Suntrust Banks 8K SunTrust Reports Second Quarter 2016 Results | SEC 22 Jul 16

Exhibit 99.1

News Release



Contact:
Investors		Media
Ankur Vyas		Mike McCoy
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For Immediate Release

July 22, 2016

SunTrust Reports Second Quarter 2016 Results

Strong Execution and Diversity of Business Model

Drive Further Improvements in Revenue and Profitability

ATLANTA -- SunTrust Banks, Inc. (NYSE: STI) reported net income available to common shareholders of $475 million, or $0.94 per average common diluted share. This quarter was favorably impacted by $0.05 per share of discrete benefits (details can be found on page 2).

Earnings per share increased 12% compared to the prior quarter and 6% compared to the second quarter of 2015. For the first half of 2016, earnings per share grew 7% compared to the same period a year ago.

“Our performance this quarter is further indication of our ability to deliver on our commitments,” said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. “The consistent execution of our core strategies, combined with the diversity of our business model, resulted in solid revenue growth, strong improvements in efficiency, and significantly higher capital return to shareholders. Despite the impact of the continued low interest rate environment, we remain committed to helping our clients and communities improve their financial confidence, thereby helping our shareholders continue to outperform.”

Second Quarter 2016 Financial Highlights

(Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC Industry Guide 3, net interest income, net interest margin, and total revenue are provided on a fully taxable equivalent basis which generally assumes a 35% marginal federal tax rate. We provide unadjusted amounts in the table on page 3 of this news release and a detailed reconciliation and additional information on page 23.)

Income Statement


•	Net income available to common shareholders was $475 million, or $0.94 per average common diluted share, compared to $0.84 for the first quarter of 2016 and $0.89 for the second quarter of 2015.


◦	Earnings per share increased 6% compared to the second quarter of 2015


◦	Current quarter earnings included a net $0.05 per share benefit from discrete items


▪	$44 million (pre-tax) in net asset-related gains, primarily related to a gain from the sale-leaseback of an office building (recorded in other noninterest income)


▪	$21 million (pre-tax) in discrete charges related to ongoing efficiency initiatives (recorded in other noninterest expense)


▪	$9 million discrete tax benefit (recorded in provision for income taxes)


•	Total revenue increased 6% compared to the prior quarter and 7% compared to the second quarter of 2015.


◦	Sequential revenue growth was driven by a 15% increase in noninterest income, most notably mortgage-related income, other noninterest income (favorably impacted by the aforementioned net asset-related gains), and investment banking income.


◦	Compared to the second quarter of 2015, revenue growth was driven by a 10% increase in net interest income and 3% growth in noninterest income.


•	Net interest margin was 2.99% in the current quarter, down 5 basis points sequentially and up 13 basis points compared to the prior year.


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


•	Noninterest expense increased 2% sequentially and 1% compared to the prior year, driven largely by the aforementioned $21 million in discrete charges related to ongoing efficiency initiatives.


•	The efficiency and tangible efficiency ratios in the current quarter were 60.6% and 60.1%, respectively, which represent significant improvements compared to the prior quarter and prior year.

Balance Sheet


•	Average loan balances increased 2% sequentially and 6% compared to the second quarter of 2015, with growth across most loan categories.


•	Average consumer and commercial deposits increased 3% sequentially and 8% compared to the second quarter of 2015, primarily related to NOW and money market account balances.

Capital


•	Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 ("CET1") ratio was estimated to be 9.8% as of June 30, 2016, and 9.7% on a fully phased-in basis.


•	During the quarter, the Company:


◦	Repurchased $175 million of its outstanding common stock, which completed its 2015 capital plan.


◦	Announced its 2016 capital plan, which includes:


▪	The purchase of up to $960 million of its outstanding common stock between the third quarter of 2016 and the second quarter of 2017.


▪	An 8% increase in the quarterly common stock dividend from $0.24 per share to $0.26 per share, beginning in the third quarter of 2016, subject to approval by the Company's Board of Directors.


•	Book value per share was $46.14 and tangible book value per share was $33.98, both up 3% compared to March 31, 2016.

Asset Quality


•	Nonperforming loans declined $31 million from the prior quarter and represented 0.67% of total loans at June 30, 2016. The sequential decrease was driven by the resolution of certain energy-related loans.


•	Net charge-offs for the current quarter were $137 million, or 0.39% of average loans on an annualized basis, up $52 million and $50 million compared to the prior quarter and the second quarter of 2015, respectively. The current quarter included $70 million in energy-related net charge-offs.


•	The provision for credit losses increased $45 million sequentially due to higher energy-related charge-offs and moderating asset quality improvements.


•	At June 30, 2016, the allowance for loan and lease losses (ALLL) to period-end loans ratio declined 2 basis points to 1.25%, as an increase in the commercial ALLL ratio was offset by a decline in the residential ALLL ratio, as a result of continued improvements in the asset quality of the residential loan portfolio.





Income Statement (Dollars in millions, except per share data)	2Q 2016			1Q 2016			4Q 2015			3Q 2015			2Q 2015
Net interest income	$1,288			$1,282			$1,246			$1,211			$1,167
Net interest income-FTE ²	1,323			1,318			1,281			1,247			1,203
Net interest margin	2.91		%	2.96		%	2.90		%	2.86		%	2.78		%
Net interest margin-FTE ²	2.99			3.04			2.98			2.94			2.86
Noninterest income	$898			$781			$765			$811			$874
Total revenue	2,186			2,063			2,011			2,022			2,041
Total revenue-FTE ²	2,221			2,099			2,046			2,058			2,077
Noninterest expense	1,345			1,318			1,288			1,264			1,328
Provision for credit losses	146			101			51			32			26
Net income available to common shareholders	475			430			467			519			467
Earnings per average common diluted share	0.94			0.84			0.91			1.00			0.89

Balance Sheet (Dollars in billions)
Average loans		$141.2			$138.4			$135.2			$132.8			$132.8
Average consumer and commercial deposits	154.2			149.2			148.2			145.2			142.9

Capital
Capital ratios at period end ¹ :
Tier 1 capital (transitional)	10.55		%	10.63		%	10.80		%	10.90		%	10.79		%
Common Equity Tier 1 ("CET1") (transitional)	9.84		%	9.90		%	9.96		%	10.04		%	9.93		%
Common Equity Tier 1 ("CET1") (fully phased-in) ²	9.70		%	9.77		%	9.80		%	9.89		%	9.76		%
Total average shareholders’ equity to total average assets	12.11		%	12.33		%	12.43		%	12.42		%	12.34		%

Asset Quality
Net charge-offs to average loans (annualized)	0.39		%	0.25		%	0.24		%	0.21		%	0.26		%
Allowance for loan and lease losses to period-end loans	1.25		%	1.27		%	1.29		%	1.34		%	1.39		%
Nonperforming loans to total loans	0.67		%	0.70		%	0.49		%	0.35		%	0.36		%

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

² See page 23 for non-U.S. GAAP reconciliations and additional information.

Consolidated Financial Performance Details

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

Revenue

Total revenue was $2.2 billion for the current quarter, an increase of $122 million compared to the prior quarter. The 6% increase was driven by broad-based growth in noninterest income, most notably mortgage-related income, other income (favorably impacted by $44 million in net asset-related gains), and investment banking income. Net interest income increased slightly as a result of loan growth, partially offset by net interest margin compression. Compared to the second quarter of 2015, total revenue increased $144 million, or 7%, due to strong growth in net interest income and higher noninterest income, particularly mortgage-related revenue and the aforementioned asset-related gains.

For the six months ended June 30, 2016, total revenue was $4.3 billion, an increase of $250 million, or 6%, compared to the first six months of 2015. The increase was driven by higher net interest income and mortgage-related income.

Net Interest Income

Net interest income was $1.3 billion for the current quarter, an increase of $5 million compared to the prior quarter due primarily to loan growth, partially offset by net interest margin compression. Compared to the second quarter of 2015, the $120 million increase in net interest income was driven by loan growth and a higher net interest margin.

Net interest margin for the current quarter was 2.99%, compared to 3.04% in the prior quarter and 2.86% in the second quarter of 2015. When compared to the prior quarter, the 5 basis point decrease was largely driven by lower earning asset yields due to the decline in long-term yields in 2016. The 13 basis point increase in net interest margin compared to the second quarter of 2015 was due primarily to higher benchmark interest rates and lower premium amortization in the securities portfolio.

For the six months ended June 30, 2016, net interest income was $2.6 billion, a $262 million increase compared to the first six months of 2015. The net interest margin was 3.01% for the first half of 2016, a 16 basis point increase compared to the same period in 2015. The increase in both net interest income and net interest margin were driven by the same factors that impacted the year-over-year comparisons discussed above.

Noninterest Income

Noninterest income was $898 million for the current quarter, compared to $781 million for the prior quarter and $874 million for the second quarter of 2015. The $117 million sequential increase was related primarily to higher mortgage-related and investment banking income, as well as the $44 million in net asset-related gains, partially offset by a decrease in trading income driven primarily by an increase in counterparty credit valuation reserves on the Company's derivative portfolio. Compared to the second quarter of 2015, noninterest income increased $24 million, driven by higher mortgage-related revenue and the aforementioned asset-related gains, partially offset by lower capital markets and wealth management-related income.

Investment banking income was $126 million for the current quarter, compared to $98 million in the prior quarter and $145 million in the second quarter of 2015. The sequential increase was due to strong client-driven activity across most products, particularly in syndicated finance, investment grade bond originations and equity capital markets. Compared to the second quarter of 2015, the decrease was due to record results a year ago driven by syndicated finance activity, partially offset by higher investment grade bond originations and equity capital markets in the current quarter.

Trading income was $34 million for the current quarter, compared to $55 million in the prior quarter and $54 million in the second quarter of 2015. The sequential and year-over-year decreases were driven primarily by an increase in counterparty credit valuation reserves as a result of an adjustment to the internal reserve methodology and lower interest rates in the quarter.

Mortgage production income for the current quarter was $111 million, compared to $60 million for the prior quarter and $76 million for the second quarter of 2015. The $51 million increase from the prior quarter and $35 million increase

compared to the second quarter of 2015 were both due primarily to a significant increase in production volume and higher gain-on-sale margins, which were modestly impacted by a product offering change to include upfront origination fees in the loan yield. Mortgage application volume increased 22% sequentially and 27% compared to the second quarter of 2015, and closed loan production volume increased 47% sequentially and 12% compared to the second quarter of 2015.

Mortgage servicing income was $52 million for the current quarter, compared to $62 million in the prior quarter and $30 million in the second quarter of 2015. The $10 million decrease from the prior quarter was driven primarily by higher servicing asset decay, arising from increased prepayments. The $22 million increase compared to the second quarter of 2015 was due largely to higher servicing fees, improved net hedge performance, and lower servicing asset decay in the current quarter. The servicing portfolio was $154.5 billion at June 30, 2016, compared to $145.5 billion at June 30, 2015.

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

Client transaction-related fees (namely service charges on deposits, other charges and fees, and card fees) increased $25 million compared to the prior quarter and $10 million compared to the second quarter of 2015 due to increased client activity.

Other noninterest income was $75 million for the current quarter, compared to $38 million in the prior quarter and $52 million in the second quarter of 2015. The $37 million increase compared to the prior quarter and $23 million increase compared to the second quarter of 2015 was primarily due to the $44 million in net asset-related gains recognized in the current quarter.

For the six months ended June 30, 2016, noninterest income was $1.7 billion, a decrease of $12 million compared to the first six months of 2015 as higher mortgage-related income was offset by declines across other fee income categories.

Noninterest Expense

Noninterest expense was $1.3 billion in the current quarter, an increase of $27 million and $17 million compared to the prior quarter and the second quarter of 2015, respectively. The sequential and year-over-year increase was primarily due to $21 million in discrete charges related to ongoing efficiency initiatives recorded in the second quarter of 2016.

Employee compensation and benefits expense was $763 million in the current quarter, compared to $774 million in the prior quarter and $756 million in the second quarter of 2015. The sequential decrease of $11 million was due to the seasonal decrease in employee benefits and FICA taxes, partially offset by higher salaries and incentive compensation related to improved business performance. The $7 million increase from the second quarter of 2015 was largely due to higher salaries and incentive compensation.

Operating losses were $25 million in the current quarter, compared to $24 million in the prior quarter and $16 million in the second quarter of 2015. The $9 million increase compared to the prior year was primarily due to the recovery of previously recorded mortgage-related losses during the second quarter of 2015.

Outside processing and software expense was $202 million in the current quarter, compared to $198 million in the prior quarter and $204 million in the second quarter of 2015. The sequential increase of $4 million was primarily due to higher business activity levels.

FDIC premium and regulatory expense was $44 million in the current quarter, compared to $36 million in the prior quarter and $35 million in the second quarter of 2015. The increase compared to both prior periods was driven primarily by higher FDIC assessment fees as a result of deposit growth and higher assessment rates.

Marketing and customer development expense was $38 million in the current quarter, compared to $44 million in the prior quarter and $34 million in the second quarter of 2015. The sequential decline was due to higher advertising expenses in the first quarter of 2016 associated with our campaign to further advance the Company's purpose, while the increase over the second quarter of 2015 was due largely to the aforementioned marketing campaign.

Net occupancy expense was $78 million in the current quarter, compared to $85 million in both the prior quarter and the second quarter of 2015. The $7 million decline compared to both periods was due to the recognition of previously deferred sale leaseback gains as a result of a reduction in our usage of leased office space.

Other noninterest expense was $142 million in the current quarter, compared to $107 million in the prior quarter, and $149 million in the second quarter of 2015. The $35 million increase compared to the prior quarter was primarily driven by discrete costs associated with ongoing efficiency initiatives, higher consulting and legal fees, and an increase in credit-related expenses associated with higher loan production volume. The $7 million decrease compared to the second quarter of 2015 was driven primarily by debt extinguishment costs recognized in the second quarter of 2015.

For the six months ended June 30, 2016, noninterest expense was $2.7 billion compared to $2.6 billion for the first six months of 2015. The $55 million increase was driven by higher employee compensation expense, marketing and customer development expense, and higher operating losses (due to discrete recoveries which were recorded during the first half of 2015).

Income Taxes

For the current quarter, the Company recorded an income tax provision of $201 million, compared to $195 million for the prior quarter and $202 million for the second quarter of 2015. The effective tax rate for the current quarter was 29%, compared to 30% in the prior quarter and 29% in the second quarter of 2015. The effective tax rates in the current quarter and the second quarter of 2015 were favorably impacted by $9 million and $15 million, respectively, in net discrete income tax items.

Balance Sheet

At June 30, 2016, the Company had total assets of $199.1 billion and total shareholders’ equity of $24.5 billion, representing 12% of total assets. Book value per share was $46.14 and tangible book value per share was $33.98, both up 3% compared to March 31, 2016, driven by growth in retained earnings and an increase in accumulated other comprehensive income driven by the decline in long-term interest rates towards the end of the quarter.

Loans

Average performing loans were $140.3 billion for the current quarter, a 2% increase over the prior quarter and a 6% increase over the second quarter of 2015. Sequential growth in average consumer loans, C&I loans, nonguaranteed residential mortgages, and commercial construction loans of $1.2 billion, $860 million, $696 million, and $357 million, respectively, was partially offset by a $385 million decline in home equity products. Year-over-year growth was concentrated in the same loan categories as those described above for the sequential quarter.

Deposits

Average consumer and commercial deposits for the current quarter were $154.2 billion, a 3% increase over the prior quarter and an 8% increase compared to the second quarter of 2015. Average client deposits in the second quarter of 2016 were positively impacted by $2.2 billion related to a temporary corporate client escrow deposit. The increase compared to the second quarter of 2015 was driven by growth in both NOW and money market account balances, partially offset by a 5% 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 June 30, 2016, and 9.7% on a fully phased-in basis. The ratios of average total equity to average total assets and tangible common equity to tangible assets were 12.11% and 8.84%, respectively, at June 30, 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.

During the second quarter, the Company declared a common stock dividend of $0.24 per common share and repurchased $175 million of its outstanding common stock, which completed the authorized repurchase of common equity under its 2015 capital plan.

In June 2016, the Company announced that the Federal Reserve had no objections to its 2016 capital plan. This plan includes the repurchase of up to $960 million of the Company's outstanding common stock between the third quarter of 2016 and the second quarter of 2017. Additionally, subject to Board approval, the Company intends to increase its quarterly common stock dividend 8% to $0.26 per common share beginning in the third quarter of 2016 and to maintain the current level of dividend payments on its preferred stock.

Asset Quality

Total nonperforming assets were $1.0 billion at June 30, 2016, down $34 million compared to the prior quarter and up $344 million compared to the second quarter of 2015. The sequential reduction in nonperforming assets was primarily due to the resolution of certain energy-related loans, while the increase compared to June 30, 2015, was primarily due to downgrades of energy-related loans. At June 30, 2016, the ratio of nonperforming loans to total loans was 0.67%, compared to 0.70% at March 31, 2016, and 0.36% at June 30, 2015. Other real estate owned totaled $49 million, a 6% decrease from the prior quarter and a 32% decrease from the second quarter of 2015.

Net charge-offs were $137 million during the current quarter, an increase of $52 million and $50 million compared to the prior quarter and the second quarter of 2015, respectively, and included $70 million in energy-related net charge-offs. The ratio of annualized net charge-offs to total average loans was 0.39% during the current quarter, compared to 0.25% during the prior quarter and 0.26% during the second quarter of 2015. The provision for credit losses was $146 million in the current quarter, an increase of $45 million and $120 million compared to the prior quarter and the second quarter of 2015, respectively. The sequential and year-over-year increase in the provision for credit losses was primarily due to higher energy-related charge-offs, moderating asset quality improvements, and loan growth.

At June 30, 2016, the allowance for loan and lease losses was $1.8 billion, which represented 1.25% of total loans, an increase of $4 million from March 31, 2016. Excluding government-guaranteed and fair value loans, the allowance for loan and lease losses to period-end loans ratio was 1.31% as of June 30, 2016.

Early stage delinquencies declined 9 basis points from the prior quarter to 0.58% at June 30, 2016. Excluding government-guaranteed loans, early stage delinquencies were 0.23%, down 6 basis points from the prior quarter and down 2 basis points compared to a year ago.

Accruing restructured loans totaled $2.5 billion and nonaccruing restructured loans totaled $307 million at June 30, 2016, of which $2.6 billion were residential loans, $127 million were consumer loans, and $106 million were commercial loans. Nonaccruing restructured loans have increased $131 million relative to December 31, 2015, largely driven by the classification of certain modified home equity products to nonaccrual status in order to coincide with changes to our home equity line workout program. At June 30, 2016, substantially all of these nonaccruing restructured home equity loans were current with respect to payments and the vast majority are expected to return to accruing status after the borrowers have demonstrated six months of consistent payment history.

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 June 30, 2016, SunTrust had total assets of $199 billion and total deposits of $153 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 July 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: 2Q16). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 2Q16). A replay of the call will be available approximately one hour after the call ends on July 22, 2016, and will remain available until August 22, 2016, by dialing 1-888-568-0514 (domestic) or 1-402-530-8003 (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 July 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.

Non-GAAP Financial Measures

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 beginning at page 23.

In this news release, consistent with Securities and Exchange Commission Industry Guide 3, the Company presents total revenue, net interest income, net interest margin, and efficiency ratios on a fully taxable equivalent (“FTE”) basis, and ratios on an annualized basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. Total revenue-FTE equals net interest income-FTE plus noninterest income.

The Company presents the following additional non-GAAP measures because many investors find them useful. Specifically:

•

The Company presents the allowance for loan and lease losses excluding government-guaranteed loans and fair value loans, and early-stage delinquencies excluding government-guaranteed loans 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.

•

The Company presents certain capital information on a tangible basis, including tangible equity, tangible common equity, the ratio of tangible equity to tangible assets, the ratio of tangible common equity to tangible assets, tangible book value per share, and the return on tangible common shareholders’ equity, which removes the after-tax impact of purchase accounting intangible assets from shareholders' equity and removes related intangible asset amortization from net income available to common shareholders. The Company believes these measures are useful to investors because, by removing the amount of intangible assets that result from merger and acquisition activity and amortization expense (the level of which may vary from company to company), it allows investors to more easily compare the Company’s capital position and return on average tangible common shareholders' equity to other companies in the industry who present similar measures. The Company also believes that removing these items provides a more relevant measure of the return on the Company's common shareholders' equity. These measures are utilized by management to assess the capital adequacy and profitability of the Company.

•

Similarly, the Company presents an efficiency ratio-FTE and a tangible efficiency ratio-FTE. The efficiency ratio is computed by dividing noninterest expense by total revenue. Efficiency ratio-FTE is computed by dividing noninterest expense by total revenue-FTE. The tangible efficiency ratio-FTE excludes the amortization related to intangible assets and certain tax credits. The Company believes this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare the Company’s efficiency to other companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.

•

The Company presents the Basel III Common Equity Tier 1 (CET1), on a fully-phased in basis. Fully phased-in ratios consider a 250% risk-weighting for MSRs and deduction from capital of certain carryforward DTAs, the overfunded pension asset, and other intangible assets. The Company believes this measure is useful to investors who wish to understand the Company's current compliance with future regulatory requirements.

Important Cautionary Statement About Forward-Looking Statements

This news release contains forward-looking statements. Statements regarding potential future share repurchases, future expected dividends, and future levels of nonaccruing restructured loans 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 June 30						%		Six Months Ended June 30						%
	2016			2015			Change		2016			2015			Change
EARNINGS & DIVIDENDS
Net income		$492			$483		2	%		$939			$912		3	%
Net income available to common shareholders	475			467			2		906			877			3
Total revenue	2,186			2,041			7		4,249			3,999			6
Total revenue-FTE ¹	2,221			2,077			7		4,320			4,070			6
Net income per average common share:
Diluted	0.94			0.89			6		1.78			1.67			7
Basic	0.95			0.90			6		1.80			1.69			7
Dividends paid per common share	0.24			0.24			—		0.48			0.44			9
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$198,307			$188,310		5	%		$195,661			$188,785		4	%
Earning assets	178,055			168,461			6		176,122			168,321			5
Loans	141,238			132,829			6		139,805			133,082			5
Intangible assets including mortgage servicing rights ("MSRs")	7,543			7,572			—		7,556			7,537			—
MSRs	1,192			1,223			(3	)	1,203			1,188			1
Consumer and commercial deposits	154,166			142,851			8		151,698			141,670			7
Total shareholders’ equity	24,018			23,239			3		23,907			23,206			3
Preferred stock	1,225			1,225			—		1,225			1,225			—
Period End Balances:
Total assets									199,073			188,858			5
Earning assets									178,852			168,499			6
Loans									141,656			132,538			7
Allowance for loan and lease losses ("ALLL")									1,774			1,834			(3	)
Consumer and commercial deposits									151,779			143,922			5
Total shareholders’ equity									24,464			23,223			5
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.00		%	1.03		%	(3	)%	0.97		%	0.97		%	—	%
Return on average common shareholders’ equity ²	8.43			8.54			(1	)	8.07			8.09			—
Return on average tangible common shareholders' equity ^{1, 2}	11.54			11.88			(3	)	11.07			11.26			(2	)
Net interest margin	2.91			2.78			5		2.93			2.76			6
Net interest margin-FTE ¹	2.99			2.86			5		3.01			2.85			6
Efficiency ratio	61.53			65.07			(5	)	62.67			65.22			(4	)
Efficiency ratio-FTE ¹	60.56			63.92			(5	)	61.65			64.07			(4	)
Tangible efficiency ratio-FTE ¹	60.05			63.59			(6	)	61.16			63.75			(4	)
Effective tax rate	29			29			—		30			30			—
Basel III capital ratios at period end (transitional) ³:
Common Equity Tier 1 ("CET1")									9.84			9.93			(1	)
Tier 1 capital									10.55			10.79			(2	)
Total capital									12.65			12.66			—
Leverage									9.35			9.56			(2	)
Basel III fully phased-in CET1 ratio ^{1, 3}									9.70			9.76			(1	)
Total average shareholders’ equity to total average assets	12.11		%	12.34		%	(2	)%	12.22			12.29			(1	)
Tangible equity to tangible assets ¹									9.53			9.38			2
Tangible common equity to tangible assets ¹									8.84			8.65			2
Book value per common share ²										$46.14			$42.26		9
Tangible book value per common share ^{1, 2}									33.98			30.46			12
Market capitalization									20,598			22,286			(8	)
Average common shares outstanding:
Diluted	505,560			522,479			(3	)	507,975			524,646			(3	)
Basic	501,374			516,968			(3	)	503,428			518,983			(3	)
Full-time equivalent employees									23,940			24,237			(1	)
Number of ATMs									2,144			2,162			(1	)
Full service banking offices									1,389			1,430			(3	)


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


²	Beginning January 1, 2016, noncontrolling interest was removed from common shareholders' equity in the calculation to provide a more accurate measure of the Company's return on common equity. Accordingly, amounts for periods prior to January 1, 2016 have been updated for consistent presentation.

³ Current period capital ratios are estimated as of the earnings release date.

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER FINANCIAL HIGHLIGHTS



	Three Months Ended
	June 30			March 31			December 31			September 30			June 30
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2016			2016			2015			2015			2015
EARNINGS & DIVIDENDS
Net income		$492			$447			$484			$537			$483
Net income available to common shareholders	475			430			467			519			467
Total revenue	2,186			2,063			2,011			2,022			2,041
Total revenue-FTE ¹	2,221			2,099			2,046			2,058			2,077
Net income per average common share:
Diluted	0.94			0.84			0.91			1.00			0.89
Basic	0.95			0.85			0.92			1.01			0.90
Dividends paid per common share	0.24			0.24			0.24			0.24			0.24
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$198,307			$193,014			$189,656			$188,341			$188,310
Earning assets	178,055			174,189			170,262			168,334			168,461
Loans	141,238			138,372			135,214			132,837			132,829
Intangible assets including MSRs	7,543			7,569			7,629			7,711			7,572
MSRs	1,192			1,215			1,273			1,352			1,223
Consumer and commercial deposits	154,166			149,229			148,163			145,226			142,851
Total shareholders’ equity	24,018			23,797			23,583			23,384			23,239
Preferred stock	1,225			1,225			1,225			1,225			1,225
Period End Balances:
Total assets	199,073			194,158			190,817			187,036			188,858
Earning assets	178,852			175,710			172,114			168,555			168,499
Loans	141,656			139,746			136,442			133,560			132,538
ALLL	1,774			1,770			1,752			1,786			1,834
Consumer and commercial deposits	151,779			151,264			148,921			145,337			143,922
Total shareholders’ equity	24,464			24,053			23,437			23,664			23,223
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.00		%	0.93		%	1.01		%	1.13		%	1.03		%
Return on average common shareholders’ equity ²	8.43			7.71			8.32			9.34			8.54
Return on average tangible common shareholders' equity ^{1, 2}	11.54			10.60			11.49			12.95			11.88
Net interest margin	2.91			2.96			2.90			2.86			2.78
Net interest margin-FTE ¹	2.99			3.04			2.98			2.94			2.86
Efficiency ratio	61.53			63.89			64.05			62.51			65.07
Efficiency ratio-FTE ¹	60.56			62.81			62.96			61.44			63.92
Tangible efficiency ratio-FTE ¹	60.05			62.33			62.11			60.99			63.59
Effective tax rate	29			30			28			26			29
Basel III capital ratios at period end (transitional) ³:
CET1	9.84			9.90			9.96			10.04			9.93
Tier 1 capital	10.55			10.63			10.80			10.90			10.79
Total capital	12.65			12.39			12.54			12.72			12.66
Leverage	9.35			9.50			9.69			9.68			9.56
Basel III fully phased-in CET1 ratio ^{1, 3}	9.70			9.77			9.80			9.89			9.76
Total average shareholders’ equity to total average assets	12.11			12.33			12.43			12.42			12.34
Tangible equity to tangible assets ¹	9.53			9.56			9.40			9.72			9.38
Tangible common equity to tangible assets ¹	8.84			8.85			8.67			8.98			8.65
Book value per common share ²		$46.14			$44.97			$43.45			$43.44			$42.26
Tangible book value per common share ^{1, 2}	33.98			32.90			31.45			31.56			30.46
Market capitalization	20,598			18,236			21,793			19,659			22,286
Average common shares outstanding:
Diluted	505,560			509,931			514,507			518,677			522,479
Basic	501,374			505,482			508,536			513,010			516,968
Full-time equivalent employees	23,940			23,945			24,043			24,124			24,237
Number of ATMs	2,144			2,153			2,160			2,142			2,162
Full service banking offices	1,389			1,397			1,401			1,406			1,430


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


²	Beginning January 1, 2016, noncontrolling interest was removed from common shareholders' equity in the calculation to provide a more accurate measure of the Company's return on common equity. Accordingly, amounts for periods prior to January 1, 2016 have been updated for consistent presentation.

³ 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)					Six Months Ended				Increase/(Decrease)
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30				Increase/(Decrease)					June 30				Increase/(Decrease)
	2016		2015		Amount			% ²		2016		2015		Amount			% ²
Interest income		$1,424		$1,297		$127		10	%		$2,834		$2,569		$265		10	%
Interest expense	136		130		6			5		265		262		3			1
NET INTEREST INCOME	1,288		1,167		121			10		2,569		2,307		262			11
Provision for credit losses	146		26		120			NM		246		82		164			NM
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,142		1,141		1			—		2,323		2,225		98			4
NONINTEREST INCOME
Service charges on deposit accounts	162		156		6			4		315		308		7			2
Other charges and fees	104		99		5			5		197		188		9			5
Card fees	83		84		(1		)	(1	)	160		164		(4		)	(2	)
Investment banking income	126		145		(19		)	(13	)	225		242		(17		)	(7	)
Trading income	34		54		(20		)	(37	)	89		109		(20		)	(18	)
Trust and investment management income	75		84		(9		)	(11	)	150		168		(18		)	(11	)
Retail investment services	72		80		(8		)	(10	)	141		152		(11		)	(7	)
Mortgage production related income	111		76		35			46		171		159		12			8
Mortgage servicing related income	52		30		22			73		114		73		41			56
Net securities gains	4		14		(10		)	(71	)	4		14		(10		)	(71	)
Other noninterest income	75		52		23			44		114		115		(1		)	(1	)
Total noninterest income	898		874		24			3		1,680		1,692		(12		)	(1	)
NONINTEREST EXPENSE
Employee compensation and benefits	763		756		7			1		1,536		1,527		9			1
Outside processing and software	202		204		(2		)	(1	)	400		394		6			2
Net occupancy expense	78		85		(7		)	(8	)	163		169		(6		)	(4	)
Equipment expense	42		42		—			—		82		82		—			—
FDIC premium/regulatory exams	44		35		9			26		80		72		8			11
Marketing and customer development	38		34		4			12		82		61		21			34
Operating losses	25		16		9			56		50		30		20			67
Amortization	11		7		4			57		21		13		8			62
Other noninterest expense	142		149		(7		)	(5	)	249		260		(11		)	(4	)
Total noninterest expense	1,345		1,328		17			1		2,663		2,608		55			2
INCOME BEFORE PROVISION FOR INCOME TAXES	695		687		8			1		1,340		1,309		31			2
Provision for income taxes	201		202		(1		)	—		396		393		3			1
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	494		485		9			2		944		916		28			3
Net income attributable to noncontrolling interest	2		2		—			—		5		4		1			25
NET INCOME		$492		$483		$9		2	%		$939		$912		$27		3	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$475		$467		$8		2	%		$906		$877		$29		3	%
Net interest income-FTE ¹	1,323		1,203		120			10		2,640		2,378		262			11
Total revenue	2,186		2,041		145			7		4,249		3,999		250			6
Total revenue-FTE ¹	2,221		2,077		144			7		4,320		4,070		250			6
Net income per average common share:
Diluted	0.94		0.89		0.05			6		1.78		1.67		0.11			7
Basic	0.95		0.90		0.05			6		1.80		1.69		0.11			7
Cash dividends paid per common share	0.24		0.24		—			—		0.48		0.44		0.04			9
Average common shares outstanding:
Diluted	505,560		522,479		(16,919		)	(3	)	507,975		524,646		(16,671		)	(3	)
Basic	501,374		516,968		(15,594		)	(3	)	503,428		518,983		(15,555		)	(3	)

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

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

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME



	Three Months Ended									Three Months Ended
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30		March 31		Increase/(Decrease)					December 31		September 30		June 30
	2016		2016		Amount			% ²		2015		2015		2015
Interest income		$1,424		$1,411		$13		1	%		$1,363		$1,333		$1,297
Interest expense	136		129		7			5		117		122		130
NET INTEREST INCOME	1,288		1,282		6			—		1,246		1,211		1,167
Provision for credit losses	146		101		45			45		51		32		26
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,142		1,181		(39		)	(3	)	1,195		1,179		1,141
NONINTEREST INCOME
Service charges on deposit accounts	162		153		9			6		156		159		156
Other charges and fees	104		93		11			12		92		97		99
Card fees	83		78		5			6		82		83		84
Investment banking income	126		98		28			29		104		115		145
Trading income	34		55		(21		)	(38	)	42		31		54
Trust and investment management income	75		75		—			—		79		86		84
Retail investment services	72		69		3			4		71		77		80
Mortgage production related income	111		60		51			85		53		58		76
Mortgage servicing related income	52		62		(10		)	(16	)	56		40		30
Net securities gains	4		—		4			NM		—		7		14
Other noninterest income	75		38		37			97		30		58		52
Total noninterest income	898		781		117			15		765		811		874
NONINTEREST EXPENSE
Employee compensation and benefits	763		774		(11		)	(1	)	690		725		756
Outside processing and software	202		198		4			2		222		200		204
Net occupancy expense	78		85		(7		)	(8	)	86		86		85
Equipment expense	42		40		2			5		41		41		42
FDIC premium/regulatory exams	44		36		8			22		35		32		35
Marketing and customer development	38		44		(6		)	(14	)	48		42		34
Operating losses	25		24		1			4		22		3		16
Amortization	11		10		1			10		17		9		7
Other noninterest expense	142		107		35			33		127		126		149
Total noninterest expense	1,345		1,318		27			2		1,288		1,264		1,328
INCOME BEFORE PROVISION FOR INCOME TAXES	695		644		51			8		672		726		687
Provision for income taxes	201		195		6			3		185		187		202
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	494		449		45			10		487		539		485
Net income attributable to noncontrolling interest	2		2		—			—		3		2		2
NET INCOME		$492		$447		$45		10	%		$484		$537		$483
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$475		$430		$45		10	%		$467		$519		$467
Net interest income-FTE ¹	1,323		1,318		5			—		1,281		1,247		1,203
Total revenue	2,186		2,063		123			6		2,011		2,022		2,041
Total revenue-FTE ¹	2,221		2,099		122			6		2,046		2,058		2,077
Net income per average common share:
Diluted	0.94		0.84		0.10			12		0.91		1.00		0.89
Basic	0.95		0.85		0.10			12		0.92		1.01		0.90
Cash dividends paid per common share	0.24		0.24		—			—		0.24		0.24		0.24
Average common shares outstanding:
Diluted	505,560		509,931		(4,371		)	(1	)	514,507		518,677		522,479
Basic	501,374		505,482		(4,108		)	(1	)	508,536		513,010		516,968

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

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

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS



	June 30						(Decrease)/Increase
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2016			2015			Amount			%²
ASSETS
Cash and due from banks		$4,134			$5,915			($1,781	)	(30	)%
Federal funds sold and securities borrowed or purchased under agreements to resell	1,107			1,350			(243		)	(18	)
Interest-bearing deposits in other banks	24			23			1			4
Trading assets and derivative instruments	7,031			6,438			593			9
Securities available for sale	29,336			27,113			2,223			8
Loans held for sale ("LHFS")	2,468			2,457			11			—
Loans held for investment:
Commercial and industrial ("C&I")	68,603			65,713			2,890			4
Commercial real estate ("CRE")	6,228			6,058			170			3
Commercial construction	2,617			1,530			1,087			71
Residential mortgages - guaranteed	534			625			(91		)	(15	)
Residential mortgages - nonguaranteed	26,037			24,038			1,999			8
Residential home equity products	12,481			13,672			(1,191		)	(9	)
Residential construction	397			401			(4		)	(1	)
Consumer student - guaranteed	5,562			4,401			1,161			26
Consumer other direct	6,825			5,329			1,496			28
Consumer indirect	11,195			9,834			1,361			14
Consumer credit cards	1,177			937			240			26
Total loans held for investment	141,656			132,538			9,118			7
Allowance for loan and lease losses ("ALLL")	(1,774		)	(1,834		)	(60		)	(3	)
Net loans held for investment	139,882			130,704			9,178			7
Goodwill	6,337			6,337			—			—
MSRs	1,061			1,393			(332		)	(24	)
Other assets	7,693			7,128			565			8
Total assets ¹		$199,073			$188,858			$10,215		5	%
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$42,466			$42,773			($307	)	(1	)%
Interest-bearing consumer and commercial deposits:
NOW accounts	39,869			35,125			4,744			14
Money market accounts	53,410			49,586			3,824			8
Savings	6,343			6,263			80			1
Consumer time	5,836			6,398			(562		)	(9	)
Other time	3,855			3,777			78			2
Total consumer and commercial deposits	151,779			143,922			7,857			5
Brokered time deposits	972			865			107			12
Foreign deposits	—			150			(150		)	(100	)
Total deposits	152,751			144,937			7,814			5
Funds purchased	1,352			1,011			341			34
Securities sold under agreements to repurchase	1,622			1,858			(236		)	(13	)
Other short-term borrowings	1,883			3,248			(1,365		)	(42	)
Long-term debt	12,264			10,109			2,155			21
Trading liabilities and derivative instruments	1,426			1,308			118			9
Other liabilities	3,311			3,164			147			5
Total liabilities	174,609			165,635			8,974			5
SHAREHOLDERS' EQUITY
Preferred stock, no par value	1,225			1,225			—			—
Common stock, $1.00 par value	550			550			—			—
Additional paid-in capital	9,003			9,080			(77		)	(1	)
Retained earnings	15,353			13,944			1,409			10
Treasury stock, at cost, and other	(1,900		)	(1,282		)	618			48
Accumulated other comprehensive income/(loss), net of tax	233			(294		)	527			NM
Total shareholders' equity	24,464			23,223			1,241			5
Total liabilities and shareholders' equity		$199,073			$188,858			$10,215		5	%

Common shares outstanding	501,412			518,045			(16,633		)	(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	48,509			31,876			16,633			52

¹ Includes earning assets of $178,852 and $168,499 at June 30, 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)	June 30			March 31			Increase/(Decrease)					December 31			September 30			June 30
	2016			2016			Amount			% ²		2015			2015			2015
ASSETS
Cash and due from banks		$4,134			$3,074			$1,060		34	%		$4,299			$3,788			$5,915
Federal funds sold and securities borrowed or purchased under agreements to resell	1,107			1,229			(122		)	(10	)	1,277			1,105			1,350
Interest-bearing deposits in other banks	24			24			—			—		23			23			23
Trading assets and derivative instruments	7,031			7,050			(19		)	—		6,119			6,537			6,438
Securities available for sale	29,336			28,188			1,148			4		27,825			27,270			27,113
LHFS	2,468			1,911			557			29		1,838			2,032			2,457
Loans held for investment:
C&I	68,603			68,963			(360		)	(1	)	67,062			65,371			65,713
CRE	6,228			6,034			194			3		6,236			6,168			6,058
Commercial construction	2,617			2,498			119			5		1,954			1,763			1,530
Residential mortgages - guaranteed	534			623			(89		)	(14	)	629			627			625
Residential mortgages - nonguaranteed	26,037			25,148			889			4		24,744			24,351			24,038
Residential home equity products	12,481			12,845			(364		)	(3	)	13,171			13,416			13,672
Residential construction	397			383			14			4		384			394			401
Consumer student - guaranteed	5,562			5,265			297			6		4,922			4,588			4,401
Consumer other direct	6,825			6,372			453			7		6,127			5,771			5,329
Consumer indirect	11,195			10,522			673			6		10,127			10,119			9,834
Consumer credit cards	1,177			1,093			84			8		1,086			992			937
Total loans held for investment	141,656			139,746			1,910			1		136,442			133,560			132,538
ALLL	(1,774		)	(1,770		)	4			—		(1,752		)	(1,786		)	(1,834		)
Net loans held for investment	139,882			137,976			1,906			1		134,690			131,774			130,704
Goodwill	6,337			6,337			—			—		6,337			6,337			6,337
MSRs	1,061			1,182			(121		)	(10	)	1,307			1,262			1,393
Other assets	7,693			7,187			506			7		7,102			6,908			7,128
Total assets ¹		$199,073			$194,158			$4,915		3	%		$190,817			$187,036			$188,858
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$42,466			$42,256			$210		—	%		$42,272			$41,487			$42,773
Interest-bearing consumer and commercial deposits:
NOW accounts	39,869			39,273			596			2		38,990			36,164			35,125
Money market accounts	53,410			53,327			83			—		51,783			51,628			49,586
Savings	6,343			6,418			(75		)	(1	)	6,057			6,133			6,263
Consumer time	5,836			6,085			(249		)	(4	)	6,108			6,205			6,398
Other time	3,855			3,905			(50		)	(1	)	3,711			3,720			3,777
Total consumer and commercial deposits	151,779			151,264			515			—		148,921			145,337			143,922
Brokered time deposits	972			897			75			8		899			884			865
Foreign deposits	—			—			—			—		10			150			150
Total deposits	152,751			152,161			590			—		149,830			146,371			144,937
Funds purchased	1,352			1,497			(145		)	(10	)	1,949			1,329			1,011
Securities sold under agreements to repurchase	1,622			1,774			(152		)	(9	)	1,654			1,536			1,858
Other short-term borrowings	1,883			1,673			210			13		1,024			1,077			3,248
Long-term debt	12,264			8,514			3,750			44		8,462			8,444			10,109
Trading liabilities and derivative instruments	1,426			1,536			(110		)	(7	)	1,263			1,330			1,308
Other liabilities	3,311			2,950			361			12		3,198			3,285			3,164
Total liabilities	174,609			170,105			4,504			3		167,380			163,372			165,635
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	9,003			9,017			(14		)	—		9,094			9,087			9,080
Retained earnings	15,353			14,999			354			2		14,686			14,341			13,944
Treasury stock, at cost, and other	(1,900		)	(1,759		)	141			8		(1,658		)	(1,451		)	(1,282		)
Accumulated other comprehensive income/(loss), net of tax	233			21			212			NM		(460		)	(88		)	(294		)
Total shareholders’ equity	24,464			24,053			411			2		23,437			23,664			23,223
Total liabilities and shareholders’ equity		$199,073			$194,158			$4,915		3	%		$190,817			$187,036			$188,858

Common shares outstanding	501,412			505,443			(4,031		)	(1	)%	508,712			514,106			518,045
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	48,509			44,478			4,031			9		41,209			35,815			31,876

¹ Includes earning assets of $178,852, $175,710, $172,114, $168,555, and $168,499 at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 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
	June 30, 2016							March 31, 2016							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")		$68,918			$533	3.11	%		$68,058			$529	3.13	%		$860		(0.02	)		$3,175		0.12
Commercial real estate ("CRE")	6,055			44		2.91		6,066			44		2.91		(11		)	—		(91		)	0.10
Commercial construction	2,589			21		3.25		2,232			18		3.28		357			(0.03	)	1,070			0.07
Residential mortgages - guaranteed	580			6		3.98		641			6		3.80		(61		)	0.18		(51		)	0.13
Residential mortgages - nonguaranteed	25,408			241		3.80		24,712			236		3.81		696			(0.01	)	1,929			(0.06	)
Residential home equity products	12,464			122		3.95		12,849			126		3.95		(385		)	—		(1,193		)	0.27
Residential construction	376			4		4.41		368			4		4.42		8			(0.01	)	(6		)	(0.42	)
Consumer student - guaranteed	5,412			54		3.98		5,092			50		3.98		320			—		1,067			0.24
Consumer other direct	6,590			74		4.54		6,239			70		4.48		351			0.06		1,450			0.27
Consumer indirect	10,771			90		3.37		10,279			87		3.39		492			(0.02	)	487			0.17
Consumer credit cards	1,125			29		10.09		1,077			28		10.31		48			(0.22	)	221			0.24
Nonaccrual	950			4		1.67		759			5		2.72		191			(1.05	)	351			(3.66	)
Total loans held for investment	141,238			1,222		3.48		138,372			1,203		3.50		2,866			(0.02	)	8,409			0.11
Securities available for sale:
Taxable	27,910			160		2.29		27,164			162		2.39		746			(0.10	)	1,735			0.23
Tax-exempt	151			1		3.60		151			1		3.64		—			(0.04	)	(29		)	(0.12	)
Total securities available for sale	28,061			161		2.29		27,315			163		2.39		746			(0.10	)	1,706			0.21
Federal funds sold and securities borrowed or purchased under agreements to resell	1,227			—		0.17		1,234			—		0.18		(7		)	(0.01	)	7			0.17
Loans held for sale ("LHFS")	2,015			18		3.61		1,816			19		4.15		199			(0.54	)	(742		)	0.26
Interest-bearing deposits in other banks	23			—		0.29		23			—		0.47		—			(0.18	)	—			0.16
Interest earning trading assets	5,491			23		1.65		5,429			26		1.86		62			(0.21	)	214			(0.02	)
Total earning assets	178,055			1,424		3.22		174,189			1,411		3.26		3,866			(0.04	)	9,594			0.13
Allowance for loan and lease losses ("ALLL")	(1,756		)					(1,750		)					(6		)			108
Cash and due from banks	5,127							4,015							1,112					(82		)
Other assets	14,675							14,639							36					26
Noninterest earning trading assets and derivative instruments	1,529							1,387							142					264
Unrealized gains on securities available for sale, net	677							534							143					87
Total assets		$198,307							$193,014							$5,293					$9,997
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$41,691			$13	0.12	%		$37,994			$10	0.10	%		$3,697		0.02			$7,335		0.03
Money market accounts	53,186			25		0.19		53,063			24		0.18		123			0.01		3,659			0.02
Savings	6,399			1		0.02		6,179			—		0.03		220			(0.01	)	118			(0.01	)
Consumer time	5,984			11		0.76		6,104			12		0.79		(120		)	(0.03	)	(561		)	(0.01	)
Other time	3,881			10		1.03		3,813			10		1.04		68			(0.01	)	42			—
Total interest-bearing consumer and commercial deposits	111,141			60		0.22		107,153			56		0.21		3,988			0.01		10,593			0.01
Brokered time deposits	913			3		1.35		898			3		1.37		15			(0.02	)	38			(0.04	)
Foreign deposits	46			—		0.34		4			—		0.33		42			0.01		(197		)	0.22
Total interest-bearing deposits	112,100			63		0.23		108,055			59		0.22		4,045			0.01		10,434			0.01
Funds purchased	1,032			1		0.36		1,399			1		0.35		(367		)	0.01		322			0.26
Securities sold under agreements to repurchase	1,718			2		0.40		1,819			2		0.40		(101		)	—		(109		)	0.20
Interest-bearing trading liabilities	1,006			6		2.39		1,017			6		2.56		(11		)	(0.17	)	81			(0.05	)
Other short-term borrowings	1,220			—		0.20		2,351			2		0.32		(1,131		)	(0.12	)	(362		)	0.06
Long-term debt	10,517			64		2.46		8,637			59		2.73		1,880			(0.27	)	(1,893		)	0.28
Total interest-bearing liabilities	127,593			136		0.43		123,278			129		0.42		4,315			0.01		8,473			(0.01	)
Noninterest-bearing deposits	43,025							42,076							949					722
Other liabilities	3,217							3,321							(104		)			(18		)
Noninterest-bearing trading liabilities and derivative instruments	454							542							(88		)			41
Shareholders’ equity	24,018							23,797							221					779
Total liabilities and shareholders’ equity		$198,307							$193,014							$5,293					$9,997
Interest Rate Spread						2.79	%						2.84	%				(0.05	)				0.14
Net Interest Income					$1,288							$1,282
Net Interest Income-FTE ²					$1,323							$1,318
Net Interest Margin ³						2.91	%						2.96	%				(0.05	)				0.13
Net Interest Margin-FTE ^{2, 3}						2.99							3.04					(0.05	)				0.13

¹Interest income includes loan fees of $41 million and $43 million for the three months ended June 30, 2016 and March 31, 2016, respectively.

²See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for both the three months ended June 30, 2016 and March 31, 2016 was attributed to C&I loans.

³Net interest margin is calculated by dividing annualized net interest income by average total earning assets.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued
	Three Months Ended
	December 31, 2015							September 30, 2015							June 30, 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		$66,405			$508	3.04	%		$65,269			$499	3.04	%		$65,743			$490	2.99	%
CRE	6,072			43		2.78		6,024			43		2.85		6,146			43		2.81
Commercial construction	1,936			15		3.05		1,609			13		3.12		1,519			12		3.18
Residential mortgages - guaranteed	647			7		4.49		630			5		3.14		631			6		3.85
Residential mortgages - nonguaranteed	24,325			232		3.82		24,109			232		3.85		23,479			226		3.86
Residential home equity products	13,161			125		3.78		13,381			126		3.72		13,657			125		3.68
Residential construction	376			4		4.65		379			5		4.68		382			5		4.83
Consumer student - guaranteed	4,745			46		3.86		4,494			43		3.83		4,345			41		3.74
Consumer other direct	5,924			65		4.34		5,550			61		4.33		5,140			55		4.27
Consumer indirect	10,098			85		3.35		9,968			83		3.29		10,284			82		3.20
Consumer credit cards	1,024			26		10.17		965			24		10.14		904			22		9.85
Nonaccrual	501			5		3.86		459			5		4.49		599			8		5.33
Total loans held for investment	135,214			1,161		3.41		132,837			1,139		3.40		132,829			1,115		3.37
Securities available for sale:
Taxable	26,823			162		2.42		26,621			151		2.27		26,175			135		2.06
Tax-exempt	161			1		3.67		170			2		3.69		180			2		3.72
Total securities available for sale	26,984			163		2.42		26,791			153		2.28		26,355			137		2.08
Federal funds sold and securities borrowed or purchased under agreements to resell	1,127			—		0.01		1,100			—		0.03		1,220			—		—
LHFS	1,728			16		3.70		2,288			20		3.60		2,757			23		3.35
Interest-bearing deposits in other banks	23			—		0.09		22			—		0.14		23			—		0.13
Interest earning trading assets	5,186			23		1.73		5,296			21		1.57		5,277			22		1.67
Total earning assets	170,262			1,363		3.18		168,334			1,333		3.14		168,461			1,297		3.09
ALLL	(1,764		)					(1,804		)					(1,864		)
Cash and due from banks	4,965							5,729							5,209
Other assets	14,525							14,522							14,649
Noninterest earning trading assets and derivative instruments	1,230							1,165							1,265
Unrealized gains on securities available for sale, net	438							395							590
Total assets		$189,656							$188,341							$188,310
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$37,293			$9	0.09	%		$35,784			$8	0.09	%		$34,356			$8	0.09	%
Money market accounts	52,250			21		0.16		51,064			21		0.16		49,527			21		0.17
Savings	6,095			—		0.03		6,203			—		0.03		6,281			—		0.03
Consumer time	6,156			12		0.77		6,286			12		0.75		6,545			13		0.77
Other time	3,721			10		1.02		3,738			10		1.01		3,839			10		1.03
Total interest-bearing consumer and commercial deposits	105,515			52		0.19		103,075			51		0.20		100,548			52		0.21
Brokered time deposits	890			3		1.38		870			3		1.38		875			3		1.39
Foreign deposits	156			—		0.14		140			—		0.13		243			—		0.12
Total interest-bearing deposits	106,561			55		0.20		104,085			54		0.21		101,666			55		0.22
Funds purchased	869			—		0.15		672			—		0.10		710			—		0.10
Securities sold under agreements to repurchase	1,773			1		0.21		1,765			1		0.22		1,827			1		0.20
Interest-bearing trading liabilities	878			5		2.40		840			6		2.55		925			6		2.44
Other short-term borrowings	1,113			—		0.09		2,172			1		0.16		1,582			1		0.14
Long-term debt	8,450			56		2.62		9,680			60		2.47		12,410			67		2.18
Total interest-bearing liabilities	119,644			117		0.39		119,214			122		0.41		119,120			130		0.44
Noninterest-bearing deposits	42,648							42,151							42,303
Other liabilities	3,393							3,198							3,235
Noninterest-bearing trading liabilities and derivative instruments	388							394							413
Shareholders’ equity	23,583							23,384							23,239
Total liabilities and shareholders’ equity		$189,656							$188,341							$188,310
Interest Rate Spread						2.79	%						2.73	%						2.65	%
Net Interest Income					$1,246							$1,211							$1,167
Net Interest Income-FTE ²					$1,281							$1,247							$1,203
Net Interest Margin ³						2.90	%						2.86	%						2.78	%
Net Interest Margin-FTE ^{2, 3}						2.98							2.94							2.86


¹	Interest income includes loan fees of $47 million, $50 million, and $48 million for the three months ended December 31, 2015, September 30, 2015, and June 30, 2015, respectively.


²	See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for the three months ended December 31, 2015, September 30, 2015, and June 30, 2015 was attributed to C&I loans.


³	Net interest margin is calculated by dividing annualized net interest income by average total earning assets.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued
	Six Months Ended
	June 30, 2016							June 30, 2015							Increase/(Decrease)
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates			Average Balances			Yields/ Rates
ASSETS
Loans held for investment: ¹
C&I		$68,488			$1,063	3.12	%		$65,734			$966	2.97	%			$2,754		0.15
CRE	6,061			88		2.91		6,309			87		2.79			(248		)	0.12
Commercial construction	2,410			39		3.26		1,431			23		3.17			979			0.09
Residential mortgages - guaranteed	610			12		3.89		634			12		3.71			(24		)	0.18
Residential mortgages - nonguaranteed	25,060			476		3.80		23,293			449		3.85			1,767			(0.05	)
Residential home equity products	12,657			248		3.95		13,804			250		3.66			(1,147		)	0.29
Residential construction	372			8		4.42		390			10		5.02			(18		)	(0.60	)
Consumer student - guaranteed	5,252			104		3.98		4,549			84		3.72			703			0.26
Consumer other direct	6,414			144		4.51		4,945			104		4.26			1,469			0.25
Consumer indirect	10,525			177		3.38		10,495			165		3.16			30			0.22
Consumer credit cards	1,101			56		10.20		892			44		9.84			209			0.36
Nonaccrual	855			9		2.14		606			12		4.11			249			(1.97	)
Total loans held for investment	139,805			2,424		3.49		133,082			2,206		3.34			6,723			0.15
Securities available for sale:
Taxable	27,537			321		2.33		25,927			274		2.11			1,610			0.22
Tax-exempt	151			3		3.62		186			3		3.72			(35		)	(0.10	)
Total securities available for sale	27,688			324		2.34		26,113			277		2.12			1,575			0.22
Federal funds sold and securities borrowed or purchased under agreements to resell	1,231			1		0.17		1,181			—		—			50			0.17
LHFS	1,915			37		3.87		2,694			45		3.34			(779		)	0.53
Interest-bearing deposits in other banks	23			—		0.38		23			—		0.12			—			0.26
Interest earning trading assets	5,460			48		1.75		5,228			41		1.58			232			0.17
Total earning assets	176,122			2,834		3.24		168,321			2,569		3.08			7,801			0.16
ALLL	(1,753		)					(1,887		)						134
Cash and due from banks	4,571							5,884								(1,313		)
Other assets	14,657							14,534								123
Noninterest earning trading assets and derivative instruments	1,458							1,333								125
Unrealized gains on securities available for sale, net	606							600								6
Total assets		$195,661							$188,785								$6,876
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$39,842			$22	0.11	%		$33,761			$15	0.09	%			$6,081		0.02
Money market accounts	53,125			49		0.18		49,361			43		0.17			3,764			0.01
Savings	6,289			1		0.02		6,182			1		0.03			107			(0.01	)
Consumer time	6,044			23		0.78		6,668			25		0.77			(624		)	0.01
Other time	3,847			20		1.04		3,898			20		1.02			(51		)	0.02
Total interest-bearing consumer and commercial deposits	109,147			115		0.21		99,870			104		0.21			9,277			—
Brokered time deposits	906			6		1.36		895			6		1.45			11			(0.09	)
Foreign deposits	25			—		0.34		288			—		0.12			(263		)	0.22
Total interest-bearing deposits	110,078			121		0.22		101,053			110		0.22			9,025			—
Funds purchased	1,216			2		0.35		874			1		0.10			342			0.25
Securities sold under agreements to repurchase	1,768			4		0.40		1,874			2		0.20			(106		)	0.20
Interest-bearing trading liabilities	1,012			12		2.48		904			11		2.41			108			0.07
Other short-term borrowings	1,785			3		0.28		2,635			2		0.17			(850		)	0.11
Long-term debt	9,577			123		2.58		12,712			136		2.15			(3,135		)	0.43
Total interest-bearing liabilities	125,436			265		0.42		120,052			262		0.44			5,384			(0.02	)
Noninterest-bearing deposits	42,551							41,800								751
Other liabilities	3,269							3,257								12
Noninterest-bearing trading liabilities and derivative instruments	498							470								28
Shareholders’ equity	23,907							23,206								701
Total liabilities and shareholders’ equity		$195,661							$188,785								$6,876
Interest Rate Spread						2.82	%						2.64	%					0.18
Net Interest Income					$2,569							$2,307
Net Interest Income-FTE ²					$2,640							$2,378
Net Interest Margin ³						2.93	%						2.76	%					0.17
Net Interest Margin-FTE ^{2, 3}						3.01							2.85						0.16

¹ Interest income includes loan fees of $84 million and $92 million for the six months ended June 30, 2016 and 2015, respectively.

² See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for both the six months ended June 30, 2016 and 2015 was attributed to C&I loans.

³ Net interest margin is calculated by dividing annualized net interest income by average total earning assets.



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA
	Three Months Ended											Six Months Ended
	June 30						(Decrease)/Increase					June 30						(Decrease)/Increase
(Dollars in millions) (Unaudited)	2016			2015			Amount			% ⁴		2016			2015			Amount			% ⁴
CREDIT DATA
Allowance for credit losses, beginning of period		$1,831			$1,947			($116	)	(6	)%		$1,815			$1,991			($176	)	(9	)%
Provision/(benefit) for unfunded commitments	5			(2		)	7			NM		3			(2		)	5			NM
Provision/(benefit) for loan losses:
Commercial	114			33			81			NM		212			40			172			NM
Residential	(4		)	(16		)	12			75		(37		)	9			(46		)	NM
Consumer	31			11			20			NM		68			35			33			94
Total provision for loan losses	141			28			113			NM		243			84			159			NM
Charge-offs:
Commercial	(99		)	(31		)	68			NM		(131		)	(59		)	72			NM
Residential	(33		)	(61		)	(28		)	(46	)	(73		)	(129		)	(56		)	(43	)
Consumer	(35		)	(31		)	4			13		(74		)	(66		)	8			12
Total charge-offs	(167		)	(123		)	44			36		(278		)	(254		)	24			9
Recoveries:
Commercial	9			15			(6		)	(40	)	19			26			(7		)	(27	)
Residential	9			10			(1		)	(10	)	15			19			(4		)	(21	)
Consumer	12			11			1			9		23			22			1			5
Total recoveries	30			36			(6		)	(17	)	57			67			(10		)	(15	)
Net charge-offs	(137		)	(87		)	50			57		(221		)	(187		)	34			18
Allowance for credit losses, end of period		$1,840			$1,886			($46	)	(2	)%		$1,840			$1,886			($46	)	(2	)%
Components:
Allowance for loan and lease losses ("ALLL")													$1,774			$1,834			($60	)	(3	)%
Unfunded commitments reserve												66			52			14			27
Allowance for credit losses													$1,840			$1,886			($46	)	(2	)%
Net charge-offs to average loans held for investment (annualized):
Commercial	0.46		%	0.09		%	0.37			NM		0.29		%	0.09		%	0.20			NM
Residential	0.24			0.53			(0.29		)	(55	)%	0.30			0.57			(0.27		)	(47	)%
Consumer	0.39			0.38			0.01			3		0.44			0.42			0.02			5
Total net charge-offs to total average loans held for investment	0.39			0.26			0.13			50		0.32			0.28			0.04			14
Period Ended
Nonaccrual/nonperforming loans ("NPLs"):
Commercial													$503			$158			$345		NM
Residential												433			318			115			36	%
Consumer												8			5			3			60
Total nonaccrual/NPLs												944			481			463			96
Other real estate owned (“OREO”)												49			72			(23		)	(32	)
Other repossessed assets												8			6			2			33
Nonperforming loans held for sale ("nonperforming LHFS")												—			98			(98		)	(100	)
Total nonperforming assets ("NPAs")													$1,001			$657			$344		52	%
Accruing restructured loans													$2,541			$2,576			($35	)	(1	)%
Nonaccruing restructured loans												307			185			122			66
Accruing loans held for investment past due > 90 days (guaranteed)												999			871			128			15
Accruing loans held for investment past due > 90 days (non-guaranteed)												42			39			3			8
Accruing LHFS past due > 90 days												1			1			—			—
NPLs to total loans held for investment												0.67		%	0.36		%	0.31			86	%
NPAs to total loans held for investment plus OREO, other repossessed assets, and nonperforming LHFS												0.71			0.49			0.22			45
ALLL to period-end loans held for investment ^{1, 2}												1.25			1.39			(0.14		)	(10	)
ALLL to period-end loans held for investment, excluding government-guaranteed and fair value loans ^{1, 3}												1.31			1.44			(0.13		)	(9	)
ALLL to NPLs ^{1, 2}												1.89x			3.82x			(1.93x)			(51	)
ALLL to annualized net charge-offs ¹	3.22x			5.23x			(2.01x)			(38	)	3.98x			4.87x			(0.89x)			(18	)

¹This ratio is computed using the allowance for loan and lease losses ("ALLL").

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

³ See Appendix A for additional information and a 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
	June 30			March 31			Increase/(decrease)					December 31			September 30			June 30
(Dollars in millions) (Unaudited)	2016			2016			Amount			% ⁴		2015			2015			2015
CREDIT DATA
Allowance for credit losses, beginning of period		$1,831			$1,815			$16		1	%		$1,847			$1,886			$1,947
Provision/(benefit) for unfunded commitments	5			(2		)	7			NM		2			9			(2		)
Provision/(benefit) for loan losses:
Commercial	114			98			16			16		59			33			33
Residential	(4		)	(32		)	28			88		(37		)	(39		)	(16		)
Consumer	31			37			(6		)	(16	)	27			29			11
Total provision for loan losses	141			103			38			37		49			23			28
Charge-offs:
Commercial	(99		)	(32		)	67			NM		(35		)	(23		)	(31		)
Residential	(33		)	(41		)	(8		)	(20	)	(41		)	(47		)	(61		)
Consumer	(35		)	(39		)	(4		)	(10	)	(38		)	(32		)	(31		)
Total charge-offs	(167		)	(112		)	55			49		(114		)	(102		)	(123		)
Recoveries:
Commercial	9			10			(1		)	(10	)	10			10			15
Residential	9			6			3			50		11			11			10
Consumer	12			11			1			9		10			10			11
Total recoveries	30			27			3			11		31			31			36
Net charge-offs	(137		)	(85		)	52			61		(83		)	(71		)	(87		)
Allowance for credit losses, end of period		$1,840			$1,831			$9		—	%		$1,815			$1,847			$1,886
Components:
ALLL		$1,774			$1,770			$4		—	%		$1,752			$1,786			$1,834
Unfunded commitments reserve	66			61			5			8		63			61			52
Allowance for credit losses		$1,840			$1,831			$9		—	%		$1,815			$1,847			$1,886
Net charge-offs to average loans held for investment (annualized):
Commercial	0.46		%	0.12		%	0.34			NM		0.13		%	0.07		%	0.09		%
Residential	0.24			0.36			(0.12		)	(33	)%	0.30			0.37			0.53
Consumer	0.39			0.49			(0.10		)	(20	)	0.51			0.42			0.38
Total net charge-offs to total average loans held for investment	0.39			0.25			0.14			56		0.24			0.21			0.26
Period Ended
Nonaccrual/NPLs:
Commercial		$503			$577			($74	)	(13	)%		$319			$138			$158
Residential	433			390			43			11		344			318			318
Consumer	8			8			—			—		9			7			5
Total nonaccrual/NPLs	944			975			(31		)	(3	)	672			463			481
OREO	49			52			(3		)	(6	)	56			62			72
Other repossessed assets	8			8			—			—		7			7			6
Nonperforming LHFS	—			—			—			—		—			—			98
Total NPAs		$1,001			$1,035			($34	)	(3	)%		$735			$532			$657
Accruing restructured loans		$2,541			$2,569			($28	)	(1	)%		$2,603			$2,571			$2,576
Nonaccruing restructured loans	307			233			74			32		176			182			185
Accruing loans held for investment past due > 90 days (guaranteed)	999			962			37			4		939			873			871
Accruing loans held for investment past due > 90 days (non-guaranteed)	42			34			8			24		42			32			39
Accruing LHFS past due > 90 days	1			1			—			—		—			1			1
NPLs to total loans held for investment	0.67		%	0.70		%	(0.03		)	(4	)%	0.49		%	0.35		%	0.36		%
NPAs to total loans held for investment plus OREO, other repossessed assets, and nonperforming LHFS	0.71			0.74			(0.03		)	(4	)	0.54			0.40			0.49
ALLL to period-end loans held for investment ^{1, 2}	1.25			1.27			(0.02		)	(2	)	1.29			1.34			1.39
ALLL to period-end loans held for investment, excluding government-guaranteed and fair value loans ^{1, 3}	1.31			1.32			(0.01		)	(1	)	1.34			1.39			1.44
ALLL to NPLs ^{1, 2}	1.89x			1.83x			0.06x			3		2.62x			3.87x			3.82x
ALLL to annualized net charge-offs ¹	3.22x			5.20x			(1.98x)			(38	)	5.33x			6.33x			5.23x

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 additional information and a 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 June 30									Six Months Ended June 30
(Dollars in millions) (Unaudited)	MSRs - Fair Value			Other			Total			MSRs - Fair Value			Other			Total
OTHER INTANGIBLE ASSETS ROLLFORWARD
Balance, beginning of period		$1,181			$12			$1,193			$1,206			$13			$1,219
Amortization	—			(2		)	(2		)	—			(3		)	(3		)
Servicing rights originated	71			13			84			117			13			130
Servicing rights purchased	53			—			53			109			—			109
Fair value changes due to inputs and assumptions ¹	150			—			150			72			—			72
Other changes in fair value ²	(61		)	—			(61		)	(109		)	—			(109		)
Servicing rights sold	(1		)	—			(1		)	(2		)	—			(2		)
Balance, June 30, 2015		$1,393			$23			$1,416			$1,393			$23			$1,416

Balance, beginning of period		$1,182			$16			$1,198			$1,307			$18			$1,325
Amortization	—			(2		)	(2		)	—			(4		)	(4		)
Servicing rights originated	64			—			64			110			—			110
Servicing rights purchased	—			—			—			77			—			77
Fair value changes due to inputs and assumptions ¹	(129		)	—			(129		)	(333		)	—			(333		)
Other changes in fair value ²	(56		)	—			(56		)	(99		)	—			(99		)
Servicing rights sold	—			—			—			(1		)	—			(1		)
Balance, June 30, 2016		$1,061			$14			$1,075			$1,061			$14			$1,075

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
	June 30		March 31		December 31		September 30		June 30
(Shares in thousands) (Unaudited)	2016		2016		2015		2015		2015
COMMON SHARES ROLLFORWARD
Balance, beginning of period	505,443		508,712		514,106		518,045		522,031
Common shares issued for employee benefit plans	752		991		2		85		227
Repurchase of common stock	(4,783	)	(4,260	)	(5,396	)	(4,024	)	(4,213	)
Balance, end of period	501,412		505,443		508,712		514,106		518,045



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

	Three Months Ended															Six Months Ended
	June 30			March 31			December 31			September 30			June 30			June 30
(Dollars in millions) (Unaudited)	2016			2016			2015			2015			2015			2016			2015
Net interest income		$1,288			$1,282			$1,246			$1,211			$1,167			$2,569			$2,307
Fully taxable-equivalent ("FTE") adjustment	35			36			35			36			36			71			71
Net interest income-FTE ²	1,323			1,318			1,281			1,247			1,203			2,640			2,378
Noninterest income	898			781			765			811			874			1,680			1,692
Total revenue-FTE ²		$2,221			$2,099			$2,046			$2,058			$2,077			$4,320			$4,070

Return on average common shareholders’ equity ³	8.43		%	7.71		%	8.32		%	9.34		%	8.54		%	8.07		%	8.09		%
Impact of removing average intangible assets and related amortization, other than MSRs and other servicing rights	3.11			2.89			3.17			3.61			3.34			3.00			3.17
Return on average tangible common shareholders' equity ⁴	11.54		%	10.60		%	11.49		%	12.95		%	11.88		%	11.07		%	11.26		%

Net interest margin	2.91		%	2.96		%	2.90		%	2.86		%	2.78		%	2.93		%	2.76		%
Impact of FTE adjustment	0.08			0.08			0.08			0.08			0.08			0.08			0.09
Net interest margin-FTE ²	2.99		%	3.04		%	2.98		%	2.94		%	2.86		%	3.01		%	2.85		%

Noninterest expense		$1,345			$1,318			$1,288			$1,264			$1,328			$2,663			$2,608
Total revenue	2,186			2,063			2,011			2,022			2,041			4,249			3,999
Efficiency ratio ⁵	61.53		%	63.89		%	64.05		%	62.51		%	65.07		%	62.67		%	65.22		%
Impact of FTE adjustment	(0.97		)	(1.08		)	(1.09		)	(1.07		)	(1.15		)	(1.02		)	(1.15		)
Efficiency ratio-FTE ^{2, 5}	60.56		%	62.81		%	62.96		%	61.44		%	63.92		%	61.65		%	64.07		%
Impact of excluding amortization related to intangible assets and certain tax credits	(0.51		)	(0.48		)	(0.85		)	(0.45		)	(0.33		)	(0.49		)	(0.32		)
Tangible efficiency ratio-FTE ^{2, 6}	60.05		%	62.33		%	62.11		%	60.99		%	63.59		%	61.16		%	63.75		%

Basel III Common Equity Tier 1 ("CET1") ratio (transitional)⁷	9.84		%	9.90		%	9.96		%	10.04		%	9.93		%
Impact of MSRs and other under fully phased-in approach	(0.14		)	(0.13		)	(0.16		)	(0.15		)	(0.17		)
Basel III fully phased-in CET1 ratio⁷	9.70		%	9.77		%	9.80		%	9.89		%	9.76		%

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

² The Company presents net interest income-FTE, total revenue-FTE, net interest margin-FTE, efficiency ratio-FTE, and tangible efficiency ratio-FTE on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. Total revenue-FTE equals net interest income-FTE plus noninterest income.

³ Beginning January 1, 2016, noncontrolling interest was removed from common shareholders' equity in the calculation to provide a more accurate measure of the Company's return on common equity. Accordingly, amounts for periods prior to January 1, 2016 have been updated for consistent presentation.

⁴ The Company presents return on average tangible common shareholders' equity, which removes the after-tax impact of purchase accounting intangible assets from average common shareholders' equity and removes related intangible asset amortization from net income available to common shareholders. The Company believes this measure is useful to investors because, by removing the amount of intangible assets and amortization expense (the level of which may vary from company to company), it allows investors to more easily compare the Company’s return on average common shareholders' equity to other companies in the industry. The Company also believes that removing these items provides a more relevant measure of the return on the Company's common shareholders' equity. This measure is utilized by management to assess the profitability of the Company.

⁵ Efficiency ratio is computed by dividing noninterest expense by total revenue. Efficiency ratio-FTE is computed by dividing noninterest expense by total revenue-FTE.

⁶ The Company 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.

⁷ 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

	June 30			March 31			December 31			September 30			June 30
(Dollars in millions, except per share data) (Unaudited)	2016			2016			2015			2015			2015
Total shareholders' equity		$24,464			$24,053			$23,437			$23,664			$23,223
Goodwill, net of deferred taxes of $246 million, $243 million, $240 million, $237 million, and $234 million, respectively	(6,091		)	(6,094		)	(6,097		)	(6,100		)	(6,103		)
Other intangible assets (including MSRs and other servicing rights), net of deferred taxes of $2 million, $3 million, $3 million, $4 million, and $4 million, respectively	(1,073		)	(1,195		)	(1,322		)	(1,279		)	(1,412		)
MSRs and other servicing rights	1,067			1,189			1,316			1,272			1,406
Tangible equity	18,367			17,953			17,334			17,557			17,114
Noncontrolling interest	(103		)	(101		)	(108		)	(106		)	(108		)
Preferred stock	(1,225		)	(1,225		)	(1,225		)	(1,225		)	(1,225		)
Tangible common equity		$17,039			$16,627			$16,001			$16,226			$15,781

Total assets		$199,073			$194,158			$190,817			$187,036			$188,858
Goodwill	(6,337		)	(6,337		)	(6,337		)	(6,337		)	(6,337		)
Other intangible assets (including MSRs and other servicing rights)	(1,075		)	(1,198		)	(1,325		)	(1,282		)	(1,416		)
MSRs and other servicing rights	1,067			1,189			1,316			1,272			1,406
Tangible assets		$192,728			$187,812			$184,471			$180,689			$182,511
Tangible equity to tangible assets ²	9.53		%	9.56		%	9.40		%	9.72		%	9.38		%
Tangible common equity to tangible assets ²	8.84			8.85			8.67			8.98			8.65
Tangible book value per common share ³		$33.98			$32.90			$31.45			$31.56			$30.46

Total loans held for investment		$141,656			$139,746			$136,442			$133,560			$132,538
Government-guaranteed loans held for investment	(6,096		)	(5,888		)	(5,551		)	(5,215		)	(5,026		)
Fair value loans held for investment	246			(255		)	(257		)	(262		)	(263		)
Total loans held for investment, excluding government-guaranteed and fair value loans		$135,806			$133,603			$130,634			$128,083			$127,249
ALLL to total loans held for investment, excluding government-guaranteed and fair value loans ⁴	1.31		%	1.32		%	1.34		%	1.39		%	1.44		%

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

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

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

⁴ The Company 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 June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁵		2016			2015			% Change
Statements of Income:
Net interest income		$705			$675		4	%		$1,404			$1,341		5	%
FTE adjustment	—			—			—		—			—			—
Net interest income-FTE ¹	705			675			4		1,404			1,341			5
Provision for credit losses ²	49			9			NM		77			79			(3	)
Net interest income-FTE - after provision for credit losses ¹	656			666			(2	)	1,327			1,262			5
Noninterest income before net securities gains/(losses)	366			389			(6	)	721			752			(4	)
Net securities gains/(losses)	—			—			—		—			—			—
Total noninterest income	366			389			(6	)	721			752			(4	)
Noninterest expense before amortization	757			729			4		1,502			1,457			3
Amortization	1			1			—		1			3			(67	)
Total noninterest expense	758			730			4		1,503			1,460			3
Income-FTE - before provision for income taxes ¹	264			325			(19	)	545			554			(2	)
Provision for income taxes	98			121			(19	)	202			206			(2	)
FTE adjustment	—			—			—		—			—			—
Net income including income attributable to noncontrolling interest	166			204			(19	)	343			348			(1	)
Less: net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$166			$204		(19	)		$343			$348		(1	)

Total revenue		$1,071			$1,064		1			$2,125			$2,093		2
Total revenue-FTE ¹	1,071			1,064			1		2,125			2,093			2
Selected Average Balances:
Total loans		$42,513			$40,339		5	%		$42,054			$40,730		3	%
Goodwill	4,262			4,262			—		4,262			4,262			—
Other intangible assets excluding MSRs	13			12			8		15			13			15
Total assets	48,181			46,485			4		47,723			46,804			2
Consumer and commercial deposits	97,052			91,235			6		95,171			90,873			5
Performance Ratios:
Efficiency ratio	70.77		%	68.60		%			70.71		%	69.73		%
Impact of FTE adjustment	—			—					—			—
Efficiency ratio-FTE ¹	70.77			68.60					70.71			69.73
Impact of excluding amortization and associated funding cost of intangible assets	(1.47		)	(1.56		)			(1.50		)	(1.62		)
Tangible efficiency ratio-FTE ^{1, 3}	69.30		%	67.04		%			69.21		%	68.11		%
Other Information (End of Period) ⁴:
Trust and institutional managed assets										$40,541			$42,587		(5	)%
Retail brokerage managed assets									11,751			10,547			11
Total managed assets									52,292			53,134			(2	)
Non-managed assets									93,574			93,811			—
Total assets under advisement										$145,866			$146,945		(1	)

Net interest income-FTE, income-FTE, total revenue-FTE, efficiency ratio-FTE, and tangible efficiency ratio-FTE are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. 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.


²	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.

A tangible efficiency ratio is presented, which excludes the amortization related to intangible assets and certain tax credits. The Company believes this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare this segment's efficiency to other business segments and companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.


⁴	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.

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



SunTrust Banks, Inc. and Subsidiaries WHOLESALE BANKING
	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁴		2016			2015			% Change ⁴
Statements of Income:
Net interest income		$448			$444		1	%		$902			$875		3	%
FTE adjustment	34			36			(6	)	69			70			(1	)
Net interest income-FTE ¹	482			480			—		971			945			3
Provision for credit losses ²	103			30			NM		186			26			NM
Net interest income-FTE - after provision for credit losses ¹	379			450			(16	)	785			919			(15	)
Noninterest income before net securities gains/(losses)	301			337			(11	)	587			622			(6	)
Net securities gains/(losses)	—			—			—		—			—			—
Total noninterest income	301			337			(11	)	587			622			(6	)
Noninterest expense before amortization	403			381			6		802			772			4
Amortization	11			5			NM		20			11			82
Total noninterest expense	414			386			7		822			783			5
Income-FTE - before provision for income taxes ¹	266			401			(34	)	550			758			(27	)
Provision for income taxes	47			102			(54	)	101			188			(46	)
FTE adjustment	34			36			(6	)	69			70			(1	)
Net income including income attributable to noncontrolling interest	185			263			(30	)	380			500			(24	)
Less: net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$185			$263		(30	)		$380			$500		(24	)

Total revenue		$749			$781		(4	)		$1,489			$1,497		(1	)
Total revenue-FTE ¹	783			817			(4	)	1,558			1,567			(1	)
Selected Average Balances:
Total loans		$72,066			$67,643		7	%		$71,412			$67,689		6	%
Goodwill	2,075			2,075			—		2,075			2,075			—
Other intangible assets excluding MSRs	1			—			NM		1			—			NM
Total assets	86,060			81,003			6		85,219			81,082			5
Consumer and commercial deposits	54,105			48,639			11		53,848			48,105			12
Performance Ratios:
Efficiency ratio	55.27		%	49.42		%			55.20		%	52.30		%
Impact of FTE adjustment	(2.42		)	(2.11		)			(2.45		)	(2.31		)
Efficiency ratio-FTE ¹	52.85			47.31					52.75			49.99
Impact of excluding amortization and associated funding cost of intangible assets	(2.06		)	(1.28		)			(1.99		)	(1.37		)
Tangible efficiency ratio-FTE ^{1, 3}	50.79		%	46.03		%			50.76		%	48.62		%


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


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



SunTrust Banks, Inc. and Subsidiaries MORTGAGE BANKING
	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁴		2016			2015			% Change ⁴
Statements of Income:
Net interest income		$111			$123		(10	)%		$224			$244		(8	)%
FTE adjustment	—			—			—		—			—			—
Net interest income-FTE ¹	111			123			(10	)	224			244			(8	)
Benefit for credit losses ²	(6		)	(13		)	(54	)	(16		)	(23		)	(30	)
Net interest income-FTE - after benefit for credit losses ¹	117			136			(14	)	240			267			(10	)
Noninterest income before net securities gains/(losses)	165			105			57		289			236			22
Net securities gains/(losses)	—			—			—		—			—			—
Total noninterest income	165			105			57		289			236			22
Noninterest expense before amortization	178			180			(1	)	353			357			(1	)
Amortization	—			—			—		—			—			—
Total noninterest expense	178			180			(1	)	353			357			(1	)
Income-FTE - before provision for income taxes ¹	104			61			70		176			146			21
Provision for income taxes	40			3			NM		67			33			NM
FTE adjustment	—			—			—		—			—			—
Net income including income attributable to noncontrolling interest	64			58			10		109			113			(4	)
Less: net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$64			$58		10			$109			$113		(4	)

Total revenue		$276			$228		21			$513			$480		7
Total revenue-FTE ¹	276			228			21		513			480			7
Selected Average Balances:
Total loans		$26,590			$24,793		7	%		$26,268			$24,617		7	%
Goodwill	—			—			—		—			—			—
Other intangible assets excluding MSRs	—			—			—		—			—			—
Total assets	30,117			28,555			5		29,660			28,247			5
Consumer and commercial deposits	2,997			2,980			1		2,654			2,671			(1	)
Performance Ratios:
Efficiency ratio	64.60		%	78.91		%			68.97		%	74.36		%
Impact of FTE adjustment	—			—					—			—
Efficiency ratio-FTE ¹	64.60			78.91					68.97			74.36
Impact of excluding amortization and associated funding cost of intangible assets	—			—					—			—
Tangible efficiency ratio-FTE ^{1, 3}	64.60		%	78.91		%			68.97		%	74.36		%
Production Data:
Channel mix
Retail		$3,404			$3,144		8	%		$5,655			$5,569		2	%
Correspondent	3,879			3,347			16		6,580			6,032			9
Total production		$7,283			$6,491		12			$12,235			$11,601		5
Channel mix - percent
Retail	47		%	48		%			46		%	48		%
Correspondent	53			52					54			52
Total production	100		%	100		%			100		%	100		%
Purchase and refinance mix
Refinance		$3,269			$3,051		7			$5,881			$6,122		(4	)
Purchase	4,014			3,440			17		6,354			5,479			16
Total production		$7,283			$6,491		12			$12,235			$11,601		5
Purchase and refinance mix - percent
Refinance	45		%	47		%			48		%	53		%
Purchase	55			53					52			47
Total production	100		%	100		%			100		%	100		%

Applications		$11,225			$8,823		27			$20,430			$18,616		10
Mortgage Servicing Data (End of Period):
Total loans serviced										$154,474			$145,491		6	%
Total loans serviced for others									125,408			118,394			6
Net carrying value of MSRs									1,061			1,393			(24	)
Ratio of net carrying value of MSRs to total loans serviced for others									0.846		%	1.177		%

¹ Net interest income-FTE, income-FTE, total revenue-FTE, efficiency ratio-FTE, and tangible efficiency ratio-FTE are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. 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.

² 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.

³ A tangible efficiency ratio is presented, which excludes the amortization related to intangible assets and certain tax credits. The Company believes this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare this segment's efficiency to other business segments and companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.

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



SunTrust Banks, Inc. and Subsidiaries CORPORATE OTHER
	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁴		2016			2015			% Change ⁴
Statements of Income:
Net interest income/(expense) ¹		$24			($75	)	NM			$39			($153	)	NM
FTE adjustment	1			—			NM		2			1			100
Net interest income/(expense)-FTE ²	25			(75		)	NM		41			(152		)	NM
Provision/(benefit) for credit losses ³	—			—			—		(1		)	—			NM
Net interest income/(expense)-FTE - after provision/(benefit) for credit losses ²	25			(75		)	NM		42			(152		)	NM
Noninterest income before net securities gains	62			29			NM		79			68			16
Net securities gains	4			14			(71	)	4			14			(71	)
Total noninterest income	66			43			53		83			82			1
Noninterest expense before amortization	(4		)	31			NM		(15		)	9			NM
Amortization	(1		)	1			NM		—			(1		)	(100	)
Total noninterest expense	(5		)	32			NM		(15		)	8			NM
Income/(loss)-FTE - before provision/(benefit) for income taxes ²	96			(64		)	NM		140			(78		)	NM
Provision/(benefit) for income taxes	16			(24		)	NM		26			(34		)	NM
FTE adjustment	1			—			NM		2			1			100
Net income/(loss) including income attributable to noncontrolling interest	79			(40		)	NM		112			(45		)	NM
Less: net income attributable to noncontrolling interest	2			2			—		5			4			25
Net income/(loss)		$77			($42	)	NM			$107			($49	)	NM

Total revenue		$90			($32	)	NM			$122			($71	)	NM
Total revenue-FTE ²	91			(32		)	NM		124			(70		)	NM

Selected Average Balances:
Total loans		$69			$54		28	%		$71			$46		54	%
Securities available for sale	28,021			26,309			7		27,647			26,061			6
Goodwill	—			—			—		—			—			—
Other intangible assets excluding MSRs	—			—			—		—			—			—
Total assets	33,949			32,267			5		33,059			32,652			1
Consumer and commercial deposits	12			(3		)	NM		25			21			19

Other Information (End of Period):
Duration of investment portfolio (in years)									4.1			4.4
Net interest income interest rate sensitivity:
% Change in net interest income under:
Instantaneous 200 basis point increase in rates over next 12 months									4.2		%	4.4		%
Instantaneous 100 basis point increase in rates over next 12 months									2.3		%	2.3		%
Instantaneous 25 basis point decrease in rates over next 12 months									(0.7		)%	(0.9		)%


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

Net interest income-FTE, income-FTE, and total revenue-FTE are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. Total revenue-FTE equals net interest income on an FTE basis plus noninterest income.


³	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.

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

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED SEGMENT TOTALS



	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions) (Unaudited)	2016			2015			% Change ²		2016			2015			% Change ²
Statements of Income:
Net interest income		$1,288			$1,167		10	%		$2,569			$2,307		11	%
FTE adjustment	35			36			(3	)	71			71			—
Net interest income-FTE ¹	1,323			1,203			10		2,640			2,378			11
Provision for credit losses	146			26			NM		246			82			NM
Net interest income-FTE - after provision for credit losses ¹	1,177			1,177			—		2,394			2,296			4
Noninterest income before net securities gains	894			860			4		1,676			1,678			—
Net securities gains	4			14			(71	)	4			14			(71	)
Total noninterest income	898			874			3		1,680			1,692			(1	)
Noninterest expense before amortization	1,334			1,321			1		2,642			2,595			2
Amortization	11			7			57		21			13			62
Total noninterest expense	1,345			1,328			1		2,663			2,608			2
Income-FTE - before provision for income taxes ¹	730			723			1		1,411			1,380			2
Provision for income taxes	201			202			—		396			393			1
FTE adjustment	35			36			(3	)	71			71			—
Net income including income attributable to noncontrolling interest	494			485			2		944			916			3
Less: net income attributable to noncontrolling interest	2			2			—		5			4			25
Net income		$492			$483		2			$939			$912		3

Total revenue		$2,186			$2,041		7			$4,249			$3,999		6
Total revenue-FTE ¹	2,221			2,077			7		4,320			4,070			6

Selected Average Balances:
Total loans		$141,238			$132,829		6	%		$139,805			$133,082		5	%
Goodwill	6,337			6,337			—		6,337			6,337			—
Other intangible assets excluding MSRs	14			12			17		16			13			23
Total assets	198,307			188,310			5		195,661			188,785			4
Consumer and commercial deposits	154,166			142,851			8		151,698			141,670			7

Performance Ratios:
Efficiency ratio	61.53		%	65.07		%			62.67		%	65.22		%
Impact of FTE adjustment	(0.97		)	(1.15		)			(1.02		)	(1.15		)
Efficiency ratio-FTE ¹	60.56			63.92					61.65			64.07
Impact of excluding amortization and associated funding cost of intangible assets	(0.51		)	(0.33		)			(0.49		)	(0.32		)
Tangible efficiency ratio-FTE ¹	60.05		%	63.59		%			61.16		%	63.75		%

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

Suntrust Banks Inactive 8-KSunTrust Reports Second Quarter 2016 Results