Suntrust Banks 8K SunTrust Reports First Quarter 2014 Results | SEC 21 Apr 14

Exhibit 99.1

News Release



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Investors		Media
Ankur Vyas		Mike McCoy
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For Immediate Release

April 21, 2014

SunTrust Reports First Quarter 2014 Results

Continued Loan Growth, Disciplined Expense Management, and Asset Quality Improvements Help Drive Solid Results

ATLANTA -- SunTrust Banks, Inc. (NYSE: STI) today reported net income available to common shareholders of $393 million, or $0.73 per average common diluted share, representing a 16% increase from the first quarter of 2013. Earnings per average common diluted share were $0.77 in the prior quarter.

"Our 16% earnings per share growth over the past year reflects progress in several key areas--expense management, credit quality improvement, and increased lending to clients," said William H. Rogers, Jr., Chairman and Chief Executive Officer of SunTrust Banks, Inc. "To deliver further profitable growth, we are focusing our efforts on meeting more of our clients’ needs and expanding relationships in key growth areas, while continuing our expense management discipline."

First Quarter 2014 Financial Highlights

Income Statement


•	Net income available to common shareholders was $393 million, or $0.73 per average common diluted share, compared to $413 million, or $0.77 per share, in the prior quarter. Both quarters' results included discrete items that benefited the effective tax rate.


•	Total revenue decreased $31 million, or 2%, compared to the prior quarter.


◦	Net interest income declined slightly due to fewer days.

◦

Noninterest income decreased $23 million compared to the prior quarter driven by lower transaction-related fees and seasonally lower investment banking income, partially offset by higher mortgage-related income. Compared to the first quarter of 2013, noninterest income increased across most categories, except for the anticipated decline in mortgage production income due to lower refinance activity.


•	Noninterest expense decreased $4 million sequentially.


◦	Compensation and benefits costs increased $77 million compared to the fourth quarter primarily due to the typical increase in incentive and employee benefit-related costs recognized in the first quarter. All other expense categories declined compared to the prior quarter. Compared to the first quarter of 2013, expenses were largely unchanged.

Balance Sheet


•	Average performing loans increased $2.9 billion sequentially, or 2%, with growth concentrated in C&I, commercial real estate, and consumer loans. Average performing loans increased $8.2 billion, or 7%, compared to the first quarter of 2013 driven by broad-based growth.


•	Average client deposits increased 1% both sequentially and from the first quarter of 2013 with the favorable mix shift toward lower-cost deposits continuing.

Capital


•	Estimated capital ratios continued to be well above regulatory requirements. The Basel I and Basel III Tier 1 common ratios were an estimated 9.9% and 9.7%, respectively.


•	During the quarter, the Company announced capital plans, subject to the approval of SunTrust's Board of Directors, that include:


◦	The purchase of up to $450 million of its common shares between the second quarter of 2014 and the first quarter of 2015.


◦	An increase in the quarterly common stock dividend from $0.10 per share to $0.20 per share.


•	Book value per share was $39.44 and tangible book value per common share was $27.82, up 2% and 3%, respectively compared to December 31, 2013. The increase was primarily due to retained earnings growth.

Asset Quality


•	Asset quality continued to improve as nonperforming loans decreased 5% from the prior quarter and totaled 0.72% of total loans at March 31, 2014.


•	Annualized net charge-offs decreased to 0.35% of average loans compared to 0.40% in the prior quarter, while the allowance for loan losses to total loans ratio declined slightly to 1.58%.


•	The provision for credit losses was stable on a sequential quarter basis and declined $110 million compared to the first quarter of 2013.




Income Statement (presented on a fully taxable-equivalent basis)	1Q 2013			4Q 2013			1Q 2014
(Dollars in millions, except per share data)
Net income available to common shareholders	$340			$413			$393
Earnings per average common diluted share	0.63			0.77			0.73
Total revenue	2,114			2,061			2,030
Total revenue, excluding net securities gains/losses	2,112			2,060			2,031
Net interest income	1,251			1,247			1,239
Provision for credit losses	212			101			102
Noninterest income	863			814			791
Noninterest expense	1,353			1,361			1,357
Net interest margin	3.33		%	3.20		%	3.19		%

Balance Sheet
(Dollars in billions)
Average loans		$120.9			$125.6			$128.5
Average consumer and commercial deposits	127.7			127.5			128.4

Capital
Tier 1 capital ratio⁽¹⁾	11.20		%	10.81		%	10.85		%
Common equity Tier 1 ratio⁽¹⁾	10.13		%	9.82		%	9.90		%
Total average shareholders’ equity to total average assets	12.29		%	12.23		%	12.28		%

Asset Quality
Net charge-offs to average loans (annualized)	0.76		%	0.40		%	0.35		%
Allowance for loan losses to period end loans	1.79		%	1.60		%	1.58		%
Nonperforming loans to total loans	1.21		%	0.76		%	0.72		%

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

Consolidated Financial Performance Details

(Presented on a fully taxable-equivalent basis unless otherwise noted)

Revenue

Total revenue was $2.0 billion for the current quarter, a decrease of $31 million, or 2%, compared to the prior quarter. The decrease was primarily driven by modest declines in net interest income and noninterest income, driven by fewer days in the current quarter and seasonally lower investment banking income, partially offset by higher mortgage-related income. Compared to the first quarter of 2013, total revenue declined $84 million, or 4%, primarily driven by declines in mortgage production income and net interest income and partially offset by higher investment banking, mortgage servicing, and wealth management related income.

Net Interest Income

Net interest income was $1.2 billion for the current quarter, a decrease of $8 million from the prior quarter primarily driven by two fewer days in the current quarter and a one basis point decline in the net interest margin, which were partially offset by higher average loan balances. Compared to the first quarter of 2013, net interest income decreased $12 million primarily due to a 14 basis point decline in the net interest margin, which was partially offset by higher average loan balances.

Net interest margin for the current quarter was 3.19%, a decrease of one basis point from the prior quarter, as the yield on loans declined three basis points. This was partially offset by a one basis point decline in interest-bearing deposit costs. The net interest margin decreased 14 basis points compared to the first quarter of 2013 primarily due to

a 17 basis point decrease in earning asset yields, partially offset by a four basis point reduction in interest-bearing liability rates.

Noninterest Income

Noninterest income was $791 million for the current quarter compared to $814 million for the prior quarter and $863 million for the first quarter of 2013. Compared to the prior quarter, the $23 million decrease was primarily due to seasonal declines in service charges and investment banking income; however, also contributing to the decline was higher mark-to-market valuation losses on the Company's fair value debt, as well as declines in other income. These declines were partially offset by an increase in mortgage-related income. Compared to the first quarter of 2013, the $72 million decrease was primarily due to reductions in mortgage production income, partially offset by increases in investment banking, mortgage servicing, and wealth management related income.

Mortgage production income for the current quarter was $43 million compared to $31 million for the prior quarter and $159 million for the first quarter of 2013. The $12 million sequential quarter increase was driven by a decline in the mortgage repurchase provision and higher mark-to-market valuation gains on certain loans carried at fair value, partially offset by a decline in origination fees. Mortgage production volume declined to $3.1 billion in the current quarter compared to $3.9 billion in the prior quarter primarily due to a reduction in refinance activity. Compared to the first quarter of 2013, mortgage production income decreased $116 million due to a 65% decline in production volume and a decline in gain on sale margins. The mortgage repurchase provision was $5 million during the current quarter and the mortgage repurchase reserve was $83 million at March 31, 2014.

Mortgage servicing income was $54 million in the current quarter compared to $38 million in both the prior quarter and the first quarter of 2013. The $16 million increase compared to the prior quarter was due to a slower pace of loan prepayments and improved net hedge performance, whereas the increase compared to the first quarter of 2013 was primarily due to a slower pace of loan prepayments. The servicing portfolio was $135 billion at March 31, 2014 compared to $142 billion at March 31, 2013.

Investment banking income was $88 million for the current quarter compared to $96 million in the prior quarter and $68 million in the first quarter of 2013. The $8 million sequential quarter decrease was driven by a seasonal decline in M&A advisory and equity offering fees, partially offset by higher loan syndication income. The $20 million increase compared to the first quarter of 2013 was due to growth in loan syndication, M&A advisory, and equity offering fees.

Trading income was $49 million for the current quarter compared to $57 million for the prior quarter and $42 million for the first quarter of 2013. The $8 million sequential quarter decrease was due to a $13 million increase in mark-to-market valuation losses on the Company's fair value debt, partially offset by a modest increase in other trading income. The $7 million increase compared to the first quarter of 2013 was primarily driven by a decline in mark-to-market valuation losses on the Company's fair value debt.

Other noninterest income was $38 million for the current quarter compared to $55 million for the prior quarter and $44 million for the first quarter of 2013. The $17 million sequential quarter decrease was partially driven by gains realized on certain asset sales in the fourth quarter of 2013.

Noninterest Expense

Noninterest expense for the current quarter was $1.4 billion which was stable compared to the prior quarter and the first quarter of 2013. The current quarter included seasonally higher employee compensation and benefits expense and a $36 million impairment of certain legacy affordable housing assets. Offsetting these cost increases in the current quarter were broad-based declines in almost all expense categories due to declines in cyclical costs and a continued focus on expense management.

Employee compensation and benefits expense was $800 million in the current quarter compared to $723 million in the prior quarter and $759 million in the first quarter of 2013. The sequential quarter increase of $77 million was primarily the result of the seasonal increase in employee benefits and FICA taxes. The $41 million increase from the

first quarter of 2013 was due to an incentive accrual reversal recorded in the first quarter of 2013 and higher salaries related to targeted hiring in certain businesses.

Operating losses were $21 million in the current quarter compared to $42 million in the prior quarter and $39 million in the first quarter of 2013. The decrease compared to both prior periods was due to lower costs associated with legacy mortgage and other legal related matters.

Outside processing and software expense was $170 million in the current quarter compared to $191 million in the prior quarter and $178 million in the first quarter of 2013. The $21 million sequential quarter decrease was partially due to declines in vendor-related costs and lower utilization of third party services. The $8 million decrease compared to the first quarter of 2013 was primarily due to lower mortgage production volume.

Marketing and customer development expense was $25 million in the current quarter compared to $40 million in the prior quarter and $30 million in the first quarter of 2013. The $15 million decrease compared to the prior quarter was due to seasonally higher advertising expenses during the fourth quarter. FDIC insurance and regulatory expense was $40 million in the current quarter compared to $41 million in the prior quarter and $54 million in the first quarter of 2013. The $14 million decrease compared to the first quarter of 2013 was due to a decrease in the assessment rate, reflecting the Company's reduced risk profile.

Other noninterest expense was $168 million in the current quarter compared to $187 million in the prior quarter and $153 million in the first quarter of 2013. The $19 million sequential quarter decrease was primarily driven by declines in collection, credit services, legal, and consulting expenses, partially offset by the aforementioned $36 million legacy asset impairment. The $15 million increase from the first quarter of 2013 was primarily driven by the aforementioned impairment charge.

Income Taxes

For the current quarter, the Company recorded an income tax provision of $125 million compared to $138 million for the prior quarter and $161 million for the first quarter of 2013. The effective tax rate was 24% in the current quarter compared to 25% in the prior quarter and 31% in the first quarter of 2013. The effective tax rate in the current and prior quarter was favorably impacted by certain discrete items.

Also during the current quarter, the Company adopted recently issued accounting guidance that resulted in the amortization expense of investments in low income housing properties being classified in the income tax provision, whereas the amortization was previously recorded in noninterest expense. Prior periods have been restated to conform to this new accounting guidance, resulting in a reduction in noninterest expense and increase in income tax provision of $16 million and $10 million for the prior quarter and first quarter of 2013, respectively. The adoption of the recently issued accounting guidance had no impact on net income or earnings per share.

Balance Sheet

At March 31, 2014, the Company had total assets of $179.5 billion and shareholders’ equity of $21.8 billion, representing 12% of total assets. Book value per share was $39.44 and tangible book value per common share was $27.82, up 2% and 3%, respectively compared to December 31, 2013. The increase was primarily due to retained earnings growth.

Loans

Average performing loans were $127.6 billion for the current quarter, an increase of $2.9 billion, or 2%, from the prior quarter driven by a $2.1 billion, or 4%, increase in C&I loans and a $545 million, or 11%, increase in commercial real estate loans. Compared to the first quarter of 2013, average performing loans increased $8.2 billion, or 7%, with broad-based growth across most portfolios.

Deposits

Average client deposits for the current quarter were $128.4 billion compared to $127.5 billion in the prior quarter and $127.7 billion in the first quarter of 2013. Average client deposits increased $936 million during the current quarter due to a $1.2 billion, or 5%, increase in NOW balances, which was partially offset by a decline in average time deposit balances. Compared to the first quarter of 2013, average client deposits increased $741 million. The growth was driven by increases of $1.3 billion in NOW account balances and $1.0 billion in demand deposits, and was partially offset by a $1.8 billion, or 12%, decrease in average time deposits.

Capital and Liquidity

The Company’s estimated capital ratios are well above current regulatory requirements with Tier 1 capital and Tier 1 common ratios at an estimated 10.85% and 9.90%, respectively, at March 31, 2014. The ratios of total average equity to total average assets and tangible equity to tangible assets were 12.28% and 9.01%, respectively, at March 31, 2014, both slightly increased compared to the prior quarter. The Company continues to have substantial available liquidity provided in the form of its client deposit base, cash, its portfolio of high-quality government-backed securities, and other available funding sources.

During the first quarter, the Company declared a common stock dividend of $0.10 per common share, consistent with the prior quarter and up $0.05 per share from the first quarter of 2013. Additionally, during the current quarter, the Company repurchased $50 million of its common stock.

In March, the Company announced that the Federal Reserve had completed its review of the Company's capital plan and did not object to the Company's capital plan. The Company plans to repurchase up to $450 million of its common stock between the second quarter of 2014 and the first quarter of 2015. Additionally, subject to Board approval, the Company intends to increase its quarterly common stock dividend to $0.20 per common share from the current $0.10 per common share, and maintain the current level of dividend payments on its preferred stock.

Asset Quality

Asset quality continued to improve as total nonperforming assets were $1.1 billion at March 31, 2014, declining 6% compared to the prior quarter. Nonperforming loans totaled $925 million at March 31, 2014, a decrease of 5% relative to the prior quarter. At March 31, 2014, the percentage of nonperforming loans to total loans was 0.72%, a decrease from 0.76% and 1.21% at December 31, 2013 and March 31, 2013, respectively. Other real estate owned totaled $151 million at March 31, 2014, an 11% decrease from the prior quarter and a decrease of 32% from the prior year.

Net charge-offs were $110 million during the current quarter compared to $128 million for the prior quarter and $226 million during the first quarter of 2013. The decrease in net charge-offs compared to the prior quarter and first quarter of 2013 was primarily driven by lower residential and commercial loan net charge-offs. The ratio of annualized net charge-offs to total average loans was 0.35% during the current quarter compared to 0.40% during the prior quarter and 0.76% during the first quarter of 2013. The provision for credit losses was $102 million, which was relatively stable compared to the prior quarter as improvements in asset quality were offset by loan growth. The provision for credit losses declined $110 million from the first quarter of 2013 as the improvement in asset quality more than offset the impact of loan growth on the allowance for loan losses.

At March 31, 2014, the allowance for loan losses was $2.0 billion and represented 1.58% of total loans, a $4 million and two basis point decrease, respectively from December 31, 2013. The slight decline in the allowance to total loans ratio was due to modest asset quality improvements in the first quarter.

Early stage delinquencies decreased seven basis points from the prior quarter to 0.67% at March 31, 2014. The decline was primarily due to consumer and mortgage loans. Excluding government-guaranteed loans, early stage delinquencies were 0.32%, down four basis points from the prior quarter.

Accruing restructured loans totaled $2.8 billion, and nonaccruing restructured loans totaled $0.4 billion at March 31, 2014, of which $2.9 billion of restructured loans related to residential loans, $0.1 billion were commercial loans, and $0.1 billion related to consumer loans.

BUSINESS SEGMENT FINANCIAL PERFORMANCE

Business Segment Results

The Company has included business segment financial tables as part of this release on the Investor Relations portion of its website at www.suntrust.com/investorrelations. The Company’s business segments include: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. All revenue in the business segment tables is reported on a fully taxable-equivalent basis. For the business segments, results include net interest income, which is computed using matched-maturity funds transfer pricing. Further, provision for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances. SunTrust also reports results for Corporate Other, which includes the Treasury department as well as the residual expense associated with operational and support expense allocations. The Corporate Other segment also includes differences created between internal management accounting practices and generally accepted accounting principles ("GAAP"), certain matched-maturity funds transfer pricing credits and charges, as well as equity and its related impact. 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 on the Investor Relations portion of the Company’s website at www.suntrust.com/investorrelations. This information is also included in a current report on Form 8-K furnished with the SEC today.

Conference Call

SunTrust management will host a conference call on April 21, 2014, at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals may call in beginning at 7:45 a.m. (Eastern Time) by dialing 1-888-972-7805 (Passcode: 1Q14). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 1Q14). A replay of the call will be available approximately one hour after the call ends on April 21, 2014, and will remain available until May 21, 2014, by dialing 1-866-470-7047 (domestic) or 1-203-369-1481 (international). Alternatively, individuals may listen to the live webcast of the presentation by visiting the SunTrust investor relations website at www.suntrust.com/investorrelations. Beginning the afternoon of April 21, 2014, listeners may access an archived version of the webcast in the “Recent Earnings and Conference Presentations” subsection found on the investor relations webpage. This webcast will be archived and available for one year. A link to the Investor Relations page is also found in the footer of the SunTrust home page.

SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation’s largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. The Company operates an extensive branch and ATM network throughout the Southeast and Mid-Atlantic States and a full array of technology-based, 24-hour delivery channels. The Company also serves clients in selected markets nationally. Its primary businesses include deposit, credit, and trust and investment management services. Through various subsidiaries, the Company provides mortgage banking, insurance, brokerage, equipment leasing, and capital markets services. SunTrust’s Internet address is www.suntrust.com.

Important Cautionary Statement About Forward-Looking Statements

This news release includes non-GAAP financial measures to describe SunTrust’s performance. The reconciliations of those measures to GAAP measures are provided within or in the appendix to this news release. In this news release, the Company presents net interest income and net interest margin on a fully taxable-equivalent (“FTE”) basis, and ratios on an annualized basis. The FTE basis adjusts for the tax-favored status of income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

This news release contains forward-looking statements. Statements regarding estimates of the after-tax financial impact of various legal and regulatory matters, potential future share repurchases, and future expected dividends are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “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. The estimated financial impact of these legal and regulatory matters depends upon (1) the successful negotiation, execution, and delivery of definitive agreements in several matters, (2) the ultimate resolution of certain legal matters which are not yet complete, (3) management’s assumptions about the extent to which such amounts may be deducted for tax purposes, (4) the agreement of other necessary parties, and (5) our assumptions about the extent to which we can provide consumer relief to satisfy our financial obligations as contemplated by the agreements in principle with regulators. Future dividends, and the amount of any such dividend, must be declared by our board of directors in the future in their discretion. Also, future share repurchases and the timing of any such repurchase are subject to market conditions and management's discretion. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013 and in other periodic reports that we file with the SEC.

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS

(Dollars in millions, except per share data) (Unaudited)



	Three Months Ended March 31						%
	2014			2013			Change
EARNINGS & DIVIDENDS
Net income		$405			$352		15	%
Net income available to common shareholders	393			340			16
Total revenue - FTE ^{1, 2}	2,030			2,114			(4	)
Total revenue - FTE excluding securities (losses)/gains, net ^{1, 2}	2,031			2,112			(4	)
Net income per average common share
Diluted	0.73			0.63			16
Basic	0.74			0.64			16
Dividends paid per common share	0.10			0.05			100
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets		$176,971			$171,808		3	%
Earning assets	157,343			152,471			3
Loans	128,525			120,882			6
Intangible assets including MSRs	7,666			7,379			4
MSRs	1,265			957			32
Consumer and commercial deposits	128,396			127,655			1
Brokered time and foreign deposits	2,013			2,170			(7	)
Total shareholders’ equity	21,727			21,117			3
Preferred stock	725			725			—
As of
Total assets	179,542			172,435			4
Earning assets	158,487			152,783			4
Loans	129,196			120,804			7
Allowance for loan and lease losses	2,040			2,152			(5	)
Consumer and commercial deposits	130,933			127,735			3
Brokered time and foreign deposits	2,023			2,180			(7	)
Total shareholders’ equity	21,817			21,194			3
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	0.93		%	0.83		%	12	%
Return on average common shareholders’ equity	7.59			6.77			12
Return on average tangible common shareholders' equity ¹	10.78			9.88			9
Net interest margin ²	3.19			3.33			(4	)
Efficiency ratio ^{2, 4}	66.83			63.97			4
Tangible efficiency ratio ^{1, 2, 4}	66.65			63.68			5
Effective tax rate ⁴	23.61			31.43			(25	)
Tier 1 common ³	9.90			10.13			(2	)
Tier 1 capital ³	10.85			11.20			(3	)
Total capital ³	12.80			13.45			(5	)
Tier 1 leverage ³	9.55			9.26			3
Total average shareholders’ equity to total average assets	12.28			12.29			—
Tangible equity to tangible assets ¹	9.01			9.00			—

Book value per common share		$39.44			$37.89		4
Tangible book value per common share ¹	27.82			26.33			6
Market price:
High	41.26			29.98			38
Low	36.23			26.93			35
Close	39.79			28.81			38
Market capitalization	21,279			15,563			37
Average common shares outstanding (000s)
Diluted	536,992			539,862			(1	)
Basic	531,162			535,680			(1	)
Full-time equivalent employees	25,925			26,238			(1	)
Number of ATMs	2,243			2,882			(22	)
Full service banking offices	1,501			1,574			(5	)


¹	See Appendix A for reconcilements of non-GAAP performance measures.

Total revenue, net interest margin, and efficiency ratios 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 a FTE basis plus noninterest income.


³	Current period tier 1 common, tier 1 capital, total capital, and tier 1 leverage ratios are estimated as of the earnings release date.

⁴ Prior period amounts have been recalculated as a result of the Company’s early adoption of ASU 2014-01, which required retrospective application.

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER FINANCIAL HIGHLIGHTS

(Dollars in millions, except per share data) (Unaudited)



	Three Months Ended
	March 31			December 31			September 30			June 30			March 31
	2014			2013			2013			2013			2013
EARNINGS & DIVIDENDS
Net income		$405			$426			$189			$377			$352
Net income available to common shareholders	393			413			179			365			340
Net income available to common shareholders excluding the impact of Form 8-K items from the third quarter of 2013 ¹	393			413			358			365			340
Total revenue - FTE ^{1, 2}	2,030			2,061			1,920			2,100			2,114
Total revenue - FTE excluding securities (losses)/gains, net ^{1, 2}	2,031			2,060			1,920			2,100			2,112
Net income per average common share
Diluted	0.73			0.77			0.33			0.68			0.63
Diluted, excluding the impact of Form 8-K items from the third quarter of 2013 ¹	0.73			0.77			0.66			0.68			0.63
Basic	0.74			0.78			0.33			0.68			0.64
Dividends paid per common share	0.10			0.10			0.10			0.10			0.05
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets		$176,971			$173,791			$171,838			$172,537			$171,808
Earning assets	157,343			154,567			154,235			153,495			152,471
Loans	128,525			125,649			122,672			121,372			120,882
Intangible assets including MSRs	7,666			7,658			7,643			7,455			7,379
MSRs	1,265			1,253			1,232			1,039			957
Consumer and commercial deposits	128,396			127,460			126,618			126,579			127,655
Brokered time and foreign deposits	2,013			2,010			2,007			2,075			2,170
Total shareholders’ equity	21,727			21,251			21,027			21,272			21,117
Preferred stock	725			725			725			725			725
As of
Total assets	179,542			175,335			171,777			171,546			172,435
Earning assets	158,487			156,856			154,802			154,426			152,783
Loans	129,196			127,877			124,340			122,031			120,804
Allowance for loan and lease losses	2,040			2,044			2,071			2,125			2,152
Consumer and commercial deposits	130,933			127,735			126,861			125,588			127,735
Brokered time and foreign deposits	2,023			2,024			2,022			2,031			2,180
Total shareholders’ equity	21,817			21,422			21,070			21,007			21,194
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	0.93		%	0.97		%	0.44		%	0.88		%	0.83		%
Return on average common shareholders’ equity	7.59			7.99			3.49			7.12			6.77
Return on average tangible common shareholders' equity ¹	10.78			11.61			5.10			10.35			9.88
Net interest margin ²	3.19			3.20			3.19			3.25			3.33
Efficiency ratio ^{2, 4}	66.83			66.05			90.13			66.07			63.97
Tangible efficiency ratio ^{1, 2, 4}	66.65			65.84			89.82			65.78			63.68
Effective tax rate ^{4, 5}	23.61			24.50			NM			29.27			31.43
Tier 1 common ³	9.90			9.82			9.94			10.19			10.13
Tier 1 capital ³	10.85			10.81			10.97			11.24			11.20
Total capital ³	12.80			12.81			13.04			13.43			13.45
Tier 1 leverage ³	9.55			9.58			9.46			9.40			9.26
Total average shareholders’ equity to total average assets	12.28			12.23			12.24			12.33			12.29
Tangible equity to tangible assets ¹	9.01			9.00			8.98			8.95			9.00

Book value per common share		$39.44			$38.61			$37.85			$37.65			$37.89
Tangible book value per common share ¹	27.82			27.01			26.27			26.08			26.33
Market price:
High	41.26			36.99			36.29			32.84			29.98
Low	36.23			31.97			31.59			26.97			26.93
Close	39.79			36.81			32.42			31.57			28.81
Market capitalization	21,279			19,734			17,427			17,005			15,563
Average common shares outstanding (000s)
Diluted	536,992			537,921			538,850			539,763			539,862
Basic	531,162			532,492			533,829			535,172			535,680
Full-time equivalent employees	25,925			26,281			26,409			26,199			26,238
Number of ATMs	2,243			2,243			2,846			2,874			2,882
Full service banking offices	1,501			1,497			1,508			1,539			1,574


¹	See Appendix A for reconcilements of non-GAAP performance measures.


³	Current period tier 1 common, tier 1 capital, total capital, and tier 1 leverage ratios are estimated as of the earnings release date.

⁴ Prior period amounts have been recalculated as a result of the Company’s early adoption of ASU 2014-01, which required retrospective application.

⁵ "NM" - Not meaningful. Calculated rate was not considered to be meaningful.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions, except per share data) (Unaudited)



	Three Months Ended					Increase/(Decrease)
	March 31					Increase/(Decrease)
	2014			2013		Amount			% ³
Interest income		$1,336			$1,359		($23	)	(2	)%
Interest expense	132			138		(6		)	(4	)
NET INTEREST INCOME	1,204			1,221		(17		)	(1	)
Provision for credit losses	102			212		(110		)	(52	)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,102			1,009		93			9
NONINTEREST INCOME
Service charges on deposit accounts	155			160		(5		)	(3	)
Trust and investment management income	130			124		6			5
Retail investment services	71			61		10			16
Other charges and fees	88			89		(1		)	(1	)
Investment banking income	88			68		20			29
Trading income	49			42		7			17
Card fees	76			76		—			—
Mortgage production related income	43			159		(116		)	(73	)
Mortgage servicing related income	54			38		16			42
Other noninterest income	38			44		(6		)	(14	)
Net securities (losses)/gains	(1		)	2		(3		)	NM
Total noninterest income	791			863		(72		)	(8	)
NONINTEREST EXPENSE
Employee compensation and benefits	800			759		41			5
Net occupancy expense	86			89		(3		)	(3	)
Outside processing and software	170			178		(8		)	(4	)
Equipment expense	44			45		(1		)	(2	)
Marketing and customer development	25			30		(5		)	(17	)
Amortization of intangible assets	3			6		(3		)	(50	)
Operating losses	21			39		(18		)	(46	)
FDIC premium/regulatory exams	40			54		(14		)	(26	)
Other noninterest expense ¹	168			153		15			10
Total noninterest expense	1,357			1,353		4			—
INCOME BEFORE PROVISION FOR INCOME TAXES	536			519		17			3
Provision for income taxes ¹	125			161		(36		)	(22	)
INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	411			358		53			15
Net income attributable to noncontrolling interest	6			6		—			—
NET INCOME		$405			$352		$53		15	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$393			$340		$53		16	%
Net interest income - FTE ²	1,239			1,251		(12		)	(1	)
Net income per average common share
Diluted	0.73			0.63		0.10			16
Basic	0.74			0.64		0.10			16
Cash dividends paid per common share	0.10			0.05		0.05			100
Average common shares outstanding (000s)
Diluted	536,992			539,862		(2,870		)	(1	)
Basic	531,162			535,680		(4,518		)	(1	)

¹ Amortization expense related to affordable housing investment costs is recognized in provision for income taxes for each of the periods presented. Prior to the first quarter of 2014, these amounts were recognized in other noninterest expense.

²Net interest income includes the effects of FTE adjustments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis. See Appendix A for a reconcilement of this non-GAAP measure to the related GAAP measure.

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

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions, except per share data) (Unaudited)



	Three Months Ended										Three Months Ended
	March 31			December 31		Increase/(Decrease)					September 30			June 30		March 31
	2014			2013		Amount			% ³		2013			2013		2013
Interest income		$1,336			$1,343		($7	)	(1	)%		$1,339			$1,347		$1,359
Interest expense	132			130		2			2		131			136		138
NET INTEREST INCOME	1,204			1,213		(9		)	(1	)	1,208			1,211		1,221
Provision for credit losses	102			101		1			1		95			146		212
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,102			1,112		(10		)	(1	)	1,113			1,065		1,009
NONINTEREST INCOME
Service charges on deposit accounts	155			165		(10		)	(6	)	168			164		160
Trust and investment management income	130			131		(1		)	(1	)	133			130		124
Retail investment services	71			69		2			3		68			69		61
Other charges and fees	88			92		(4		)	(4	)	91			97		89
Investment banking income	88			96		(8		)	(8	)	99			93		68
Trading income	49			57		(8		)	(14	)	33			49		42
Card fees	76			79		(3		)	(4	)	77			78		76
Mortgage production related income/(loss)	43			31		12			39		(10		)	133		159
Mortgage servicing related income	54			38		16			42		11			1		38
Other noninterest income	38			55		(17		)	(31	)	10			44		44
Net securities (losses)/gains	(1		)	1		(2		)	NM		—			—		2
Total noninterest income	791			814		(23		)	(3	)	680			858		863
NONINTEREST EXPENSE
Employee compensation and benefits	800			723		77			11		682			737		759
Net occupancy expense	86			87		(1		)	(1	)	86			86		89
Outside processing and software	170			191		(21		)	(11	)	190			187		178
Equipment expense	44			45		(1		)	(2	)	45			46		45
Marketing and customer development	25			40		(15		)	(38	)	34			31		30
Amortization of intangible assets	3			5		(2		)	(40	)	6			6		6
Operating losses	21			42		(21		)	(50	)	350			72		39
FDIC premium/regulatory exams	40			41		(1		)	(2	)	45			41		54
Other noninterest expense ¹	168			187		(19		)	(10	)	292			181		153
Total noninterest expense	1,357			1,361		(4		)	—		1,730			1,387		1,353
INCOME BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	536			565		(29		)	(5	)	63			536		519
Provision/(benefit) for income taxes ¹	125			138		(13		)	(9	)	(133		)	156		161
INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	411			427		(16		)	(4	)	196			380		358
Net income attributable to noncontrolling interest	6			1		5			NM		7			3		6
NET INCOME		$405			$426		($21	)	(5	)%		$189			$377		$352
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$393			$413		($20	)	(5	)%		$179			$365		$340
Net interest income - FTE ²	1,239			1,247		(8		)	(1	)	1,240			1,242		1,251
Net income per average common share
Diluted	0.73			0.77		(0.04		)	(5	)	0.33			0.68		0.63
Basic	0.74			0.78		(0.04		)	(5	)	0.33			0.68		0.64
Cash dividends paid per common share	0.10			0.10		—			—		0.10			0.10		0.05
Average common shares outstanding (000s)
Diluted	536,992			537,921		(929		)	—		538,850			539,763		539,862
Basic	531,162			532,492		(1,330		)	—		533,829			535,172		535,680

¹ Amortization expense related to affordable housing investment costs is recognized in provision/(benefit) for income taxes for each of the periods presented. Prior to the first quarter of 2014, these amounts were recognized in other noninterest expense.

² Net interest income includes the effects of FTE adjustments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis. See Appendix A for a reconcilement of this non-GAAP measure to the related GAAP measure.

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

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Dollars in millions and shares in thousands) (Unaudited)



	March 31						Increase/(Decrease)
	2014			2013			Amount			% ²
ASSETS
Cash and due from banks		$6,978			$4,787			$2,191		46	%
Federal funds sold and securities borrowed or purchased under agreements to resell	907			1,154			(247		)	(21	)
Interest-bearing deposits in other banks	22			21			1			5
Trading assets and derivatives	4,848			6,371			(1,523		)	(24	)
Securities available for sale	23,302			23,823			(521		)	(2	)
Loans held for sale	1,488			3,193			(1,705		)	(53	)
Loans held for investment:
Commercial and industrial	58,828			54,343			4,485			8
Commercial real estate	5,961			4,261			1,700			40
Commercial construction	920			634			286			45
Residential mortgages - guaranteed	3,295			3,930			(635		)	(16	)
Residential mortgages - nonguaranteed	24,331			23,051			1,280			6
Residential home equity products	14,637			14,617			20			—
Residential construction	532			683			(151		)	(22	)
Consumer student loans - guaranteed	5,533			5,275			258			5
Consumer other direct	3,109			2,387			722			30
Consumer indirect	11,339			11,009			330			3
Consumer credit cards	711			614			97			16
Total loans held for investment	129,196			120,804			8,392			7
Allowance for loan and lease losses	(2,040		)	(2,152		)	(112		)	(5	)
Net loans held for investment	127,156			118,652			8,504			7
Goodwill	6,377			6,369			8			—
Other intangible assets	1,282			1,076			206			19
Other real estate owned	151			224			(73		)	(33	)
Other assets	7,031			6,765			266			4
Total assets ¹		$179,542			$172,435			$7,107		4	%
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$39,792			$38,593			$1,199		3	%
Interest-bearing consumer and commercial deposits:
NOW accounts	29,151			26,736			2,415			9
Money market accounts	43,196			42,231			965			2
Savings	6,217			5,769			448			8
Consumer time	8,102			9,281			(1,179		)	(13	)
Other time	4,475			5,125			(650		)	(13	)
Total consumer and commercial deposits	130,933			127,735			3,198			3
Brokered time deposits	2,023			2,080			(57		)	(3	)
Foreign deposits	—			100			(100		)	(100	)
Total deposits	132,956			129,915			3,041			2
Funds purchased	1,269			605			664			NM
Securities sold under agreements to repurchase	2,133			1,854			279			15
Other short-term borrowings	5,277			4,169			1,108			27
Long-term debt	11,565			9,331			2,234			24
Trading liabilities and derivatives	1,041			1,376			(335		)	(24	)
Other liabilities	3,484			3,991			(507		)	(13	)
Total liabilities	157,725			151,241			6,484			4
SHAREHOLDERS' EQUITY
Preferred stock, no par value	725			725			—			—
Common stock, $1.00 par value	550			550			—			—
Additional paid in capital	9,107			9,132			(25		)	—
Retained earnings	12,278			11,133			1,145			10
Treasury stock, at cost, and other	(643		)	(531		)	112			21
Accumulated other comprehensive (loss)/income	(200		)	185			(385		)	NM
Total shareholders' equity	21,817			21,194			623			3
Total liabilities and shareholders' equity		$179,542			$172,435			$7,107		4	%

Common shares outstanding	534,780			540,187			(5,407		)	(1	)%
Common shares authorized	750,000			750,000			—			—
Preferred shares outstanding	7			7			—			—
Preferred shares authorized	50,000			50,000			—			—
Treasury shares of common stock	15,141			9,734			5,407			56

¹ Includes earning assets of $158,487 and $152,783 at March 31, 2014 and 2013, respectively.

² “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) (Unaudited)



	March 31			December 31			Increase/(Decrease)					September 30			June 30			March 31
	2014			2013			Amount			%		2013			2013			2013
ASSETS
Cash and due from banks		$6,978			$4,258			$2,720		64	%		$3,041			$3,027			$4,787
Federal funds sold and securities borrowed or purchased under agreements to resell	907			983			(76		)	(8	)	1,222			1,111			1,154
Interest-bearing deposits in other banks	22			22			—			—		23			21			21
Trading assets and derivatives	4,848			5,040			(192		)	(4	)	5,794			6,076			6,371
Securities available for sale	23,302			22,542			760			3		22,626			23,389			23,823
Loans held for sale	1,488			1,699			(211		)	(12	)	2,462			3,647			3,193
Loans held for investment:
Commercial and industrial	58,828			57,974			854			1		55,943			55,070			54,343
Commercial real estate	5,961			5,481			480			9		4,755			4,308			4,261
Commercial construction	920			855			65			8		737			667			634
Residential mortgages - guaranteed	3,295			3,416			(121		)	(4	)	3,527			3,622			3,930
Residential mortgages - nonguaranteed	24,331			24,412			(81		)	—		24,106			23,341			23,051
Residential home equity products	14,637			14,809			(172		)	(1	)	14,826			14,682			14,617
Residential construction	532			553			(21		)	(4	)	582			635			683
Consumer student loans - guaranteed	5,533			5,545			(12		)	—		5,489			5,431			5,275
Consumer other direct	3,109			2,829			280			10		2,670			2,483			2,387
Consumer indirect	11,339			11,272			67			1		11,035			11,151			11,009
Consumer credit cards	711			731			(20		)	(3	)	670			641			614
Total loans held for investment	129,196			127,877			1,319			1		124,340			122,031			120,804
Allowance for loan and lease losses	(2,040		)	(2,044		)	(4		)	—		(2,071		)	(2,125		)	(2,152		)
Net loans held for investment	127,156			125,833			1,323			1		122,269			119,906			118,652
Goodwill	6,377			6,369			8			—		6,369			6,369			6,369
Other intangible assets	1,282			1,334			(52		)	(4	)	1,287			1,244			1,076
Other real estate owned	151			170			(19		)	(11	)	196			198			224
Other assets	7,031			7,085			(54		)	(1	)	6,488			6,558			6,765
Total assets ¹		$179,542			$175,335			$4,207		2	%		$171,777			$171,546			$172,435
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$39,792			$38,800			$992		3	%		$39,006			$37,999			$38,593
Interest-bearing consumer and commercial deposits:
NOW accounts	29,151			28,164			987			4		25,495			26,106			26,736
Money market accounts	43,196			41,873			1,323			3		43,106			41,684			42,231
Savings	6,217			5,842			375			6		5,778			5,819			5,769
Consumer time	8,102			8,475			(373		)	(4	)	8,742			9,050			9,281
Other time	4,475			4,581			(106		)	(2	)	4,734			4,930			5,125
Total consumer and commercial deposits	130,933			127,735			3,198			3		126,861			125,588			127,735
Brokered time deposits	2,023			2,024			(1		)	—		2,022			2,006			2,080
Foreign deposits	—			—			—			—		—			25			100
Total deposits	132,956			129,759			3,197			2		128,883			127,619			129,915
Funds purchased	1,269			1,192			77			6		934			420			605
Securities sold under agreements to repurchase	2,133			1,759			374			21		1,574			1,869			1,854
Other short-term borrowings	5,277			5,788			(511		)	(9	)	4,479			5,825			4,169
Long-term debt	11,565			10,700			865			8		9,985			9,818			9,331
Trading liabilities and derivatives	1,041			1,181			(140		)	(12	)	1,346			1,310			1,376
Other liabilities	3,484			3,534			(50		)	(1	)	3,506			3,678			3,991
Total liabilities	157,725			153,913			3,812			2		150,707			150,539			151,241
SHAREHOLDERS’ EQUITY
Preferred stock, no par value	725			725			—			—		725			725			725
Common stock, $1.00 par value	550			550			—			—		550			550			550
Additional paid in capital	9,107			9,115			(8		)	—		9,117			9,126			9,132
Retained earnings	12,278			11,936			342			3		11,573			11,447			11,133
Treasury stock, at cost, and other	(643		)	(615		)	28			5		(579		)	(558		)	(531		)
Accumulated other comprehensive (loss)/income	(200		)	(289		)	(89		)	(31	)	(316		)	(283		)	185
Total shareholders’ equity	21,817			21,422			395			2		21,070			21,007			21,194
Total liabilities and shareholders’ equity		$179,542			$175,335			$4,207		2	%		$171,777			$171,546			$172,435

Common shares outstanding	534,780			536,097			(1,317		)	—	%	537,549			538,653			540,187
Common shares authorized	750,000			750,000			—			—		750,000			750,000			750,000
Preferred shares outstanding	7			7			—			—		7			7			7
Preferred shares authorized	50,000			50,000			—			—		50,000			50,000			50,000
Treasury shares of common stock	15,141			13,824			1,317			10		12,372			11,268			9,734

¹ Includes earning assets of $158,487, $156,856, $154,802, $154,426, and $152,783 at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013, and March 31, 2013, respectively.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, AVERAGE YIELDS EARNED AND RATES PAID (Dollars in millions; yields on taxable-equivalent basis) (Unaudited)
	Three Months Ended														Increase/(Decrease) From
	March 31, 2014							December 31, 2013							Sequential Quarter					Prior Year Quarter
	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Yields/ Rates		Average Balances			Yields/ Rates
ASSETS
Loans:
Commercial and industrial - FTE ¹		$58,287			$538	3.74	%		$56,208			$545	3.85	%		$2,079		(0.11	)	$4,524			(0.46	)
Commercial real estate	5,616			41		2.93		5,071			39		3.07		545			(0.14	)	1,524			(0.57	)
Commercial construction	894			7		3.31		809			7		3.29		85			0.02		231			(0.44	)
Residential mortgages - guaranteed	3,351			30		3.62		3,470			24		2.81		(119		)	0.81		(728		)	1.00
Residential mortgages - nonguaranteed	23,933			242		4.05		23,892			241		4.04		41			0.01		1,547			(0.20	)
Home equity products	14,516			129		3.59		14,623			133		3.60		(107		)	(0.01	)	153			(0.05	)
Residential construction	485			5		4.40		494			6		4.69		(9		)	(0.29	)	(130		)	(0.21	)
Guaranteed student loans	5,523			50		3.70		5,512			52		3.76		11			(0.06	)	126			(0.22	)
Other direct	2,959			31		4.25		2,740			30		4.31		219			(0.06	)	561			(0.18	)
Indirect	11,299			91		3.25		11,149			93		3.32		150			(0.07	)	303			(0.28	)
Credit cards	716			17		9.56		693			17		9.60		23			(0.04	)	99			0.04
Nonaccrual	946			5		1.98		988			6		2.30		(42		)	(0.32	)	(567		)	(0.93	)
Total loans	128,525			1,186		3.74		125,649			1,193		3.77		2,876			(0.03	)	7,643			(0.28	)
Securities available for sale:
Taxable	22,422			150		2.68		21,995			147		2.67		427			0.01		213			0.15
Tax-exempt - FTE¹	264			3		5.25		233			3		5.12		31			0.13		(30		)	0.03
Total securities available for sale	22,686			153		2.71		22,228			150		2.70		458			0.01		183			0.14
Federal funds sold and securities borrowed or purchased under agreements to resell	978			—		—		871			—		0.02		107			(0.02	)	(114		)	(0.04	)
Loans held for sale	1,450			15		4.05		1,767			17		3.80		(317		)	0.25		(2,302		)	0.76
Interest-bearing deposits	22			—		0.13		19			—		0.06		3			0.07		1			—
Interest earning trading assets	3,682			17		1.87		4,033			17		1.66		(351		)	0.21		(539		)	0.34
Total earning assets	157,343			1,371		3.53		154,567			1,377		3.53		2,776			—		4,872			(0.17	)
Allowance for loan and lease losses	(2,037		)					(2,051		)					14					141
Cash and due from banks	5,436							5,335							101					974
Other assets	14,827							14,321							506					527
Noninterest earning trading assets and derivatives	1,299							1,482							(183		)			(660		)
Unrealized gains on securities available for sale, net	103							137							(34		)			(691		)
Total assets		$176,971							$173,791							$3,180					$5,163
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$27,707				$5	0.07	%		$26,504			$4	0.06	%		$1,203		0.01			$1,324		(0.01	)
Money market accounts	42,755			13		0.12		42,756			13		0.12		(1		)	—		(240		)	(0.03	)
Savings	6,035			—		0.04		5,816			—		0.04		219			—		508			(0.02	)
Consumer time	8,318			22		1.08		8,605			24		1.09		(287		)	(0.01	)	(1,103		)	(0.08	)
Other time	4,533			13		1.19		4,645			14		1.19		(112		)	—		(712		)	(0.18	)
Total interest-bearing consumer and commercial deposits	89,348			53		0.24		88,326			55		0.25		1,022			(0.01	)	(223		)	(0.06	)
Brokered time deposits	2,012			12		2.31		2,008			12		2.37		4			(0.06	)	(75		)	(0.30	)
Foreign deposits	1			—		0.60		2			—		—		(1		)	0.60		(82		)	0.45
Total interest-bearing deposits	91,361			65		0.29		90,336			67		0.30		1,025			(0.01	)	(380		)	(0.06	)
Funds purchased	989			—		0.08		681			—		0.09		308			(0.01	)	273			(0.03	)
Securities sold under agreements to repurchase	2,202			1		0.10		1,957			1		0.11		245			(0.01	)	497			(0.09	)
Interest-bearing trading liabilities	699			5		2.74		627			4		2.75		72			(0.01	)	(24		)	0.53
Other short-term borrowings	5,588			3		0.24		5,424			4		0.27		164			(0.03	)	1,867			(0.05	)
Long-term debt	11,367			58		2.05		10,525			54		2.04		842			0.01		2,010			(0.17	)
Total interest-bearing liabilities	112,206			132		0.48		109,550			130		0.47		2,656			0.01		4,243			(0.04	)
Noninterest-bearing deposits	39,048							39,134							(86		)			964
Other liabilities	3,524							3,336							188					(492		)
Noninterest-bearing trading liabilities and derivatives	466							520							(54		)			(162		)
Shareholders’ equity	21,727							21,251							476					610
Total liabilities and shareholders’ equity		$176,971							$173,791							$3,180					$5,163
Interest Rate Spread						3.05	%						3.06	%				(0.01	)				(0.12	)
Net Interest Income - FTE¹					$1,239							$1,247
Net Interest Margin ²						3.19	%						3.20	%				(0.01	)				(0.14	)

¹The fully taxable-equivalent (“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.

² The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, AVERAGE YIELDS EARNED AND RATES PAID, continued (Dollars in millions; yields on taxable-equivalent basis) (Unaudited)
	Three Months Ended
	September 30, 2013							June 30, 2013							March 31, 2013
	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
Loans:
Commercial and industrial - FTE¹		$54,666			$535	3.88	%		$54,490			$544	4.01	%		$53,763			$556	4.20	%
Commercial real estate	4,615			37		3.18		4,262			35		3.27		4,092			35		3.50
Commercial construction	704			6		3.38		628			5		3.47		663			6		3.75
Residential mortgages - guaranteed	3,526			28		3.14		3,768			27		2.86		4,079			27		2.62
Residential mortgages -nonguaranteed	23,258			238		4.09		22,470			242		4.30		22,386			238		4.25
Home equity products	14,549			133		3.63		14,358			131		3.65		14,363			129		3.64
Residential construction	529			7		4.88		559			8		5.46		615			7		4.61
Guaranteed student loans	5,453			52		3.81		5,339			50		3.78		5,397			52		3.92
Other direct	2,563			28		4.33		2,434			27		4.41		2,398			26		4.43
Indirect	11,069			94		3.36		11,073			94		3.41		10,996			96		3.53
Credit cards	656			16		9.73		617			15		9.80		617			15		9.52
Nonaccrual	1,084			6		2.37		1,374			9		2.76		1,513			11		2.91
Total loans	122,672			1,180		3.81		121,372			1,187		3.92		120,882			1,198		4.02
Securities available for sale:
Taxable	22,494			140		2.49		22,834			141		2.46		22,209			140		2.53
Tax-exempt - FTE ¹	243			3		5.16		263			3		5.18		294			4		5.22
Total securities available for sale	22,737			143		2.52		23,097			144		2.49		22,503			144		2.57
Federal funds sold and securities borrowed or purchased under agreements to resell	1,029			—		0.01		1,107			—		—		1,092			—		0.04
Loans held for sale	3,344			30		3.58		3,540			29		3.26		3,752			31		3.29
Interest-bearing deposits	22			—		0.11		21			—		0.06		21			—		0.13
Interest earning trading assets	4,431			18		1.64		4,358			18		1.60		4,221			16		1.53
Total earning assets	154,235			1,371		3.53		153,495			1,378		3.60		152,471			1,389		3.70
Allowance for loan and lease losses	(2,112		)					(2,143		)					(2,178		)
Cash and due from banks	3,867							4,453							4,462
Other assets	14,271							14,256							14,300
Noninterest earning trading assets and derivatives	1,529							1,789							1,959
Unrealized gains on securities available for sale, net	48							687							794
Total assets		$171,838							$172,537							$171,808
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$25,435			$4	0.06	%		$26,015			$4	0.06	%		$26,383			$5	0.08	%
Money market accounts	43,019			13		0.12		41,850			13		0.13		42,995			15		0.15
Savings	5,802			1		0.04		5,808			1		0.05		5,527			1		0.06
Consumer time	8,895			25		1.12		9,163			26		1.15		9,421			27		1.16
Other time	4,830			15		1.26		5,036			17		1.34		5,245			18		1.37
Total interest-bearing consumer and commercial deposits	87,981			58		0.26		87,872			61		0.28		89,571			66		0.30
Brokered time deposits	1,989			12		2.44		2,038			14		2.54		2,087			13		2.61
Foreign deposits	18			—		0.11		37			—		0.13		83			—		0.15
Total interest-bearing deposits	89,988			70		0.31		89,947			75		0.33		91,741			79		0.35
Funds purchased	505			—		0.09		657			—		0.10		716			—		0.11
Securities sold under agreements to repurchase	1,885			1		0.13		1,879			1		0.13		1,705			1		0.19
Interest-bearing trading liabilities	720			5		2.58		751			4		2.29		723			4		2.21
Other short-term borrowings	5,222			3		0.27		5,422			3		0.24		3,721			3		0.29
Long-term debt	9,891			52		2.06		9,700			53		2.19		9,357			51		2.22
Total interest-bearing liabilities	108,211			131		0.48		108,356			136		0.50		107,963			138		0.52
Noninterest-bearing deposits	38,637							38,707							38,084
Other liabilities	3,428							3,637							4,016
Noninterest-bearing trading liabilities and derivatives	535							565							628
Shareholders’ equity	21,027							21,272							21,117
Total liabilities and shareholders’ equity		$171,838							$172,537							$171,808
Interest Rate Spread						3.05	%						3.10	%						3.17	%
Net Interest Income - FTE ¹					$1,240							$1,242							$1,251
Net Interest Margin ²						3.19	%						3.25	%						3.33	%


¹	The fully taxable-equivalent (“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.


²	The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets.



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA (Dollars in millions) (Unaudited)
	Three Months Ended
	March 31						Increase/(Decrease)
	2014			2013			Amount			%⁴
CREDIT DATA
Allowance for credit losses - beginning		$2,094			$2,219			($125	)	(6	)%
(Benefit)/provision for unfunded commitments	(4		)	8			(12		)	NM
Provision for loan losses:
Commercial	39			64			(25		)	(39	)
Residential	48			112			(64		)	(57	)
Consumer	19			28			(9		)	(32	)
Total provision for loan losses	106			204			(98		)	(48	)
Charge-offs:
Commercial	(33		)	(60		)	(27		)	(45	)
Residential	(85		)	(178		)	(93		)	(52	)
Consumer	(33		)	(35		)	(2		)	(6	)
Total charge-offs	(151		)	(273		)	(122		)	(45	)
Recoveries:
Commercial	14			15			(1		)	(7	)
Residential	17			22			(5		)	(23	)
Consumer	10			10			—			—
Total recoveries	41			47			(6		)	(13	)
Net charge-offs	(110		)	(226		)	(116		)	(51	)
Allowance for credit losses - ending		$2,086			$2,205			($119	)	(5	)%
Components:
Allowance for loan and lease losses		$2,040			$2,152			($112	)	(5	)%
Unfunded commitments reserve	46			53			(7		)	(13	)
Allowance for credit losses		$2,086			$2,205			($119	)	(5	)%
Net charge-offs to average loans (annualized):
Commercial	0.12		%	0.32		%	(0.20		)	(63	)%
Residential	0.64			1.48			(0.84		)	(57	)
Consumer	0.47			0.52			(0.05		)	(10	)
Total net charge-offs to total average loans	0.35		%	0.76		%	(0.41		)	(54	)%
Period Ended
Nonaccrual/nonperforming loans:
Commercial		$229			$289			($60	)	(21	)%
Residential	684			1,157			(473		)	(41	)
Consumer	12			21			(9		)	(43	)
Total nonaccrual/nonperforming loans	925			1,467			(542		)	(37	)
Other real estate owned (“OREO”)	151			223			(72		)	(32	)
Other repossessed assets	7			9			(2		)	(22	)
Nonperforming loans held for sale ("LHFS")	12			41			(29		)	(71	)
Total nonperforming assets		$1,095			$1,740			($645	)	(37	)%
Accruing restructured loans		$2,783			$2,499			$284		11	%
Nonaccruing restructured loans	358			655			(297		)	(45	)
Accruing loans past due > 90 days (guaranteed)	1,095			767			328			43
Accruing loans past due > 90 days (non-guaranteed)	42			56			(14		)	(25	)
Accruing LHFS past due > 90 days	1			2			(1		)	(50	)
Nonperforming loans to total loans	0.72		%	1.21		%	(0.49		)	(40	)%
Nonperforming assets to total loans plus OREO, other repossessed assets, and nonperforming LHFS	0.85			1.44			(0.59		)	(41	)
Allowance to period-end loans ^1,2	1.58			1.79			(0.21		)	(12	)
Allowance to period-end loans, excluding government guaranteed loans ^1,2,3	1.70			1.93			(0.23		)	(12	)
Allowance to nonperforming loans ^1,2	223			148			75			51
Allowance to annualized net charge-offs ¹	4.56x			2.34x			2.22x			95

¹This ratio is computed using the allowance for loan and lease losses.

²Loans carried at fair value were excluded from the calculation.

³ See Appendix A for reconciliation of non-GAAP performance measures.

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 (Dollars in millions) (Unaudited)
	Three Months Ended											Three Months Ended
	March 31			December 31			Increase/(Decrease)					September 30			June 30			March 31
	2014			2013			Amount			%⁴		2013			2013			2013
CREDIT DATA
Allowance for credit losses - beginning		$2,094			$2,121			($27	)	(1	)%		$2,172			$2,205			$2,219
(Benefit)/provision for unfunded commitments	(4		)	—			(4		)	NM		3			(6		)	8
Provision for loan losses:
Commercial	39			14			25			NM		77			42			64
Residential	48			60			(12		)	(20	)	(6		)	78			112
Consumer	19			27			(8		)	(30	)	21			32			28
Total provision for loan losses	106			101			5			5		92			152			204
Charge-offs:
Commercial	(33		)	(43		)	(10		)	(23	)	(52		)	(64		)	(60		)
Residential	(85		)	(102		)	(17		)	(17	)	(109		)	(143		)	(178		)
Consumer	(33		)	(30		)	3			10		(28		)	(26		)	(35		)
Total charge-offs	(151		)	(175		)	(24		)	(14	)	(189		)	(233		)	(273		)
Recoveries:
Commercial	14			18			(4		)	(22	)	13			20			15
Residential	17			20			(3		)	(15	)	21			24			22
Consumer	10			9			1			11		9			10			10
Total recoveries	41			47			(6		)	(13	)	43			54			47
Net charge-offs	(110		)	(128		)	(18		)	(14	)	(146		)	(179		)	(226		)
Allowance for credit losses - ending		$2,086			$2,094			($8	)	—	%		$2,121			$2,172			$2,205
Components:
Allowance for loan and lease losses		$2,040			$2,044			($4	)	—	%		$2,071			$2,125			$2,152
Unfunded commitments reserve	46			50			(4		)	(8	)	50			47			53
Allowance for credit losses		$2,086			$2,094			($8	)	—	%		$2,121			$2,172			$2,205
Net charge-offs to average loans (annualized):
Commercial	0.12		%	0.16		%	(0.04		)	(25	)%	0.26		%	0.29		%	0.32		%
Residential	0.64			0.75			(0.11		)	(15	)	0.82			1.13			1.48
Consumer	0.47			0.42			0.05			12		0.39			0.34			0.52
Total net charge-offs to total average loans	0.35		%	0.40		%	(0.05		)	(13	)%	0.47		%	0.59		%	0.76		%
Period Ended
Nonaccrual/nonperforming loans:
Commercial		$229			$247			($18	)	(7	)%		$275			$304			$289
Residential	684			712			(28		)	(4	)	752			825			1,157
Consumer	12			12			—			—		10			12			21
Total nonaccrual/nonperforming loans	925			971			(46		)	(5	)	1,037			1,141			1,467
OREO	151			170			(19		)	(11	)	196			198			223
Other repossessed assets	7			7			—			—		9			8			9
Nonperforming LHFS	12			17			(5		)	(29	)	59			48			41
Total nonperforming assets		$1,095			$1,165			($70	)	(6	)%		$1,301			$1,395			$1,740
Accruing restructured loans		$2,783			$2,749			$34		1	%		$2,744			$2,781			$2,499
Nonaccruing restructured loans	358			391			(33		)	(8	)	406			415			655
Accruing loans past due > 90 days (guaranteed)	1,095			1,180			(85		)	(7	)	1,108			958			767
Accruing loans past due > 90 days (non-guaranteed)	42			48			(6		)	(13	)	55			47			56
Accruing LHFS past due > 90 days	1			—			1			NM		—			1			2
Nonperforming loans to total loans	0.72		%	0.76		%	(0.04		)	(5	)%	0.83		%	0.94		%	1.21		%
Nonperforming assets to total loans plus OREO, other repossessed assets, and nonperforming LHFS	0.85			0.91			(0.06		)	(7	)	1.04			1.14			1.44
Allowance to period-end loans ^1,2	1.58			1.60			(0.02		)	(1	)	1.67			1.75			1.79
Allowance to period-end loans, excluding government guaranteed loans ^1,2,3	1.70			1.72			(0.02		)	(1	)	1.80			1.89			1.93
Allowance to nonperforming loans ^1,2	223			212			11			5		201			188			148
Allowance to annualized net charge-offs ¹	4.56x			4.03x			0.53x			13		3.58x			2.97x			2.34x

¹This ratio is computed using the allowance for loan and lease losses.

²Loans carried at fair value were excluded from the calculation.

³ See Appendix A for reconciliation of non-GAAP performance measures.

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



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued (Dollars in millions) (Unaudited)
	Three Months Ended March 31
	Core Deposit Intangibles			MSRs - Fair Value			Other			Total
OTHER INTANGIBLE ASSET ROLLFORWARD
Balance, beginning of period		$17			$899			$40			$956
Amortization	(3		)	—			(3		)	(6		)
Mortgage servicing rights (“MSRs”) originated	—			110			—			110
Fair value changes due to inputs and assumptions ¹	—			90			—			90
Other changes in fair value ²	—			(74		)	—			(74		)
Balance, March 31, 2013		$14			$1,025			$37			$1,076

Balance, beginning of period		$4			$1,300			$30			$1,334
Amortization	(1		)	—			(2		)	(3		)
MSRs originated	—			32			—			32
Fair value changes due to inputs and assumptions ¹	—			(46		)	—			(46		)
Other changes in fair value ²	—			(35		)	—			(35		)
Balance, March 31, 2014		$3			$1,251			$28			$1,282

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.



	Three Months Ended
	March 31		December 31		September 30		June 30		March 31
	2014		2013		2013		2013		2013
COMMON SHARE ROLLFORWARD (000’s)
Balance, beginning of period	536,097		537,549		538,653		540,187		538,959
Common shares issued for employee benefit plans, stock option, and restricted stock activity	37		11		325		130		1,228
Repurchase of common stock	(1,354	)	(1,463	)	(1,429	)	(1,664	)	—
Balance, end of period	534,780		536,097		537,549		538,653		540,187



SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE EARNINGS RELEASE (Dollars in millions, except per share data) (Unaudited)
	Three Months Ended
	March 31			December 31			September 30			June 30			March 31
	2014			2013			2013			2013			2013
NON-GAAP MEASURES PRESENTED IN THE EARNINGS RELEASE ¹
Net interest income		$1,204			$1,213			$1,208			$1,211			$1,221
Taxable-equivalent adjustment	35			34			32			31			30
Net interest income - FTE	1,239			1,247			1,240			1,242			1,251
Noninterest income	791			814			680			858			863
Total revenue - FTE	2,030			2,061			1,920			2,100			2,114
Securities losses/(gains), net	1			(1		)	—			—			(2		)
Total revenue - FTE excluding net securities (losses)/gains ²		$2,031			$2,060			$1,920			$2,100			$2,112
Noninterest income		$791			$814			$680			$858			$863
Securities losses/(gains), net	1			(1		)	—			—			(2		)
Noninterest income excluding net securities (losses)/gains ²		$792			$813			$680			$858			$861
Return on average common shareholders’ equity	7.59		%	7.99		%	3.49		%	7.12		%	6.77		%
Effect of removing average intangible assets, excluding MSRs	3.19			3.62			1.61			3.23			3.11
Return on average tangible common shareholders' equity ³	10.78		%	11.61		%	5.10		%	10.35		%	9.88		%
Efficiency ratio ^{4, 10}	66.83		%	66.05		%	90.13		%	66.07		%	63.97		%
Impact of excluding amortization of intangible assets	(0.18		)	(0.21		)	(0.31		)	(0.29		)	(0.29		)
Tangible efficiency ratio ^{5, 10}	66.65		%	65.84		%	89.82		%	65.78		%	63.68		%

	March 31			December 31			September 30			June 30			March 31
	2014			2013			2013			2013			2013
Total shareholders' equity		$21,817			$21,422			$21,070			$21,007			$21,194
Goodwill, net of deferred taxes of $193 million, $186 million, $180 million, $174 million, and $169 million, respectively	(6,184		)	(6,183		)	(6,189		)	(6,195		)	(6,200		)
Other intangible assets, net of deferred taxes of $1 million, $2 million, $2 million, $4 million, and $5 million, respectively, and MSRs	(1,281		)	(1,332		)	(1,285		)	(1,240		)	(1,071		)
MSRs	1,251			1,300			1,248			1,199			1,025
Tangible equity	15,603			15,207			14,844			14,771			14,948
Preferred stock	(725		)	(725		)	(725		)	(725		)	(725		)
Tangible common equity		$14,878			$14,482			$14,119			$14,046			$14,223
Total assets		$179,542			$175,335			$171,777			$171,546			$172,435
Goodwill	(6,377		)	(6,369		)	(6,369		)	(6,369		)	(6,369		)
Other intangible assets including MSRs	(1,282		)	(1,334		)	(1,287		)	(1,244		)	(1,076		)
MSRs	1,251			1,300			1,248			1,199			1,025
Tangible assets		$173,134			$168,932			$165,369			$165,132			$166,015
Tangible equity to tangible assets ⁶	9.01		%	9.00		%	8.98		%	8.95		%	9.00		%
Tangible book value per common share ⁷		$27.82			$27.01			$26.27			$26.08			$26.33

Total loans		$129,196			$127,877			$124,340			$122,031			$120,804
Government guaranteed loans	(8,828		)	(8,961		)	(9,016		)	(9,053		)	(9,205		)
Loans held at fair value	(299		)	(302		)	(316		)	(339		)	(360		)
Total loans, excluding government guaranteed and fair value loans		$120,069			$118,614			$115,008			$112,639			$111,239
Allowance to total loans, excluding government guaranteed and fair value loans ⁸	1.70		%	1.72		%	1.80		%	1.89		%	1.93		%



SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE EARNINGS RELEASE, continued (Dollars in millions, except per share data) (Unaudited)
	Three Months Ended
	March 31		December 31		September 30			June 30		March 31
	2014		2013		2013			2013		2013
NON-GAAP MEASURES PRESENTED IN THE EARNINGS RELEASE ¹
Net income available to common shareholders		$393		$413		$179			$365		$340
Form 8-K items from the third quarter of 2013:
Operating losses related to settlement of certain legal matters	—		—		323			—		—
Mortgage repurchase provision related to repurchase settlements	—		—		63			—		—
Provision for unrecoverable servicing advances	—		—		96			—		—
Tax benefit related to above items	—		—		(190		)	—		—
Net tax benefit related to subsidiary reorganization and other	—		—		(113		)	—		—
Net income available to common shareholders, excluding the impact of Form 8-K items from the third quarter of 2013 ⁹		$393		$413		$358			$365		$340

Net income per average common share, diluted		$0.73		$0.77		$0.33			$0.68		$0.63
Impact of Form 8-K items from the third quarter of 2013	—		—		0.33			—		—
Net income per average common diluted share, excluding the impact of Form 8-K items from the third quarter of 2013 ⁹		$0.73		$0.77		$0.66			$0.68		$0.63

¹ Certain amounts in this schedule are presented net of applicable income taxes, which are calculated based on each subsidiary’s federal and state tax rates and laws. In general, the federal marginal tax rate is 35%, but the state marginal tax rates range from 1% to 8% in accordance with the subsidiary’s income tax filing requirements with various tax authorities. Additionally, the effective tax rate may differ from the federal and state marginal tax rates in certain cases where a permanent difference exists.

²SunTrust presents total revenue - FTE excluding net securities gains/losses and noninterest income excluding net securities gains/losses. The Company believes revenue and noninterest income without net securities gains and losses is more indicative of the Company’s performance because it isolates income and losses that are primarily client relationship and client transaction driven and is more indicative of normalized operations.

³SunTrust presents return on average tangible common shareholders' equity to exclude intangible assets, except for MSRs. The Company believes this measure is useful to investors because, by removing the effect of intangible assets, except for MSRs, (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 who present a similar measure. The Company also believes that removing intangible assets, except for MSRs, is a more relevant measure of the return on the Company's common shareholders' equity.

⁴Computed by dividing noninterest expense by total revenue - FTE. 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.

⁵SunTrust presents a tangible efficiency ratio which excludes the amortization of intangible assets. The Company believes this measure is useful to investors because, by removing the effect of these intangible asset costs (the level of which may vary from company to company), it allows investors to more easily compare the Company’s efficiency to other companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.

⁶SunTrust presents a tangible equity to tangible assets ratio that excludes the after-tax impact of purchase accounting intangible assets. The Company believes this measure is useful to investors because, by removing the effect 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. This measure is used by management to analyze capital adequacy.

⁷SunTrust presents a tangible book value per common share that excludes the after-tax impact of purchase accounting intangible assets and also excludes preferred stock from tangible equity. The Company believes this measure is useful to investors because, by removing the effect of intangible assets that result from merger and acquisition activity as well as preferred stock (the level of which may vary from company to company), it allows investors to more easily compare the Company’s book value on common stock to other companies in the industry.

⁸ SunTrust presents a ratio of allowance to total loans, excluding government guaranteed and fair value loans. The Company believes that the exclusion of loans that are held at fair value with no related allowance and loans guaranteed by a government agency that do not have an associated allowance recorded due to nominal risk of principal loss better depicts the allowance relative to loans that are covered by it.

⁹ SunTrust presents net income available to common shareholders and net income per average common diluted share excluding items previously announced on Form 8-K filed with the SEC on October 10, 2013. The Company believes this measure is useful to investors because it removes the effect of material items impacting current year's results, allowing a more useful view of normalized operations. Removing these items also allows investors to compare the Company's results to other companies in the industry that may not have had similar items impacting their results.

¹⁰ Prior period amounts have been recalculated as a result of the Company’s early adoption of ASU 2014-01, which required retrospective application.



SunTrust Banks, Inc. and Subsidiaries CONSUMER BANKING AND PRIVATE WEALTH MANAGEMENT (Dollars in millions) (Unaudited)
	Three Months Ended March 31 ¹
	2014			2013			% Change
Statements of Income:
Net interest income		$641			$649		(1	)%
FTE adjustment	—			—			—
Net interest income - FTE	641			649			(1	)
Provision for credit losses ²	53			92			(42	)
Net interest income - FTE - after provision for credit losses	588			557			6
Noninterest income before securities gains/(losses)	361			357			1
Securities gains/(losses), net	—			—			—
Total noninterest income	361			357			1
Noninterest expense before amortization of intangible assets	707			699			1
Amortization of intangible assets	2			5			(60	)
Total noninterest expense	709			704			1
Income - FTE - before provision for income taxes	240			210			14
Provision for income taxes	88			77			14
FTE adjustment	—			—			—
Net income including income attributable to noncontrolling interest	152			133			14
Less: net income attributable to noncontrolling interest	—			—			—
Net income		$152			$133		14

Total revenue - FTE		$1,002			$1,006		—
Selected Average Balances:
Total loans		$41,262			$40,332		2	%
Goodwill	4,262			3,955			8
Other intangible assets excluding MSRs	22			41			(46	)
Total assets	46,943			45,376			3
Consumer and commercial deposits	84,550			85,012			(1	)
Performance Ratios:
Efficiency ratio	70.75		%	69.98		%
Impact of excluding amortization and associated funding cost of intangible assets	(2.09		)	(2.66		)
Tangible efficiency ratio	68.66		%	67.32		%
Other Information (End of Period):
Managed (discretionary) assets		$49,944			$52,934		(6	)%
Non-managed assets	55,039			52,190			5
Total assets under administration	104,983			105,124			—
Brokerage assets	44,398			41,257			8
Total assets under advisement		$149,381			$146,381		2


¹	Prior year results have been restated to include the effect of moving small business banking from Wholesale Banking to Consumer Banking and Private Wealth Management during the second quarter of 2013.


²	Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances.



SunTrust Banks, Inc. and Subsidiaries WHOLESALE BANKING (Dollars in millions) (Unaudited)
	Three Months Ended March 31 ¹
	2014			2013			% Change
Statements of Income:
Net interest income		$403			$389		4	%
FTE adjustment	34			29			17
Net interest income - FTE	437			418			5
Provision for credit losses ²	23			56			(59	)
Net interest income - FTE - after provision for credit losses	414			362			14
Noninterest income before securities gains/(losses)	322			306			5
Securities gains/(losses), net	—			—			—
Total noninterest income	322			306			5
Noninterest expense before amortization of intangible assets	454			379			20
Amortization of intangible assets	1			1			—
Total noninterest expense	455			380			20
Income - FTE - before provision for income taxes	281			288			(2	)
Provision for income taxes	57			64			(11	)
FTE adjustment	34			29			17
Net income including income attributable to noncontrolling interest	190			195			(3	)
Less: net income attributable to noncontrolling interest	1			4			(75	)
Net income		$189			$191		(1	)

Total revenue - FTE		$759			$724		5
Selected Average Balances:
Total loans		$58,934			$52,494		12	%
Goodwill	2,107			2,414			(13	)
Other intangible assets excluding MSRs	10			12			(17	)
Total assets	70,467			65,407			8
Consumer and commercial deposits	42,094			39,115			8
Performance Ratios:
Efficiency ratio	59.88		%	52.45		%
Impact of excluding amortization and associated funding cost of intangible assets	(1.09		)	(1.21		)
Tangible efficiency ratio	58.79		%	51.24		%
Other Information (End of Period): ³
Managed (discretionary) assets		$45,010			$44,620		1	%
Non-managed assets	—			—			—
Total assets under administration	45,010			44,620			1
Total assets under advisement		$45,010			$44,620		1


¹	Prior year results have been restated to include the effect of moving small business banking from Wholesale Banking to Consumer Banking and Private Wealth Management during the second quarter of 2013.

²Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances.

³Reflects the assets under administration for Ridgeworth clients.



SunTrust Banks, Inc. and Subsidiaries MORTGAGE BANKING (Dollars in millions) (Unaudited)
	Three Months Ended March 31
	2014			2013			% Change ¹
Statements of Income:
Net interest income		$134			$127		6	%
FTE adjustment	—			—			—
Net interest income - FTE	134			127			6
Provision for credit losses ²	26			64			(59	)
Net interest income - FTE - after provision for credit losses	108			63			71
Noninterest income before securities gains/(losses)	100			198			(49	)
Securities gains/(losses), net	—			—			—
Total noninterest income	100			198			(49	)
Noninterest expense before amortization of intangible assets	187			269			(30	)
Amortization of intangible assets	—			—			—
Total noninterest expense	187			269			(30	)
Income/(loss) - FTE - before provision/(benefit) for income taxes	21			(8		)	NM
Provision/(benefit) for income taxes	6			(4		)	NM
FTE adjustment	—			—			—
Net income/(loss) including income attributable to noncontrolling interest	15			(4		)	NM
Less: net income attributable to noncontrolling interest	—			—			—
Net income/(loss)		$15			($4	)	NM

Total revenue - FTE		$234			$325		(28	)
Selected Average Balances:
Total loans		$28,287			$27,996		1	%
Goodwill	—			—			—
Other intangible assets excluding MSRs	—			—			—
Total assets	31,550			33,185			(5	)
Consumer and commercial deposits	1,887			3,517			(46	)
Performance Ratios:
Efficiency ratio	79.93		%	82.92		%
Impact of excluding amortization and associated funding cost of intangible assets	—			—
Tangible efficiency ratio	79.93		%	82.92		%
Other Information:
Production Data
Channel mix
Retail		$1,680			$4,735		(65	)%
Wholesale	—			1,180			NM
Correspondent	1,426			2,926			(51	)
Total production		$3,106			$8,841		(65	)
Channel mix - percent
Retail	54		%	54		%
Wholesale	—			13
Correspondent	46			33
Total production	100		%	100		%
Purchase and refinance mix
Refinance		$1,355			$7,111		(81	)
Purchase	1,751			1,730			1
Total production		$3,106			$8,841		(65	)
Purchase and refinance mix - percent
Refinance	44		%	80		%
Purchase	56			20
Total production	100		%	100		%

Applications		$5,029			$12,212		(59	)
Mortgage Servicing Data (End of Period):
Total loans serviced		$135,180			$142,203		(5	)%
Total loans serviced for others	105,746			111,973			(6	)
Net carrying value of MSRs	1,251			1,025			22
Ratio of net carrying value of MSRs to total loans serviced for others	1.183		%	0.915		%


¹	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.


²	Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances.



SunTrust Banks, Inc. and Subsidiaries CORPORATE OTHER (Dollars in millions) (Unaudited)
	Three Months Ended March 31
	2014			2013			% Change ¹
Statements of Income:
Net interest income		$26			$56		(54	)%
FTE adjustment	1			1			—
Net interest income - FTE	27			57			(53	)
Provision for credit losses	—			—			—
Net interest income - FTE - after provision for credit losses	27			57			(53	)
Noninterest income before securities (losses)/gains	9			—			NM
Securities (losses)/gains, net	(1		)	2			NM
Total noninterest income	8			2			NM
Noninterest expense before amortization of intangible assets	6			—			NM
Amortization of intangible assets	—			—			—
Total noninterest expense	6			—			NM
Income - FTE - before (benefit)/provision for income taxes	29			59			(51	)
(Benefit)/provision for income taxes	(26		)	24			NM
FTE adjustment	1			1			—
Net income including income attributable to noncontrolling interest	54			34			59
Less: net income attributable to noncontrolling interest	5			2			NM
Net income		$49			$32		53

Total revenue - FTE		$35			$59		(41	)
Selected Average Balances:
Total loans		$42			$60		(30	)%
Securities available for sale	22,585			22,315			1
Other intangible assets excluding MSRs	—			—			—
Total assets	28,011			27,840			1
Consumer and commercial deposits	(135		)	11			NM
Other Information:
Duration of investment portfolio (in years)	4.5			3.3
Net interest income interest rate sensitivity:
% Change in net interest income under:
Instantaneous 100 bp increase in rates over next 12 months	2.3		%	2.8		%
Instantaneous 200 bp increase in rates over next 12 months	4.5		%	5.8		%
Instantaneous 25 bp decrease in rates over next 12 months	(0.9		)%	(1.1		)%


¹	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED - SEGMENT TOTALS

(Dollars in millions) (Unaudited)



	Three Months Ended March 31
	2014			2013			% Change ¹
Statements of Income:
Net interest income		$1,204			$1,221		(1	)%
FTE adjustment	35			30			17
Net interest income - FTE	1,239			1,251			(1	)
Provision for credit losses	102			212			(52	)
Net interest income - FTE - after provision for credit losses	1,137			1,039			9
Noninterest income before securities (losses)/gains	792			861			(8	)
Securities (losses)/gains, net	(1		)	2			NM
Total noninterest income	791			863			(8	)
Noninterest expense before amortization of intangible assets ²	1,354			1,347			1
Amortization of intangible assets	3			6			(50	)
Total noninterest expense	1,357			1,353			—
Income - FTE - before provision for income taxes	571			549			4
Provision for income taxes ²	125			161			(22	)
FTE adjustment	35			30			17
Net income including income attributable to noncontrolling interest	411			358			15
Less: net income attributable to noncontrolling interest	6			6			—
Net income		$405			$352		15

Total revenue - FTE		$2,030			$2,114		(4	)
Selected Average Balances:
Total loans		$128,525			$120,882		6	%
Goodwill	6,369			6,369			—
Other intangible assets excluding MSRs	32			53			(40	)
Total assets	176,971			171,808			3
Consumer and commercial deposits	128,396			127,655			1
Performance Ratios:
Efficiency ratio	66.83		%	63.97		%
Impact of excluding amortization and associated funding cost of intangible assets	(0.18		)	(0.29		)
Tangible efficiency ratio	66.65		%	63.68		%
Other Information (End of Period):
Managed (discretionary) assets		$94,954			$97,554		(3	)%
Non-managed assets	55,039			52,190			5
Total assets under administration	149,993			149,744			—
Brokerage assets	44,398			41,257			8
Total assets under advisement		$194,391			$191,001		2


¹	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

² Amortization expense related to affordable housing investment costs is recognized in provision for income taxes for each of the periods presented. Prior to the first quarter of 2014, these amounts were recognized in other noninterest expense.

Suntrust Banks Inactive 8-KSunTrust Reports First Quarter 2014 Results