Suntrust Banks 8K SunTrust Reports First Quarter 2016 Results | SEC 22 Apr 16

Exhibit 99.1

News Release



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

For Immediate Release

April 22, 2016

SunTrust Reports First Quarter 2016 Results

Solid Revenue Momentum and Continued Expense Discipline

Result in Positive Operating Leverage and Strong Earnings Growth

ATLANTA -- SunTrust Banks, Inc. (NYSE: STI) reported net income available to common shareholders of $430 million, or $0.84 per average common diluted share. This compares to $0.91 per share in the prior quarter, which was favorably impacted by discrete items totaling $0.03 per share, and $0.78 per share in the first quarter of 2015. Earnings per share for the current quarter increased 8% compared to a year ago.

“We delivered solid revenue growth this quarter as we continued to meet more client needs across each of our businesses, benefiting from our diverse business model and consistent strategies,” said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. “This revenue performance, combined with continued expense discipline, resulted in a good start to the year with 8% earnings growth. We remain highly focused on improving the financial well-being of our clients and communities and delivering increased value to our shareholders.”

First Quarter 2016 Financial Highlights

Income Statement


•	Net income available to common shareholders was $430 million, or $0.84 per average common diluted share, compared to $0.91 for the fourth quarter of 2015, which included $0.03 per share in discrete tax benefits.


◦	Earnings per share for the current quarter increased 8% compared to the first quarter of 2015.


•	Total revenue increased 3% compared to the prior quarter and 5% compared to the first quarter of 2015.


◦	Sequential revenue growth was driven by a 3% increase in net interest income, as well as 2% growth in noninterest income.


◦	Higher net interest income in the current quarter more than offset the 4% decline in noninterest income compared to the first quarter of 2015.


•	Net interest margin was 3.04% in the current quarter, up 6 basis points and 21 basis points compared to the prior quarter and first quarter of 2015, respectively.


•	Provision for credit losses increased, both sequentially and compared to the prior year, due to loan growth, higher energy-related reserves, and moderating asset quality improvements.


•	Noninterest expense increased 2% sequentially, driven by seasonality in employee compensation and benefits costs.


◦	Noninterest expense increased 3% compared to the first quarter of 2015 largely due to higher marketing and outside processing costs associated with the expansion of our business.


•	The efficiency and tangible efficiency ratios in the current quarter were 62.8% and 62.3%, respectively, which were generally stable compared to the prior quarter and much improved compared to the first quarter of 2015.

Balance Sheet


•	Average loan balances increased 2% sequentially and 4% compared to the first quarter of 2015, with growth across most loan categories.


•	Average consumer and commercial deposits increased 1% sequentially and 6% compared to the prior year.

Capital


•	Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 ratio was estimated to be 9.8% as of March 31, 2016, on a fully phased-in basis.


•	During the quarter, the Company repurchased $175 million of common stock and common stock warrants in accordance with its 2015 capital plan.


•	Book value per share was $44.97, and tangible book value per share was $32.90, up 3% and 5%, respectively, compared to December 31, 2015.

Asset Quality


•	Nonperforming loans increased $303 million from the prior quarter and represented 0.70% of total loans at March 31, 2016. The sequential increase was largely due to downgrades of certain energy-related loans.


•	Net charge-offs for the current quarter were $85 million, or 0.25% of average loans on an annualized basis, relatively stable compared to the prior quarter and down $14 million compared to the first quarter of 2015.


•	The provision for credit losses increased $50 million sequentially due loan growth, higher energy-related reserves, and moderating asset quality improvements.


•	At March 31, 2016, the allowance for loan and lease losses (ALLL) to period-end loans ratio was 1.27%, 2 basis points lower than the prior quarter, as a higher ALLL for commercial loans was generally offset by a lower ALLL for residential loans.




Presented on a fully taxable-equivalent basis
Income Statement (Dollars in millions, except per share data)	1Q 2016			4Q 2015			3Q 2015			2Q 2015			1Q 2015
Net interest income	$1,318			$1,281			$1,247			$1,203			$1,175
Net interest margin	3.04		%	2.98		%	2.94		%	2.86		%	2.83		%
Noninterest income	$781			$765			$811			$874			$817
Total revenue	2,099			2,046			2,058			2,077			1,992
Noninterest expense	1,318			1,288			1,264			1,328			1,280
Provision for credit losses	101			51			32			26			55
Net income available to common shareholders	430			467			519			467			411
Earnings per average common diluted share	0.84			0.91			1.00			0.89			0.78

Balance Sheet (Dollars in billions)
Average loans		$138.4			$135.2			$132.8			$132.8			$133.3
Average consumer and commercial deposits	149.2			148.2			145.2			142.9			140.5

Capital
Capital ratios at period end ¹ :
Tier 1 capital (transitional)	10.60		%	10.80		%	10.90		%	10.79		%	10.76		%
Common Equity Tier 1 ("CET1") (transitional)	9.85		%	9.96		%	10.04		%	9.93		%	9.89		%
Common Equity Tier 1 ("CET1") (fully phased-in) ²	9.75		%	9.80		%	9.89		%	9.76		%	9.74		%
Total average shareholders’ equity to total average assets	12.33		%	12.43		%	12.42		%	12.34		%	12.24		%

Asset Quality
Net charge-offs to average loans (annualized)	0.25		%	0.24		%	0.21		%	0.26		%	0.30		%
Allowance for loan and lease losses to period-end loans	1.27		%	1.29		%	1.34		%	1.39		%	1.43		%
Nonperforming loans to total loans	0.70		%	0.49		%	0.35		%	0.36		%	0.46		%

¹ Current period Tier 1 capital and CET1 ratios are estimated as of the date of this news release.

² See page 21 for non-U.S. GAAP reconciliation

Consolidated Financial Performance Details

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

Revenue

Total revenue was $2.1 billion for the current quarter, an increase of $53 million compared to the prior quarter. The increase was primarily driven by higher net interest income as a result of loan growth and net interest margin expansion, as well as higher mortgage-related and capital markets revenue. Compared to the first quarter of 2015, total revenue increased $107 million as higher net interest income was partially offset by lower noninterest income.

Net Interest Income

(Presented on a fully taxable-equivalent basis)

Net interest income was $1.3 billion for the current quarter, an increase of $37 million compared to the prior quarter. The increase was primarily due to loan growth and higher loan yields due to the rise in short-term benchmark interest rates. Compared to the first quarter of 2015, the $143 million increase in net interest income was driven by growth in average earning asset balances and yields, and a decline in interest-bearing liability rates.

Net interest margin for the current quarter was 3.04%, compared to 2.98% in the prior quarter and 2.83% in the first quarter of 2015. When compared to the prior quarter, the 6 basis point increase was driven largely by higher loan yields, partially offset by slightly higher funding costs. The 21 basis point increase compared to the first quarter of 2015 was due primarily to higher benchmark interest rates, improved loan mix, lower securities premium amortization, and an increase in commercial loan-related swap income, all of which contributed to a 19 basis point increase in earning asset yields. Strong deposit growth enabled a 34% reduction in long-term debt, resulting in an improved funding mix and a 2 basis point decline in interest-bearing liability rates.

Noninterest Income

Noninterest income was $781 million for the current quarter, compared to $765 million for the prior quarter and $817 million for the first quarter of 2015. The $16 million increase from the prior quarter was related primarily to higher mortgage-related and capital markets revenue, partially offset by declines in other noninterest income categories. Compared to the first quarter of 2015, noninterest income decreased $36 million, driven by lower wealth management-related income in the current quarter and asset disposition gains in the prior year.

Investment banking income was $98 million for the current quarter, compared to $104 million in the prior quarter and $97 million in the first quarter of 2015. The $6 million decrease from the prior quarter was largely driven by a decline in equity originations and M&A activity given market conditions in the first quarter of 2016.

Trading income was $55 million for the current quarter, compared to $42 million in the prior quarter and $55 million in the first quarter of 2015. The $13 million sequential increase was driven primarily by mark-to-market valuation losses recognized in the fourth quarter of 2015 related to securities that were ultimately sold in the first quarter.

Mortgage production income for the current quarter was $60 million, compared to $53 million for the prior quarter and $83 million for the first quarter of 2015. The $7 million increase from the prior quarter was primarily due to higher refinance activity and slightly higher gain-on-sale margins. Mortgage application volume increased 37% compared to the fourth quarter of 2015. The $23 million decrease compared to the first quarter of 2015 was driven primarily by a decline in gain-on-sale margins and reduced refinance activity.

Mortgage servicing income was $62 million for the current quarter, compared to $56 million in the prior quarter and $43 million in the first quarter of 2015. The $6 million increase from the prior quarter was driven by improved net hedge performance combined with a decline in the servicing asset decay, partially offset by a seasonal reduction in servicing fees. The $19 million increase compared to the first quarter of 2015 was also due to improved net hedge performance and a decline in the servicing asset decay, accompanied by higher servicing fees as a result of a larger portfolio. The servicing portfolio was $149 billion at March 31, 2016, compared to $142 billion at March 31, 2015. The Company purchased MSRs on residential loans with a UPB of $8.1 billion during the three months ended March 31, 2016; however, only $1.8 billion of these loans are reflected in the aforementioned UPB amount as the transfer of servicing for the remainder is scheduled for the second quarter of 2016.

Trust and investment management income was $75 million for the current quarter, compared to $79 million in the prior quarter and $84 million in the first quarter of 2015. The $9 million decrease compared to the prior year was due to a decline in assets under management.

Other noninterest income was $38 million for the current quarter, compared to $30 million in the prior quarter and $63 million in the first quarter of 2015. The $8 million increase compared to the prior quarter was due to higher leasing-related income. The $25 million decrease compared to the first quarter of 2015 was largely due to an $18 million gain on the sale of affordable housing investments and higher gains on the sale of loans during the first quarter of 2015.

Noninterest Expense

Noninterest expense was $1.3 billion in the current quarter, an increase of $30 million and $38 million compared to the prior quarter and the first quarter of 2015, respectively. The sequential increase was primarily due to the seasonal increase in employee benefit costs while other expenses remained well controlled as a result of our ongoing expense discipline. The increase compared to the first quarter of 2015 was largely due to higher outside processing costs and the increase in marketing and customer development expenses associated with our campaign to further advance the Company's purpose.

Employee compensation and benefits expense was $774 million in the current quarter, compared to $690 million in the prior quarter and $771 million in the first quarter of 2015. The sequential increase of $84 million was due to the seasonal increase in employee benefits costs.

Operating losses were $24 million in the current quarter, compared to $22 million in the prior quarter and $14 million in the first quarter of 2015. The $10 million increase compared to the prior year was primarily due to the recovery of previously recorded mortgage-related losses during the first quarter of 2015.

Outside processing and software expense was $198 million in the current quarter, compared to $222 million in the prior quarter and $189 million in the first quarter of 2015. The sequential decrease of $24 million was due to the recognition of discrete costs in prior quarter and normal quarterly variability. The increase from the first quarter of 2015 was driven by higher utilization of third-party services as a result of continued expansion of our businesses, in addition to higher compliance costs.

Marketing and customer development expense was $44 million in the current quarter, compared to $48 million in the prior quarter and $27 million in the first quarter of 2015. The increase over the first quarter of 2015 was due largely to the aforementioned marketing campaign.

Other noninterest expense was $107 million in the current quarter, compared to $127 million in the prior quarter, and $111 million in the first quarter of 2015. The $20 million decline compared to the prior quarter was driven by lower consulting and credit-related expenses. Amortization expense decreased $7 million sequentially due to increased investments in low-income community development projects in the fourth quarter.

Income Taxes

For the current quarter, the Company recorded an income tax provision of $195 million, compared to $185 million for the prior quarter and $191 million for the first quarter of 2015. The effective tax rate for the current quarter was 30%, compared to 28% in the prior quarter and 31% in the first quarter of 2015. The effective tax rate in the prior quarter was favorably impacted by $17 million in discrete income tax items.

Balance Sheet

At March 31, 2016, the Company had total assets of $194.2 billion and total shareholders’ equity of $24.1 billion, representing 12% of total assets. Book value per share was $44.97 and tangible book value per share was $32.90, up 3% and 5%, respectively, compared to December 31, 2015, driven by growth in retained earnings and an increase in accumulated other comprehensive income driven by the decline in long-term interest rates.

Loans

Average performing loans were $137.6 billion for the current quarter, a 2% increase over the prior quarter and a 4% increase over the first quarter of 2015. Sequentially, growth in average C&I loans, consumer loans, nonguaranteed residential mortgages, and commercial construction loans of $1.7 billion, $896 million, $387 million, and $296 million, respectively, was partially offset by a $312 million decline in home equity products.

Compared to the first quarter of 2015, growth was concentrated in C&I loans, nonguaranteed residential mortgages, consumer direct loans, and commercial construction loans. This growth was partially offset by declines in home equity products and commercial real estate loans, as well as consumer indirect loans due to the $1 billion indirect auto loan securitization in the second quarter of 2015.

Deposits

Average consumer and commercial deposits for the current quarter were $149.2 billion, a 1% increase over the prior quarter and a 6% increase compared to the first quarter of 2015. The sequential increase was driven by a 2% increase in both NOW and money market account balances, partially offset by a 1% decline in noninterest-bearing deposits. Compared to the first quarter of 2015, the increase was driven by growth in lower-cost deposits, primarily NOW and money market account balances, partially offset by an 8% decline in time deposits.

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 9.8% at March 31, 2016, on a fully phased-in basis. The ratios of average total equity to average total assets and tangible equity to tangible assets were 12.33% and 9.56%, respectively, at March 31, 2016. 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.

Per its 2015 capital plan, the Company declared a common stock dividend of $0.24 per common share and repurchased $151 million of its outstanding common stock and $24 million of its common stock warrants in the first quarter of 2016. The Company will repurchase $175 million of common stock in the second quarter of 2016 to complete its 2015 capital plan.

Asset Quality

Total nonperforming assets were $1.0 billion at March 31, 2016, up $300 million and $339 million compared to the prior quarter and the first quarter of 2015, respectively. These increases were primarily due to downgrades of certain energy-related loans. At March 31, 2016, the percentage of nonperforming loans to total loans was 0.70%, compared to 0.49% at December 31, 2015, and 0.46% at March 31, 2015. Other real estate owned totaled $52 million, a 7% decrease from the prior quarter and a 34% decrease from the first quarter of 2015.

Net charge-offs were $85 million during the current quarter, relatively stable compared to the prior quarter and a decrease of $14 million compared to the first quarter of 2015. The ratio of annualized net charge-offs to total average loans was 0.25% during the current quarter, compared to 0.24% during the prior quarter and 0.30% during the first quarter of 2015. The provision for credit losses was $101 million in the current quarter, an increase of $50 million and $46 million compared to the prior quarter and the first quarter of 2015, respectively. The increase in the provision for credit losses was due loan growth, higher energy-related reserves, and moderating asset quality improvements.

At March 31, 2016, the allowance for loan and lease losses was $1.8 billion, which represented 1.27% of total loans, an increase of $18 million from December 31, 2015. Excluding government-guaranteed and fair value loans, the allowance for loan and lease losses to period-end loans ratio was 1.32% as of March 31, 2016.

Early stage delinquencies declined 3 basis points from the prior quarter to 0.67% at March 31, 2016. Excluding government-guaranteed loans, early stage delinquencies were 0.29%, down 1 basis point from the prior quarter.

Accruing restructured loans totaled $2.6 billion and nonaccruing restructured loans totaled $233 million at March 31, 2016, of which $2.6 billion were residential loans, $131 million were consumer loans, and $69 million were commercial loans.

OTHER INFORMATION

About SunTrust Banks, Inc.

SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. Headquartered in Atlanta, the Company has three business segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. 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 March 31, 2016, SunTrust had total assets of $194 billion and total deposits of $152 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.

Business Segment Results

The Company has included its business segment financial tables as part of this release. 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 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 April 22, 2016, 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: 1Q16). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 1Q16). A replay of the call will be available approximately one hour after the call ends on April 22, 2016, and will remain available until May 22, 2016, by dialing 1-866-402-3772 (domestic) or 1-203-369-0559 (international). 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 April 22, 2016, listeners may access an archived version of the webcast in the “Events & Presentations” section of the investor relations website. This webcast will be archived and available for one year.

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 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. 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, 2015 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 March 31						%
	2016			2015			Change
EARNINGS & DIVIDENDS
Net income		$447			$429		4	%
Net income available to common shareholders	430			411			5
Total revenue - FTE ^{1, 2}	2,099			1,992			5
Net income per average common share:
Diluted	0.84			0.78			8
Basic	0.85			0.79			8
Dividends paid per common share	0.24			0.20			20
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$193,014			$189,265		2	%
Earning assets	174,189			168,179			4
Loans	138,372			133,338			4
Intangible assets including mortgage servicing rights ("MSRs")	7,569			7,502			1
MSRs	1,215			1,152			5
Consumer and commercial deposits	149,229			140,476			6
Brokered time and foreign deposits	902			1,250			(28	)
Total shareholders’ equity	23,797			23,172			3
Preferred stock	1,225			1,225			—
Period End Balances:
Total assets	194,158			189,881			2
Earning assets	175,710			168,269			4
Loans	139,746			132,380			6
Allowance for loan and lease losses ("ALLL")	1,770			1,893			(6	)
Consumer and commercial deposits	151,264			143,239			6
Brokered time and foreign deposits	897			1,184			(24	)
Total shareholders’ equity	24,053			23,260			3
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	0.93		%	0.92		%	1	%
Return on average common shareholders’ equity ³	7.71			7.63			1
Return on average tangible common shareholders' equity ¹	10.60			10.64			—
Net interest margin ²	3.04			2.83			7
Efficiency ratio ²	62.81			64.23			(2	)
Tangible efficiency ratio ^{1, 2}	62.33			63.91			(2	)
Effective tax rate	30			31			(3	)
Basel III capital ratios at period end (transitional) ⁴:
Common Equity Tier 1 ("CET1")	9.85			9.89			—
Tier 1 capital	10.60			10.76			(1	)
Total capital	12.35			12.69			(3	)
Leverage	9.50			9.41			1
Basel III fully phased-in CET1 ratio ^{1, 4}	9.75			9.74			—
Total average shareholders’ equity to total average assets	12.33			12.24			1
Tangible equity to tangible assets ¹	9.56			9.34			2
Book value per common share ³		$44.97			$42.01		7
Tangible book value per common share ^{1, 3}	32.90			30.29			9
Market capitalization	18,236			21,450			(15	)
Average common shares outstanding:
Diluted	509,931			526,837			(3	)
Basic	505,482			521,020			(3	)
Full-time equivalent employees	23,945			24,466			(2	)
Number of ATMs	2,153			2,176			(1	)
Full service banking offices	1,397			1,444			(3	)


¹	See Appendix A for reconcilements of non-U.S. 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 an FTE basis plus noninterest income.

³ Prior period amounts have been updated to remove noncontrolling interest from common shareholders' equity in the calculation.

⁴ Current period capital ratios are estimated as of the earnings release date.

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER FINANCIAL HIGHLIGHTS



	Three Months Ended
	March 31			December 31			September 30			June 30			March 31
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2016			2015			2015			2015			2015
EARNINGS & DIVIDENDS
Net income		$447			$484			$537			$483			$429
Net income available to common shareholders	430			467			519			467			411
Total revenue - FTE ^{1, 2}	2,099			2,046			2,058			2,077			1,992
Net income per average common share:
Diluted	0.84			0.91			1.00			0.89			0.78
Basic	0.85			0.92			1.01			0.90			0.79
Dividends paid per common share	0.24			0.24			0.24			0.24			0.20
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$193,014			$189,656			$188,341			$188,310			$189,265
Earning assets	174,189			170,262			168,334			168,461			168,179
Loans	138,372			135,214			132,837			132,829			133,338
Intangible assets including MSRs	7,569			7,629			7,711			7,572			7,502
MSRs	1,215			1,273			1,352			1,223			1,152
Consumer and commercial deposits	149,229			148,163			145,226			142,851			140,476
Brokered time and foreign deposits	902			1,046			1,010			1,118			1,250
Total shareholders’ equity	23,797			23,583			23,384			23,239			23,172
Preferred stock	1,225			1,225			1,225			1,225			1,225
Period End Balances:
Total assets	194,158			190,817			187,036			188,858			189,881
Earning assets	175,710			172,114			168,555			168,499			168,269
Loans	139,746			136,442			133,560			132,538			132,380
ALLL	1,770			1,752			1,786			1,834			1,893
Consumer and commercial deposits	151,264			148,921			145,337			143,922			143,239
Brokered time and foreign deposits	897			909			1,034			1,015			1,184
Total shareholders’ equity	24,053			23,437			23,664			23,223			23,260
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	0.93		%	1.01		%	1.13		%	1.03		%	0.92		%
Return on average common shareholders’ equity ³	7.71			8.32			9.34			8.54			7.63
Return on average tangible common shareholders' equity ¹	10.60			11.49			12.95			11.88			10.64
Net interest margin ²	3.04			2.98			2.94			2.86			2.83
Efficiency ratio ²	62.81			62.96			61.44			63.92			64.23
Tangible efficiency ratio ^{1, 2}	62.33			62.11			60.99			63.59			63.91
Effective tax rate	30			28			26			29			31
Basel III capital ratios at period end (transitional) ⁴:
CET1	9.85			9.96			10.04			9.93			9.89
Tier 1 capital	10.60			10.80			10.90			10.79			10.76
Total capital	12.35			12.54			12.72			12.66			12.69
Leverage	9.50			9.69			9.68			9.56			9.41
Basel III fully phased-in CET1 ratio ^{1, 4}	9.75			9.80			9.89			9.76			9.74
Total average shareholders’ equity to total average assets	12.33			12.43			12.42			12.34			12.24
Tangible equity to tangible assets ¹	9.56			9.40			9.72			9.38			9.34
Book value per common share ³		$44.97			$43.45			$43.44			$42.26			$42.01
Tangible book value per common share ^{1, 3}	32.90			31.45			31.56			30.46			30.29
Market capitalization	18,236			21,793			19,659			22,286			21,450
Average common shares outstanding:
Diluted	509,931			514,507			518,677			522,479			526,837
Basic	505,482			508,536			513,010			516,968			521,020
Full-time equivalent employees	23,945			24,043			24,124			24,237			24,466
Number of ATMs	2,153			2,160			2,142			2,162			2,176
Full service banking offices	1,397			1,401			1,406			1,430			1,444


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

³ Prior period amounts have been updated to remove noncontrolling interest from common shareholders' equity in the calculation.

⁴ Current period capital ratios are estimated as of the earnings release date.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME



	Three Months Ended				Increase/(Decrease)
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	March 31				Increase/(Decrease)
	2016		2015		Amount			%
Interest income		$1,411		$1,272		$139		11	%
Interest expense	129		132		(3		)	(2	)
NET INTEREST INCOME	1,282		1,140		142			12
Provision for credit losses	101		55		46			84
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,181		1,085		96			9
NONINTEREST INCOME
Service charges on deposit accounts	153		151		2			1
Other charges and fees	93		89		4			4
Card fees	78		80		(2		)	(3	)
Investment banking income	98		97		1			1
Trading income	55		55		—			—
Trust and investment management income	75		84		(9		)	(11	)
Retail investment services	69		72		(3		)	(4	)
Mortgage production related income	60		83		(23		)	(28	)
Mortgage servicing related income	62		43		19			44
Other noninterest income	38		63		(25		)	(40	)
Total noninterest income	781		817		(36		)	(4	)
NONINTEREST EXPENSE
Employee compensation and benefits	774		771		3			—
Outside processing and software	198		189		9			5
Net occupancy expense	85		84		1			1
Equipment expense	40		40		—			—
FDIC premium/regulatory exams	36		37		(1		)	(3	)
Marketing and customer development	44		27		17			63
Operating losses	24		14		10			71
Amortization	10		7		3			43
Other noninterest expense	107		111		(4		)	(4	)
Total noninterest expense	1,318		1,280		38			3
INCOME BEFORE PROVISION FOR INCOME TAXES	644		622		22			4
Provision for income taxes	195		191		4			2
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	449		431		18			4
Net income attributable to noncontrolling interest	2		2		—			—
NET INCOME		$447		$429		$18		4	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$430		$411		$19		5	%
Net interest income - FTE ¹	1,318		1,175		143			12
Net income per average common share:
Diluted	0.84		0.78		0.06			8
Basic	0.85		0.79		0.06			8
Cash dividends paid per common share	0.24		0.20		0.04			20
Average common shares outstanding:
Diluted	509,931		526,837		(16,906		)	(3	)
Basic	505,482		521,020		(15,538		)	(3	)

¹ 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-U.S. GAAP measure to the related U.S.GAAP measure.

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)	March 31		December 31		Increase/(Decrease)					September 30		June 30		March 31
	2016		2015		Amount			%		2015		2015		2015
Interest income		$1,411		$1,363		$48		4	%		$1,333		$1,297		$1,272
Interest expense	129		117		12			10		122		130		132
NET INTEREST INCOME	1,282		1,246		36			3		1,211		1,167		1,140
Provision for credit losses	101		51		50			98		32		26		55
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,181		1,195		(14		)	(1	)	1,179		1,141		1,085
NONINTEREST INCOME
Service charges on deposit accounts	153		156		(3		)	(2	)	159		156		151
Other charges and fees	93		92		1			1		97		99		89
Card fees	78		82		(4		)	(5	)	83		84		80
Investment banking income	98		104		(6		)	(6	)	115		145		97
Trading income	55		42		13			31		31		54		55
Trust and investment management income	75		79		(4		)	(5	)	86		84		84
Retail investment services	69		71		(2		)	(3	)	77		80		72
Mortgage production related income	60		53		7			13		58		76		83
Mortgage servicing related income	62		56		6			11		40		30		43
Net securities gains	—		—		—			—		7		14		—
Other noninterest income	38		30		8			27		58		52		63
Total noninterest income	781		765		16			2		811		874		817
NONINTEREST EXPENSE
Employee compensation and benefits	774		690		84			12		725		756		771
Outside processing and software	198		222		(24		)	(11	)	200		204		189
Net occupancy expense	85		86		(1		)	(1	)	86		85		84
Equipment expense	40		41		(1		)	(2	)	41		42		40
FDIC premium/regulatory exams	36		35		1			3		32		35		37
Marketing and customer development	44		48		(4		)	(8	)	42		34		27
Operating losses	24		22		2			9		3		16		14
Amortization	10		17		(7		)	(41	)	9		7		7
Other noninterest expense	107		127		(20		)	(16	)	126		149		111
Total noninterest expense	1,318		1,288		30			2		1,264		1,328		1,280
INCOME BEFORE PROVISION FOR INCOME TAXES	644		672		(28		)	(4	)	726		687		622
Provision for income taxes	195		185		10			5		187		202		191
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	449		487		(38		)	(8	)	539		485		431
Net income attributable to noncontrolling interest	2		3		(1		)	(33	)	2		2		2
NET INCOME		$447		$484		($37	)	(8	)%		$537		$483		$429
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$430		$467		($37	)	(8	)%		$519		$467		$411
Net interest income - FTE ¹	1,318		1,281		37			3		1,247		1,203		1,175
Net income per average common share:
Diluted	0.84		0.91		(0.07		)	(8	)	1.00		0.89		0.78
Basic	0.85		0.92		(0.07		)	(8	)	1.01		0.90		0.79
Cash dividends paid per common share	0.24		0.24		—			—		0.24		0.24		0.20
Average common shares outstanding:
Diluted	509,931		514,507		(4,576		)	(1	)	518,677		522,479		526,837
Basic	505,482		508,536		(3,054		)	(1	)	513,010		516,968		521,020

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS



	March 31						(Decrease)/Increase
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2016			2015			Amount			%²
ASSETS
Cash and due from banks		$3,074			$6,483			($3,409	)	(53	)%
Federal funds sold and securities borrowed or purchased under agreements to resell	1,229			1,233			(4		)	—
Interest-bearing deposits in other banks	24			22			2			9
Trading assets and derivative instruments	7,050			6,595			455			7
Securities available for sale	28,188			26,761			1,427			5
Loans held for sale ("LHFS")	1,911			3,404			(1,493		)	(44	)
Loans held for investment:
Commercial and industrial ("C&I")	68,963			65,574			3,389			5
Commercial real estate ("CRE")	6,034			6,389			(355		)	(6	)
Commercial construction	2,498			1,484			1,014			68
Residential mortgages - guaranteed	623			655			(32		)	(5	)
Residential mortgages - nonguaranteed	25,148			23,419			1,729			7
Residential home equity products	12,845			13,954			(1,109		)	(8	)
Residential construction	383			417			(34		)	(8	)
Consumer student - guaranteed	5,265			4,337			928			21
Consumer other direct	6,372			4,937			1,435			29
Consumer indirect	10,522			10,336			186			2
Consumer credit cards	1,093			878			215			24
Total loans held for investment	139,746			132,380			7,366			6
Allowance for loan and lease losses ("ALLL")	(1,770		)	(1,893		)	(123		)	(6	)
Net loans held for investment	137,976			130,487			7,489			6
Goodwill	6,337			6,337			—			—
Other intangible assets	1,198			1,193			5			—
Other assets	7,171			7,366			(195		)	(3	)
Total assets ¹		$194,158			$189,881			$4,277		2	%
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$42,256			$42,376			($120	)	—	%
Interest-bearing consumer and commercial deposits:
NOW accounts	39,273			34,574			4,699			14
Money market accounts	53,327			49,430			3,897			8
Savings	6,418			6,304			114			2
Consumer time	6,085			6,670			(585		)	(9	)
Other time	3,905			3,885			20			1
Total consumer and commercial deposits	151,264			143,239			8,025			6
Brokered time deposits	897			884			13			1
Foreign deposits	—			300			(300		)	(100	)
Total deposits	152,161			144,423			7,738			5
Funds purchased	1,497			1,299			198			15
Securities sold under agreements to repurchase	1,774			1,845			(71		)	(4	)
Other short-term borrowings	1,673			1,438			235			16
Long-term debt	8,514			13,012			(4,498		)	(35	)
Trading liabilities and derivative instruments	1,536			1,459			77			5
Other liabilities	2,950			3,145			(195		)	(6	)
Total liabilities	170,105			166,621			3,484			2
SHAREHOLDERS' EQUITY
Preferred stock, no par value	1,225			1,225			—			—
Common stock, $1.00 par value	550			550			—			—
Additional paid-in capital	9,017			9,074			(57		)	(1	)
Retained earnings	14,999			13,600			1,399			10
Treasury stock, at cost, and other	(1,759		)	(1,124		)	635			56
Accumulated other comprehensive income/(loss), net of tax	21			(65		)	86			NM
Total shareholders' equity	24,053			23,260			793			3
Total liabilities and shareholders' equity		$194,158			$189,881			$4,277		2	%

Common shares outstanding	505,443			522,031			(16,588		)	(3	)%
Common shares authorized	750,000			750,000			—			—
Preferred shares outstanding	12			12			—			—
Preferred shares authorized	50,000			50,000			—			—
Treasury shares of common stock	44,478			27,890			16,588			59

¹ Includes earning assets of $175,710 and $168,269 at March 31, 2016 and 2015, 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, except per share data) (Unaudited)	March 31			December 31			(Decrease)/Increase					September 30			June 30			March 31
	2016			2015			Amount			% ²		2015			2015			2015
ASSETS
Cash and due from banks		$3,074			$4,299			($1,225	)	(28	)%		$3,788			$5,915			$6,483
Federal funds sold and securities borrowed or purchased under agreements to resell	1,229			1,277			(48		)	(4	)	1,105			1,350			1,233
Interest-bearing deposits in other banks	24			23			1			4		23			23			22
Trading assets and derivative instruments	7,050			6,119			931			15		6,537			6,438			6,595
Securities available for sale	28,188			27,825			363			1		27,270			27,113			26,761
LHFS	1,911			1,838			73			4		2,032			2,457			3,404
Loans held for investment:
C&I	68,963			67,062			1,901			3		65,371			65,713			65,574
CRE	6,034			6,236			(202		)	(3	)	6,168			6,058			6,389
Commercial construction	2,498			1,954			544			28		1,763			1,530			1,484
Residential mortgages - guaranteed	623			629			(6		)	(1	)	627			625			655
Residential mortgages - nonguaranteed	25,148			24,744			404			2		24,351			24,038			23,419
Residential home equity products	12,845			13,171			(326		)	(2	)	13,416			13,672			13,954
Residential construction	383			384			(1		)	—		394			401			417
Consumer student - guaranteed	5,265			4,922			343			7		4,588			4,401			4,337
Consumer other direct	6,372			6,127			245			4		5,771			5,329			4,937
Consumer indirect	10,522			10,127			395			4		10,119			9,834			10,336
Consumer credit cards	1,093			1,086			7			1		992			937			878
Total loans held for investment	139,746			136,442			3,304			2		133,560			132,538			132,380
ALLL	(1,770		)	(1,752		)	18			1		(1,786		)	(1,834		)	(1,893		)
Net loans held for investment	137,976			134,690			3,286			2		131,774			130,704			130,487
Goodwill	6,337			6,337			—			—		6,337			6,337			6,337
Other intangible assets	1,198			1,325			(127		)	(10	)	1,282			1,416			1,193
Other assets	7,171			7,084			87			1		6,888			7,105			7,366
Total assets ¹		$194,158			$190,817			$3,341		2	%		$187,036			$188,858			$189,881
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$42,256			$42,272			($16	)	—	%		$41,487			$42,773			$42,376
Interest-bearing consumer and commercial deposits:
NOW accounts	39,273			38,990			283			1		36,164			35,125			34,574
Money market accounts	53,327			51,783			1,544			3		51,628			49,586			49,430
Savings	6,418			6,057			361			6		6,133			6,263			6,304
Consumer time	6,085			6,108			(23		)	—		6,205			6,398			6,670
Other time	3,905			3,711			194			5		3,720			3,777			3,885
Total consumer and commercial deposits	151,264			148,921			2,343			2		145,337			143,922			143,239
Brokered time deposits	897			899			(2		)	—		884			865			884
Foreign deposits	—			10			(10		)	(100	)	150			150			300
Total deposits	152,161			149,830			2,331			2		146,371			144,937			144,423
Funds purchased	1,497			1,949			(452		)	(23	)	1,329			1,011			1,299
Securities sold under agreements to repurchase	1,774			1,654			120			7		1,536			1,858			1,845
Other short-term borrowings	1,673			1,024			649			63		1,077			3,248			1,438
Long-term debt	8,514			8,462			52			1		8,444			10,109			13,012
Trading liabilities and derivative instruments	1,536			1,263			273			22		1,330			1,308			1,459
Other liabilities	2,950			3,198			(248		)	(8	)	3,285			3,164			3,145
Total liabilities	170,105			167,380			2,725			2		163,372			165,635			166,621
SHAREHOLDERS’ EQUITY
Preferred stock, no par value	1,225			1,225			—			—		1,225			1,225			1,225
Common stock, $1.00 par value	550			550			—			—		550			550			550
Additional paid-in capital	9,017			9,094			(77		)	(1	)	9,087			9,080			9,074
Retained earnings	14,999			14,686			313			2		14,341			13,944			13,600
Treasury stock, at cost, and other	(1,759		)	(1,658		)	101			6		(1,451		)	(1,282		)	(1,124		)
Accumulated other comprehensive income/(loss), net of tax	21			(460		)	481			NM		(88		)	(294		)	(65		)
Total shareholders’ equity	24,053			23,437			616			3		23,664			23,223			23,260
Total liabilities and shareholders’ equity		$194,158			$190,817			$3,341		2	%		$187,036			$188,858			$189,881

Common shares outstanding	505,443			508,712			(3,269		)	(1	)%	514,106			518,045			522,031
Common shares authorized	750,000			750,000			—			—		750,000			750,000			750,000
Preferred shares outstanding	12			12			—			—		12			12			12
Preferred shares authorized	50,000			50,000			—			—		50,000			50,000			50,000
Treasury shares of common stock	44,478			41,209			3,269			8		35,815			31,876			27,890

¹ Includes earning assets of $175,710, $172,114, $168,555, $168,499, and $168,269 at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.

² “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
	March 31, 2016							December 31, 2015							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: ¹
Commercial and industrial ("C&I") - FTE ²		$68,058			$564	3.34	%		$66,405			$542	3.24	%		$1,653		0.10			$2,333		0.19
Commercial real estate ("CRE")	6,066			44		2.91		6,072			43		2.78		(6		)	0.13		(409		)	0.14
Commercial construction	2,232			18		3.28		1,936			15		3.05		296			0.23		890			0.11
Residential mortgages - guaranteed	641			6		3.80		647			7		4.49		(6		)	(0.69	)	3			0.22
Residential mortgages - nonguaranteed	24,712			236		3.81		24,325			232		3.82		387			(0.01	)	1,608			(0.03	)
Residential home equity products	12,849			126		3.95		13,161			125		3.78		(312		)	0.17		(1,104		)	0.32
Residential construction	368			4		4.42		376			4		4.65		(8		)	(0.23	)	(30		)	(0.79	)
Consumer student - guaranteed	5,092			50		3.98		4,745			46		3.86		347			0.12		337			0.28
Consumer other direct	6,239			70		4.48		5,924			65		4.34		315			0.14		1,492			0.24
Consumer indirect	10,279			87		3.39		10,098			85		3.35		181			0.04		(429		)	0.26
Consumer credit cards	1,077			28		10.31		1,024			26		10.17		53			0.14		197			0.47
Nonaccrual	759			5		2.72		501			5		3.86		258			(1.14	)	146			(0.18	)
Total loans held for investment - FTE ²	138,372			1,238		3.60		135,214			1,195		3.51		3,158			0.09		5,034			0.18
Securities available for sale:
Taxable	27,164			162		2.39		26,823			162		2.42		341			(0.03	)	1,488			0.22
Tax-exempt - FTE²	151			2		5.22		161			2		5.23		(10		)	(0.01	)	(41		)	0.03
Total securities available for sale - FTE ²	27,315			164		2.40		26,984			164		2.43		331			(0.03	)	1,447			0.22
Federal funds sold and securities borrowed or purchased under agreements to resell	1,234			—		0.18		1,127			—		0.01		107			0.17		93			0.18
Loans held for sale ("LHFS") - FTE ²	1,816			19		4.15		1,728			16		3.70		88			0.45		(814		)	0.82
Interest-bearing deposits in other banks	23			—		0.47		23			—		0.09		—			0.38		—			0.35
Interest earning trading assets	5,429			26		1.86		5,186			23		1.73		243			0.13		250			0.37
Total earning assets - FTE ²	174,189			1,447		3.34		170,262			1,398		3.26		3,927			0.08		6,010			0.19
Allowance for loan and lease losses ("ALLL")	(1,750		)					(1,764		)					14					160
Cash and due from banks	4,015							4,965							(950		)			(2,552		)
Other assets	14,639							14,525							114					222
Noninterest earning trading assets and derivative instruments	1,387							1,230							157					(15		)
Unrealized gains on securities available for sale, net	534							438							96					(76		)
Total assets		$193,014							$189,656							$3,358					$3,749
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$37,994			$10	0.10	%		$37,293			$9	0.09	%		$701		0.01			$4,835		0.01
Money market accounts	53,063			24		0.18		52,250			21		0.16		813			0.02		3,870			—
Savings	6,179			—		0.03		6,095			—		0.03		84			—		97			(0.01	)
Consumer time	6,104			12		0.79		6,156			12		0.77		(52		)	0.02		(689		)	0.02
Other time	3,813			10		1.04		3,721			10		1.02		92			0.02		(144		)	0.04
Total interest-bearing consumer and commercial deposits	107,153			56		0.21		105,515			52		0.19		1,638			0.02		7,969			—
Brokered time deposits	898			3		1.37		890			3		1.38		8			(0.01	)	(18		)	(0.13	)
Foreign deposits	4			—		0.33		156			—		0.14		(152		)	0.19		(330		)	0.20
Total interest-bearing deposits	108,055			59		0.22		106,561			55		0.20		1,494			0.02		7,621			—
Funds purchased	1,399			1		0.35		869			—		0.15		530			0.20		359			0.25
Securities sold under agreements to repurchase	1,819			2		0.40		1,773			1		0.21		46			0.19		(103		)	0.21
Interest-bearing trading liabilities	1,017			6		2.56		878			5		2.40		139			0.16		135			0.19
Other short-term borrowings	2,351			2		0.32		1,113			—		0.09		1,238			0.23		(1,347		)	0.13
Long-term debt	8,637			59		2.73		8,450			56		2.62		187			0.11		(4,381		)	0.60
Total interest-bearing liabilities	123,278			129		0.42		119,644			117		0.39		3,634			0.03		2,284			(0.02	)
Noninterest-bearing deposits	42,076							42,648							(572		)			784
Other liabilities	3,321							3,393							(72		)			42
Noninterest-bearing trading liabilities and derivative instruments	542							388							154					14
Shareholders’ equity	23,797							23,583							214					625
Total liabilities and shareholders’ equity		$193,014							$189,656							$3,358					$3,749
Interest Rate Spread						2.92	%						2.87	%				0.05					0.21
Net Interest Income - FTE²					$1,318							$1,281
Net Interest Margin ³						3.04	%						2.98	%				0.06					0.21

¹Interest income includes loan fees of $43 million and $47 million for the three months ended March 31, 2016 and December 31, 2015, respectively.

²Interest income and yields include the effects of fully taxable-equivalent ("FTE") adjustments for the tax-favored status of net interest income from certain loans and investments using a federal income tax rate of 35% and, where applicable, state income taxes 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.

³Net 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, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued
	Three Months Ended
	September 30, 2015							June 30, 2015							March 31, 2015
(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
Loans held for investment: ¹
C&I - FTE²		$65,269			$534	3.25	%		$65,743			$525	3.20	%		$65,725			$511	3.15	%
CRE	6,024			43		2.85		6,146			43		2.81		6,475			44		2.77
Commercial construction	1,609			13		3.12		1,519			12		3.18		1,342			10		3.17
Residential mortgages - guaranteed	630			5		3.14		631			6		3.85		638			6		3.58
Residential mortgages - nonguaranteed	24,109			232		3.85		23,479			226		3.86		23,104			222		3.84
Residential home equity products	13,381			126		3.72		13,657			125		3.68		13,953			125		3.63
Residential construction	379			5		4.68		382			5		4.83		398			5		5.21
Consumer student - guaranteed	4,494			43		3.83		4,345			41		3.74		4,755			43		3.70
Consumer other direct	5,550			61		4.33		5,140			55		4.27		4,747			50		4.24
Consumer indirect	9,968			83		3.29		10,284			82		3.20		10,708			83		3.13
Consumer credit cards	965			24		10.14		904			22		9.85		880			22		9.84
Nonaccrual	459			5		4.49		599			8		5.33		613			4		2.90
Total loans held for investment - FTE ²	132,837			1,174		3.51		132,829			1,150		3.47		133,338			1,125		3.42
Securities available for sale:
Taxable	26,621			151		2.27		26,175			135		2.06		25,676			139		2.17
Tax-exempt - FTE ²	170			3		5.21		180			2		5.18		192			2		5.19
Total securities available for sale - FTE ²	26,791			154		2.29		26,355			137		2.09		25,868			141		2.18
Federal funds sold and securities borrowed or purchased under agreements to resell	1,100			—		0.03		1,220			—		—		1,141			—		—
LHFS - FTE ²	2,288			20		3.60		2,757			24		3.49		2,630			22		3.33
Interest-bearing deposits in other banks	22			—		0.14		23			—		0.13		23			—		0.12
Interest earning trading assets	5,296			21		1.57		5,277			22		1.67		5,179			19		1.49
Total earning assets - FTE ²	168,334			1,369		3.23		168,461			1,333		3.17		168,179			1,307		3.15
ALLL	(1,804		)					(1,864		)					(1,910		)
Cash and due from banks	5,729							5,209							6,567
Other assets	14,522							14,649							14,417
Noninterest earning trading assets and derivative instruments	1,165							1,265							1,402
Unrealized gains on securities available for sale, net	395							590							610
Total assets		$188,341							$188,310							$189,265
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$35,784			$8	0.09	%		$34,356			$8	0.09	%		$33,159			$7	0.09	%
Money market accounts	51,064			21		0.16		49,527			21		0.17		49,193			21		0.18
Savings	6,203			—		0.03		6,281			—		0.03		6,082			1		0.04
Consumer time	6,286			12		0.75		6,545			13		0.77		6,793			13		0.77
Other time	3,738			10		1.01		3,839			10		1.03		3,957			10		1.00
Total interest-bearing consumer and commercial deposits	103,075			51		0.20		100,548			52		0.21		99,184			52		0.21
Brokered time deposits	870			3		1.38		875			3		1.39		916			4		1.50
Foreign deposits	140			—		0.13		243			—		0.12		334			—		0.13
Total interest-bearing deposits	104,085			54		0.21		101,666			55		0.22		100,434			56		0.22
Funds purchased	672			—		0.10		710			—		0.10		1,040			—		0.10
Securities sold under agreements to repurchase	1,765			1		0.22		1,827			1		0.20		1,922			1		0.19
Interest-bearing trading liabilities	840			6		2.55		925			6		2.44		882			5		2.37
Other short-term borrowings	2,172			1		0.16		1,582			1		0.14		3,698			2		0.19
Long-term debt	9,680			60		2.47		12,410			67		2.18		13,018			68		2.13
Total interest-bearing liabilities	119,214			122		0.41		119,120			130		0.44		120,994			132		0.44
Noninterest-bearing deposits	42,151							42,303							41,292
Other liabilities	3,198							3,235							3,279
Noninterest-bearing trading liabilities and derivative instruments	394							413							528
Shareholders’ equity	23,384							23,239							23,172
Total liabilities and shareholders’ equity		$188,341							$188,310							$189,265
Interest Rate Spread						2.82	%						2.73	%						2.71	%
Net Interest Income - FTE ²					$1,247							$1,203							$1,175
Net Interest Margin ³						2.94	%						2.86	%						2.83	%


¹	Interest income includes loan fees of $50 million, $48 million, and $44 million for the three months ended September 30, 2015, June 30, 2015, and March 31, 2015, respectively.

Interest income and yields include the effects of fully taxable-equivalent ("FTE") adjustments for the tax-favored status of net interest income from certain loans and investments using a federal income tax rate of 35% and, where applicable, state income taxes 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.


³	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
	Three Months Ended
	March 31						(Decrease)/Increase
(Dollars in millions) (Unaudited)	2016			2015			Amount			% ⁴
CREDIT DATA
Allowance for credit losses, beginning of period		$1,815			$1,991			($176	)	(9	)%
(Benefit)/provision for unfunded commitments	(2		)	—			(2		)	NM
Provision/(benefit) for loan losses:
Commercial	98			7			91			NM
Residential	(32		)	25			(57		)	NM
Consumer	37			23			14			61
Total provision for loan losses	103			55			48			87
Charge-offs:
Commercial	(32		)	(28		)	4			14
Residential	(41		)	(68		)	(27		)	(40	)
Consumer	(39		)	(34		)	5			15
Total charge-offs	(112		)	(130		)	(18		)	(14	)
Recoveries:
Commercial	10			11			(1		)	(9	)
Residential	6			9			(3		)	(33	)
Consumer	11			11			—			—
Total recoveries	27			31			(4		)	(13	)
Net charge-offs	(85		)	(99		)	(14		)	(14	)
Allowance for credit losses, end of period		$1,831			$1,947			($116	)	(6	)%
Components:
Allowance for loan and lease losses ("ALLL")		$1,770			$1,893			($123	)	(6	)%
Unfunded commitments reserve	61			54			7			13
Allowance for credit losses		$1,831			$1,947			($116	)	(6	)%
Net charge-offs to average loans held for investment (annualized):
Commercial	0.12		%	0.09		%	0.03			33	%
Residential	0.36			0.62			(0.26		)	(42	)
Consumer	0.49			0.46			0.03			7
Total net charge-offs to total average loans held for investment	0.25			0.30			(0.05		)	(17	)
Period Ended
Nonaccrual/nonperforming loans ("NPLs"):
Commercial		$577			$165			$412		NM
Residential	390			442			(52		)	(12	)%
Consumer	8			5			3			60
Total nonaccrual/NPLs	975			612			363			59
Other real estate owned (“OREO”)	52			79			(27		)	(34	)
Other repossessed assets	8			5			3			60
Total nonperforming assets ("NPAs")		$1,035			$696			$339		49	%
Accruing restructured loans		$2,569			$2,589			($20	)	(1	)%
Nonaccruing restructured loans	233			255			(22		)	(9	)
Accruing loans held for investment past due > 90 days (guaranteed)	962			937			25			3
Accruing loans held for investment past due > 90 days (non-guaranteed)	34			43			(9		)	(21	)
Accruing LHFS past due > 90 days	1			12			(11		)	(92	)
NPLs to total loans held for investment	0.70		%	0.46		%	0.24			52	%
NPAs to total loans held for investment plus OREO, other repossessed assets, and nonperforming LHFS	0.74			0.53			0.21			40
ALLL to period-end loans held for investment ^{1, 2}	1.27			1.43			(0.16		)	(11	)
ALLL to period-end loans held for investment, excluding government-guaranteed and fair value loans ^{1, 3}	1.32			1.49			(0.17		)	(11	)
ALLL to NPLs ^{1, 2}	1.83x			3.10x			(1.27x)			(41	)
ALLL to annualized net charge-offs ¹	5.20x			4.69x			0.51x			11

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-U.S. 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
	Three Months Ended											Three Months Ended
	March 31			December 31			(Decrease)/Increase					September 30			June 30			March 31
(Dollars in millions) (Unaudited)	2016			2015			Amount			% ⁴		2015			2015			2015
CREDIT DATA
Allowance for credit losses, beginning of period		$1,815			$1,847			($32	)	(2	)%		$1,886			$1,947			$1,991
(Benefit)/provision for unfunded commitments	(2		)	2			(4		)	NM		9			(2		)	—
Provision/(benefit) for loan losses:
Commercial	98			59			39			66		33			33			7
Residential	(32		)	(37		)	5			(14	)	(39		)	(16		)	25
Consumer	37			27			10			37		29			11			23
Total provision for loan losses	103			49			54			NM		23			28			55
Charge-offs:
Commercial	(32		)	(35		)	(3		)	(9	)	(23		)	(31		)	(28		)
Residential	(41		)	(41		)	—			—		(47		)	(61		)	(68		)
Consumer	(39		)	(38		)	1			3		(32		)	(31		)	(34		)
Total charge-offs	(112		)	(114		)	(2		)	(2	)	(102		)	(123		)	(130		)
Recoveries:
Commercial	10			10			—			—		10			15			11
Residential	6			11			(5		)	(45	)	11			10			9
Consumer	11			10			1			10		10			11			11
Total recoveries	27			31			(4		)	(13	)	31			36			31
Net charge-offs	(85		)	(83		)	2			2		(71		)	(87		)	(99		)
Allowance for credit losses, end of period		$1,831			$1,815			$16		1	%		$1,847			$1,886			$1,947
Components:
ALLL		$1,770			$1,752			$18		1	%		$1,786			$1,834			$1,893
Unfunded commitments reserve	61			63			(2		)	(3	)	61			52			54
Allowance for credit losses		$1,831			$1,815			$16		1	%		$1,847			$1,886			$1,947
Net charge-offs to average loans held for investment (annualized):
Commercial	0.12		%	0.13		%	(0.01		)	(8	)%	0.07		%	0.09		%	0.09		%
Residential	0.36			0.30			0.06			20		0.37			0.53			0.62
Consumer	0.49			0.51			(0.02		)	(4	)	0.42			0.38			0.46
Total net charge-offs to total average loans held for investment	0.25			0.24			0.01			4		0.21			0.26			0.30
Period Ended
Nonaccrual/NPLs:
Commercial		$577			$319			$258		81	%		$138			$158			$165
Residential	390			344			46			13		318			318			442
Consumer	8			9			(1		)	(11	)	7			5			5
Total nonaccrual/NPLs	975			672			303			45		463			481			612
OREO	52			56			(4		)	(7	)	62			72			79
Other repossessed assets	8			7			1			14		7			6			5
Nonperforming LHFS	—			—			—			—		—			98			—
Total NPAs		$1,035			$735			$300		41	%		$532			$657			$696
Accruing restructured loans		$2,569			$2,603			($34	)	(1	)%		$2,571			$2,576			$2,589
Nonaccruing restructured loans	233			176			57			32		182			185			255
Accruing loans held for investment past due > 90 days (guaranteed)	962			939			23			2		873			871			937
Accruing loans held for investment past due > 90 days (non-guaranteed)	34			42			(8		)	(19	)	32			39			43
Accruing LHFS past due > 90 days	1			—			1			NM		1			1			12
NPLs to total loans held for investment	0.70		%	0.49		%	0.21			43	%	0.35		%	0.36		%	0.46		%
NPAs to total loans held for investment plus OREO, other repossessed assets, and nonperforming LHFS	0.74			0.54			0.20			37		0.40			0.49			0.53
ALLL to period-end loans held for investment ^{1, 2}	1.27			1.29			(0.02		)	(2	)	1.34			1.39			1.43
ALLL to period-end loans held for investment, excluding government-guaranteed and fair value loans ^{1, 3}	1.32			1.34			(0.02		)	(1	)	1.39			1.44			1.49
ALLL to NPLs ^{1, 2}	1.83x			2.62x			(0.79x)			(30	)	3.87x			3.82x			3.10x
ALLL to annualized net charge-offs ¹	5.20x			5.33x			(0.13x)			(2	)	6.33x			5.23x			4.69x

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-U.S. 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
	Three Months Ended March 31
(Dollars in millions) (Unaudited)	MSRs - Fair Value				Other			Total
OTHER INTANGIBLE ASSETS ROLLFORWARD
Balance, beginning of period		$1,206				$13			$1,219
Amortization	—				(1		)	(1		)
Servicing rights originated	46				—			46
Servicing rights purchased	56				—			56
Fair value changes due to inputs and assumptions ¹	(78		)		—			(78		)
Other changes in fair value ²	(48		)		—			(48		)
Servicing rights sold	(1		)		—			(1		)
Balance, March 31, 2015		$1,181				$12			$1,193

Balance, beginning of period		$1,307				$18			$1,325
Amortization	—			—	(2		)	(2		)
Servicing rights originated	46				—			46
Servicing rights purchased	77				—			77
Fair value changes due to inputs and assumptions ¹	(204		)		—			(204		)
Other changes in fair value ²	(43		)		—			(43		)
Servicing rights sold	(1		)		—			(1		)
Balance, March 31, 2016		$1,182				$16			$1,198

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
(Shares in thousands) (Unaudited)	2016		2015		2015		2015		2015
COMMON SHARES ROLLFORWARD
Balance, beginning of period	508,712		514,106		518,045		522,031		524,540
Common shares issued for employee benefit plans	991		2		85		227		364
Repurchase of common stock	(4,260	)	(5,396	)	(4,024	)	(4,213	)	(2,873	)
Balance, end of period	505,443		508,712		514,106		518,045		522,031



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

	Three Months Ended
	March 31			December 31			September 30			June 30			March 31
(Dollars in millions) (Unaudited)	2016			2015			2015			2015			2015
Net interest income		$1,282			$1,246			$1,211			$1,167			$1,140
Taxable-equivalent adjustment	36			35			36			36			35
Net interest income - FTE	1,318			1,281			1,247			1,203			1,175
Noninterest income	781			765			811			874			817
Total revenue - FTE		$2,099			$2,046			$2,058			$2,077			$1,992
Return on average common shareholders’ equity ²	7.71		%	8.32		%	9.34		%	8.54		%	7.63		%
Impact of removing average intangible assets and related amortization, other than MSRs and other servicing rights	2.89			3.17			3.61			3.34			3.01
Return on average tangible common shareholders' equity ³	10.60		%	11.49		%	12.95		%	11.88		%	10.64		%
Efficiency ratio ⁴	62.81		%	62.96		%	61.44		%	63.92		%	64.23		%
Impact of excluding amortization related to intangible assets and certain tax credits	(0.48		)	(0.85		)	(0.45		)	(0.33		)	(0.32		)
Tangible efficiency ratio ⁵	62.33		%	62.11		%	60.99		%	63.59		%	63.91		%
Basel III Common Equity Tier 1 ("CET1") ratio (transitional)⁶	9.85		%	9.96		%	10.04		%	9.93		%	9.89		%
Impact of MSRs and other under fully phased-in approach	(0.10		)	(0.16		)	(0.15		)	(0.17		)	(0.15		)
Basel III fully phased-in CET1 ratio⁶	9.75		%	9.80		%	9.89		%	9.76		%	9.74		%

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 Prior period amounts have been updated to remove noncontrolling interest from common shareholders' equity in the calculation.

³ SunTrust 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 impact of intangible assets and related amortization 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 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.

⁴ Computed 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.

⁵ SunTrust presents a tangible efficiency ratio, 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 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.

⁶ Current period Basel III capital ratios are estimated as of the earnings release date. Fully phased-in ratios consider a 250% risk-weighting for MSRs and deduction from capital of certain carryforward DTAs, the overfunded pension asset, and other intangible assets. The Company believes these measures may be useful to investors who wish to understand the Company's current compliance with future regulatory requirements.



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

	March 31			December 31			September 30			June 30			March 31
(Dollars in millions, except per share data) (Unaudited)	2016			2015			2015			2015			2015
Total shareholders' equity		$24,053			$23,437			$23,664			$23,223			$23,260
Goodwill, net of deferred taxes of $243 million, $240 million, $237 million, $234 million, and $231 million, respectively	(6,094		)	(6,097		)	(6,100		)	(6,103		)	(6,106		)
Other intangible assets (including MSRs and other servicing rights), net of deferred taxes of $3 million, $3 million, $4 million, $4 million, and $0, respectively	(1,195		)	(1,322		)	(1,279		)	(1,412		)	(1,193		)
MSRs and other servicing rights	1,189			1,316			1,272			1,406			1,181
Tangible equity	17,953			17,334			17,557			17,114			17,142
Noncontrolling interest	(101		)	(108		)	(106		)	(108		)	(106		)
Preferred stock	(1,225		)	(1,225		)	(1,225		)	(1,225		)	(1,225		)
Tangible common equity		$16,627			$16,001			$16,226			$15,781			$15,811
Total assets		$194,158			$190,817			$187,036			$188,858			$189,881
Goodwill	(6,337		)	(6,337		)	(6,337		)	(6,337		)	(6,337		)
Other intangible assets (including MSRs and other servicing rights)	(1,198		)	(1,325		)	(1,282		)	(1,416		)	(1,193		)
MSRs and other servicing rights	1,189			1,316			1,272			1,406			1,181
Tangible assets		$187,812			$184,471			$180,689			$182,511			$183,532
Tangible equity to tangible assets ²	9.56		%	9.40		%	9.72		%	9.38		%	9.34		%
Tangible book value per common share ³		$32.90			$31.45			$31.56			$30.46			$30.29

Total loans held for investment		$139,746			$136,442			$133,560			$132,538			$132,380
Government-guaranteed loans held for investment	(5,888		)	(5,551		)	(5,215		)	(5,026		)	(4,992		)
Fair value loans held for investment	(255		)	(257		)	(262		)	(263		)	(268		)
Total loans held for investment, excluding government-guaranteed and fair value loans		$133,603			$130,634			$128,083			$127,249			$127,120
ALLL to total loans held for investment, excluding government-guaranteed and fair value loans ⁴	1.32		%	1.34		%	1.39		%	1.44		%	1.49		%

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 SunTrust 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.

³ SunTrust 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 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 noncontrolling interest and preferred stock (the level 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.

⁴ SunTrust presents a ratio of ALLL to total loans held for investment, 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 the allowance is intended to cover.



SunTrust Banks, Inc. and Subsidiaries CONSUMER BANKING AND PRIVATE WEALTH MANAGEMENT
	Three Months Ended March 31
(Dollars in millions) (Unaudited)	2016			2015			% Change
Statements of Income:
Net interest income		$700			$666		5	%
FTE adjustment	—			—			—
Net interest income - FTE	700			666			5
Provision for credit losses ¹	29			70			(59	)
Net interest income - FTE - after provision for credit losses	671			596			13
Noninterest income before net securities gains/(losses)	355			363			(2	)
Net securities gains/(losses)	—			—			—
Total noninterest income	355			363			(2	)
Noninterest expense before amortization	747			729			2
Amortization	1			1			—
Total noninterest expense	748			730			2
Income - FTE - before provision for income taxes	278			229			21
Provision for income taxes	104			85			22
FTE adjustment	—			—			—
Net income including income attributable to noncontrolling interest	174			144			21
Less: net income attributable to noncontrolling interest	—			—			—
Net income		$174			$144		21

Total revenue - FTE		$1,055			$1,029		3
Selected Average Balances:
Total loans		$41,597			$41,127		1	%
Goodwill	4,262			4,262			—
Other intangible assets excluding MSRs	16			13			23
Total assets	47,268			47,129			—
Consumer and commercial deposits	93,314			90,507			3
Performance Ratios:
Efficiency ratio	70.89		%	70.90		%
Impact of excluding amortization and associated funding cost of intangible assets	(1.53		)	(1.68		)
Tangible efficiency ratio	69.36		%	69.22		%
Other Information (End of Period) ²:
Trust and institutional managed assets		$41,740			$43,994		(5	)%
Retail brokerage managed assets	10,976			10,481			5
Total managed assets	52,716			54,475			(3	)
Non-managed assets	92,216			95,607			(4	)
Total assets under advisement		$144,932			$150,082		(3	)


¹	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.


²	Beginning in the first quarter of 2016, the Company implemented a new policy for the classification and disclosure of assets under advisement. The primary change was related to the reclassification of brokerage assets into managed and non-managed assets. Prior period amounts were restated for comparative purposes.



SunTrust Banks, Inc. and Subsidiaries WHOLESALE BANKING
	Three Months Ended March 31
(Dollars in millions) (Unaudited)	2016			2015			% Change ²
Statements of Income:
Net interest income		$457			$430		6	%
FTE adjustment	35			34			3
Net interest income - FTE	492			464			6
Provision/(benefit) for credit losses ¹	82			(4		)	NM
Net interest income - FTE - after provision/(benefit) for credit losses	410			468			(12	)
Noninterest income before net securities gains/(losses)	285			285			—
Net securities gains/(losses)	—			—			—
Total noninterest income	285			285			—
Noninterest expense before amortization	398			392			2
Amortization	9			5			80
Total noninterest expense	407			397			3
Income - FTE - before provision for income taxes	288			356			(19	)
Provision for income taxes	56			86			(35	)
FTE adjustment	35			34			3
Net income including income attributable to noncontrolling interest	197			236			(17	)
Less: net income attributable to noncontrolling interest	—			—			—
Net income		$197			$236		(17	)

Total revenue - FTE		$777			$749		4
Selected Average Balances:
Total loans		$70,757			$67,733		4	%
Goodwill	2,075			2,075			—
Other intangible assets excluding MSRs	1			—			NM
Total assets	84,375			81,160			4
Consumer and commercial deposits	53,567			47,565			13
Performance Ratios:
Efficiency ratio	52.38		%	52.96		%
Impact of excluding amortization and associated funding cost of intangible assets	(1.92		)	(1.46		)
Tangible efficiency ratio	50.46		%	51.50		%


¹	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.


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



SunTrust Banks, Inc. and Subsidiaries MORTGAGE BANKING
	Three Months Ended March 31
(Dollars in millions) (Unaudited)	2016			2015			% Change
Statements of Income:
Net interest income		$112			$121		(7	)%
FTE adjustment	—			—			—
Net interest income - FTE	112			121			(7	)
Benefit for credit losses ¹	(10		)	(10		)	—
Net interest income - FTE - after benefit for credit losses	122			131			(7	)
Noninterest income before net securities gains/(losses)	124			132			(6	)
Net securities gains/(losses)	—			—			—
Total noninterest income	124			132			(6	)
Noninterest expense before amortization	175			178			(2	)
Amortization	—			—			—
Total noninterest expense	175			178			(2	)
Income - FTE - before provision for income taxes	71			85			(16	)
Provision for income taxes	26			30			(13	)
FTE adjustment	—			—			—
Net income including income attributable to noncontrolling interest	45			55			(18	)
Less: net income attributable to noncontrolling interest	—			—			—
Net income		$45			$55		(18	)

Total revenue - FTE		$236			$253		(7	)
Selected Average Balances:
Total loans		$25,946			$24,439		6	%
Goodwill	—			—			—
Other intangible assets excluding MSRs	—			—			—
Total assets	29,203			27,936			5
Consumer and commercial deposits	2,311			2,359			(2	)
Performance Ratios:
Efficiency ratio	74.27		%	70.17		%
Impact of excluding amortization and associated funding cost of intangible assets	—			—
Tangible efficiency ratio	74.27		%	70.17		%
Production Data:
Channel mix
Retail		$2,251			$2,424		(7	)%
Correspondent	2,701			2,685			1
Total production		$4,952			$5,109		(3	)
Channel mix - percent
Retail	45		%	47		%
Correspondent	55			53
Total production	100		%	100		%
Purchase and refinance mix
Refinance		$2,613			$3,070		(15	)
Purchase	2,339			2,039			15
Total production		$4,952			$5,109		(3	)
Purchase and refinance mix - percent
Refinance	53		%	60		%
Purchase	47			40
Total production	100		%	100		%

Applications		$9,205			$9,794		(6	)
Mortgage Servicing Data (End of Period):
Total loans serviced		$148,941			$141,760		5	%
Total loans serviced for others	121,277			115,179			5
Net carrying value of MSRs	1,182			1,181			—
Ratio of net carrying value of MSRs to total loans serviced for others	0.975		%	1.025		%

¹ Benefit for credit losses represents net charge-offs by segment combined with an allocation to the segments for the benefit attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances.



SunTrust Banks, Inc. and Subsidiaries CORPORATE OTHER
	Three Months Ended March 31
(Dollars in millions) (Unaudited)	2016			2015			% Change ³
Statements of Income:
Net interest income/(expense) ¹		$13			($77	)	NM
FTE adjustment	1			1			—
Net interest income/(expense) - FTE ¹	14			(76		)	NM
Provision/(benefit) for credit losses ²	—			(1		)	(100	)
Net interest income/(expense) - FTE - after provision/(benefit) for credit losses ¹	14			(75		)	NM
Noninterest income before net securities gains/(losses)	17			37			(54	)
Net securities gains/(losses)	—			—			—
Total noninterest income	17			37			(54	)
Noninterest expense before amortization	(12		)	(26		)	(54	)
Amortization	—			1			(100	)
Total noninterest expense	(12		)	(25		)	(52	)
Income/(loss) - FTE - before provision/(benefit) for income taxes	43			(13		)	NM
Provision/(benefit) for income taxes	9			(10		)	NM
FTE adjustment	1			1			—
Net income/(loss) including income attributable to noncontrolling interest	33			(4		)	NM
Less: net income attributable to noncontrolling interest	2			2			—
Net income/(loss)		$31			($6	)	NM

Total revenue - FTE		$31			($39	)	NM

Selected Average Balances:
Total loans		$72			$39		85	%
Securities available for sale	27,272			25,809			6
Goodwill	—			—			—
Other intangible assets excluding MSRs	—			—			—
Total assets	32,168			33,040			(3	)
Consumer and commercial deposits	37			45			(18	)

Other Information (End of Period):
Duration of investment portfolio (in years)	4.1			3.6
Net interest income interest rate sensitivity:
% Change in net interest income under:
Instantaneous 200 basis point increase in rates over next 12 months	5.5		%	7.2		%
Instantaneous 100 basis point increase in rates over next 12 months	3.0		%	3.8		%
Instantaneous 25 basis point decrease in rates over next 12 months	(1.1		)%	(1.2		)%


¹	Net interest income/(expense) is driven by matched funds transfer pricing applied for segment reporting and actual net interest income.


²	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.


³	“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 March 31
(Dollars in millions) (Unaudited)	2016			2015			% Change
Statements of Income:
Net interest income		$1,282			$1,140		12	%
FTE adjustment	36			35			3
Net interest income - FTE	1,318			1,175			12
Provision for credit losses	101			55			84
Net interest income - FTE - after provision for credit losses	1,217			1,120			9
Noninterest income before net securities gains/(losses)	781			817			(4	)
Net securities gains/(losses)	—			—			—
Total noninterest income	781			817			(4	)
Noninterest expense before amortization	1,308			1,273			3
Amortization	10			7			43
Total noninterest expense	1,318			1,280			3
Income - FTE - before provision for income taxes	680			657			4
Provision for income taxes	195			191			2
FTE adjustment	36			35			3
Net income including income attributable to noncontrolling interest	449			431			4
Less: net income attributable to noncontrolling interest	2			2			—
Net income		$447			$429		4

Total revenue - FTE		$2,099			$1,992		5

Selected Average Balances:
Total loans		$138,372			$133,338		4	%
Goodwill	6,337			6,337			—
Other intangible assets excluding MSRs	17			13			31
Total assets	193,014			189,265			2
Consumer and commercial deposits	149,229			140,476			6

Performance Ratios:
Efficiency ratio	62.81		%	64.23		%
Impact of excluding amortization and associated funding cost of intangible assets	(0.48		)	(0.32		)
Tangible efficiency ratio	62.33		%	63.91		%

Suntrust Banks Inactive 8-KSunTrust Reports First Quarter 2016 Results