Suntrust Banks 8K SunTrust Reports Fourth Quarter and Full Year 2016 Results | SEC 20 Jan 17

Exhibit 99.1

News Release



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

For Immediate Release

January 20, 2017

SunTrust Reports Fourth Quarter and Full Year 2016 Results

2016 Marks Fifth Consecutive Year of Improved Financial Performance for the Company

ATLANTA -- SunTrust Banks, Inc. (NYSE: STI) reported net income available to common shareholders of $448 million, or $0.90 per average common diluted share. This compares to $0.91 for the prior quarter and $0.91 for the fourth quarter of 2015. For the full year, earnings per share increased 1% from $3.58 in 2015 to $3.60 in 2016 driven by strong revenue growth and higher capital returns, partially offset by a higher provision expense and higher noninterest expense.

“Our performance this quarter marked a solid conclusion to a strong year for SunTrust," said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. "2016 was the fifth consecutive year in which we grew earnings per share, improved efficiency, and increased capital return, demonstrating our consistent ability to deliver on the commitments we’ve made to our shareholders. I am confident that 2017 will be another year in which we continue our positive financial performance trajectory and improve financial confidence for our clients and communities."

Fourth Quarter 2016 Financial Highlights

(Commentary is on a fully taxable-equivalent basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a tax equivalent basis, net interest income, net interest margin, total revenue, and efficiency ratios are provided on a fully taxable-equivalent basis, which generally assumes a 35% marginal federal tax rate. We provide unadjusted amounts in the table on page 3 of this news release and detailed reconciliations and additional information in Appendix A on pages 23 and 24.)

Income Statement


•	Net income available to common shareholders was $448 million, or $0.90 per average common diluted share, compared to $0.91 for the prior quarter and $0.91 for the fourth quarter of 2015.


•	Total revenue decreased 2% compared to the prior quarter and increased 7% compared to the fourth quarter of 2015.


◦	The sequential decline was driven by lower noninterest income (primarily mortgage-related), which was partially offset by higher net interest income.


◦	Compared to the fourth quarter of 2015, revenue growth was driven by increases in both net interest income and noninterest income.


•	Net interest margin was 3.00% in the current quarter, up 4 basis points sequentially and up 2 basis points compared to the prior year quarter driven by higher earning asset yields and continued positive mix shift in the loan portfolio.


•	Provision for credit losses increased $4 million sequentially and $50 million compared to the fourth quarter of 2015 due to higher net charge-offs.


•	Noninterest expense declined 1% sequentially and increased 8% compared to the prior year quarter.


◦	The sequential decrease was driven by reductions across most expense categories, partially offset by higher legal and consulting fees tied to business improvement initiatives and higher marketing and customer development costs.


◦	Compared to the prior year quarter, the increase was driven by ongoing, strategic investments, higher compensation associated with improved business performance, investments in technology, and higher regulatory and compliance costs.


•	The efficiency and tangible efficiency ratios in the current quarter were 63.7% and 63.1%, respectively, and were 62.6% and 62.0%, respectively, on a full year basis.


◦	The full year efficiency and tangible efficiency ratios improved by 58 and 65 basis points, respectively, compared to 2015, driven by positive operating leverage.

Balance Sheet


•	Average loan balances increased $321 million sequentially, driven by growth in consumer loans, and 5% compared to the fourth quarter of 2015, due to broad-based growth across most asset classes.


◦	Average sequential loan growth was impacted by a $1 billion auto loan sale in the latter part of the prior quarter. Period-end loan balances increased $1.8 billion, or 1%.


•	Average consumer and commercial deposits increased 2% sequentially and 7% compared to the fourth quarter of 2015, driven by continued success in deepening client relationships.

Capital


•	Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 ("CET1") ratio was estimated to be 9.6% as of December 31, 2016, and 9.5% on a fully phased-in basis.


•	During the quarter, the Company repurchased $240 million of its outstanding common stock in accordance with its 2016 capital plan.


•	Book value per common share was $45.38 and tangible book value per common share was $32.95, down 3% and 4%, respectively, from September 30, 2016, given the decline in accumulated other comprehensive income (AOCI) due to the increase in long-term rates.

Asset Quality


•	Nonperforming loans decreased $104 million from the prior quarter and represented 0.59% of total loans at December 31, 2016.


•	Net charge-offs for the current quarter were $136 million, or 0.38% of average loans on an annualized basis, up $10 million compared to the prior quarter.


•	The provision for credit losses increased $4 million sequentially due primarily to higher net charge-offs and increased loan growth, largely offset by a lower energy-related provision expense.


•	At December 31, 2016, the ALLL to period-end loans ratio declined 4 basis points from the prior quarter driven by the resolution of problem energy credits.





Income Statement (Dollars in millions, except per share data)	4Q 2016			3Q 2016			2Q 2016			1Q 2016			4Q 2015
Net interest income	$1,343			$1,308			$1,288			$1,282			$1,246
Net interest income-FTE ²	1,377			1,342			1,323			1,318			1,281
Net interest margin	2.93		%	2.88		%	2.91		%	2.96		%	2.90		%
Net interest margin-FTE ²	3.00			2.96			2.99			3.04			2.98
Noninterest income	$815			$889			$898			$781			$765
Total revenue	2,158			2,197			2,186			2,063			2,011
Total revenue-FTE ²	2,192			2,231			2,221			2,099			2,046
Noninterest expense	1,397			1,409			1,345			1,318			1,288
Provision for credit losses	101			97			146			101			51
Net income available to common shareholders	448			457			475			430			467
Earnings per average common diluted share	0.90			0.91			0.94			0.84			0.91

Balance Sheet (Dollars in billions)
Average loans		$142.6			$142.3			$141.2			$138.4			$135.2
Average consumer and commercial deposits	158.0			155.3			154.2			149.2			148.2

Capital
Capital ratios at period end ¹ :
Tier 1 capital (transitional)	10.33		%	10.50		%	10.57		%	10.63		%	10.80		%
Common Equity Tier 1 ("CET1") (transitional)	9.63			9.78			9.84			9.90			9.96
Common Equity Tier 1 ("CET1") (fully phased-in) ²	9.48			9.66			9.73			9.77			9.80
Total average shareholders’ equity to total average assets	11.84			12.12			12.11			12.33			12.43

Asset Quality
Net charge-offs to average loans (annualized)	0.38		%	0.35		%	0.39		%	0.25		%	0.24		%
Allowance for loan and lease losses to period-end loans	1.19			1.23			1.25			1.27			1.29
Nonperforming loans to total loans	0.59			0.67			0.67			0.70			0.49

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

² See Appendix A on 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, a decrease of $39 million compared to the prior quarter. Net interest income increased $35 million sequentially due to a higher net interest margin and growth in average earning assets. These increases were offset by a $74 million decline in noninterest income driven by lower mortgage-related income, partially offset by an increase in other noninterest income. Compared to the fourth quarter of 2015, total revenue increased $146 million, driven by a $96 million increase in net interest income and a $50 million increase in noninterest income due primarily to growth in capital markets, mortgage production, and other noninterest income.

For 2016, total revenue was $8.7 billion, an increase of $568 million, or 7%, compared to 2015. The increase was driven by higher net interest income, as well as strong growth in mortgage and capital markets-related income, partially offset by lower wealth management-related income and lower securities gains.

Net Interest Income

Net interest income was $1.4 billion for the current quarter, an increase of $35 million and $96 million compared to the prior quarter and prior year quarter, respectively. Both increases were driven by improvements in the net interest margin and growth in average earning assets.

Net interest margin for the current quarter was 3.00%, compared to 2.96% in the prior quarter and 2.98% in the fourth quarter of 2015. The 4 basis point sequential increase and 2 basis point year-over-year increase were driven by higher earning asset yields (as a result of the increase in benchmark interest rates and continued positive mix shift in the portfolio), partially offset by higher funding costs.

For 2016, net interest income was $5.4 billion, a $453 million, or 9%, increase compared to 2015. The net interest margin was 3.00% for 2016, a 9 basis point increase compared to 2015. The increases in both net interest income and net interest margin were driven by the same factors that impacted the sequential and year-over-year comparisons discussed above.

Noninterest Income

Noninterest income was $815 million for the current quarter, compared to $889 million for the prior quarter and $765 million for the fourth quarter of 2015. The $74 million sequential decrease was due to declines in mortgage and capital markets-related income, as well as client transaction and wealth management-related revenues, partially offset by an increase in other noninterest income. Compared to the fourth quarter of 2015, noninterest income increased $50 million, driven by higher capital markets and mortgage production-related income, partially offset by declines in mortgage servicing and wealth management-related income.

For 2016, noninterest income was $3.4 billion, an increase of $115 million, or 4%, compared to 2015 due primarily to higher mortgage and capital markets-related income, partially offset by a decline in wealth management-related income.

Investment banking income was $122 million for the current quarter, compared to $147 million in the prior quarter and $104 million in the fourth quarter of 2015. The $25 million sequential decrease was due to declines in activity across most product categories following the record performance in the prior quarter. Compared to the fourth quarter of 2015, the increase was driven by strong deal flow activity in syndicated finance. For 2016, investment banking income increased 7%, which marks the ninth consecutive year of record performance.

Trading income was $58 million for the current quarter, compared to $65 million in the prior quarter and $42 million in the fourth quarter of 2015. The sequential decrease was driven by mark-to-market losses on fixed income inventory in relation to the increase in interest rates. The increase compared to the fourth quarter of 2015 was driven primarily by lower counterparty credit valuation reserves in connection with higher interest rates.

Mortgage production income for the current quarter was $78 million, compared to $118 million for the prior quarter and $53 million for the fourth quarter of 2015. The $40 million decrease from the prior quarter was due primarily to lower refinancing activity and lower gain-on-sale margins. The $25 million increase compared to the fourth quarter of 2015 was primarily due to higher purchase and refinancing activity. For the full year, mortgage production income increased $96 million, or 36%, as a result of increased purchase and refinancing activity and continued market share gains.

Mortgage servicing income was $25 million for the current quarter, compared to $49 million in the prior quarter and $56 million in the fourth quarter of 2015. The $24 million sequential decrease and $31 million year-over-year decrease were driven primarily by lower net hedge performance and higher servicing asset decay expense. On a full year basis, servicing income increased $20 million relative to 2015 as a result of 8% growth in the servicing portfolio and better net hedge performance. At December 31, 2016 and 2015, the servicing portfolio was $160.2 billion and $148.2 billion, respectively.

Trust and investment management income was $73 million for the current quarter, compared to $80 million for the prior quarter and $79 million for the fourth quarter of 2015. The $7 million decrease from the prior quarter was primarily related to seasonally higher tax-related trust fees earned in the prior quarter. The $6 million decrease compared to the prior year quarter was primarily due to a decline in trust and institutional assets under management.

Client transaction-related fees (namely service charges on deposits, other charges and fees, and card fees) decreased $10 million compared to the prior quarter due to the impact of the enhanced posting order process instituted during the fourth quarter and lower client-related transactional activity. Compared to fourth quarter of 2015, client transaction-related fees were stable.

Retail investment income was $69 million for the current quarter, compared to $71 million in both the prior quarter and the fourth quarter of 2015. The $2 million decline compared to the prior quarter and prior year quarter was a result of reduced transactional activity, partially offset by an increase in retail brokerage managed assets.

Other noninterest income was $62 million for the current quarter, compared to $21 million in the prior quarter and $30 million in the fourth quarter of 2015. The $41 million increase compared to the prior quarter and $32 million increase compared to the prior year quarter was due primarily to higher client transaction activity within certain Wholesale Banking businesses (Structured Real Estate and SunTrust Community Capital) in the fourth quarter as well as certain asset impairments recognized in the third quarter.

Noninterest Expense

Noninterest expense was $1.4 billion in the current quarter, representing a sequential decline of $12 million and an increase of $109 million compared to the fourth quarter of 2015. The sequential decrease was driven by reductions across most expense categories, partially offset by higher legal and consulting fees and higher marketing and customer development costs. The increase relative to the prior year quarter was driven by increases across most expense categories, partially offset by lower outside processing and software expenses.

For 2016, noninterest expense was $5.5 billion compared to $5.2 billion for 2015. The $308 million, or 6%, increase was related to ongoing, strategic investments, higher compensation associated with improved business performance, investments in technology, and higher regulatory and compliance costs.

Employee compensation and benefits expense was $762 million in the current quarter, compared to $773 million in the prior quarter and $690 million in the fourth quarter of 2015. The sequential decrease of $11 million was due to lower employee benefits costs, largely offset by increased incentive compensation expense tied to the performance of the Company’s stock price (which increased 25% during the quarter). The $72 million increase compared to the fourth quarter of 2015 was due primarily to higher compensation costs associated with improved business performance, ongoing investments in talent, and increased incentive compensation expense tied to the Company's stock price (which increased 28% compared to the prior year).

Operating losses were $23 million in the current quarter, compared to $35 million in the prior quarter and $22 million in the fourth quarter of 2015. The sequential decrease of $12 million was due primarily to higher regulatory, compliance, and legal charges recognized during the prior quarter.

Outside processing and software expense was $209 million in the current quarter, compared to $225 million in the prior quarter and $222 million in the fourth quarter of 2015. The decrease relative to the prior quarter and prior year was primarily due to a benefit recognized during the current quarter resulting from a contract renegotiation with a key vendor.

FDIC premium and regulatory expense was $46 million in the current quarter, compared to $47 million in the prior quarter and $35 million in the fourth quarter of 2015. The increase compared to the prior year quarter was driven by the FDIC surcharge on large banks, which became effective during the third quarter of 2016, and a larger assessment base attributable to balance sheet growth.

Marketing and customer development expense was $52 million in the current quarter, compared to $38 million in the prior quarter and $48 million in the fourth quarter of 2015. The increase relative to both quarters was driven by higher advertising and client development costs.

Net occupancy expense was $94 million in the current quarter, compared to $93 million in the prior quarter and $86 million in the fourth quarter of 2015. The increase relative to the prior year quarter was primarily due to a reduction in amortized gains from prior sale leaseback transactions.

Other noninterest expense was $154 million in the current quarter, compared to $140 million in the prior quarter and $127 million in the fourth quarter of 2015. The $14 million sequential and $27 million year-over-year increase was driven primarily by higher legal and consulting fees in response to regulatory and compliance initiatives and higher credit-related expenses recognized in the current quarter.

Income Taxes

For the current quarter, the Company recorded an income tax provision of $193 million, compared to $215 million for the prior quarter and $185 million for the fourth quarter of 2015. The effective tax rate for the current quarter was 29%, compared to 31% in the prior quarter and 28% in the fourth quarter of 2015.

Balance Sheet

At December 31, 2016, the Company had total assets of $204.9 billion and total shareholders’ equity of $23.6 billion, representing 12% of total assets. Book value per common share was $45.38 and tangible book value per common share was $32.95, down 3% and 4%, respectively, from September 30, 2016, driven by a decline in accumulated other comprehensive income due to the increase in long-term rates. Compared to December 31, 2015, book value per common share and tangible book value per common share increased 4% and 5%, respectively, as a result of growth in retained earnings.

Loans

Average performing loans were $141.7 billion for the current quarter, a slight increase over the prior quarter and a 5% increase over the fourth quarter of 2015. The sequential growth was driven by consumer other direct, guaranteed student, and C&I. This growth was partially offset by declines in average consumer indirect loans (in connection with the $1 billion auto loan sale executed in the prior quarter) and home equity products. The increase in average performing loans compared to the fourth quarter of 2015 was due to broad-based growth across most loan classes.

Deposits

Average consumer and commercial deposits for the current quarter were $158.0 billion, a 2% increase over the prior quarter and 7% increase over the fourth quarter of 2015. The sequential growth was due to a 4% increase in NOW account balances and a 3% increase in demand deposits. The growth compared to the fourth quarter of 2015 was driven primarily by increases in NOW, demand deposits, and money market accounts, partially offset by a slight 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 9.6% at December 31, 2016, and 9.5% on a fully phased-in basis. The ratios of average total equity to average total assets and tangible common equity to tangible assets were 11.84% and 8.15%, respectively, at December 31, 2016. The Company continues to have substantial available liquidity in the form of cash, high-quality government-backed or government-sponsored securities, and other available contingency funding sources.

Per its 2016 capital plan, the Company declared a common stock dividend of $0.26 per common share and repurchased $240 million of its outstanding common stock in the fourth quarter. The Company currently expects to repurchase approximately $480 million of additional common stock during the first half of 2017 in accordance with its 2016 capital plan.

Asset Quality

Total nonperforming assets were $919 million at December 31, 2016, down $100 million compared to the prior quarter and up $184 million compared to the fourth quarter of 2015. The decrease compared to the prior quarter was driven by the continued resolution of problem energy credits. Compared to the prior year, the increase was driven by increases in energy-related loans and home equity products, the latter of which was in response to changes in the Company's home equity line workout program during the first quarter of 2016. The ratio of nonperforming loans to total loans was 0.59%, 0.67%, and 0.49% at December 31, 2016, September 30, 2016, and December 31, 2015, respectively.

Net charge-offs were $136 million during the current quarter, an increase of $10 million and $53 million compared to the prior quarter and the fourth quarter of 2015, respectively. The increase compared to the prior quarter and prior year quarter was driven by energy, commercial real estate, and indirect auto. The current quarter included $40 million of energy-related net charge-offs compared to $33 million recognized in the prior quarter. The ratio of annualized net charge-offs to total average loans was 0.38% during the current quarter, compared to 0.35% during the prior quarter and 0.24% during the fourth quarter of 2015. The provision for credit losses was $101 million in the current quarter, an increase of $4 million and $50 million compared to the prior quarter and the fourth quarter of 2015, respectively. The increase in the provision for credit losses compared to the fourth quarter of 2015 was due primarily to higher net charge-offs.

At December 31, 2016, the allowance for loan and lease losses was $1.7 billion, which represented 1.19% of total loans, a decrease of $34 million, or 4 basis points, relative to September 30, 2016. This decrease was due primarily to the resolution of problem energy credits.

Early stage delinquencies increased 8 basis points from the prior quarter to 0.72% at December 31, 2016. Excluding government-guaranteed loans, early stage delinquencies were 0.27%, up 2 basis points from the prior quarter and down 3 basis points compared to a year ago.

Accruing restructured loans totaled $2.5 billion and nonaccruing restructured loans totaled $306 million at December 31, 2016, of which $2.6 billion were residential loans, $168 million were consumer loans, and $115 million were commercial loans. Nonaccruing restructured loans increased $130 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 risk mitigation program implemented during the first quarter of 2016. At December 31, 2016, the majority of the nonaccruing restructured home equity loans modified in 2016 were current with respect to payments and 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 December 31, 2016, SunTrust had total assets of $205 billion and total deposits of $160 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.

Business Segment Results

The Company has included its business segment financial tables as part of this 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-K.

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-K. 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 January 20, 2017, 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: 4Q16). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 4Q16). A replay of the call will be available approximately one hour after the call ends on January 20, 2017, and will remain available until February 20, 2017, by dialing 1-800-925-4236 (domestic) or 1-203-369-3523 (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 January 20, 2017, listeners may access an archived version of the webcast in the “Events & Presentations” section of the investor relations website. This webcast will be archived and available for one year.

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 December 31						%		Twelve Months Ended December 31						%
	2016			2015			Change		2016			2015			Change
EARNINGS & DIVIDENDS
Net income		$465			$484		(4	)%		$1,878			$1,933		(3	)%
Net income available to common shareholders	448			467			(4	)	1,811			1,863			(3	)
Total revenue	2,158			2,011			7		8,604			8,032			7
Total revenue-FTE ¹	2,192			2,046			7		8,742			8,174			7
Net income per average common share:
Diluted	0.90			0.91			(1	)	3.60			3.58			1
Basic	0.91			0.92			(1	)	3.63			3.62			—
Dividends paid per common share	0.26			0.24			8		1.00			0.92			9
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$203,146			$189,656		7	%		$199,004			$188,892		5	%
Earning assets	182,475			170,262			7		178,825			168,813			6
Loans	142,578			135,214			5		141,118			133,558			6
Intangible assets including mortgage servicing rights ("MSRs")	7,654			7,629			—		7,545			7,604			(1	)
MSRs	1,291			1,273			1		1,190			1,250			(5	)
Consumer and commercial deposits	157,996			148,163			7		154,189			144,202			7
Total shareholders’ equity	24,044			23,583			2		24,068			23,346			3
Preferred stock	1,225			1,225			—		1,225			1,225			—
Period End Balances:
Total assets									204,875			190,817			7
Earning assets									184,610			172,114			7
Loans									143,298			136,442			5
Allowance for loan and lease losses ("ALLL")									1,709			1,752			(2	)
Consumer and commercial deposits									158,864			148,921			7
Total shareholders’ equity									23,618			23,437			1
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	0.91		%	1.01		%	(10	)%	0.94		%	1.02		%	(8	)%
Return on average common shareholders’ equity ²	7.85			8.32			(6	)	7.97			8.46			(6	)
Return on average tangible common shareholders' equity ^{1, 2}	10.76			11.49			(6	)	10.91			11.75			(7	)
Net interest margin	2.93			2.90			1		2.92			2.82			4
Net interest margin-FTE ¹	3.00			2.98			1		3.00			2.91			3
Efficiency ratio	64.74			64.05			1		63.55			64.24			(1	)
Efficiency ratio-FTE ¹	63.73			62.96			1		62.55			63.13			(1	)
Tangible efficiency ratio-FTE ¹	63.08			62.11			2		61.99			62.64			(1	)
Effective tax rate	29			28			4		30			28			7
Basel III capital ratios at period end (transitional) ³:
Common Equity Tier 1 ("CET1")									9.63			9.96			(3	)
Tier 1 capital									10.33			10.80			(4	)
Total capital									12.32			12.54			(2	)
Leverage									9.23			9.69			(5	)
Basel III fully phased-in CET1 ratio ^{1, 3}									9.48			9.80			(3	)
Total average shareholders’ equity to total average assets	11.84		%	12.43		%	(5	)%	12.09		%	12.36		%	(2	)%
Tangible equity to tangible assets ¹									8.82			9.40			(6	)
Tangible common equity to tangible assets ¹									8.15			8.67			(6	)
Book value per common share ²										$45.38			$43.45		4
Tangible book value per common share ^{1, 2}									32.95			31.45			5
Market capitalization									26,942			21,793			24
Average common shares outstanding:
Diluted	497,055			514,507			(3	)	503,466			520,586			(3	)
Basic	491,497			508,536			(3	)	498,638			514,844			(3	)
Full-time equivalent employees									24,375			24,043			1
Number of ATMs									2,165			2,160			—
Full service banking offices									1,367			1,401			(2	)


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 shareholders' equity and book value per common share. 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
	December 31			September 30			June 30			March 31			December 31
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2016			2016			2016			2016			2015
EARNINGS & DIVIDENDS
Net income		$465			$474			$492			$447			$484
Net income available to common shareholders	448			457			475			430			467
Total revenue	2,158			2,197			2,186			2,063			2,011
Total revenue-FTE ¹	2,192			2,231			2,221			2,099			2,046
Net income per average common share:
Diluted	0.90			0.91			0.94			0.84			0.91
Basic	0.91			0.92			0.95			0.85			0.92
Dividends paid per common share	0.26			0.26			0.24			0.24			0.24
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$203,146			$201,476			$198,305			$193,014			$189,656
Earning assets	182,475			180,523			178,055			174,189			170,262
Loans	142,578			142,257			141,238			138,372			135,214
Intangible assets including MSRs	7,654			7,415			7,543			7,569			7,629
MSRs	1,291			1,065			1,192			1,215			1,273
Consumer and commercial deposits	157,996			155,313			154,166			149,229			148,163
Total shareholders’ equity	24,044			24,410			24,018			23,797			23,583
Preferred stock	1,225			1,225			1,225			1,225			1,225
Period End Balances:
Total assets	204,875			205,091			198,892			194,158			190,817
Earning assets	184,610			181,341			178,852			175,710			172,114
Loans	143,298			141,532			141,656			139,746			136,442
ALLL	1,709			1,743			1,774			1,770			1,752
Consumer and commercial deposits	158,864			157,592			151,779			151,264			148,921
Total shareholders’ equity	23,618			24,449			24,464			24,053			23,437
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	0.91		%	0.94		%	1.00		%	0.93		%	1.01		%
Return on average common shareholders’ equity ²	7.85			7.89			8.43			7.71			8.32
Return on average tangible common shareholders' equity ^{1, 2}	10.76			10.73			11.54			10.60			11.49
Net interest margin	2.93			2.88			2.91			2.96			2.90
Net interest margin-FTE ¹	3.00			2.96			2.99			3.04			2.98
Efficiency ratio	64.74			64.13			61.53			63.89			64.05
Efficiency ratio-FTE ¹	63.73			63.14			60.56			62.81			62.96
Tangible efficiency ratio-FTE ¹	63.08			62.54			60.05			62.33			62.11
Effective tax rate	29			31			29			30			28
Basel III capital ratios at period end (transitional) ³:
CET1	9.63			9.78			9.84			9.90			9.96
Tier 1 capital	10.33			10.50			10.57			10.63			10.80
Total capital	12.32			12.57			12.68			12.39			12.54
Leverage	9.23			9.28			9.35			9.50			9.69
Basel III fully phased-in CET1 ratio ^{1, 3}	9.48			9.66			9.73			9.77			9.80
Total average shareholders’ equity to total average assets	11.84			12.12			12.11			12.33			12.43
Tangible equity to tangible assets ¹	8.82			9.24			9.53			9.56			9.40
Tangible common equity to tangible assets ¹	8.15			8.57			8.85			8.85			8.67
Book value per common share ²		$45.38			$46.63			$46.14			$44.97			$43.45
Tangible book value per common share ^{1, 2}	32.95			34.34			33.98			32.90			31.45
Market capitalization	26,942			21,722			20,598			18,236			21,793
Average common shares outstanding:
Diluted	497,055			500,885			505,633			509,931			514,507
Basic	491,497			496,304			501,374			505,482			508,536
Full-time equivalent employees	24,375			23,854			23,940			23,945			24,043
Number of ATMs	2,165			2,163			2,144			2,153			2,160
Full service banking offices	1,367			1,369			1,389			1,397			1,401


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 shareholders' equity and book value per common share. 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)					Twelve Months Ended				Increase/(Decrease)
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	December 31				Increase/(Decrease)					December 31				Increase/(Decrease)
	2016		2015		Amount			% ²		2016		2015		Amount			% ²
Interest income		$1,492		$1,363		$129		9	%		$5,778		$5,265		$513		10	%
Interest expense	149		117		32			27		557		501		56			11
NET INTEREST INCOME	1,343		1,246		97			8		5,221		4,764		457			10
Provision for credit losses	101		51		50			98		444		165		279			NM
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,242		1,195		47			4		4,777		4,599		178			4
NONINTEREST INCOME
Service charges on deposit accounts	154		156		(2		)	(1	)	630		622		8			1
Other charges and fees	90		92		(2		)	(2	)	380		377		3			1
Card fees	84		82		2			2		327		329		(2		)	(1	)
Investment banking income	122		104		18			17		494		461		33			7
Trading income	58		42		16			38		211		181		30			17
Trust and investment management income	73		79		(6		)	(8	)	304		334		(30		)	(9	)
Retail investment services	69		71		(2		)	(3	)	281		300		(19		)	(6	)
Mortgage production related income	78		53		25			47		366		270		96			36
Mortgage servicing related income	25		56		(31		)	(55	)	189		169		20			12
Net securities gains	—		—		—			—		4		21		(17		)	(81	)
Other noninterest income	62		30		32			NM		197		204		(7		)	(3	)
Total noninterest income	815		765		50			7		3,383		3,268		115			4
NONINTEREST EXPENSE
Employee compensation and benefits	762		690		72			10		3,071		2,942		129			4
Outside processing and software	209		222		(13		)	(6	)	834		815		19			2
Net occupancy expense	94		86		8			9		349		341		8			2
Equipment expense	43		41		2			5		170		164		6			4
FDIC premium/regulatory exams	46		35		11			31		173		139		34			24
Marketing and customer development	52		48		4			8		172		151		21			14
Operating losses	23		22		1			5		108		56		52			93
Amortization	14		17		(3		)	(18	)	49		40		9			23
Other noninterest expense	154		127		27			21		542		512		30			6
Total noninterest expense	1,397		1,288		109			8		5,468		5,160		308			6
INCOME BEFORE PROVISION FOR INCOME TAXES	660		672		(12		)	(2	)	2,692		2,707		(15		)	(1	)
Provision for income taxes	193		185		8			4		805		764		41			5
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	467		487		(20		)	(4	)	1,887		1,943		(56		)	(3	)
Net income attributable to noncontrolling interest	2		3		(1		)	(33	)	9		10		(1		)	(10	)
NET INCOME		$465		$484		($19	)	(4	)%		$1,878		$1,933		($55	)	(3	)%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$448		$467		($19	)	(4	)%		$1,811		$1,863		($52	)	(3	)%
Net interest income-FTE ¹	1,377		1,281		96			7		5,359		4,906		453			9
Total revenue	2,158		2,011		147			7		8,604		8,032		572			7
Total revenue-FTE ¹	2,192		2,046		146			7		8,742		8,174		568			7
Net income per average common share:
Diluted	0.90		0.91		(0.01		)	(1	)	3.60		3.58		0.02			1
Basic	0.91		0.92		(0.01		)	(1	)	3.63		3.62		0.01			—
Cash dividends paid per common share	0.26		0.24		0.02			8		1.00		0.92		0.08			9
Average common shares outstanding:
Diluted	497,055		514,507		(17,452		)	(3	)	503,466		520,586		(17,120		)	(3	)
Basic	491,497		508,536		(17,039		)	(3	)	498,638		514,844		(16,206		)	(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)	December 31		September 30		Increase/(Decrease)					June 30		March 31		December 31
	2016		2016		Amount			% ²		2016		2016		2015
Interest income		$1,492		$1,451		$41		3	%		$1,424		$1,411		$1,363
Interest expense	149		143		6			4		136		129		117
NET INTEREST INCOME	1,343		1,308		35			3		1,288		1,282		1,246
Provision for credit losses	101		97		4			4		146		101		51
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,242		1,211		31			3		1,142		1,181		1,195
NONINTEREST INCOME
Service charges on deposit accounts	154		162		(8		)	(5	)	162		153		156
Other charges and fees	90		93		(3		)	(3	)	104		93		92
Card fees	84		83		1			1		83		78		82
Investment banking income	122		147		(25		)	(17	)	126		98		104
Trading income	58		65		(7		)	(11	)	34		55		42
Trust and investment management income	73		80		(7		)	(9	)	75		75		79
Retail investment services	69		71		(2		)	(3	)	72		69		71
Mortgage production related income	78		118		(40		)	(34	)	111		60		53
Mortgage servicing related income	25		49		(24		)	(49	)	52		62		56
Net securities gains	—		—		—			—		4		—		—
Other noninterest income	62		21		41			NM		75		38		30
Total noninterest income	815		889		(74		)	(8	)	898		781		765
NONINTEREST EXPENSE
Employee compensation and benefits	762		773		(11		)	(1	)	763		774		690
Outside processing and software	209		225		(16		)	(7	)	202		198		222
Net occupancy expense	94		93		1			1		78		85		86
Equipment expense	43		44		(1		)	(2	)	42		40		41
FDIC premium/regulatory exams	46		47		(1		)	(2	)	44		36		35
Marketing and customer development	52		38		14			37		38		44		48
Operating losses	23		35		(12		)	(34	)	25		24		22
Amortization	14		14		—			—		11		10		17
Other noninterest expense	154		140		14			10		142		107		127
Total noninterest expense	1,397		1,409		(12		)	(1	)	1,345		1,318		1,288
INCOME BEFORE PROVISION FOR INCOME TAXES	660		691		(31		)	(4	)	695		644		672
Provision for income taxes	193		215		(22		)	(10	)	201		195		185
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	467		476		(9		)	(2	)	494		449		487
Net income attributable to noncontrolling interest	2		2		—			—		2		2		3
NET INCOME		$465		$474		($9	)	(2	)%		$492		$447		$484
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$448		$457		($9	)	(2	)%		$475		$430		$467
Net interest income-FTE ¹	1,377		1,342		35			3		1,323		1,318		1,281
Total revenue	2,158		2,197		(39		)	(2	)	2,186		2,063		2,011
Total revenue-FTE ¹	2,192		2,231		(39		)	(2	)	2,221		2,099		2,046
Net income per average common share:
Diluted	0.90		0.91		(0.01		)	(1	)	0.94		0.84		0.91
Basic	0.91		0.92		(0.01		)	(1	)	0.95		0.85		0.92
Cash dividends paid per common share	0.26		0.26		—			—		0.24		0.24		0.24
Average common shares outstanding:
Diluted	497,055		500,885		(3,830		)	(1	)	505,633		509,931		514,507
Basic	491,497		496,304		(4,807		)	(1	)	501,374		505,482		508,536

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



	December 31						Increase/(Decrease)
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2016			2015			Amount			%²
ASSETS
Cash and due from banks		$5,091			$4,299			$792		18	%
Federal funds sold and securities borrowed or purchased under agreements to resell	1,307			1,277			30			2
Interest-bearing deposits in other banks	25			23			2			9
Trading assets and derivative instruments	6,067			6,119			(52		)	(1	)
Securities available for sale	30,672			27,825			2,847			10
Loans held for sale ("LHFS")	4,169			1,838			2,331			NM
Loans held for investment:
Commercial and industrial ("C&I")	69,213			67,062			2,151			3
Commercial real estate ("CRE")	4,996			6,236			(1,240		)	(20	)
Commercial construction	4,015			1,954			2,061			NM
Residential mortgages - guaranteed	537			629			(92		)	(15	)
Residential mortgages - nonguaranteed	26,137			24,744			1,393			6
Residential home equity products	11,912			13,171			(1,259		)	(10	)
Residential construction	404			384			20			5
Consumer student - guaranteed	6,167			4,922			1,245			25
Consumer other direct	7,771			6,127			1,644			27
Consumer indirect	10,736			10,127			609			6
Consumer credit cards	1,410			1,086			324			30
Total loans held for investment	143,298			136,442			6,856			5
Allowance for loan and lease losses ("ALLL")	(1,709		)	(1,752		)	(43		)	(2	)
Net loans held for investment	141,589			134,690			6,899			5
Goodwill	6,337			6,337			—			—
MSRs	1,572			1,307			265			20
Other assets	8,046			7,102			944			13
Total assets ¹		$204,875			$190,817			$14,058		7	%
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$43,431			$42,272			$1,159		3	%
Interest-bearing consumer and commercial deposits:
NOW accounts	45,534			38,990			6,544			17
Money market accounts	54,166			51,783			2,383			5
Savings	6,266			6,057			209			3
Consumer time	5,534			6,108			(574		)	(9	)
Other time	3,933			3,711			222			6
Total consumer and commercial deposits	158,864			148,921			9,943			7
Brokered time deposits	924			899			25			3
Foreign deposits	610			10			600			NM
Total deposits	160,398			149,830			10,568			7
Funds purchased	2,116			1,949			167			9
Securities sold under agreements to repurchase	1,633			1,654			(21		)	(1	)
Other short-term borrowings	1,015			1,024			(9		)	(1	)
Long-term debt	11,748			8,462			3,286			39
Trading liabilities and derivative instruments	1,351			1,263			88			7
Other liabilities	2,996			3,198			(202		)	(6	)
Total liabilities	181,257			167,380			13,877			8
SHAREHOLDERS' EQUITY
Preferred stock, no par value	1,225			1,225			—			—
Common stock, $1.00 par value	550			550			—			—
Additional paid-in capital	9,010			9,094			(84		)	(1	)
Retained earnings	16,000			14,686			1,314			9
Treasury stock, at cost, and other	(2,346		)	(1,658		)	688			41
Accumulated other comprehensive loss, net of tax	(821		)	(460		)	361			78
Total shareholders' equity	23,618			23,437			181			1
Total liabilities and shareholders' equity		$204,875			$190,817			$14,058		7	%

Common shares outstanding	491,188			508,712			(17,524		)	(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	58,738			41,209			17,529			43

¹ Includes earning assets of $184,610 and $172,114 at December 31, 2016 and 2015, respectively.

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

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEETS



(Dollars in millions and shares in thousands, except per share data) (Unaudited)	December 31			September 30			(Decrease)/Increase					June 30			March 31			December 31
	2016			2016			Amount			% ²		2016			2016			2015
ASSETS
Cash and due from banks		$5,091			$8,019			($2,928	)	(37	)%		$4,134			$3,074			$4,299
Federal funds sold and securities borrowed or purchased under agreements to resell	1,307			1,697			(390		)	(23	)	1,107			1,229			1,277
Interest-bearing deposits in other banks	25			24			1			4		24			24			23
Trading assets and derivative instruments	6,067			7,044			(977		)	(14	)	6,850			7,050			6,119
Securities available for sale	30,672			29,672			1,000			3		29,336			28,188			27,825
LHFS	4,169			3,772			397			11		2,468			1,911			1,838
Loans held for investment:
C&I	69,213			68,298			915			1		68,603			68,963			67,062
CRE	4,996			5,056			(60		)	(1	)	6,228			6,034			6,236
Commercial construction	4,015			3,875			140			4		2,617			2,498			1,954
Residential mortgages - guaranteed	537			521			16			3		534			623			629
Residential mortgages - nonguaranteed	26,137			26,306			(169		)	(1	)	26,037			25,148			24,744
Residential home equity products	11,912			12,178			(266		)	(2	)	12,481			12,845			13,171
Residential construction	404			393			11			3		397			383			384
Consumer student - guaranteed	6,167			5,844			323			6		5,562			5,265			4,922
Consumer other direct	7,771			7,358			413			6		6,825			6,372			6,127
Consumer indirect	10,736			10,434			302			3		11,195			10,522			10,127
Consumer credit cards	1,410			1,269			141			11		1,177			1,093			1,086
Total loans held for investment	143,298			141,532			1,766			1		141,656			139,746			136,442
ALLL	(1,709		)	(1,743		)	(34		)	(2	)	(1,774		)	(1,770		)	(1,752		)
Net loans held for investment	141,589			139,789			1,800			1		139,882			137,976			134,690
Goodwill	6,337			6,337			—			—		6,337			6,337			6,337
MSRs	1,572			1,119			453			40		1,061			1,182			1,307
Other assets	8,046			7,618			428			6		7,693			7,187			7,102
Total assets ¹		$204,875			$205,091			($216	)	—	%		$198,892			$194,158			$190,817
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$43,431			$43,835			($404	)	(1	)%		$42,466			$42,256			$42,272
Interest-bearing consumer and commercial deposits:
NOW accounts	45,534			43,093			2,441			6		39,869			39,273			38,990
Money market accounts	54,166			54,763			(597		)	(1	)	53,410			53,327			51,783
Savings	6,266			6,256			10			—		6,343			6,418			6,057
Consumer time	5,534			5,659			(125		)	(2	)	5,836			6,085			6,108
Other time	3,933			3,986			(53		)	(1	)	3,855			3,905			3,711
Total consumer and commercial deposits	158,864			157,592			1,272			1		151,779			151,264			148,921
Brokered time deposits	924			950			(26		)	(3	)	972			897			899
Foreign deposits	610			300			310			NM		—			—			10
Total deposits	160,398			158,842			1,556			1		152,751			152,161			149,830
Funds purchased	2,116			2,226			(110		)	(5	)	1,352			1,497			1,949
Securities sold under agreements to repurchase	1,633			1,724			(91		)	(5	)	1,622			1,774			1,654
Other short-term borrowings	1,015			949			66			7		1,883			1,673			1,024
Long-term debt	11,748			11,866			(118		)	(1	)	12,264			8,514			8,462
Trading liabilities and derivative instruments	1,351			1,484			(133		)	(9	)	1,245			1,536			1,263
Other liabilities	2,996			3,551			(555		)	(16	)	3,311			2,950			3,198
Total liabilities	181,257			180,642			615			—		174,428			170,105			167,380
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	9,010			9,009			1			—		9,003			9,017			9,094
Retained earnings	16,000			15,681			319			2		15,353			14,999			14,686
Treasury stock, at cost, and other	(2,346		)	(2,131		)	215			10		(1,900		)	(1,759		)	(1,658		)
Accumulated other comprehensive (loss)/income, net of tax	(821		)	115			(936		)	NM		233			21			(460		)
Total shareholders’ equity	23,618			24,449			(831		)	(3	)	24,464			24,053			23,437
Total liabilities and shareholders’ equity		$204,875			$205,091			($216	)	—	%		$198,892			$194,158			$190,817

Common shares outstanding	491,188			495,936			(4,748		)	(1	)%	501,412			505,443			508,712
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	58,738			53,985			4,753			9		48,509			44,478			41,209

¹ Includes earning assets of $184,610, $181,341, $178,852, $175,710, and $172,114 at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.

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



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID
	Three Months Ended														Increase/(Decrease) From
	December 31, 2016							September 30, 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")		$68,407			$549	3.19	%		$68,242			$536	3.13	%		$165		0.06			$2,002		0.15
Commercial real estate ("CRE")	5,141			38		2.93		5,975			44		2.92		(834		)	0.01		(931		)	0.15
Commercial construction	3,852			31		3.22		2,909			24		3.28		943			(0.06	)	1,916			0.17
Residential mortgages - guaranteed	542			4		2.57		540			5		3.34		2			(0.77	)	(105		)	(1.92	)
Residential mortgages - nonguaranteed	26,065			244		3.75		26,022			243		3.74		43			0.01		1,740			(0.07	)
Residential home equity products	11,809			116		3.91		12,075			119		3.93		(266		)	(0.02	)	(1,352		)	0.13
Residential construction	382			4		4.24		379			4		4.47		3			(0.23	)	6			(0.41	)
Consumer student - guaranteed	5,990			62		4.12		5,705			58		4.03		285			0.09		1,245			0.26
Consumer other direct	7,556			88		4.64		7,090			81		4.56		466			0.08		1,632			0.30
Consumer indirect	10,633			92		3.44		11,161			96		3.41		(528		)	0.03		535			0.09
Consumer credit cards	1,324			33		9.93		1,224			31		10.12		100			(0.19	)	300			(0.24	)
Nonaccrual	877			8		3.77		935			4		1.70		(58		)	2.07		376			(0.09	)
Total loans held for investment	142,578			1,269		3.54		142,257			1,245		3.48		321			0.06		7,364			0.13
Securities available for sale:
Taxable	29,314			166		2.27		28,460			157		2.21		854			0.06		2,491			(0.15	)
Tax-exempt	273			2		3.08		181			2		3.41		92			(0.33	)	112			(0.59	)
Total securities available for sale	29,587			168		2.28		28,641			159		2.22		946			0.06		2,603			(0.14	)
Federal funds sold and securities borrowed or purchased under agreements to resell	1,332			—		(0.03	)	1,171			—		0.11		161			(0.14	)	205			(0.04	)
Loans held for sale ("LHFS")	3,570			30		3.42		2,867			25		3.47		703			(0.05	)	1,842			(0.28	)
Interest-bearing deposits in other banks	24			—		0.47		24			—		0.38		—			0.09		1			0.38
Interest earning trading assets	5,384			25		1.83		5,563			22		1.57		(179		)	0.26		198			0.10
Total earning assets	182,475			1,492		3.25		180,523			1,451		3.20		1,952			0.05		12,213			0.07
Allowance for loan and lease losses ("ALLL")	(1,724		)					(1,756		)					32					40
Cash and due from banks	5,405							5,442							(37		)			440
Other assets	15,375							14,822							553					850
Noninterest earning trading assets and derivative instruments	1,103							1,538							(435		)			(127		)
Unrealized gains on securities available for sale, net	512							907							(395		)			74
Total assets		$203,146							$201,476							$1,670					$13,490
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$42,929			$17	0.16	%		$41,160			$15	0.14	%		$1,769		0.02			$5,636		0.07
Money market accounts	54,416			30		0.22		54,500			29		0.21		(84		)	0.01		2,166			0.06
Savings	6,259			—		0.03		6,304			—		0.03		(45		)	—		164			—
Consumer time	5,599			10		0.69		5,726			10		0.69		(127		)	—		(557		)	(0.08	)
Other time	3,954			10		0.97		3,981			10		0.97		(27		)	—		233			(0.05	)
Total interest-bearing consumer and commercial deposits	113,157			67		0.23		111,671			64		0.23		1,486			—		7,642			0.04
Brokered time deposits	935			3		1.28		959			3		1.31		(24		)	(0.03	)	45			(0.10	)
Foreign deposits	308			—		0.45		130			—		0.37		178			0.08		152			0.31
Total interest-bearing deposits	114,400			70		0.24		112,760			67		0.24		1,640			—		7,839			0.04
Funds purchased	1,008			1		0.43		784			1		0.36		224			0.07		139			0.28
Securities sold under agreements to repurchase	1,708			2		0.45		1,691			2		0.45		17			—		(65		)	0.24
Interest-bearing trading liabilities	1,146			6		2.13		930			5		2.11		216			0.02		268			(0.27	)
Other short-term borrowings	978			—		0.11		1,266			—		0.19		(288		)	(0.08	)	(135		)	0.02
Long-term debt	11,632			70		2.37		12,257			68		2.21		(625		)	0.16		3,182			(0.25	)
Total interest-bearing liabilities	130,872			149		0.45		129,688			143		0.44		1,184			0.01		11,228			0.06
Noninterest-bearing deposits	44,839							43,642							1,197					2,191
Other liabilities	3,112							3,356							(244		)			(281		)
Noninterest-bearing trading liabilities and derivative instruments	279							380							(101		)			(109		)
Shareholders’ equity	24,044							24,410							(366		)			461
Total liabilities and shareholders’ equity		$203,146							$201,476							$1,670					$13,490
Interest Rate Spread						2.80	%						2.76	%				0.04					0.01
Net Interest Income					$1,343							$1,308
Net Interest Income-FTE ²					$1,377							$1,342
Net Interest Margin ³						2.93	%						2.88	%				0.05					0.03
Net Interest Margin-FTE ^{2, 3}						3.00							2.96					0.04					0.02

¹Interest income includes loan fees of $41 million and $40 million for the three months ended December 31, 2016 and September 30, 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 December 31, 2016 and September 30, 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
	June 30, 2016							March 31, 2016							December 31, 2015
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
Loans held for investment: ¹
C&I		$68,918			$533	3.11	%		$68,058			$529	3.13	%		$66,405			$508	3.04	%
CRE	6,055			44		2.91		6,066			44		2.91		6,072			43		2.78
Commercial construction	2,589			21		3.25		2,232			18		3.28		1,936			15		3.05
Residential mortgages - guaranteed	580			6		3.98		641			6		3.80		647			7		4.49
Residential mortgages - nonguaranteed	25,408			241		3.80		24,712			236		3.81		24,325			232		3.82
Residential home equity products	12,464			122		3.95		12,849			126		3.95		13,161			125		3.78
Residential construction	376			4		4.41		368			4		4.42		376			4		4.65
Consumer student - guaranteed	5,412			54		3.98		5,092			50		3.98		4,745			46		3.86
Consumer other direct	6,590			74		4.54		6,239			70		4.48		5,924			65		4.34
Consumer indirect	10,771			90		3.37		10,279			87		3.39		10,098			85		3.35
Consumer credit cards	1,125			29		10.09		1,077			28		10.31		1,024			26		10.17
Nonaccrual	950			4		1.67		759			5		2.72		501			5		3.86
Total loans held for investment	141,238			1,222		3.48		138,372			1,203		3.50		135,214			1,161		3.41
Securities available for sale:
Taxable	27,910			160		2.29		27,164			162		2.39		26,823			162		2.42
Tax-exempt	151			1		3.60		151			1		3.64		161			1		3.67
Total securities available for sale	28,061			161		2.29		27,315			163		2.39		26,984			163		2.42
Federal funds sold and securities borrowed or purchased under agreements to resell	1,227			—		0.17		1,234			—		0.18		1,127			—		0.01
LHFS	2,015			18		3.61		1,816			19		4.15		1,728			16		3.70
Interest-bearing deposits in other banks	23			—		0.29		23			—		0.47		23			—		0.09
Interest earning trading assets	5,491			23		1.65		5,429			26		1.86		5,186			23		1.73
Total earning assets	178,055			1,424		3.22		174,189			1,411		3.26		170,262			1,363		3.18
ALLL	(1,756		)					(1,750		)					(1,764		)
Cash and due from banks	5,127							4,015							4,965
Other assets	14,675							14,639							14,525
Noninterest earning trading assets and derivative instruments	1,527							1,387							1,230
Unrealized gains on securities available for sale, net	677							534							438
Total assets		$198,305							$193,014							$189,656
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$41,691			$13	0.12	%		$37,994			$10	0.10	%		$37,293			$9	0.09	%
Money market accounts	53,186			25		0.19		53,063			24		0.18		52,250			21		0.16
Savings	6,399			1		0.02		6,179			—		0.03		6,095			—		0.03
Consumer time	5,984			11		0.76		6,104			12		0.79		6,156			12		0.77
Other time	3,881			10		1.03		3,813			10		1.04		3,721			10		1.02
Total interest-bearing consumer and commercial deposits	111,141			60		0.22		107,153			56		0.21		105,515			52		0.19
Brokered time deposits	913			3		1.35		898			3		1.37		890			3		1.38
Foreign deposits	46			—		0.34		4			—		0.33		156			—		0.14
Total interest-bearing deposits	112,100			63		0.23		108,055			59		0.22		106,561			55		0.20
Funds purchased	1,032			1		0.36		1,399			1		0.35		869			—		0.15
Securities sold under agreements to repurchase	1,718			2		0.40		1,819			2		0.40		1,773			1		0.21
Interest-bearing trading liabilities	1,006			6		2.39		1,017			6		2.56		878			5		2.40
Other short-term borrowings	1,220			—		0.20		2,351			2		0.32		1,113			—		0.09
Long-term debt	10,517			64		2.46		8,637			59		2.73		8,450			56		2.62
Total interest-bearing liabilities	127,593			136		0.43		123,278			129		0.42		119,644			117		0.39
Noninterest-bearing deposits	43,025							42,076							42,648
Other liabilities	3,217							3,321							3,393
Noninterest-bearing trading liabilities and derivative instruments	452							542							388
Shareholders’ equity	24,018							23,797							23,583
Total liabilities and shareholders’ equity		$198,305							$193,014							$189,656
Interest Rate Spread						2.79	%						2.84	%						2.79	%
Net Interest Income					$1,288							$1,282							$1,246
Net Interest Income-FTE ²					$1,323							$1,318							$1,281
Net Interest Margin ³						2.91	%						2.96	%						2.90	%
Net Interest Margin-FTE ^{2, 3}						2.99							3.04							2.98


¹	Interest income includes loan fees of $41 million, $43 million, and $47 million for the three months ended June 30, 2016, March 31, 2016, and December 31, 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 June 30, 2016, March 31, 2016, and December 31, 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
	Twelve Months Ended
	December 31, 2016							December 31, 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		$68,406			$2,148	3.14	%		$65,786			$1,974	3.00	%			$2,620		0.14
CRE	5,808			169		2.92		6,178			173		2.80			(370		)	0.12
Commercial construction	2,898			94		3.25		1,603			50		3.12			1,295			0.13
Residential mortgages - guaranteed	575			20		3.45		636			24		3.77			(61		)	(0.32	)
Residential mortgages - nonguaranteed	25,554			964		3.77		23,759			913		3.84			1,795			(0.07	)
Residential home equity products	12,297			484		3.94		13,535			501		3.70			(1,238		)	0.24
Residential construction	377			17		4.39		384			19		4.85			(7		)	(0.46	)
Consumer student - guaranteed	5,551			224		4.03		4,584			173		3.78			967			0.25
Consumer other direct	6,871			313		4.56		5,344			230		4.30			1,527			0.26
Consumer indirect	10,712			365		3.40		10,262			333		3.24			450			0.16
Consumer credit cards	1,188			120		10.10		944			94		10.00			244			0.10
Nonaccrual	881			21		2.43		543			22		4.13			338			(1.70	)
Total loans held for investment	141,118			4,939		3.50		133,558			4,506		3.37			7,560			0.13
Securities available for sale:
Taxable	28,216			645		2.29		26,327			587		2.23			1,889			0.06
Tax-exempt	189			6		3.37		176			6		3.70			13			(0.33	)
Total securities available for sale	28,405			651		2.29		26,503			593		2.24			1,902			0.05
Federal funds sold and securities borrowed or purchased under agreements to resell	1,241			1		0.10		1,147			—		—			94			0.10
LHFS	2,570			92		3.60		2,348			82		3.47			222			0.13
Interest-bearing deposits in other banks	24			—		0.40		22			—		0.12			2			0.28
Interest earning trading assets	5,467			95		1.73		5,235			84		1.62			232			0.11
Total earning assets	178,825			5,778		3.23		168,813			5,265		3.12			10,012			0.11
ALLL	(1,746		)					(1,835		)						89
Cash and due from banks	4,999							5,614								(615		)
Other assets	14,880							14,527								353
Noninterest earning trading assets and derivative instruments	1,388							1,265								123
Unrealized gains on securities available for sale, net	658							508								150
Total assets		$199,004							$188,892								$10,112
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$40,949			$55	0.13	%		$35,161			$31	0.09	%			$5,788		0.04
Money market accounts	53,795			107		0.20		50,518			85		0.17			3,277			0.03
Savings	6,285			2		0.03		6,165			2		0.03			120			—
Consumer time	5,852			43		0.73		6,443			49		0.77			(591		)	(0.04	)
Other time	3,908			39		1.00		3,813			39		1.02			95			(0.02	)
Total interest-bearing consumer and commercial deposits	110,789			246		0.22		102,100			206		0.20			8,689			0.02
Brokered time deposits	926			12		1.33		888			13		1.41			38			(0.08	)
Foreign deposits	123			1		0.42		218			—		0.13			(95		)	0.29
Total interest-bearing deposits	111,838			259		0.23		103,206			219		0.21			8,632			0.02
Funds purchased	1,055			4		0.37		822			1		0.11			233			0.26
Securities sold under agreements to repurchase	1,734			7		0.42		1,821			4		0.21			(87		)	0.21
Interest-bearing trading liabilities	1,025			24		2.29		881			22		2.44			144			(0.15	)
Other short-term borrowings	1,452			3		0.23		2,135			3		0.16			(683		)	0.07
Long-term debt	10,767			260		2.42		10,873			252		2.32			(106		)	0.10
Total interest-bearing liabilities	127,871			557		0.44		119,738			501		0.42			8,133			0.02
Noninterest-bearing deposits	43,400							42,102								1,298
Other liabilities	3,252							3,276								(24		)
Noninterest-bearing trading liabilities and derivative instruments	413							430								(17		)
Shareholders’ equity	24,068							23,346								722
Total liabilities and shareholders’ equity		$199,004							$188,892								$10,112
Interest Rate Spread						2.79	%						2.70	%					0.09
Net Interest Income					$5,221							$4,764
Net Interest Income-FTE ²					$5,359							$4,906
Net Interest Margin ³						2.92	%						2.82	%					0.10
Net Interest Margin-FTE ^{2, 3}						3.00							2.91						0.09

¹ Interest income includes loan fees of $165 million and $189 million for the twelve months ended December 31, 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 twelve months ended December 31, 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											Twelve Months Ended
	December 31						(Decrease)/Increase					December 31						(Decrease)/Increase
(Dollars in millions) (Unaudited)	2016			2015			Amount			% ³		2016			2015			Amount			% ³
CREDIT DATA
Allowance for credit losses, beginning of period		$1,811			$1,847			($36	)	(2	)%		$1,815			$1,991			($176	)	(9	)%
(Benefit)/provision for unfunded commitments	(1		)	2			(3		)	NM		4			9			(5		)	(56	)
Provision/(benefit) for loan losses:
Commercial	36			59			(23		)	(39	)	329			133			196			NM
Residential	13			(37		)	50			NM		(59		)	(67		)	8			12
Consumer	53			27			26			96		170			90			80			89
Total provision for loan losses	102			49			53			NM		440			156			284			NM
Charge-offs:
Commercial	(78		)	(35		)	43			NM		(287		)	(117		)	170			NM
Residential	(34		)	(41		)	(7		)	(17	)	(136		)	(218		)	(82		)	(38	)
Consumer	(51		)	(38		)	13			34		(168		)	(135		)	33			24
Total charge-offs	(163		)	(114		)	49			43		(591		)	(470		)	121			26
Recoveries:
Commercial	9			10			(1		)	(10	)	35			45			(10		)	(22	)
Residential	8			11			(3		)	(27	)	30			42			(12		)	(29	)
Consumer	10			10			—			—		43			42			1			2
Total recoveries	27			31			(4		)	(13	)	108			129			(21		)	(16	)
Net charge-offs	(136		)	(83		)	53			64		(483		)	(341		)	142			42
Allowance for credit losses, end of period		$1,776			$1,815			($39	)	(2	)%		$1,776			$1,815			($39	)	(2	)%
Components:
Allowance for loan and lease losses ("ALLL")													$1,709			$1,752			($43	)	(2	)%
Unfunded commitments reserve												67			63			4			6
Allowance for credit losses													$1,776			$1,815			($39	)	(2	)%
Net charge-offs to average loans held for investment (annualized):
Commercial	0.35		%	0.13		%	0.22			NM		0.32		%	0.10		%	0.22			NM
Residential	0.26			0.30			(0.04		)	(13	)	0.27			0.45			(0.18		)	(40	)
Consumer	0.64			0.51			0.13			25		0.51			0.44			0.07			16
Total net charge-offs to total average loans held for investment	0.38			0.24			0.14			58		0.34			0.26			0.08			31
Period Ended
Nonaccrual/nonperforming loans ("NPLs"):
Commercial													$414			$319			$95		30	%
Residential												424			344			80			23
Consumer												7			9			(2		)	(22	)
Total nonaccrual/NPLs												845			672			173			26
Other real estate owned (“OREO”)												60			56			4			7
Other repossessed assets												14			7			7			100
Total nonperforming assets ("NPAs")													$919			$735			$184		25	%
Accruing restructured loans													$2,535			$2,603			($68	)	(3	)%
Nonaccruing restructured loans												306			176			130			74
Accruing loans held for investment past due > 90 days (guaranteed)												1,254			939			315			34
Accruing loans held for investment past due > 90 days (non-guaranteed)												34			42			(8		)	(19	)
Accruing LHFS past due > 90 days												1			—			1			NM
NPLs to total loans held for investment												0.59		%	0.49		%	0.10			20	%
NPAs to total loans held for investment plus OREO and other repossessed assets												0.64			0.54			0.10			19
ALLL to period-end loans held for investment ^{1, 2}												1.19			1.29			(0.10		)	(8	)
ALLL to NPLs ^{1, 2}												2.03x			2.62x			(0.59x)			(23	)
ALLL to annualized net charge-offs ¹	3.17x			5.33x			(2.16x)			(41	)	3.54x			5.14x			(1.60x)			(31	)

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

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

³ "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
	December 31			September 30			(Decrease)/Increase					June 30			March 31			December 31
(Dollars in millions) (Unaudited)	2016			2016			Amount			% ³		2016			2016			2015
CREDIT DATA
Allowance for credit losses, beginning of period		$1,811			$1,840			($29	)	(2	)%		$1,831			$1,815			$1,847
(Benefit)/provision for unfunded commitments	(1		)	2			(3		)	NM		5			(2		)	2
Provision/(benefit) for loan losses:
Commercial	36			81			(45		)	(56	)	114			98			59
Residential	13			(36		)	49			NM		(4		)	(32		)	(37		)
Consumer	53			50			3			6		31			37			27
Total provision for loan losses	102			95			7			7		141			103			49
Charge-offs:
Commercial	(78		)	(78		)	—			—		(99		)	(32		)	(35		)
Residential	(34		)	(28		)	6			21		(33		)	(41		)	(41		)
Consumer	(51		)	(44		)	7			16		(35		)	(39		)	(38		)
Total charge-offs	(163		)	(150		)	13			9		(167		)	(112		)	(114		)
Recoveries:
Commercial	9			7			2			29		9			10			10
Residential	8			7			1			14		9			6			11
Consumer	10			10			—			—		12			11			10
Total recoveries	27			24			3			13		30			27			31
Net charge-offs	(136		)	(126		)	10			8		(137		)	(85		)	(83		)
Allowance for credit losses, end of period		$1,776			$1,811			($35	)	(2	)%		$1,840			$1,831			$1,815
Components:
ALLL		$1,709			$1,743			($34	)	(2	)%		$1,774			$1,770			$1,752
Unfunded commitments reserve	67			68			(1		)	(1	)	66			61			63
Allowance for credit losses		$1,776			$1,811			($35	)	(2	)%		$1,840			$1,831			$1,815
Net charge-offs to average loans held for investment (annualized):
Commercial	0.35		%	0.37		%	(0.02		)	(5	)%	0.46		%	0.12		%	0.13		%
Residential	0.26			0.21			0.05			24		0.24			0.36			0.30
Consumer	0.64			0.52			0.12			23		0.39			0.49			0.51
Total net charge-offs to total average loans held for investment	0.38			0.35			0.03			9		0.39			0.25			0.24
Period Ended
Nonaccrual/NPLs:
Commercial		$414			$513			($99	)	(19	)%		$503			$577			$319
Residential	424			429			(5		)	(1	)	433			390			344
Consumer	7			7			—			—		8			8			9
Total nonaccrual/NPLs	845			949			(104		)	(11	)	944			975			672
OREO	60			57			3			5		49			52			56
Other repossessed assets	14			13			1			8		8			8			7
Total NPAs		$919			$1,019			($100	)	(10	)%		$1,001			$1,035			$735
Accruing restructured loans		$2,535			$2,522			$13		1	%		$2,541			$2,569			$2,603
Nonaccruing restructured loans	306			306			—			—		307			233			176
Accruing loans held for investment past due > 90 days (guaranteed)	1,254			1,114			140			13		999			962			939
Accruing loans held for investment past due > 90 days (non-guaranteed)	34			30			4			13		42			34			42
Accruing LHFS past due > 90 days	1			2			(1		)	(50	)	1			1			—
NPLs to total loans held for investment	0.59		%	0.67		%	(0.08		)	(12	)%	0.67		%	0.70		%	0.49		%
NPAs to total loans held for investment plus OREO and other repossessed assets	0.64			0.72			(0.08		)	(11	)	0.71			0.74			0.54
ALLL to period-end loans held for investment ^{1, 2}	1.19			1.23			(0.04		)	(3	)	1.25			1.27			1.29
ALLL to NPLs ^{1, 2}	2.03x			1.84x			0.19x			10		1.89x			1.83x			2.62x
ALLL to annualized net charge-offs ¹	3.17x			3.49x			(0.32x)			(9	)	3.22x			5.20x			5.33x

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

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

³ "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 December 31									Twelve Months Ended December 31
(Dollars in millions) (Unaudited)	MSRs - Fair Value			Other			Total			MSRs - Fair Value			Other			Total
OTHER INTANGIBLE ASSETS ROLLFORWARD
Balance, beginning of period		$1,262			$20			$1,282			$1,206			$13			$1,219
Amortization	—			(2		)	(2		)	—			(8		)	(8		)
Servicing rights originated	54			—			54			238			13			251
Servicing rights purchased	—			—			—			109			—			109
Fair value changes due to inputs and assumptions ¹	41			—			41			(32		)	—			(32		)
Other changes in fair value ²	(49		)	—			(49		)	(210		)	—			(210		)
Servicing rights sold	(1		)	—			(1		)	(4		)	—			(4		)
Balance, December 31, 2015		$1,307			$18			$1,325			$1,307			$18			$1,325

Balance, beginning of period		$1,119			$12			$1,131			$1,307			$18			$1,325
Amortization	—			(3		)	(3		)	—			(9		)	(9		)
Servicing rights originated	114			—			114			312			—			312
Servicing rights purchased	96			—			96			200			—			200
Servicing rights acquired in Pillar acquisition	—			62			62			—			62			62
Other intangible assets acquired in Pillar acquisition	—			14			14			—			14			14
Fair value changes due to inputs and assumptions ¹	315			—			315			(13		)	—			(13		)
Other changes in fair value ²	(72		)	—			(72		)	(232		)	—			(232		)
Servicing rights sold	—			—			—			(2		)	—			(2		)
Balance, December 31, 2016		$1,572			$85			$1,657			$1,572			$85			$1,657

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
	December 31		September 30		June 30		March 31		December 31
(Shares in thousands) (Unaudited)	2016		2016		2016		2016		2015
COMMON SHARES ROLLFORWARD
Balance, beginning of period	495,936		501,412		505,443		508,712		514,106
Common shares issued for employee benefit plans	560		259		752		991		2
Repurchase of common stock	(5,308	)	(5,735	)	(4,783	)	(4,260	)	(5,396	)
Balance, end of period	491,188		495,936		501,412		505,443		508,712



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

	Three Months Ended															Twelve Months Ended
	December 31			September 30			June 30			March 31			December 31			December 31
(Dollars in millions) (Unaudited)	2016			2016			2016			2016			2015			2016			2015
Net interest income		$1,343			$1,308			$1,288			$1,282			$1,246			$5,221			$4,764
Fully taxable-equivalent ("FTE") adjustment	34			34			35			36			35			138			142
Net interest income-FTE ²	1,377			1,342			1,323			1,318			1,281			5,359			4,906
Noninterest income	815			889			898			781			765			3,383			3,268
Total revenue-FTE ²		$2,192			$2,231			$2,221			$2,099			$2,046			$8,742			$8,174

Return on average common shareholders’ equity ³	7.85		%	7.89		%	8.43		%	7.71		%	8.32		%	7.97		%	8.46		%
Impact of removing average intangible assets and related amortization, other than MSRs and other servicing rights	2.91			2.84			3.11			2.89			3.17			2.94			3.29
Return on average tangible common shareholders' equity ⁴	10.76		%	10.73		%	11.54		%	10.60		%	11.49		%	10.91		%	11.75		%

Net interest margin	2.93		%	2.88		%	2.91		%	2.96		%	2.90		%	2.92		%	2.82		%
Impact of FTE adjustment	0.07			0.08			0.08			0.08			0.08			0.08			0.09
Net interest margin-FTE ²	3.00		%	2.96		%	2.99		%	3.04		%	2.98		%	3.00		%	2.91		%

Noninterest expense		$1,397			$1,409			$1,345			$1,318			$1,288			$5,468			$5,160
Total revenue	2,158			2,197			2,186			2,063			2,011			8,604			8,032
Efficiency ratio ⁵	64.74		%	64.13		%	61.53		%	63.89		%	64.05		%	63.55		%	64.24		%
Impact of FTE adjustment	(1.01		)	(0.99		)	(0.97		)	(1.08		)	(1.09		)	(1.00		)	(1.11		)
Efficiency ratio-FTE ^{2, 5}	63.73			63.14			60.56			62.81			62.96			62.55			63.13
Impact of excluding amortization related to intangible assets and certain tax credits	(0.65		)	(0.60		)	(0.51		)	(0.48		)	(0.85		)	(0.56		)	(0.49		)
Tangible efficiency ratio-FTE ^{2, 6}	63.08		%	62.54		%	60.05		%	62.33		%	62.11		%	61.99		%	62.64		%

Basel III Common Equity Tier 1 ("CET1") ratio (transitional)⁷	9.63		%	9.78		%	9.84		%	9.90		%	9.96		%
Impact of MSRs and other under fully phased-in approach	(0.15		)	(0.12		)	(0.11		)	(0.13		)	(0.16		)
Basel III fully phased-in CET1 ratio⁷	9.48		%	9.66		%	9.73		%	9.77		%	9.80		%

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

	December 31			September 30			June 30			March 31			December 31
(Dollars in millions, except per share data) (Unaudited)	2016			2016			2016			2016			2015
Total shareholders' equity		$23,618			$24,449			$24,464			$24,053			$23,437
Goodwill, net of deferred taxes of $251 million, $248 million, $246 million, $243 million, and $240 million, respectively	(6,086		)	(6,089		)	(6,091		)	(6,094		)	(6,097		)
Other intangible assets (including MSRs and other servicing rights), net of deferred taxes of $1 million, $2 million, $2 million, $3 million, and $3 million, respectively	(1,656		)	(1,129		)	(1,073		)	(1,195		)	(1,322		)
MSRs and other servicing rights	1,638			1,124			1,067			1,189			1,316
Tangible equity ²	17,514			18,355			18,367			17,953			17,334
Noncontrolling interest	(103		)	(101		)	(103		)	(101		)	(108		)
Preferred stock	(1,225		)	(1,225		)	(1,225		)	(1,225		)	(1,225		)
Tangible common equity ²		$16,186			$17,029			$17,039			$16,627			$16,001

Total assets		$204,875			$205,091			$198,892			$194,158			$190,817
Goodwill	(6,337		)	(6,337		)	(6,337		)	(6,337		)	(6,337		)
Other intangible assets (including MSRs and other servicing rights)	(1,657		)	(1,131		)	(1,075		)	(1,198		)	(1,325		)
MSRs and other servicing rights	1,638			1,124			1,067			1,189			1,316
Tangible assets		$198,519			$198,747			$192,547			$187,812			$184,471
Tangible equity to tangible assets ²	8.82		%	9.24		%	9.53		%	9.56		%	9.40		%
Tangible common equity to tangible assets ²	8.15			8.57			8.85			8.85			8.67
Tangible book value per common share ³		$32.95			$34.34			$33.98			$32.90			$31.45

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

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

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



SunTrust Banks, Inc. and Subsidiaries CONSUMER BANKING AND PRIVATE WEALTH MANAGEMENT
	Three Months Ended December 31								Twelve Months Ended December 31
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁵		2016			2015			% Change
Statements of Income:
Net interest income		$734			$701		5	%		$2,857			$2,728		5	%
FTE adjustment	—			—			—		—			1			(100	)
Net interest income-FTE ¹	734			701			5		2,857			2,729			5
Provision for credit losses ²	78			36			NM		185			137			35
Net interest income-FTE - after provision for credit losses ¹	656			665			(1	)	2,672			2,592			3
Noninterest income before net securities gains	364			372			(2	)	1,472			1,507			(2	)
Net securities gains	—			—			—		—			—			—
Total noninterest income	364			372			(2	)	1,472			1,507			(2	)
Noninterest expense before amortization	763			742			3		3,054			2,934			4
Amortization	1			1			—		2			5			(60	)
Total noninterest expense	764			743			3		3,056			2,939			4
Income-FTE - before provision for income taxes ¹	256			294			(13	)	1,088			1,160			(6	)
Provision for income taxes	94			108			(13	)	404			430			(6	)
FTE adjustment	—			—			—		—			1			(100	)
Net income including income attributable to noncontrolling interest	162			186			(13	)	684			729			(6	)
Less: net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$162			$186		(13	)		$684			$729		(6	)

Total revenue		$1,098			$1,073		2			$4,329			$4,235		2
Total revenue-FTE ¹	1,098			1,073			2		4,329			4,236			2
Selected Average Balances:
Total loans		$43,379			$40,834		6	%		$42,723			$40,614		5	%
Goodwill	4,262			4,262			—		4,262			4,262			—
Other intangible assets excluding MSRs	11			18			(39	)	13			16			(19	)
Total assets	49,079			46,515			6		48,415			46,513			4
Consumer and commercial deposits	97,340			91,643			6		95,875			91,104			5
Performance Ratios:
Efficiency ratio	69.49		%	69.24		%			70.59		%	69.40		%
Impact of FTE adjustment	—			—					—			—
Efficiency ratio-FTE ¹	69.49			69.24					70.59			69.40
Impact of excluding amortization and associated funding cost of intangible assets	(1.41		)	(1.53		)			(1.46		)	(1.58		)
Tangible efficiency ratio-FTE ^{1, 3}	68.08		%	67.71		%			69.13		%	67.82		%
Other Information (End of Period) ⁴:
Trust and institutional managed assets										$40,370			$42,205		(4	)%
Retail brokerage managed assets									12,872			10,545			22
Total managed assets									53,242			52,750			1
Non-managed assets									91,980			91,046			1
Total assets under advisement										$145,222			$143,796		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 December 31								Twelve Months Ended December 31
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁴		2016			2015			% Change
Statements of Income:
Net interest income		$487			$453		8	%		$1,849			$1,781		4	%
FTE adjustment	33			34			(3	)	136			138			(1	)
Net interest income-FTE ¹	520			487			7		1,985			1,919			3
Provision for credit losses ²	19			64			(70	)	272			137			99
Net interest income-FTE - after provision for credit losses ¹	501			423			18		1,713			1,782			(4	)
Noninterest income before net securities gains	327			265			23		1,234			1,180			5
Net securities gains	—			—			—		—			—			—
Total noninterest income	327			265			23		1,234			1,180			5
Noninterest expense before amortization	425			368			15		1,646			1,516			9
Amortization	14			17			(18	)	47			35			34
Total noninterest expense	439			385			14		1,693			1,551			9
Income-FTE - before provision for income taxes ¹	389			303			28		1,254			1,411			(11	)
Provision for income taxes	90			54			67		251			321			(22	)
FTE adjustment	33			34			(3	)	136			138			(1	)
Net income including income attributable to noncontrolling interest	266			215			24		867			952			(9	)
Less: net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$266			$215		24			$867			$952		(9	)

Total revenue		$814			$718		13			$3,083			$2,961		4
Total revenue-FTE ¹	847			752			13		3,219			3,099			4
Selected Average Balances:
Total loans		$71,924			$68,785		5	%		$71,605			$67,872		6	%
Goodwill	2,075			2,075			—		2,075			2,075			—
Other intangible assets excluding MSRs	15			1			NM		5			—			NM
Total assets	85,848			81,454			5		85,513			80,915			6
Consumer and commercial deposits	57,445			54,059			6		55,293			50,379			10
Performance Ratios:
Efficiency ratio	53.93		%	53.62		%			54.91		%	52.38		%
Impact of FTE adjustment	(1.99		)	(2.42		)			(2.28		)	(2.36		)
Efficiency ratio-FTE ¹	51.94			51.20					52.63			50.02
Impact of excluding amortization and associated funding cost of intangible assets	(2.25		)	(2.92		)			(2.13		)	(1.82		)
Tangible efficiency ratio-FTE ^{1, 3}	49.69		%	48.28		%			50.50		%	48.20		%


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 December 31								Twelve Months Ended December 31
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁴		2016			2015			% Change
Statements of Income:
Net interest income		$113			$116		(3	)%		$448			$483		(7	)%
FTE adjustment	—			—			—		—			—			—
Net interest income-FTE ¹	113			116			(3	)	448			483			(7	)
Provision/(benefit) for credit losses ²	4			(49		)	NM		(13		)	(110		)	(88	)
Net interest income-FTE - after provision/(benefit) for credit losses ¹	109			165			(34	)	461			593			(22	)
Noninterest income before net securities gains	102			114			(11	)	559			460			22
Net securities gains	—			—			—		—			—			—
Total noninterest income	102			114			(11	)	559			460			22
Noninterest expense before amortization	185			171			8		732			681			7
Amortization	—			—			—		—			—			—
Total noninterest expense	185			171			8		732			681			7
Income-FTE - before provision for income taxes ¹	26			108			(76	)	288			372			(23	)
Provision for income taxes	6			40			(85	)	105			85			24
FTE adjustment	—			—			—		—			—			—
Net income including income attributable to noncontrolling interest	20			68			(71	)	183			287			(36	)
Less: net income attributable to noncontrolling interest	—			—			—		—			—			—
Net income		$20			$68		(71	)		$183			$287		(36	)

Total revenue		$215			$230		(7	)		$1,007			$943		7
Total revenue-FTE ¹	215			230			(7	)	1,007			943			7
Selected Average Balances:
Total loans		$27,211			$25,549		7	%		$26,726			$25,024		7	%
Goodwill	—			—			—		—			—			—
Other intangible assets excluding MSRs	—			—			—		—			—			—
Total assets	32,245			28,979			11		30,697			28,692			7
Consumer and commercial deposits	3,186			2,457			30		2,969			2,679			11
Performance Ratios:
Efficiency ratio	85.98		%	74.40		%			72.71		%	72.20		%
Impact of FTE adjustment	—			—					—			—
Efficiency ratio-FTE ¹	85.98			74.40					72.71			72.20
Impact of excluding amortization and associated funding cost of intangible assets	—			—					—			—
Tangible efficiency ratio-FTE ^{1, 3}	85.98		%	74.40		%			72.71		%	72.20		%
Production Data:
Channel mix
Retail		$3,368			$2,324		45	%		$12,409			$10,414		19	%
Correspondent	5,297			2,632			NM		16,950			12,318			38
Total production		$8,665			$4,956		75			$29,359			$22,732		29
Channel mix - percent
Retail	39		%	47		%			42		%	46		%
Correspondent	61			53					58			54
Total production	100		%	100		%			100		%	100		%
Purchase and refinance mix
Refinance		$4,985			$2,364		NM			$15,147			$10,827		40
Purchase	3,680			2,592			42		14,212			11,905			19
Total production		$8,665			$4,956		75			$29,359			$22,732		29
Purchase and refinance mix - percent
Refinance	58		%	48		%			52		%	48		%
Purchase	42			52					48			52
Total production	100		%	100		%			100		%	100		%

Applications		$8,264			$6,704		23			$40,559			$33,006		23
Mortgage Servicing Data (End of Period):
Total loans serviced										$160,175			$148,232		8	%
Total loans serviced for others									129,626			120,963			7
Net carrying value of MSRs									1,572			1,307			20
Ratio of net carrying value of MSRs to total loans serviced for others									1.213		%	1.080		%

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

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 December 31								Twelve Months Ended December 31
(Dollars in millions) (Unaudited)	2016			2015			% Change ⁴		2016			2015			% Change ⁴
Statements of Income:
Net interest income/(expense) ¹		$9			($24	)	NM			$67			($228	)	NM
FTE adjustment	1			1			—		2			3			(33	)
Net interest income/(expense)-FTE ²	10			(23		)	NM		69			(225		)	NM
Provision for credit losses ³	—			—			—		—			1			(100	)
Net interest income/(expense)-FTE - after provision for credit losses ²	10			(23		)	NM		69			(226		)	NM
Noninterest income before net securities gains	22			14			57		114			100			14
Net securities gains	—			—			—		4			21			(81	)
Total noninterest income	22			14			57		118			121			(2	)
Noninterest expense before amortization	10			(10		)	NM		(13		)	(11		)	18
Amortization	(1		)	(1		)	—		—			—			—
Total noninterest expense	9			(11		)	NM		(13		)	(11		)	18
Income/(loss)-FTE - before provision/(benefit) for income taxes ²	23			2			NM		200			(94		)	NM
Provision/(benefit) for income taxes	3			(17		)	NM		45			(72		)	NM
FTE adjustment	1			1			—		2			3			(33	)
Net income/(loss) including income attributable to noncontrolling interest	19			18			6		153			(25		)	NM
Less: net income attributable to noncontrolling interest	2			3			(33	)	9			10			(10	)
Net income/(loss)		$17			$15		13			$144			($35	)	NM

Total revenue		$31			($10	)	NM			$185			($107	)	NM
Total revenue-FTE ²	32			(9		)	NM		187			(104		)	NM

Selected Average Balances:
Total loans		$64			$46		39	%		$64			$48		33	%
Securities available for sale	29,549			26,942			10		28,365			26,456			7
Goodwill	—			—			—		—			—			—
Other intangible assets excluding MSRs	—			—			—		—			1			(100	)
Total assets	35,974			32,708			10		34,379			32,772			5
Consumer and commercial deposits	25			4			NM		52			40			30

Other Information (End of Period):
Duration of investment portfolio (in years)									4.6			4.5
Net interest income interest rate sensitivity:
% Change in net interest income under:
Instantaneous 200 basis point increase in rates over next 12 months									3.3		%	5.7		%
Instantaneous 100 basis point increase in rates over next 12 months									1.9		%	3.0		%
Instantaneous 25 basis point decrease in rates over next 12 months									(0.6		)%	(1.2		)%


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 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 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 December 31								Twelve Months Ended December 31
(Dollars in millions) (Unaudited)	2016			2015			% Change		2016			2015			% Change ²
Statements of Income:
Net interest income		$1,343			$1,246		8	%		$5,221			$4,764		10	%
FTE adjustment	34			35			(3	)	138			142			(3	)
Net interest income-FTE ¹	1,377			1,281			7		5,359			4,906			9
Provision for credit losses	101			51			98		444			165			NM
Net interest income-FTE - after provision for credit losses ¹	1,276			1,230			4		4,915			4,741			4
Noninterest income before net securities gains	815			765			7		3,379			3,247			4
Net securities gains	—			—			—		4			21			(81	)
Total noninterest income	815			765			7		3,383			3,268			4
Noninterest expense before amortization	1,383			1,271			9		5,419			5,120			6
Amortization	14			17			(18	)	49			40			23
Total noninterest expense	1,397			1,288			8		5,468			5,160			6
Income-FTE - before provision for income taxes ¹	694			707			(2	)	2,830			2,849			(1	)
Provision for income taxes	193			185			4		805			764			5
FTE adjustment	34			35			(3	)	138			142			(3	)
Net income including income attributable to noncontrolling interest	467			487			(4	)	1,887			1,943			(3	)
Less: net income attributable to noncontrolling interest	2			3			(33	)	9			10			(10	)
Net income		$465			$484		(4	)		$1,878			$1,933		(3	)

Total revenue		$2,158			$2,011		7			$8,604			$8,032		7
Total revenue-FTE ¹	2,192			2,046			7		8,742			8,174			7

Selected Average Balances:
Total loans		$142,578			$135,214		5	%		$141,118			$133,558		6	%
Goodwill	6,337			6,337			—		6,337			6,337			—
Other intangible assets excluding MSRs	26			19			37		18			17			6
Total assets	203,146			189,656			7		199,004			188,892			5
Consumer and commercial deposits	157,996			148,163			7		154,189			144,202			7

Performance Ratios:
Efficiency ratio	64.74		%	64.05		%			63.55		%	64.24		%
Impact of FTE adjustment	(1.01		)	(1.09		)			(1.00		)	(1.11		)
Efficiency ratio-FTE ¹	63.73			62.96					62.55			63.13
Impact of excluding amortization and associated funding cost of intangible assets	(0.65		)	(0.85		)			(0.56		)	(0.49		)
Tangible efficiency ratio-FTE ¹	63.08		%	62.11		%			61.99		%	62.64		%

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

Suntrust Banks Inactive 8-KSunTrust Reports Fourth Quarter and Full Year 2016 Results