23,785			24,215			24,278
Number of ATMs	2,062			2,075			2,116			2,108			2,104
Full service banking offices	1,222			1,236			1,268			1,275			1,281


¹	See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.


²	Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018. Capital ratios at June 30, 2018 are estimated as of the date of this release.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME



	Three Months Ended				Increase/(Decrease)					Six Months Ended				Increase/(Decrease)
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30				Increase/(Decrease)					June 30				Increase/(Decrease)
	2018		2017		Amount			%		2018		2017		Amount			%
Interest income		$1,759		$1,583		$176		11	%		$3,427		$3,111		$316		10	%
Interest expense	271		180		91			51		499		342		157			46
NET INTEREST INCOME	1,488		1,403		85			6		2,928		2,769		159			6
Provision for credit losses	32		90		(58		)	(64	)	60		209		(149		)	(71	)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,456		1,313		143			11		2,868		2,560		308			12
NONINTEREST INCOME
Service charges on deposit accounts	144		151		(7		)	(5	)	289		299		(10		)	(3	)
Other charges and fees	93		103		(10		)	(10	)	179		198		(19		)	(10	)
Card fees	85		87		(2		)	(2	)	166		169		(3		)	(2	)
Investment banking income	167		147		20			14		298		314		(16		)	(5	)
Trading income	53		46		7			15		95		97		(2		)	(2	)
Trust and investment management income	75		76		(1		)	(1	)	150		151		(1		)	(1	)
Retail investment services	73		70		3			4		145		139		6			4
Mortgage servicing related income	40		44		(4		)	(9	)	95		102		(7		)	(7	)
Mortgage production related income	43		56		(13		)	(23	)	79		109		(30		)	(28	)
Commercial real estate related income	18		24		(6		)	(25	)	42		44		(2		)	(5	)
Net securities gains	—		1		(1		)	(100	)	1		1		—			—
Other noninterest income	38		22		16			73		87		51		36			71
Total noninterest income	829		827		2			—		1,626		1,674		(48		)	(3	)
NONINTEREST EXPENSE
Employee compensation and benefits	802		796		6			1		1,656		1,648		8			—
Outside processing and software	227		204		23			11		433		409		24			6
Net occupancy expense	90		94		(4		)	(4	)	184		185		(1		)	(1	)
Equipment expense	44		43		1			2		84		83		1			1
Marketing and customer development	40		42		(2		)	(5	)	81		84		(3		)	(4	)
Regulatory assessments	39		49		(10		)	(20	)	79		97		(18		)	(19	)
Amortization	17		15		2			13		32		28		4			14
Operating losses	17		19		(2		)	(11	)	23		51		(28		)	(55	)
Other noninterest expense	114		126		(12		)	(10	)	235		268		(33		)	(12	)
Total noninterest expense	1,390		1,388		2			—		2,807		2,853		(46		)	(2	)
INCOME BEFORE PROVISION FOR INCOME TAXES	895		752		143			19		1,687		1,381		306			22
Provision for income taxes	171		222		(51		)	(23	)	318		381		(63		)	(17	)
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	724		530		194			37		1,369		1,000		369			37
Less: Net income attributable to noncontrolling interest	2		2		—			—		4		5		(1		)	(20	)
NET INCOME		$722		$528		$194		37	%		$1,365		$995		$370		37	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$697		$505		$192		38	%		$1,310		$956		$354		37	%
Net interest income-FTE ¹	1,510		1,439		71			5		2,971		2,839		132			5
Total revenue	2,317		2,230		87			4		4,554		4,443		111			2
Total revenue-FTE ¹	2,339		2,266		73			3		4,597		4,513		84			2
Net income per average common share:
Diluted	1.49		1.03		0.46			45		2.78		1.94		0.84			43
Basic	1.50		1.05		0.45			43		2.80		1.97		0.83			42
Cash dividends paid per common share	0.40		0.26		0.14			54		0.80		0.52		0.28			54
Average common shares outstanding:
Diluted	469,339		488,020		(18,681		)	(4	)	471,468		491,989		(20,521		)	(4	)
Basic	465,529		482,913		(17,384		)	(4	)	467,117		486,482		(19,365		)	(4	)

¹ See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME



	Three Months Ended									Three Months Ended
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30		March 31		Increase/(Decrease)					December 31			September 30			June 30
	2018		2018		Amount			% ²		2017			2017			2017
Interest income		$1,759		$1,668		$91		5	%		$1,640			$1,635			$1,583
Interest expense	271		227		44			19		206			205			180
NET INTEREST INCOME	1,488		1,441		47			3		1,434			1,430			1,403
Provision for credit losses	32		28		4			14		79			120			90
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,456		1,413		43			3		1,355			1,310			1,313
NONINTEREST INCOME
Service charges on deposit accounts	144		146		(2		)	(1	)	150			154			151
Other charges and fees	93		87		6			7		94			92			103
Card fees	85		81		4			5		88			86			87
Investment banking income	167		131		36			27		119			166			147
Trading income	53		42		11			26		41			51			46
Trust and investment management income	75		75		—			—		80			79			76
Retail investment services	73		72		1			1		70			69			70
Mortgage servicing related income	40		54		(14		)	(26	)	43			46			44
Mortgage production related income	43		36		7			19		61			61			56
Commercial real estate related income	18		23		(5		)	(22	)	62			17			24
Net securities gains/(losses)	—		1		(1		)	(100	)	(109		)	—			1
Other noninterest income	38		48		(10		)	(21	)	134			25			22
Total noninterest income	829		796		33			4		833			846			827
NONINTEREST EXPENSE
Employee compensation and benefits	802		853		(51		)	(6	)	803			806			796
Outside processing and software	227		206		21			10		214			203			204
Net occupancy expense	90		94		(4		)	(4	)	97			94			94
Equipment expense	44		40		4			10		41			40			43
Marketing and customer development	40		41		(1		)	(2	)	104			45			42
Regulatory assessments	39		41		(2		)	(5	)	43			47			49
Amortization	17		15		2			13		25			22			15
Operating losses/(gains)	17		6		11			NM		23			(34		)	19
Other noninterest expense	114		121		(7		)	(6	)	170			168			126
Total noninterest expense	1,390		1,417		(27		)	(2	)	1,520			1,391			1,388
INCOME BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	895		792		103			13		668			765			752
Provision/(benefit) for income taxes	171		147		24			16		(74		)	225			222
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	724		645		79			12		742			540			530
Less: Net income attributable to noncontrolling interest	2		2		—			—		2			2			2
NET INCOME		$722		$643		$79		12	%		$740			$538			$528
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$697		$612		$85		14	%		$710			$512			$505
Net interest income-FTE ¹	1,510		1,461		49			3		1,472			1,467			1,439
Total revenue	2,317		2,237		80			4		2,267			2,276			2,230
Total revenue-FTE ¹	2,339		2,257		82			4		2,305			2,313			2,266
Net income per average common share:
Diluted	1.49		1.29		0.20			16		1.48			1.06			1.03
Basic	1.50		1.31		0.19			15		1.50			1.07			1.05
Cash dividends paid per common share	0.40		0.40		—			—		0.40			0.40			0.26
Average common shares outstanding:
Diluted	469,339		473,620		(4,281		)	(1	)	480,359			483,640			488,020
Basic	465,529		468,723		(3,194		)	(1	)	474,300			478,258			482,913

¹ See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.

² “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS



	June 30						(Decrease)/Increase
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2018			2017			Amount			% ³
ASSETS
Cash and due from banks		$5,858			$6,968			($1,110	)	(16	)%
Federal funds sold and securities borrowed or purchased under agreements to resell	1,365			1,249			116			9
Interest-bearing deposits in other banks	25			24			1			4
Trading assets and derivative instruments	5,050			5,847			(797		)	(14	)
Securities available for sale ¹	30,942			30,528			414			1
Loans held for sale ("LHFS")	2,283			2,826			(543		)	(19	)
Loans held for investment ("LHFI"):
Commercial and industrial ("C&I")	67,343			68,511			(1,168		)	(2	)
Commercial real estate ("CRE")	6,302			5,250			1,052			20
Commercial construction	3,456			4,019			(563		)	(14	)
Residential mortgages - guaranteed	525			501			24			5
Residential mortgages - nonguaranteed	27,556			26,594			962			4
Residential home equity products	9,918			11,173			(1,255		)	(11	)
Residential construction	217			364			(147		)	(40	)
Consumer student - guaranteed	6,892			6,543			349			5
Consumer other direct	9,448			8,249			1,199			15
Consumer indirect	11,712			11,639			73			1
Consumer credit cards	1,566			1,425			141			10
Total LHFI	144,935			144,268			667			—
Allowance for loan and lease losses ("ALLL")	(1,650		)	(1,731		)	(81		)	(5	)
Net LHFI	143,285			142,537			748			1
Goodwill	6,331			6,338			(7		)	—
Residential MSRs	1,959			1,608			351			22
Other assets ¹	10,407			9,298			1,109			12
Total assets ²		$207,505			$207,223			$282		—	%
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$44,755			$44,006			$749		2	%
Interest-bearing consumer and commercial deposits:
NOW accounts	45,430			43,973			1,457			3
Money market accounts	49,176			53,000			(3,824		)	(7	)
Savings	6,757			6,599			158			2
Consumer time	6,316			5,610			706			13
Other time	7,976			5,131			2,845			55
Total consumer and commercial deposits	160,410			158,319			2,091			1
Brokered time deposits	1,038			944			94			10
Foreign deposits	—			610			(610		)	(100	)
Total deposits	161,448			159,873			1,575			1
Funds purchased	1,251			3,007			(1,756		)	(58	)
Securities sold under agreements to repurchase	1,567			1,503			64			4
Other short-term borrowings	2,470			2,640			(170		)	(6	)
Long-term debt	11,995			10,511			1,484			14
Trading liabilities and derivative instruments	1,958			1,090			868			80
Other liabilities	2,500			4,122			(1,622		)	(39	)
Total liabilities	183,189			182,746			443			—
SHAREHOLDERS' EQUITY
Preferred stock, no par value	2,025			1,975			50			3
Common stock, $1.00 par value	552			550			2			—
Additional paid-in capital	8,980			8,973			7			—
Retained earnings	18,616			16,701			1,915			11
Treasury stock, at cost, and other	(4,178		)	(2,945		)	1,233			42
Accumulated other comprehensive loss, net of tax	(1,679		)	(777		)	902			NM
Total shareholders' equity	24,316			24,477			(161		)	(1	)
Total liabilities and shareholders' equity		$207,505			$207,223			$282		—	%

Common shares outstanding	465,199			481,644			(16,445		)	(3	)%
Common shares authorized	750,000			750,000			—			—
Preferred shares outstanding	20			20			—			—
Preferred shares authorized	50,000			50,000			—			—
Treasury shares of common stock	87,071			68,369			18,702			27

¹ Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. For periods prior to January 1, 2018, these equity securities have been reclassified to Other assets for comparability.

²Includes earning assets of $185,304 and $184,518 at June 30, 2018 and 2017, respectively.

³ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEETS



(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30			March 31			Increase/(Decrease)					December 31			September 30			June 30
	2018			2018			Amount			% ³		2017			2017			2017
ASSETS
Cash and due from banks		$5,858			$5,851			$7		—	%		$5,349			$7,071			$6,968
Federal funds sold and securities borrowed or purchased under agreements to resell	1,365			1,428			(63		)	(4	)	1,538			1,182			1,249
Interest-bearing deposits in other banks	25			25			—			—		25			25			24
Trading assets and derivative instruments	5,050			5,112			(62		)	(1	)	5,093			6,318			5,847
Securities available for sale ¹	30,942			30,934			8			—		30,947			30,927			30,528
LHFS	2,283			2,377			(94		)	(4	)	2,290			2,835			2,826
LHFI:
C&I	67,343			66,321			1,022			2		66,356			67,758			68,511
CRE	6,302			5,352			950			18		5,317			5,238			5,250
Commercial construction	3,456			3,651			(195		)	(5	)	3,804			3,964			4,019
Residential mortgages - guaranteed	525			611			(86		)	(14	)	560			497			501
Residential mortgages - nonguaranteed	27,556			27,165			391			1		27,136			27,041			26,594
Residential home equity products	9,918			10,241			(323		)	(3	)	10,626			10,865			11,173
Residential construction	217			256			(39		)	(15	)	298			327			364
Consumer student - guaranteed	6,892			6,693			199			3		6,633			6,559			6,543
Consumer other direct	9,448			8,941			507			6		8,729			8,597			8,249
Consumer indirect	11,712			11,869			(157		)	(1	)	12,140			11,952			11,639
Consumer credit cards	1,566			1,518			48			3		1,582			1,466			1,425
Total LHFI	144,935			142,618			2,317			2		143,181			144,264			144,268
ALLL	(1,650		)	(1,694		)	(44		)	(3	)	(1,735		)	(1,772		)	(1,731		)
Net LHFI	143,285			140,924			2,361			2		141,446			142,492			142,537
Goodwill	6,331			6,331			—			—		6,331			6,338			6,338
Residential MSRs	1,959			1,916			43			2		1,710			1,628			1,608
Other assets ¹	10,407			9,987			420			4		11,233			9,436			9,298
Total assets ²		$207,505			$204,885			$2,620		1	%		$205,962			$208,252			$207,223
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$44,755			$43,494			$1,261		3	%		$42,784			$43,984			$44,006
Interest-bearing consumer and commercial deposits:
NOW accounts	45,430			46,672			(1,242		)	(3	)	47,379			47,213			43,973
Money market accounts	49,176			50,627			(1,451		)	(3	)	51,088			52,487			53,000
Savings	6,757			6,849			(92		)	(1	)	6,468			6,505			6,599
Consumer time	6,316			6,205			111			2		5,839			5,735			5,610
Other time	7,976			7,510			466			6		6,237			5,854			5,131
Total consumer and commercial deposits	160,410			161,357			(947		)	(1	)	159,795			161,778			158,319
Brokered time deposits	1,038			1,022			16			2		985			959			944
Foreign deposits	—			—			—			—		—			—			610
Total deposits	161,448			162,379			(931		)	(1	)	160,780			162,737			159,873
Funds purchased	1,251			1,189			62			5		2,561			3,118			3,007
Securities sold under agreements to repurchase	1,567			1,677			(110		)	(7	)	1,503			1,422			1,503
Other short-term borrowings	2,470			706			1,764			NM		717			909			2,640
Long-term debt	11,995			10,692			1,303			12		9,785			11,280			10,511
Trading liabilities and derivative instruments	1,958			1,737			221			13		1,283			1,284			1,090
Other liabilities	2,500			2,236			264			12		4,179			2,980			4,122
Total liabilities	183,189			180,616			2,573			1		180,808			183,730			182,746
SHAREHOLDERS’ EQUITY
Preferred stock, no par value	2,025			2,025			—			—		2,475			1,975			1,975
Common stock, $1.00 par value	552			552			—			—		550			550			550
Additional paid-in capital	8,980			8,960			20			—		9,000			8,985			8,973
Retained earnings	18,616			18,107			509			3		17,540			17,021			16,701
Treasury stock, at cost, and other	(4,178		)	(3,853		)	325			8		(3,591		)	(3,274		)	(2,945		)
Accumulated other comprehensive loss, net of tax	(1,679		)	(1,522		)	157			10		(820		)	(735		)	(777		)
Total shareholders’ equity	24,316			24,269			47			—		25,154			24,522			24,477
Total liabilities and shareholders’ equity		$207,505			$204,885			$2,620		1	%		$205,962			$208,252			$207,223

Common shares outstanding	465,199			469,708			(4,509		)	(1	)%	470,931			476,001			481,644
Common shares authorized	750,000			750,000			—			—		750,000			750,000			750,000
Preferred shares outstanding	20			20			—			—		25			20			20
Preferred shares authorized	50,000			50,000			—			—		50,000			50,000			50,000
Treasury shares of common stock	87,071			82,223			4,848			6		79,133			74,053			68,369

²Includes earning assets of $185,304, $182,913, $182,710, $185,071, and $184,518 at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively.

³ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID
	Three Months Ended														Increase/(Decrease) From
	June 30, 2018							March 31, 2018							Sequential Quarter				Prior Year Quarter
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Yields/ Rates	Average Balances			Yields/ Rates
ASSETS
Loans held for investment ("LHFI"): ¹
Commercial and industrial ("C&I")		$67,211			$633	3.78	%		$66,269			$588	3.60	%		$942		0.18		($1,911	)	0.45
Commercial real estate ("CRE")	5,729			58		4.06		5,201			49		3.84		528			0.22	572			0.68
Commercial construction	3,559			40		4.58		3,749			40		4.27		(190		)	0.31	(546		)	0.95
Residential mortgages - guaranteed	588			5		3.33		637			5		3.12		(49		)	0.21	56			0.38
Residential mortgages - nonguaranteed	27,022			258		3.81		26,863			254		3.79		159			0.02	932			0.01
Residential home equity products	9,918			119		4.81		10,243			116		4.60		(325		)	0.21	(1,195		)	0.54
Residential construction	216			3		5.26		261			3		4.47		(45		)	0.79	(147		)	1.07
Consumer student - guaranteed	6,763			83		4.92		6,655			78		4.76		108			0.16	301			0.50
Consumer other direct	9,169			120		5.26		8,804			110		5.08		365			0.18	1,121			0.42
Consumer indirect	11,733			108		3.68		12,001			108		3.63		(268		)	0.05	449			0.18
Consumer credit cards	1,524			43		11.45		1,526			43		11.26		(2		)	0.19	133			1.49
Nonaccrual	724			6		3.35		711			4		2.25		13			1.10	(49		)	(1.02	)
Total LHFI	144,156			1,476		4.11		142,920			1,398		3.97		1,236			0.14	(284		)	0.39
Securities available for sale: ²
Taxable	30,959			205		2.65		30,849			201		2.61		110			0.04	902			0.20
Tax-exempt	637			5		2.99		628			5		2.98		9			0.01	289			(0.05	)
Total securities available for sale	31,596			210		2.66		31,477			206		2.62		119			0.04	1,191			0.20
Federal funds sold and securities borrowed or purchased under agreements to resell	1,471			6		1.58		1,334			4		1.18		137			0.40	234			0.90
Loans held for sale ("LHFS")	2,117			24		4.54		2,025			21		4.12		92			0.42	(105		)	0.68
Interest-bearing deposits in other banks	25			—		2.32		25			—		1.85		—			0.47	—			1.70
Interest earning trading assets	4,677			38		3.23		4,564			34		3.05		113			0.18	(454		)	0.90
Other earning assets ²	524			5		3.97		529			5		3.50		(5		)	0.47	(73		)	0.96
Total earning assets	184,566			1,759		3.82		182,874			1,668		3.70		1,692			0.12	509			0.37
Allowance for loan and lease losses ("ALLL")	(1,682		)					(1,726		)					(44		)		(41		)
Cash and due from banks	4,223							5,329							(1,106		)		(678		)
Other assets	17,573							17,256							317				1,325
Noninterest earning trading assets and derivative instruments	512							772							(260		)		(406		)
Unrealized (losses)/gains on securities available for sale, net	(644		)					(373		)					(271		)		(737		)
Total assets		$204,548							$204,132							$416				$54
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$45,344			$52	0.46	%		$46,590			$45	0.39	%		($1,246	)	0.07		$907		0.19
Money market accounts	49,845			60		0.49		50,543			48		0.39		(698		)	0.10	(4,354		)	0.21
Savings	6,805			1		0.03		6,587			—		0.02		218			0.01	167			—
Consumer time	6,280			15		0.95		6,085			13		0.87		195			0.08	725			0.24
Other time	7,643			27		1.41		7,026			22		1.25		617			0.16	2,952			0.36
Total interest-bearing consumer and commercial deposits	115,917			155		0.54		116,831			128		0.44		(914		)	0.10	397			0.23
Brokered time deposits	1,029			4		1.46		1,006			3		1.35		23			0.11	100			0.17
Foreign deposits	139			—		1.90		51			—		1.42		88			0.48	(581		)	0.95
Total interest-bearing deposits	117,085			159		0.55		117,888			131		0.45		(803		)	0.10	(84		)	0.23
Funds purchased	1,102			5		1.73		876			3		1.45		226			0.28	(53		)	0.77
Securities sold under agreements to repurchase	1,656			7		1.71		1,595			5		1.39		61			0.32	84			0.82
Interest-bearing trading liabilities	1,314			10		3.12		1,110			8		2.84		204			0.28	322			0.46
Other short-term borrowings	1,807			7		1.54		2,084			6		1.11		(277		)	0.43	(201		)	0.99
Long-term debt	11,452			83		2.92		10,506			74		2.84		946			0.08	934			0.26
Total interest-bearing liabilities	134,416			271		0.81		134,059			227		0.69		357			0.12	1,002			0.27
Noninterest-bearing deposits	43,040							42,338							702				(576		)
Other liabilities	2,309							2,499							(190		)		(667		)
Noninterest-bearing trading liabilities and derivative instruments	688							631							57				339
Shareholders’ equity	24,095							24,605							(510		)		(44		)
Total liabilities and shareholders’ equity		$204,548							$204,132							$416				$54
Interest Rate Spread						3.01	%						3.01	%				—				0.10
Net Interest Income					$1,488							$1,441
Net Interest Income-FTE ³					$1,510							$1,461
Net Interest Margin ⁴						3.23	%						3.20	%				0.03				0.17
Net Interest Margin-FTE ^{3, 4}						3.28							3.24					0.04				0.14

¹Interest income includes loan fees of $39 million for both the three months ended June 30, 2018 and March 31, 2018.

²Beginning January 1, 2018, the Company began presenting other equity securities previously presented in securities available for sale as other earning assets. For periods prior to January 1, 2018, these equity securities have been reclassified to other earning assets for comparability.

³ See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for both the three months ended June 30, 2018 and March 31, 2018 was attributed to C&I loans.

⁴Net interest margin is calculated by dividing annualized Net interest income by average Total earning assets.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued
	Three Months Ended
	December 31, 2017							September 30, 2017							June 30, 2017
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
LHFI: ¹
C&I		$67,238			$575	3.39	%		$68,277			$583	3.39	%		$69,122			$574	3.33	%
CRE	5,209			47		3.57		5,227			47		3.57		5,157			44		3.38
Commercial construction	3,947			39		3.92		3,918			38		3.86		4,105			37		3.63
Residential mortgages - guaranteed	546			3		2.12		512			5		3.57		532			4		2.95
Residential mortgages - nonguaranteed	26,858			254		3.78		26,687			255		3.82		26,090			248		3.80
Residential home equity products	10,531			116		4.37		10,778			120		4.40		11,113			118		4.27
Residential construction	303			3		4.15		333			4		4.68		363			4		4.19
Consumer student - guaranteed	6,576			76		4.60		6,535			73		4.44		6,462			71		4.42
Consumer other direct	8,651			108		4.94		8,426			104		4.91		8,048			97		4.84
Consumer indirect	11,999			107		3.53		11,824			105		3.51		11,284			98		3.50
Consumer credit cards	1,504			39		10.40		1,450			37		10.32		1,391			35		9.96
Nonaccrual	677			9		5.12		739			11		5.90		773			8		4.37
Total LHFI	144,039			1,376		3.79		144,706			1,382		3.79		144,440			1,338		3.72
Securities available for sale: ²
Taxable	30,309			192		2.54		30,089			187		2.49		30,057			184		2.45
Tax-exempt	589			4		2.97		504			4		2.99		348			3		3.04
Total securities available for sale	30,898			196		2.53		30,593			191		2.49		30,405			187		2.46
Federal funds sold and securities borrowed or purchased under agreements to resell	1,198			2		0.87		1,189			3		0.89		1,237			2		0.68
LHFS	2,622			30		4.53		2,477			24		3.89		2,222			21		3.86
Interest-bearing deposits in other banks	25			—		1.62		25			—		1.88		25			—		0.62
Interest earning trading assets	4,996			32		2.53		5,291			31		2.38		5,131			30		2.33
Other earning assets ²	528			4		3.52		580			4		3.06		597			5		3.01
Total earning assets	184,306			1,640		3.53		184,861			1,635		3.51		184,057			1,583		3.45
ALLL	(1,768		)					(1,748		)					(1,723		)
Cash and due from banks	5,018							5,023							4,901
Other assets	16,794							16,501							16,248
Noninterest earning trading assets and derivative instruments	858							948							918
Unrealized gains/(losses) on securities available for sale, net	11							153							93
Total assets		$205,219							$205,738							$204,494
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$46,238			$42	0.36	%		$44,604			$37	0.33	%		$44,437			$30	0.27	%
Money market accounts	52,025			43		0.33		53,278			43		0.32		54,199			38		0.28
Savings	6,487			—		0.02		6,535			—		0.02		6,638			—		0.03
Consumer time	5,785			12		0.82		5,675			11		0.76		5,555			10		0.71
Other time	6,090			18		1.19		5,552			16		1.14		4,691			12		1.05
Total interest-bearing consumer and commercial deposits	116,625			115		0.39		115,644			107		0.37		115,520			90		0.31
Brokered time deposits	971			4		1.32		947			3		1.28		929			3		1.29
Foreign deposits	—			—		—		295			1		1.13		720			2		0.95
Total interest-bearing deposits	117,596			119		0.40		116,886			111		0.38		117,169			95		0.32
Funds purchased	1,143			3		1.17		1,689			5		1.15		1,155			3		0.96
Securities sold under agreements to repurchase	1,483			4		1.14		1,464			4		1.07		1,572			3		0.89
Interest-bearing trading liabilities	969			7		2.73		912			6		2.84		992			6		2.66
Other short-term borrowings	815			1		0.22		1,797			3		0.56		2,008			3		0.55
Long-term debt	10,981			72		2.60		11,204			76		2.70		10,518			70		2.66
Total interest-bearing liabilities	132,987			206		0.61		133,952			205		0.61		133,414			180		0.54
Noninterest-bearing deposits	44,120							43,775							43,616
Other liabilities	2,860							3,046							2,976
Noninterest-bearing trading liabilities and derivative instruments	446							392							349
Shareholders’ equity	24,806							24,573							24,139
Total liabilities and shareholders’ equity		$205,219							$205,738							$204,494
Interest Rate Spread						2.92	%						2.90	%						2.91	%
Net Interest Income					$1,434							$1,430							$1,403
Net Interest Income-FTE ³					$1,472							$1,467							$1,439
Net Interest Margin ⁴						3.09	%						3.07	%						3.06	%
Net Interest Margin-FTE ^{3, 4}						3.17							3.15							3.14


¹	Interest income includes loan fees of $42 million, $45 million, and $45 million for the three months ended December 31, 2017, September 30, 2017, and June 30, 2017, respectively.


²	Beginning January 1, 2018, the Company began presenting other equity securities previously presented in securities available for sale as other earning assets. For periods prior to January 1, 2018, these equity securities have been reclassified to other earning assets for comparability.


³	See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for the three months ended December 31, 2017, September 30, 2017, and June 30, 2017 was attributed to C&I loans.


⁴	Net interest margin is calculated by dividing annualized Net interest income by average Total earning assets.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued
	Six Months Ended
	June 30, 2018							June 30, 2017							(Decrease)/Increase
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Yields/ Rates
ASSETS
LHFI: ¹
C&I		$66,742			$1,221	3.69	%		$69,099			$1,128	3.29	%		($2,357	)	0.40
CRE	5,466			107		3.96		5,098			83		3.28		368			0.68
Commercial construction	3,653			80		4.42		4,090			71		3.51		(437		)	0.91
Residential mortgages - guaranteed	613			10		3.22		550			8		3.01		63			0.21
Residential mortgages - nonguaranteed	26,943			512		3.80		26,004			494		3.80		939			—
Residential home equity products	10,080			235		4.70		11,289			235		4.19		(1,209		)	0.51
Residential construction	239			6		4.83		374			8		4.12		(135		)	0.71
Consumer student - guaranteed	6,710			161		4.84		6,371			136		4.31		339			0.53
Consumer other direct	8,988			230		5.17		7,934			194		4.93		1,054			0.24
Consumer indirect	11,866			215		3.66		11,067			190		3.46		799			0.20
Consumer credit cards	1,525			87		11.35		1,380			68		9.87		145			1.48
Nonaccrual	717			10		2.81		802			13		3.16		(85		)	(0.35	)
Total LHFI	143,542			2,874		4.04		144,058			2,628		3.68		(516		)	0.36
Securities available for sale: ²
Taxable	30,904			407		2.63		30,011			364		2.43		893			0.20
Tax-exempt	633			9		2.98		317			5		3.04		316			(0.06	)
Total securities available for sale	31,537			416		2.64		30,328			369		2.44		1,209			0.20
Federal funds sold and securities borrowed or purchased under agreements to resell	1,403			10		1.39		1,237			3		0.51		166			0.88
LHFS	2,071			45		4.33		2,415			46		3.78		(344		)	0.55
Interest-bearing deposits in other banks	25			—		2.08		25			—		0.63		—			1.45
Interest earning trading assets	4,621			72		3.14		5,159			56		2.21		(538		)	0.93
Other earning assets ²	526			10		3.74		611			9		2.97		(85		)	0.77
Total earning assets	183,725			3,427		3.76		183,833			3,111		3.41		(108		)	0.35
ALLL	(1,704		)					(1,711		)					(7		)
Cash and due from banks	4,773							5,227							(454		)
Other assets	17,415							16,100							1,315
Noninterest earning trading assets and derivative instruments	641							903							(262		)
Unrealized (losses)/gains on securities available for sale, net	(509		)					22							(531		)
Total assets		$204,341							$204,374							($33	)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$45,964			$97	0.42	%		$44,590			$53	0.24	%		$1,374		0.18
Money market accounts	50,192			109		0.44		54,549			71		0.26		(4,357		)	0.18
Savings	6,697			1		0.03		6,527			1		0.03		170			—
Consumer time	6,183			28		0.91		5,521			19		0.70		662			0.21
Other time	7,336			48		1.33		4,463			22		1.01		2,873			0.32
Total interest-bearing consumer and commercial deposits	116,372			283		0.49		115,650			166		0.29		722			0.20
Brokered time deposits	1,018			7		1.40		923			6		1.28		95			0.12
Foreign deposits	95			1		1.77		699			3		0.81		(604		)	0.96
Total interest-bearing deposits	117,485			291		0.50		117,272			175		0.30		213			0.20
Funds purchased	990			8		1.61		1,014			4		0.83		(24		)	0.78
Securities sold under agreements to repurchase	1,626			13		1.55		1,643			6		0.74		(17		)	0.81
Interest-bearing trading liabilities	1,212			18		2.99		997			13		2.63		215			0.36
Other short-term borrowings	1,945			12		1.31		1,881			5		0.52		64			0.79
Long-term debt	10,981			157		2.88		11,038			139		2.55		(57		)	0.33
Total interest-bearing liabilities	134,239			499		0.75		133,845			342		0.52		394			0.23
Noninterest-bearing deposits	42,691							43,356							(665		)
Other liabilities	2,403							2,919							(516		)
Noninterest-bearing trading liabilities and derivative instruments	659							348							311
Shareholders’ equity	24,349							23,906							443
Total liabilities and shareholders’ equity		$204,341							$204,374							($33	)
Interest Rate Spread						3.01	%						2.89	%				0.12
Net Interest Income					$2,928							$2,769
Net Interest Income-FTE ³					$2,971							$2,839
Net Interest Margin ⁴						3.21	%						3.04	%				0.17
Net Interest Margin-FTE ^{3, 4}						3.26							3.11					0.15

¹ Interest income includes loan fees of $78 million and $90 million for the six months ended June 30, 2018 and 2017, respectively.

² Beginning January 1, 2018, the Company began presenting other equity securities previously presented in securities available for sale as other earning assets. For periods prior to January 1, 2018, these equity securities have been reclassified to other earning assets for comparability.

³ See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for both the six months ended June 30, 2018 and 2017 was attributed to C&I loans.

⁴ Net interest margin is calculated by dividing annualized Net interest income by average Total earning assets.



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA
	Three Months Ended											Six Months Ended
	June 30						(Decrease)/Increase					June 30						Increase/(Decrease)
(Dollars in millions) (Unaudited)	2018			2017			Amount			%		2018			2017			Amount			% ⁴
CREDIT DATA
Allowance for credit losses, beginning of period		$1,763			$1,783			($20	)	(1	)%		$1,814			$1,776			$38		2	%
Provision/(benefit) for unfunded commitments	3			3			—			—		(7		)	5			(12		)	NM
Provision for loan losses:
Commercial	17			39			(22		)	(56	)	1			84			(83		)	(99	)
Consumer	12			48			(36		)	(75	)	66			120			(54		)	(45	)
Total provision for loan losses	29			87			(58		)	(67	)	67			204			(137		)	(67	)
Charge-offs:
Commercial	(21		)	(26		)	(5		)	(19	)	(44		)	(89		)	(45		)	(51	)
Consumer	(80		)	(75		)	5			7		(163		)	(159		)	4			3
Total charge-offs	(101		)	(101		)	—			—		(207		)	(248		)	(41		)	(17	)
Recoveries:
Commercial	4			7			(3		)	(43	)	10			21			(11		)	(52	)
Consumer	24			24			—			—		45			45			—			—
Total recoveries	28			31			(3		)	(10	)	55			66			(11		)	(17	)
Net charge-offs	(73		)	(70		)	3			4		(152		)	(182		)	(30		)	(16	)
Allowance for credit losses, end of period		$1,722			$1,803			($81	)	(4	)%		$1,722			$1,803			($81	)	(4	)%
Components:
Allowance for loan and lease losses ("ALLL")													$1,650			$1,731			($81	)	(5	)%
Unfunded commitments reserve												72			72			—			—
Allowance for credit losses													$1,722			$1,803			($81	)	(4	)%
Net charge-offs to average loans held for investment ("LHFI") (annualized):
Commercial	0.09		%	0.10		%	(0.01		)	(10	)%	0.09		%	0.18		%	(0.09		)	(50	)%
Consumer	0.34			0.32			0.02			6		0.35			0.35			—			—
Total net charge-offs to total average LHFI	0.20			0.20			—			—		0.21			0.26			(0.05		)	(19	)
Period Ended
Nonaccrual/nonperforming loans ("NPLs"):
Commercial													$341			$325			$16		5	%
Consumer												414			429			(15		)	(3	)
Total nonaccrual/NPLs												755			754			1			—
Other real estate owned (“OREO”)												53			61			(8		)	(13	)
Other repossessed assets												6			6			—			—
Total nonperforming assets ("NPAs")													$814			$821			($7	)	(1	)%
Accruing restructured loans													$2,418			$2,524			($106	)	(4	)%
Nonaccruing restructured loans ¹												326			321			5			2
Accruing LHFI past due > 90 days (guaranteed)												1,201			1,221			(20		)	(2	)
Accruing LHFI past due > 90 days (non-guaranteed)												41			30			11			37
Accruing LHFS past due > 90 days												1			1			—			—
NPLs to period-end LHFI												0.52		%	0.52		%	—			—	%
NPAs to period-end LHFI plus OREO, and other repossessed assets												0.56			0.57			(0.01		)	(2	)
ALLL to period-end LHFI ^{2, 3}												1.14			1.20			(0.06		)	(5	)
ALLL to NPLs ^{2, 3}												2.20x			2.31x			(0.11x)			(5	)

¹Nonaccruing restructured loans are included in total nonaccrual/NPLs.

²This ratio is computed using the ALLL.

³Loans measured at fair value were excluded from the calculation as no allowance is recorded for loans measured at fair value. The Company believes that this presentation more appropriately reflects the relationship between the ALLL and loans that attract an allowance.

⁴ "NM" - Not meaningful. Those changes over 100 percent were not considered to be meaningful.



SunTrust Banks, Inc. and Subsidiaries FIVE QUARTER OTHER FINANCIAL DATA
	Three Months Ended											Three Months Ended
	June 30			March 31			(Decrease)/Increase					December 31			September 30			June 30
(Dollars in millions) (Unaudited)	2018			2018			Amount			% ⁴		2017			2017			2017
CREDIT DATA
Allowance for credit losses, beginning of period		$1,763			$1,814			($51	)	(3	)%		$1,845			$1,803			$1,783
Provision/(benefit) for unfunded commitments	3			(10		)	13			NM		6			1			3
Provision/(benefit) for loan losses:
Commercial	17			(16		)	33			NM		19			5			39
Consumer	12			54			(42		)	(78	)	55			114			48
Total provision for loan losses	29			38			(9		)	(24	)	74			119			87
Charge-offs:
Commercial	(21		)	(23		)	(2		)	(9	)	(44		)	(33		)	(26		)
Consumer	(80		)	(83		)	(3		)	(4	)	(90		)	(76		)	(75		)
Total charge-offs	(101		)	(106		)	(5		)	(5	)	(134		)	(109		)	(101		)
Recoveries:
Commercial	4			6			(2		)	(33	)	7			11			7
Consumer	24			21			3			14		20			20			24
Total recoveries	28			27			1			4		27			31			31
Net charge-offs	(73		)	(79		)	(6		)	(8	)	(107		)	(78		)	(70		)
Other	—			—			—			—		(4		)	—			—
Allowance for credit losses, end of period		$1,722			$1,763			($41	)	(2	)%		$1,814			$1,845			$1,803
Components:
ALLL		$1,650			$1,694			($44	)	(3	)%		$1,735			$1,772			$1,731
Unfunded commitments reserve	72			69			3			4		79			73			72
Allowance for credit losses		$1,722			$1,763			($41	)	(2	)%		$1,814			$1,845			$1,803
Net charge-offs to average LHFI (annualized):
Commercial	0.09		%	0.09		%	—			—	%	0.19		%	0.11		%	0.10		%
Consumer	0.34			0.37			(0.03		)	(8	)	0.41			0.33			0.32
Total net charge-offs to total average LHFI	0.20			0.22			(0.02		)	(9	)	0.29			0.21			0.20
Period Ended
Nonaccrual/NPLs:
Commercial		$341			$262			$79		30	%		$240			$298			$325
Consumer	414			450			(36		)	(8	)	434			399			429
Total nonaccrual/NPLs	755			712			43			6		674			697			754
OREO	53			59			(6		)	(10	)	57			57			61
Other repossessed assets	6			7			(1		)	(14	)	10			7			6
Nonperforming LHFS	—			—			—			—		—			31			—
Total NPAs		$814			$778			$36		5	%		$741			$792			$821
Accruing restructured loans		$2,418			$2,476			($58	)	(2	)%		$2,468			$2,501			$2,524
Nonaccruing restructured loans ¹	326			279			47			17		286			304			321
Accruing LHFI past due > 90 days (guaranteed)	1,201			1,312			(111		)	(8	)	1,374			1,304			1,221
Accruing LHFI past due > 90 days (non-guaranteed)	41			36			5			14		31			39			30
Accruing LHFS past due > 90 days	1			3			(2		)	(67	)	2			—			1
NPLs to period-end LHFI	0.52		%	0.50		%	0.02			4	%	0.47		%	0.48		%	0.52		%
NPAs to period-end LHFI plus OREO, other repossessed assets, and nonperforming LHFS	0.56			0.55			0.01			2		0.52			0.55			0.57
ALLL to period-end LHFI ^{2, 3}	1.14			1.19			(0.05		)	(4	)	1.21			1.23			1.20
ALLL to NPLs ^{2, 3}	2.20x			2.40x			(0.20x)			(8	)	2.59x			2.55x			2.31x

¹Nonaccruing restructured loans are included in total nonaccrual/NPLs.

²This ratio is computed using the ALLL.

⁴ "NM" - Not meaningful. Those changes over 100 percent were not considered to be meaningful.



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued
	Three Months Ended June 30									Six Months Ended June 30
(Dollars in millions) (Unaudited)	Residential MSRs - Fair Value			Commercial Mortgage Servicing Rights and Other			Total			Residential MSRs - Fair Value			Commercial Mortgage Servicing Rights and Other			Total
OTHER INTANGIBLE ASSETS ROLLFORWARD
Balance, beginning of period		$1,645			$84			$1,729			$1,572			$85			$1,657
Amortization	—			(5		)	(5		)	—			(10		)	(10		)
Servicing rights originated	65			2			67			162			7			169
Fair value changes due to inputs and assumptions ¹	(43		)	—			(43		)	(16		)	—			(16		)
Other changes in fair value ²	(58		)	—			(58		)	(109		)	—			(109		)
Servicing rights sold	(1		)	—			(1		)	(1		)	—			(1		)
Other ³	—			—			—			—			(1		)	(1		)
Balance, June 30, 2017		$1,608			$81			$1,689			$1,608			$81			$1,689

Balance, beginning of period		$1,916			$80			$1,996			$1,710			$81			$1,791
Amortization	—			(6		)	(6		)	—			(11		)	(11		)
Servicing rights originated	74			3			77			149			7			156
Servicing rights purchased	—			—			—			75			—			75
Fair value changes due to inputs and assumptions ¹	35			—			35			146			—			146
Other changes in fair value ²	(65		)	—			(65		)	(120		)	—			(120		)
Servicing rights sold	(1		)	—			(1		)	(1		)	—			(1		)
Balance, June 30, 2018		$1,959			$77			$2,036			$1,959			$77			$2,036

¹Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.

² Represents changes due to the collection of expected cash flows, net of accretion, due to the passage of time.

³ Represents measurement period adjustment on other intangible assets previously acquired in Pillar/Cohen acquisition.



	Three Months Ended
	June 30		March 31		December 31		September 30		June 30
(Shares in thousands) (Unaudited)	2018		2018		2017		2017		2017
COMMON SHARES OUTSTANDING ROLLFORWARD
Balance, beginning of period	469,708		470,931		476,001		481,644		485,712
Common shares issued for employee benefit plans	402		3,615		244		125		111
Repurchases of common stock	(4,911	)	(4,838	)	(5,314	)	(5,768	)	(4,179	)
Balance, end of period	465,199		469,708		470,931		476,001		481,644



SunTrust Banks, Inc. and Subsidiaries APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES¹

	Three Months Ended															Six Months Ended
	June 30			March 31			December 31			September 30			June 30			June 30
(Dollars in millions) (Unaudited)	2018			2018			2017			2017			2017			2018			2017
Net interest income		$1,488			$1,441			$1,434			$1,430			$1,403			$2,928			$2,769
Fully taxable-equivalent ("FTE") adjustment	22			20			38			37			36			43			70
Net interest income-FTE ²	1,510			1,461			1,472			1,467			1,439			2,971			2,839
Noninterest income	829			796			833			846			827			1,626			1,674
Total revenue-FTE ²		$2,339			$2,257			$2,305			$2,313			$2,266			$4,597			$4,513

Return on average common shareholders’ equity	12.73		%	11.23		%	12.54		%	9.03		%	9.08		%	11.98		%	8.64		%
Impact of removing average intangible assets and related pre-tax amortization, other than residential MSRs and other servicing rights	5.01			4.37			4.70			3.42			3.43			4.69			3.26
Return on average tangible common shareholders' equity ³	17.74		%	15.60		%	17.24		%	12.45		%	12.51		%	16.67		%	11.90		%

Net interest margin	3.23		%	3.20		%	3.09		%	3.07		%	3.06		%	3.21		%	3.04		%
Impact of FTE adjustment	0.05			0.04			0.08			0.08			0.08			0.05			0.07
Net interest margin-FTE ²	3.28		%	3.24		%	3.17		%	3.15		%	3.14		%	3.26		%	3.11		%

Noninterest expense		$1,390			$1,417			$1,520			$1,391			$1,388			$2,807			$2,853
Total revenue	2,317			2,237			2,267			2,276			2,230			4,554			4,443
Efficiency ratio ⁴	59.98		%	63.35		%	67.03		%	61.12		%	62.24		%	61.63		%	64.21		%
Impact of FTE adjustment	(0.57		)	(0.58		)	(1.09		)	(0.98		)	(1.00		)	(0.57		)	(1.00		)
Efficiency ratio-FTE ^{2, 4}	59.41			62.77			65.94			60.14			61.24			61.06			63.21
Impact of excluding amortization related to intangible assets and certain tax credits	(0.72		)	(0.66		)	(1.10		)	(0.93		)	(0.65		)	(0.69		)	(0.62		)
Tangible efficiency ratio-FTE ^{2, 5}	58.69		%	62.11		%	64.84		%	59.21		%	60.59		%	60.37		%	62.59		%
Impact of excluding Form 8-K and other tax reform-related items	—			—			(4.99		)	—			—			—			—
Adjusted tangible efficiency ratio-FTE ^{2, 5, 6}	58.69		%	62.11		%	59.85		%	59.21		%	60.59		%	60.37		%	62.59		%

¹ Certain amounts in this schedule are presented net of applicable income taxes, calculated based on each subsidiary’s federal and state tax rates and are adjusted for any permanent differences.

² The Company presents Net interest income-FTE, Total revenue-FTE, Net interest margin-FTE, Efficiency ratio-FTE, Tangible efficiency ratio-FTE, and Adjusted tangible efficiency ratio-FTE on a fully taxable-equivalent (“FTE”) 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 21% for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018, as well as 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.

³ The Company presents Return on average tangible common shareholders' equity, which removes the after-tax impact of purchase accounting intangible assets from average common shareholders' equity and removes related intangible asset amortization from Net income available to common shareholders. The Company believes this measure is useful to investors because, by removing the amount of intangible assets and related pre-tax amortization expense (the level of which may vary from company to company), it allows investors to more easily compare the Company’s return on average common shareholders' equity to other companies in the industry. The Company also believes that removing these items provides a more relevant measure of the return on the Company's common shareholders' equity. This measure is utilized by management to assess the profitability of the Company.

⁴ Efficiency ratio is computed by dividing Noninterest expense by Total revenue. Efficiency ratio-FTE is computed by dividing Noninterest expense by Total revenue-FTE.

⁵ The Company presents Tangible efficiency ratio-FTE and Adjusted tangible efficiency ratio-FTE, which remove the amortization related to intangible assets and certain tax credits from the calculation of Efficiency ratio-FTE. The Company believes these measures are 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. These measures are utilized by management to assess the efficiency of the Company and its lines of business.

⁶ The Company presents Adjusted tangible efficiency ratio-FTE, which removes the pre-tax impact of Form 8-K and other tax reform-related items from the calculation of Tangible efficiency ratio-FTE. The Company believes this measure is useful to investors because it is more reflective of normalized operations as it reflects results that are primarily client relationship and client transaction driven. Removing these items also allows investors to more easily compare the Company's tangible efficiency to other companies in the industry that may not have had similar items impacting their results. Additional detail on these items can be found in the Form 8-K furnished with the SEC on January 19, 2018.



SunTrust Banks, Inc. and Subsidiaries APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES, continued¹

	June 30			March 31			December 31			September 30			June 30
(Dollars in millions, except per share data) (Unaudited)	2018			2018			2017			2017			2017
Total shareholders' equity		$24,316			$24,269			$25,154			$24,522			$24,477
Goodwill, net of deferred taxes of $159 million, $159 million, $163 million, $254 million, and $253 million, respectively	(6,172		)	(6,172		)	(6,168		)	(6,084		)	(6,085		)
Other intangible assets (including residential MSRs and other servicing rights)	(2,036		)	(1,996		)	(1,791		)	(1,706		)	(1,689		)
Residential MSRs and other servicing rights	2,022			1,981			1,776			1,690			1,671
Tangible equity ²	18,130			18,082			18,971			18,422			18,374
Noncontrolling interest	(103		)	(101		)	(103		)	(101		)	(103		)
Preferred stock	(2,025		)	(2,025		)	(2,475		)	(1,975		)	(1,975		)
Tangible common equity ²		$16,002			$15,956			$16,393			$16,346			$16,296

Total assets		$207,505			$204,885			$205,962			$208,252			$207,223
Goodwill	(6,331		)	(6,331		)	(6,331		)	(6,338		)	(6,338		)
Other intangible assets (including residential MSRs and other servicing rights)	(2,036		)	(1,996		)	(1,791		)	(1,706		)	(1,689		)
Residential MSRs and other servicing rights	2,022			1,981			1,776			1,690			1,671
Tangible assets		$201,160			$198,539			$199,616			$201,898			$200,867
Tangible equity to tangible assets ²	9.01		%	9.11		%	9.50		%	9.12		%	9.15		%
Tangible common equity to tangible assets ²	7.96			8.04			8.21			8.10			8.11
Tangible book value per common share ³		$34.40			$33.97			$34.82			$34.34			$33.83

¹ Certain amounts in this schedule are presented net of applicable income taxes, calculated based on each subsidiary’s federal and state tax rates and are adjusted for any permanent differences.

² The Company presents certain capital information on a tangible basis, including Tangible equity, Tangible common equity, the ratio of Tangible equity to tangible assets, and the ratio of Tangible common equity to tangible assets, which remove the after-tax impact of purchase accounting intangible assets from shareholders' equity. The Company believes these measures are useful to investors because, by removing the amount of intangible assets that result from merger and acquisition activity (the level of which may vary from company to company), it allows investors to more easily compare the Company’s capital adequacy to other companies in the industry. These measures are used by management to analyze capital adequacy.

³ The Company presents Tangible book value per common share, which excludes the after-tax impact of purchase accounting intangible assets and also excludes Noncontrolling interest and Preferred stock from shareholders' equity. The Company believes this measure is useful to investors because, by removing the amount of intangible assets, noncontrolling interest, and preferred stock (the levels of which may vary from company to company), it allows investors to more easily compare the Company’s book value of common stock to other companies in the industry.



SunTrust Banks, Inc. and Subsidiaries CONSUMER BUSINESS SEGMENT
	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2018			2017 ¹			% Change		2018			2017 ¹			% Change
Statements of Income:
Net interest income		$1,058			$975		9	%		$2,073			$1,917		8	%
FTE adjustment	—			—			—		—			—			—
Net interest income-FTE ²	1,058			975			9		2,073			1,917			8
Provision for credit losses ³	7			84			(92	)	65			171			(62	)
Net interest income-FTE - after provision for credit losses ²	1,051			891			18		2,008			1,746			15
Noninterest income before net securities gains/(losses)	453			473			(4	)	904			945			(4	)
Net securities gains/(losses)	—			—			—		—			—			—
Total noninterest income	453			473			(4	)	904			945			(4	)
Noninterest expense before amortization	995			982			1		2,003			2,009			—
Amortization	—			1			(100	)	1			1			—
Total noninterest expense	995			983			1		2,004			2,010			—
Income-FTE - before provision for income taxes ²	509			381			34		908			681			33
Provision for income taxes	115			137			(16	)	202			245			(18	)
Tax credit adjustment	—			—			—		—			—			—
FTE adjustment	—			—			—		—			—			—
Net income including income attributable to noncontrolling interest	394			244			61		706			436			62
Less: Net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$394			$244		61	%		$706			$436		62	%

Total revenue		$1,511			$1,448		4	%		$2,977			$2,862		4	%
Total revenue-FTE ²	1,511			1,448			4		2,977			2,862			4

Selected Average Balances:
Total LHFI		$75,450			$73,680		2	%		$75,564			$73,247		3	%
Goodwill	4,390			4,262			3		4,326			4,262			2
Other intangible assets excluding residential MSRs	3			8			(63	)	3			9			(67	)
Total assets	85,309			83,230			2		85,210			82,991			3
Consumer and commercial deposits	111,555			109,580			2		110,432			108,818			1

Performance Ratios:
Efficiency ratio	65.89		%	67.91		%			67.29		%	70.23		%
Impact of FTE adjustment	—			—					—			—
Efficiency ratio-FTE ²	65.89			67.91					67.29			70.23
Impact of excluding amortization and associated funding cost of intangible assets	(1.11		)	(1.07		)			(1.11		)	(1.11		)
Tangible efficiency ratio-FTE ^{2, 4}	64.78		%	66.84		%			66.18		%	69.12		%


¹	During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.

Net interest income-FTE, Income-FTE, Total revenue-FTE, Efficiency ratio-FTE, and Tangible efficiency ratio-FTE are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of Net interest income from certain loans and investments. 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 on an FTE basis plus Noninterest income.


³	Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to quarterly changes in the Allowance for loan and lease losses and Unfunded commitment reserve balances.

⁴

A Tangible efficiency ratio is presented, which 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 this segment's efficiency to other business segments and companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.



SunTrust Banks, Inc. and Subsidiaries CONSUMER BUSINESS SEGMENT, continued
	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2018			2017			% Change		2018			2017			% Change
Residential Mortgage Production Data:
Channel mix:
Retail		$2,295			$2,692		(15	)%		$3,995			$4,984		(20	)%
Correspondent	3,964			3,733			6		7,409			6,932			7
Total production		$6,259			$6,425		(3	)%		$11,404			$11,916		(4	)%
Channel mix - percent:
Retail	37		%	42		%			35		%	42		%
Correspondent	63			58					65			58
Total production	100		%	100		%			100		%	100		%
Purchase and refinance mix:
Refinance		$1,218			$1,962		(38	)%		$3,102			$4,493		(31	)%
Purchase	5,041			4,463			13		8,302			7,423			12
Total production		$6,259			$6,425		(3	)%		$11,404			$11,916		(4	)%
Purchase and refinance mix - percent:
Refinance	19		%	31		%			27		%	38		%
Purchase	81			69					73			62
Total production	100		%	100		%			100		%	100		%
Applications		$8,311			$8,273		—	%		$15,327			$16,017		(4	)%

Residential Mortgage Servicing Data (End of Period):
Total unpaid principal balance ("UPB") of residential mortgages serviced										$170,486			$165,601		3	%
Total UPB of residential mortgages serviced for others									140,328			136,115			3
Net carrying value of residential MSRs									1,959			1,608			22
Ratio of net carrying value of residential MSRs to total UPB of residential mortgages serviced for others									1.396		%	1.181		%

Assets Under Administration (End of Period):
Trust and institutional managed assets										$43,546			$41,572		5	%
Retail brokerage managed assets									16,779			14,826			13
Total managed assets									60,325			56,398			7
Non-managed assets									99,574			95,463			4
Total assets under advisement										$159,899			$151,861		5	%



SunTrust Banks, Inc. and Subsidiaries WHOLESALE BUSINESS SEGMENT
	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2018			2017^{1, 2}			% Change ⁶		2018			2017^{1, 2}			% Change ⁶
Statements of Income:
Net interest income		$534			$493		8	%		$1,046			$971		8	%
FTE adjustment	22			35			(37	)	42			69			(39	)
Net interest income-FTE ³	556			528			5		1,088			1,040			5
Provision/(benefit) for credit losses ⁴	24			6			NM		(6		)	38			NM
Net interest income-FTE - after provision/(benefit) for credit losses ³	532			522			2		1,094			1,002			9
Noninterest income before net securities gains/(losses)	388			378			3		751			771			(3	)
Net securities gains/(losses)	—			—			—		—			—			—
Total noninterest income	388			378			3		751			771			(3	)
Noninterest expense before amortization	407			407			—		845			840			1
Amortization	17			14			21		31			27			15
Total noninterest expense	424			421			1		876			867			1
Income-FTE - before provision for income taxes ³	496			479			4		969			906			7
Provision for income taxes	65			107			(39	)	128			195			(34	)
Tax credit adjustment	31			36			(14	)	59			73			(19	)
FTE adjustment	22			35			(37	)	42			69			(39	)
Net income including income attributable to noncontrolling interest	378			301			26		740			569			30
Less: Net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$378			$301		26	%		$740			$569		30	%

Total revenue		$922			$871		6	%		$1,797			$1,742		3	%
Total revenue-FTE ³	944			906			4		1,839			1,811			2

Selected Average Balances:
Total LHFI		$68,615			$69,365		(1	)%		$67,889			$69,469		(2	)%
Goodwill	1,941			2,076			(7	)	2,005			2,076			(3	)
Other intangible assets excluding residential MSRs	76			75			1		77			75			3
Total assets	82,133			82,801			(1	)	81,514			82,883			(2	)
Consumer and commercial deposits	47,431			49,381			(4	)	48,638			50,070			(3	)

Performance Ratios:
Efficiency ratio	45.98		%	48.38		%			48.76		%	49.76		%
Impact of FTE adjustment	(1.06		)	(1.88		)			(1.10		)	(1.89		)
Efficiency ratio-FTE ³	44.92			46.50					47.66			47.87
Impact of excluding amortization and associated funding cost of intangible assets	(2.28		)	(2.12		)			(2.29		)	(2.05		)
Tangible efficiency ratio-FTE ^{3, 5}	42.64		%	44.38		%			45.37		%	45.82		%


¹	During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.

During the fourth quarter of 2017, the Company sold Premium Assignment Corporation ("PAC"), its commercial lines insurance premium finance subsidiary, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.


⁴	Provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision/(benefit) attributable to quarterly changes in the Allowance for loan and lease losses and Unfunded commitment reserve balances.

⁵


⁶	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.



SunTrust Banks, Inc. and Subsidiaries TOTAL CORPORATE OTHER (including Reconciling Items)
	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2018			2017¹			% Change ⁵		2018			2017¹			% Change ⁵
Statements of Income:
Net interest income/(expense) ²		($104	)		($65	)	(60	)%		($191	)		($119	)	(61	)%
FTE adjustment	—			1			(100	)	1			1			—
Net interest income/(expense)-FTE ³	(104		)	(64		)	(63	)	(190		)	(118		)	(61	)
Provision/(benefit) for credit losses ⁴	1			—			NM		1			—			NM
Net interest income/(expense)-FTE - after provision/(benefit) for credit losses ³	(105		)	(64		)	(64	)	(191		)	(118		)	(62	)
Noninterest income/(expense) before net securities gains	(12		)	(25		)	52		(30		)	(43		)	30
Net securities gains	—			1			(100	)	1			1			—
Total noninterest income/(expense)	(12		)	(24		)	50		(29		)	(42		)	31
Noninterest expense/(income) before amortization	(29		)	(16		)	(81	)	(73		)	(24		)	NM
Amortization	—			—			—		—			—			—
Total noninterest expense/(income)	(29		)	(16		)	(81	)	(73		)	(24		)	NM
Income/(loss)-FTE - before benefit for income taxes ³	(88		)	(72		)	(22	)	(147		)	(136		)	(8	)
Benefit for income taxes	(9		)	(22		)	59		(12		)	(59		)	80
Tax credit adjustment	(31		)	(36		)	14		(59		)	(73		)	19
FTE adjustment	—			1			(100	)	1			1			—
Net income/(loss) including income attributable to noncontrolling interest	(48		)	(15		)	NM		(77		)	(5		)	NM
Less: Net income attributable to noncontrolling interest	2			2			—		4			5			(20	)
Net income/(loss)		($50	)		($17	)	NM			($81	)		($10	)	NM

Total revenue		($116	)		($89	)	(30	)		($220	)		($161	)	(37	)%
Total revenue-FTE ³	(116		)	(88		)	(32	)	(219		)	(160		)	(37	)

Selected Average Balances:
Total LHFI		$91			$1,395		(93	)%		$89			$1,342		(93	)%
Securities available for sale	31,584			30,387			4		31,524			30,309			4
Goodwill	—			—			—		—			—			—
Other intangible assets excluding residential MSRs	—			—			—		—			—			—
Total assets	37,106			38,463			(4	)	37,617			38,500			(2	)
Consumer and commercial deposits	(29		)	175			NM		(7		)	118			NM

Other Information (End of Period):
Duration of securities available for sale portfolio (in years)									4.7			4.5
Net interest income interest rate sensitivity:
% Change in net interest income under:
Instantaneous 200 basis point increase in rates over next 12 months									2.8		%	3.7		%
Instantaneous 100 basis point increase in rates over next 12 months									1.5		%	2.1		%
Instantaneous 50 basis point decrease in rates over next 12 months									(1.0		)%	(1.4		)%


²	Net interest income/(expense) is driven by matched funds transfer pricing applied for segment reporting and actual Net interest income.

Net interest income/(expense)-FTE, Income/(loss)-FTE, and Total revenue-FTE are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of Net interest income from certain loans and investments. 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 on an FTE basis plus Noninterest income.


⁴	Provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision/(benefit) attributable to quarterly changes in the Allowance for loan and lease losses and Unfunded commitments reserve balances.


⁵	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED SEGMENT TOTALS



	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2018			2017			% Change		2018			2017			% Change
Statements of Income:
Net interest income		$1,488			$1,403		6	%		$2,928			$2,769		6	%
FTE adjustment	22			36			(39	)	43			70			(39	)
Net interest income-FTE ¹	1,510			1,439			5		2,971			2,839			5
Provision for credit losses	32			90			(64	)	60			209			(71	)
Net interest income-FTE - after provision for credit losses ¹	1,478			1,349			10		2,911			2,630			11
Noninterest income before net securities gains	829			826			—		1,625			1,673			(3	)
Net securities gains	—			1			(100	)	1			1			—
Total noninterest income	829			827			—		1,626			1,674			(3	)
Noninterest expense before amortization	1,373			1,373			—		2,775			2,825			(2	)
Amortization	17			15			13		32			28			14
Total noninterest expense	1,390			1,388			—		2,807			2,853			(2	)
Income-FTE - before provision for income taxes ¹	917			788			16		1,730			1,451			19
Provision for income taxes	171			222			(23	)	318			381			(17	)
Tax credit adjustment	—			—			—		—			—			—
FTE adjustment	22			36			(39	)	43			70			(39	)
Net income including income attributable to noncontrolling interest	724			530			37		1,369			1,000			37
Less: Net income attributable to noncontrolling interest	2			2			—		4			5			(20	)
Net income		$722			$528		37	%		$1,365			$995		37	%

Total revenue		$2,317			$2,230		4	%		$4,554			$4,443		2	%
Total revenue-FTE ¹	2,339			2,266			3		4,597			4,513			2

Selected Average Balances:
Total LHFI		$144,156			$144,440		—	%		$143,542			$144,058		—	%
Goodwill	6,331			6,338			—		6,331			6,338			—
Other intangible assets excluding residential MSRs	79			83			(5	)	80			84			(5	)
Total assets	204,548			204,494			—		204,341			204,374			—
Consumer and commercial deposits	158,957			159,136			—		159,063			159,006			—

Performance Ratios:
Efficiency ratio	59.98		%	62.24		%			61.63		%	64.21		%
Impact of FTE adjustment	(0.57		)	(1.00		)			(0.57		)	(1.00		)
Efficiency ratio-FTE ¹	59.41			61.24					61.06			63.21
Impact of excluding amortization and associated funding cost of intangible assets	(0.72		)	(0.65		)			(0.69		)	(0.62		)
Tangible efficiency ratio-FTE ¹	58.69		%	60.59		%			60.37		%	62.59		%

¹ Net interest income-FTE, Income-FTE, Total revenue-FTE, Efficiency ratio-FTE, and Tangible efficiency ratio-FTE are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of Net interest income from certain loans and investments. See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.

SUNTRUST BANKS INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 20, 2018

Attached files