Suntrust Banks 8K Second Quarter 2017 Financial Highlights | SEC 26 Jul 17

Exhibit 99.1

Second Quarter 2017 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 and state income taxes, where applicable. We provide unadjusted amounts in the table on page 3 of this document and detailed reconciliations and additional information in Appendix A on pages 21 and 22.)

Income Statement


•	Net income available to common shareholders was $505 million, or $1.03 per average common diluted share, compared to $0.91 for the prior quarter and $0.94 for the second quarter of 2016.


•	Total revenue increased 1% compared to the prior quarter and 2% compared to the second quarter of 2016.


◦	These increases were driven largely by higher net interest income as a result of net interest margin expansion and growth in earning assets.


•	Net interest margin was 3.14% in the current quarter, up 5 basis points sequentially and up 15 basis points compared to the prior year, driven by higher earning asset yields arising from higher benchmark interest rates, continued positive mix shift in the loan portfolio, and lower premium amortization in the securities portfolio.


•	Provision for credit losses decreased $29 million sequentially and $56 million year-over-year primarily as a result of lower net charge-offs.


•	Noninterest expense declined 5% sequentially and increased 3% compared to the prior year.


◦	The sequential decrease was driven primarily by a seasonal decline in personnel costs, higher branch closure and severance costs recognized in the prior quarter, and lower operating losses.


◦	The increase relative to the prior year was driven primarily by the recent acquisition of Pillar & Cohen Financial ("Pillar/Cohen"), higher compensation (as a result of improved business performance), higher net occupancy expense, and higher FDIC premiums, partially offset by lower other noninterest expense.


•	The efficiency and tangible efficiency ratios in the current quarter were 61.2% and 60.6%, respectively, which represent significant improvements compared to the prior quarter, driven primarily by seasonal declines in employee benefits costs, ongoing expense management initiatives, and solid revenue growth.

Balance Sheet


•	Average loan balances increased 1% sequentially and 2% year-over-year, driven primarily by growth in consumer lending.


•	Average consumer and commercial deposits increased slightly sequentially and increased 3% compared to the second quarter of 2016, driven by growth in demand and time deposits.

Capital


•	Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 ("CET1") ratio was estimated to be 9.7% as of June 30, 2017, and 9.5% on a fully phased-in basis.


•	During the quarter, the Company:


◦	Issued $750 million of 5.05% preferred stock (Series G) and repurchased $240 million of its outstanding common stock, which completed its share repurchases under its 2016 Capital Plan.


◦	Announced its 2017 Capital Plan, which includes:


▪	The purchase of up to $1.32 billion of its outstanding common stock between the third quarter of 2017 and the second quarter of 2018 (representing a 38% increase).


▪	A 54% increase in the quarterly common stock dividend from $0.26 per share to $0.40 per share, beginning in the third quarter of 2017, subject to approval by the Company's Board of Directors.


•	Book value per common share was $46.51 and tangible book value per common share was $33.83, both up 2% from March 31, 2017, driven primarily by growth in retained earnings.

Asset Quality


•	Nonperforming loans decreased $35 million from the prior quarter and represented 0.52% of total loans at June 30, 2017. The sequential decrease was driven by the return to accrual status of certain nonperforming energy-related loans during the current quarter.


•	Net charge-offs for the current quarter were $70 million, or 0.20% of average loans on an annualized basis, down $42 million sequentially and $67 million year-over-year driven by overall asset quality improvements for both periods as well as lower energy-related net charge-offs year-over-year.


•	The provision for credit losses decreased $29 million sequentially as a result of lower net charge-offs.


•	At June 30, 2017, the allowance for loan and lease losses ("ALLL") to period-end loans held for investment ("LHFI") ratio was 1.20%, stable compared to the prior quarter.





Income Statement (Dollars in millions, except per share data)	2Q 2017			1Q 2017			4Q 2016			2Q 2016
Net interest income	$1,403			$1,366			$1,343			$1,288
Net interest income-FTE ²	1,439			1,400			1,377			1,323
Net interest margin	3.06		%	3.02		%	2.93		%	2.91		%
Net interest margin-FTE ²	3.14			3.09			3.00			2.99
Noninterest income	$827			$847			$815			$898
Total revenue	2,230			2,213			2,158			2,186
Total revenue-FTE ²	2,266			2,247			2,192			2,221
Noninterest expense	1,388			1,465			1,397			1,345
Provision for credit losses	90			119			101			146
Net income available to common shareholders	505			451			448			475
Earnings per average common diluted share	1.03			0.91			0.90			0.94

Balance Sheet (Dollars in billions)
Average loans held for investment ("LHFI")		$144.4			$143.7			$142.6			$141.2
Average consumer and commercial deposits	159.1			158.9			158.0			154.2

Capital
Capital ratios at period end ¹ :
Tier 1 capital (transitional)	10.81		%	10.40		%	10.28		%	10.57		%
Common Equity Tier 1 ("CET1") (transitional)	9.68			9.69			9.59			9.84
Common Equity Tier 1 ("CET1") (fully phased-in) ²	9.53			9.54			9.43			9.73
Total average shareholders’ equity to total average assets	11.80			11.59			11.84			12.11

Asset Quality
Net charge-offs to average LHFI (annualized)	0.20		%	0.32		%	0.38		%	0.39		%
ALLL to period-end LHFI	1.20			1.20			1.19			1.25
Nonperforming loans to total loans	0.52			0.55			0.59			0.67

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

² See Appendix A on pages 21 and 22 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 $2.3 billion for the current quarter, an increase of $19 million compared to the prior quarter. Net interest income increased $39 million sequentially due to a higher net interest margin and growth in average earning assets. Noninterest income decreased $20 million sequentially driven primarily by lower capital markets and mortgage-related income. Compared to the second quarter of 2016, total revenue increased $45 million, driven by a $116 million increase in net interest income, which was partially offset by a $63 million decrease in mortgage-related income.

Net Interest Income

Net interest income was $1.4 billion for the current quarter, an increase of $39 million and $116 million compared to the prior quarter and prior year, respectively. Both increases were driven primarily by net interest margin expansion and growth in earning assets.

Net interest margin for the current quarter was 3.14%, compared to 3.09% in the prior quarter and 2.99% in the second quarter of 2016. The 5 and 15 basis point increases relative to the prior quarter and prior year were driven primarily by higher earning asset yields arising from higher benchmark interest rates, continued positive mix shift in the loan portfolio, and lower premium amortization in the securities portfolio, partially offset by higher deposit costs.

For the six months ended June 30, 2017, net interest income was $2.8 billion, a $199 million increase compared to the first six months of 2016. The net interest margin was 3.11% for the first half of 2017, a 10 basis point increase compared to the same period in 2016. The increases in both net interest income and net interest margin were driven by the same factors that impacted the prior year comparison discussed above.

Noninterest Income

Noninterest income was $827 million for the current quarter, compared to $847 million for the prior quarter and $898 million for the second quarter of 2016. The $20 million sequential decrease was due primarily to lower capital markets and mortgage-related income. Compared to the second quarter of 2016, noninterest income decreased $71 million, driven largely by lower mortgage-related income and reduced service charges on deposit accounts, as well as the $44 million of net asset-related gains recognized during the second quarter of 2016. These year-over-year decreases were partially offset by higher capital markets and commercial real estate related income (which is favorably impacted by the acquisition of Pillar/Cohen in December 2016).

Investment banking income was $147 million for the current quarter, compared to $167 million in the prior quarter and $126 million in the second quarter of 2016. The $20 million decrease compared to the prior quarter is due to lower capital market originations (specifically in syndicated finance) in the current quarter following record performance in the prior quarter. The $21 million increase compared to the second quarter of 2016 was due to strong deal flow activity, particularly in syndicated finance and M&A advisory.

Trading income was $46 million for the current quarter, compared to $51 million in the prior quarter and $34 million in the second quarter of 2016. The sequential decrease was due to lower client-related interest rate hedging activity during the current quarter. The increase compared to the second quarter of 2016 was driven largely by the recognition of higher counterparty credit valuation reserves (as a result of an adjustment to the internal reserve methodology) in the second quarter of 2016.

Mortgage production income for the current quarter was $56 million, compared to $53 million for the prior quarter and $111 million for the second quarter of 2016. The $55 million decrease from the second quarter of 2016 was due to lower production volume and lower gain-on-sale margins. Mortgage application volume increased 7% sequentially and decreased 26% compared to the second quarter of 2016. Closed loan volume increased 17% sequentially, but decreased 12% compared to the second quarter of 2016.

Mortgage servicing income was $44 million for the current quarter, compared to $58 million in the prior quarter and $52 million in the second quarter of 2016. The $14 million sequential decrease was due to higher servicing asset decay and lower net hedge performance. The $8 million decrease compared to the second quarter of 2016 was due largely to lower net hedge performance and higher servicing asset decay, partially offset by higher servicing fees. At June 30, 2017 and 2016, the servicing portfolio totaled $165.6 billion and $154.5 billion, respectively, and was $164.5 billion at March 31, 2017.

Retail investment income was $70 million for the current quarter, compared to $68 million in the prior quarter and $72 million in the second quarter of 2016. The $2 million increase compared to the prior quarter is due to growth in retail brokerage managed assets. The $2 million decrease compared to the prior year was a result of reduced client transactional activity.

Client transaction-related fees (namely service charges on deposits, other charges and fees, and card fees) increased $16 million compared to the prior quarter due largely to higher client spend activity, increased incidence rates on deposit accounts and higher commitment fees. Compared to second quarter of 2016, client transaction-related fees decreased $8 million due to the impact of the enhanced posting order process instituted during the fourth quarter of 2016.

Commercial real estate related income was $24 million for the current quarter, compared to $20 million for the prior quarter and $10 million for the second quarter of 2016. The $4 million sequential increase was due primarily to higher structured real estate-related gains. The $14 million increase compared to the second quarter of 2016 was attributable to revenue from Pillar/Cohen, which the Company acquired in December 2016.

Other noninterest income was $22 million for the current quarter, compared to $30 million in the prior quarter and $65 million in the second quarter of 2016. The $8 million decrease compared to the sequential quarter was due primarily to gains on the sale of affordable housing investments recognized during the prior quarter. The $43 million decrease compared to the prior year was due primarily to the $44 million of net asset-related gains recognized during the second quarter of 2016.

For the six months ended June 30, 2017, noninterest income was $1.7 billion, a decrease of $6 million compared to the first six months of 2016 as higher capital markets and commercial real estate related income were offset by lower mortgage-related and other noninterest income as well as reduced service charges on deposit accounts.

Noninterest Expense

Noninterest expense was $1.4 billion in the current quarter, representing a sequential decline of $77 million and an increase of $43 million compared to the second quarter of 2016. The sequential decrease was driven primarily by the seasonal decline in personnel costs, higher branch closure and severance costs recognized in the prior quarter (recorded in other noninterest expense), and lower operating losses. The increase relative to the prior year was driven primarily by the recent acquisition of Pillar/Cohen, higher compensation (as a result of improved business performance), higher net occupancy expense, and higher FDIC premiums, partially offset by lower other noninterest expense.

Employee compensation and benefits expense was $796 million in the current quarter, compared to $852 million in the prior quarter and $763 million in the second quarter of 2016. The sequential decrease of $56 million was due to the seasonal decrease in employee benefits costs. The $33 million increase compared to the second quarter of 2016 was due primarily to incremental compensation costs associated with the acquisition of Pillar/Cohen and higher compensation costs associated with revenue growth.

Operating losses were $19 million in the current quarter, compared to $32 million in the prior quarter and $25 million in the second quarter of 2016. The decrease relative to the first quarter was largely due to higher legal accruals recognized during the prior quarter. The year-over-year decrease was due to higher regulatory, compliance and legal-related charges recognized in the prior year.

Outside processing and software expense was $204 million in the current quarter, stable compared to $205 million in the prior quarter and $202 million in the second quarter of 2016.

FDIC premium and regulatory expense was $49 million in the current quarter, compared to $48 million in the prior quarter and $44 million in the second quarter of 2016. The $5 million increase compared to the prior year 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 $42 million in the current quarter, compared to $42 million in the prior quarter and $38 million in the second quarter of 2016. The increase relative to the prior year was driven by normal variability in advertising and client development costs.

Net occupancy expense was $94 million in the current quarter, compared to $92 million in the prior quarter and $78 million in the second quarter of 2016. The year-over-year increase was due primarily to a reduction in amortized gains from prior sale leaseback transactions.

Other noninterest expense was $126 million in the current quarter, compared to $142 million in both the prior quarter and second quarter of 2016. The sequential decrease was primarily due to higher branch closure and severance costs incurred in the prior quarter. The year-over-year decrease was driven primarily by lower severance and credit collection-related expenses.

For the six months ended June 30, 2017, noninterest expense was $2.9 billion compared to $2.7 billion for the first six months of 2016. The $190 million increase was driven largely by higher employee compensation expense (primarily related to higher revenue and the acquisition of Pillar/Cohen), net occupancy costs, FDIC premium and regulatory expense, and other noninterest expense (related primarily to branch closure costs and legal and consulting fees).

Income Taxes

For the current quarter, the Company recorded an income tax provision of $222 million, compared to $159 million for the prior quarter and $201 million for the second quarter of 2016. The prior quarter was favorably impacted by $23 million in discrete tax benefits. The effective tax rate for the current quarter was 30%, compared to 25% in the prior quarter and 29% in the second quarter of 2016.

Balance Sheet

At June 30, 2017, the Company had total assets of $207.2 billion and total shareholders’ equity of $24.5 billion, representing 12% of total assets. Book value per common share was $46.51 and tangible book value per common share was $33.83, both up 2% compared to March 31, 2017 driven primarily by growth in retained earnings and a lower accumulated other comprehensive loss.

Loans

Average performing loans were $143.7 billion for the current quarter, a 1% increase over the prior quarter and a 2% increase over the second quarter of 2016. The sequential and year-over-year growth was driven largely by increases in consumer lending, offset partially by declines in home equity products.

Deposits

Average consumer and commercial deposits for the current quarter were $159.1 billion, a slight increase over the prior quarter and a 3% increase over the second quarter of 2016. The sequential growth was due largely to a 5% increase in time deposits and a 1% increase in demand deposits, offset partially by declines in both NOW and money market account balances. Compared to the second quarter of 2016, growth was driven primarily by increases in NOW and money market account balances.

Capital and Liquidity

The Company’s estimated capital ratios were well above current regulatory requirements with the Common Equity Tier 1 ratio estimated to be 9.7% at June 30, 2017, 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 11.8% and 8.1%, respectively, at June 30, 2017. The Company continues to have substantial available liquidity in the form of cash, high-quality government-backed or government-sponsored securities, and other available contingency funding sources.

The Company declared a common stock dividend of $0.26 per common share and repurchased $240 million of its outstanding common stock in the second quarter of 2017, which completed its authorized common equity repurchases as approved by the Board in conjunction with the 2016 Capital Plan. Additionally, the Company issued $750 million of 5.05% noncumulative perpetual preferred stock, Series G, in May 2017.

In June 2017, the Company announced that the Federal Reserve had no objections to its 2017 Capital Plan. This plan includes the repurchase of up to $1.32 billion of the Company's outstanding common stock between the third quarter of 2017 and the second quarter of 2018 (representing a 38% increase in the average quarterly repurchase amount compared to the previous authorization). Additionally, subject to Board approval, the Company intends to increase its quarterly common stock dividend 54% to $0.40 per common share beginning in the third quarter of 2017 and to maintain the current level of dividend payments on its preferred stock.

Asset Quality

Total nonperforming assets were $821 million at June 30, 2017, down $37 million compared to the prior quarter and $180 million compared to the second quarter of 2016. The decrease in nonperforming assets compared to both the prior quarter and the prior year was due primarily to the continued resolution of problem energy credits. The ratio of nonperforming loans to total loans held for investment was 0.52%, 0.55%, and 0.67% at June 30, 2017, March 31, 2017, and June 30, 2016, respectively.

Net charge-offs were $70 million during the current quarter, a decrease of $42 million compared to the prior quarter and $67 million compared to the second quarter of 2016. The decrease was primarily driven by overall asset quality improvements for both periods as well as lower energy-related net charge-offs year-over-year. The ratio of annualized net charge-offs to total average loans held for investment was 0.20% during the current quarter, compared to 0.32% during the prior quarter and 0.39% during the second quarter of 2016. The provision for credit losses was $90 million in the current quarter, a decrease of $29 million compared to the prior quarter and $56 million compared to the second quarter of 2016.

At June 30, 2017, the ALLL was $1.7 billion, which represented 1.20% of total loans, stable relative to March 31, 2017.

Early stage delinquencies decreased 6 basis points from the prior quarter to 0.66% at June 30, 2017. Excluding government-guaranteed loans which account for 0.44%, early stage delinquencies were 0.22%, unchanged compared to the prior quarter and down 1 basis point from a year ago.

Accruing restructured loans totaled $2.5 billion and nonaccruing restructured loans totaled $321 million at June 30, 2017, of which $2.5 billion were residential loans, $177 million were consumer loans, and $128 million were commercial loans.

OTHER INFORMATION

About SunTrust Banks, Inc.

SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. Headquartered in Atlanta, the Company has two business segments: Consumer and Wholesale. Its flagship subsidiary, SunTrust Bank, operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. As of June 30, 2017, SunTrust had total assets of $207 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 document. Revenue and income amounts labeled "FTE" in the business segment tables are reported on a fully taxable-equivalent basis. In the second quarter of 2017, the Company realigned its business segment structure from three segments to two segments based on, among other things, the manner in which financial information is evaluated by management and in conjunction with Company-wide organizational changes that were announced during the first quarter of 2017. Specifically, the Company retained the previous composition of the Wholesale Banking segment and changed the basis of presentation of the Consumer Banking and Private Wealth Management segment and Mortgage Banking segment such that those segments were combined into a single Consumer segment. In conjunction with this business segment structure realignment, the Company made certain adjustments to its internal funds transfer pricing methodology. Prior period information was revised to conform to the new business segment structure and the updated internal funds transfer pricing methodology.

For the business segments, net interest income is computed using matched-maturity funds transfer pricing and noninterest income includes federal and state tax credits that are grossed-up on a pre-tax equivalent basis. Further, provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision/(benefit) attributable to each segment's quarterly change in the allowance for loan and lease losses and unfunded commitments reserve balances. SunTrust also reports results for Corporate Other, which includes the Treasury department as well as the residual expense associated with operational and support expense allocations. The Corporate Other segment also includes differences created between internal management accounting practices and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and certain matched-maturity funds transfer pricing credits and charges. A detailed discussion of the business segment results will be included in the Company’s forthcoming Form 10-Q.

Corresponding Financial Tables and Information

Investors are encouraged to review the foregoing summary and discussion of SunTrust’s earnings and financial condition in conjunction with the detailed financial tables and information which SunTrust has also published today and SunTrust’s forthcoming Form 10-Q. Detailed financial tables and other information are also available at investors.suntrust.com. This information is also included in a current report on Form 8-K filed with the SEC today.

Conference Call

SunTrust management hosted a conference call on July 21, 2017, at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals were able to call in beginning at 7:45 a.m. (Eastern Time) by dialing 1-877-209-9920 (Passcode: SunTrust). Individuals calling from outside the United States should dial 1-612-332-1210 (Passcode: SunTrust). A replay of the call was available approximately one hour after the call ended on July 21, 2017, and remains available until August 21, 2017, by dialing 1-800-475-6701 (domestic) or 1-320-365-3844 (international) (Passcode: 425463). Alternatively, individuals were able to listen to the live webcast of the presentation by visiting the SunTrust investor relations website at investors.suntrust.com. Beginning the afternoon of July 21, 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 document 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 document beginning at page 21.

In this document, 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 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) ratio, 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 document contains forward-looking statements. Statements regarding potential future share repurchases and future expected dividends are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “opportunity,” “focus,” “potentially,” “probably,” “projects,” “outlook,” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.�� Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward looking statements. Future dividends, and the amount of any such dividend, must be declared by our board of directors in 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, 2016 and in other periodic reports that we file with the SEC.

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS



(Dollars in millions and shares in thousands, except per share data) (Unaudited)	Three Months Ended June 30						Six Months Ended June 30
	2017			2016			2017			2016
EARNINGS & DIVIDENDS
Net income		$528			$492			$995			$939
Net income available to common shareholders	505			475			956			906
Total revenue	2,230			2,186			4,443			4,249
Total revenue-FTE ¹	2,266			2,221			4,513			4,320
Net income per average common share:
Diluted		$1.03			$0.94			$1.94			$1.78
Basic	1.05			0.95			1.97			1.80
Dividends paid per common share	0.26			0.24			0.52			0.48
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$204,494			$198,305			$204,374			$195,660
Earning assets	184,057			178,055			183,833			176,122
Loans held for investment ("LHFI")	144,440			141,238			144,058			139,805
Intangible assets including mortgage servicing rights ("MSRs")	8,024			7,543			8,025			7,556
MSRs	1,603			1,192			1,603			1,203
Consumer and commercial deposits	159,136			154,166			159,006			151,698
Total shareholders’ equity	24,139			24,018			23,906			23,907
Preferred stock	1,720			1,225			1,474			1,225
Period End Balances:
Total assets								$207,223			$198,892
Earning assets							184,518			178,852
LHFI							144,268			141,656
Allowance for loan and lease losses ("ALLL")							1,731			1,774
Consumer and commercial deposits							158,319			151,779
Total shareholders’ equity							24,477			24,464
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.03		%	1.00		%	0.98		%	0.97		%
Return on average common shareholders’ equity	9.08			8.43			8.64			8.07
Return on average tangible common shareholders' equity ¹	12.51			11.54			11.90			11.07
Net interest margin	3.06			2.91			3.04			2.93
Net interest margin-FTE ¹	3.14			2.99			3.11			3.01
Efficiency ratio	62.24			61.53			64.21			62.67
Efficiency ratio-FTE ¹	61.24			60.56			63.21			61.65
Tangible efficiency ratio-FTE ¹	60.59			60.05			62.59			61.16
Effective tax rate	30			29			28			30
Basel III capital ratios at period end (transitional) ²:
Common Equity Tier 1 ("CET1")							9.68		%	9.84		%
Tier 1 capital							10.81			10.57
Total capital							12.75			12.68
Leverage							9.55			9.35
Basel III fully phased-in CET1 ratio ^{1, 2}							9.53			9.73
Total average shareholders’ equity to total average assets	11.80		%	12.11		%	11.70			12.22
Tangible equity to tangible assets ¹							9.15			9.54
Tangible common equity to tangible assets ¹							8.11			8.85
Book value per common share								$46.51			$46.14
Tangible book value per common share ¹							33.83			33.98
Market capitalization							27,319			20,598
Average common shares outstanding:
Diluted	488,020			505,633			491,989			508,012
Basic	482,913			501,374			486,482			503,428
Full-time equivalent employees							24,278			23,940
Number of ATMs							2,104			2,144
Full service banking offices							1,281			1,389


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


²	Current period capital ratios are estimated as of the document date.

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS, continued



	Three Months Ended
	June 30			March 31			December 31			June 30
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2017			2017			2016			2016
EARNINGS & DIVIDENDS
Net income		$528			$468			$465			$492
Net income available to common shareholders	505			451			448			475
Total revenue	2,230			2,213			2,158			2,186
Total revenue-FTE ¹	2,266			2,247			2,192			2,221
Net income per average common share:
Diluted		$1.03			$0.91			$0.90			$0.94
Basic	1.05			0.92			0.91			0.95
Dividends paid per common share	0.26			0.26			0.26			0.24
CONDENSED BALANCE SHEETS
Selected Average Balances:
Total assets		$204,494			$204,252			$203,146			$198,305
Earning assets	184,057			183,606			182,475			178,055
LHFI	144,440			143,670			142,578			141,238
Intangible assets including MSRs	8,024			8,026			7,654			7,543
MSRs	1,603			1,604			1,291			1,192
Consumer and commercial deposits	159,136			158,874			157,996			154,166
Total shareholders’ equity	24,139			23,671			24,044			24,018
Preferred stock	1,720			1,225			1,225			1,225
Period End Balances:
Total assets		$207,223			$205,642			$204,875			$198,892
Earning assets	184,518			183,279			184,610			178,852
LHFI	144,268			143,529			143,298			141,656
ALLL	1,731			1,714			1,709			1,774
Consumer and commercial deposits	158,319			161,531			158,864			151,779
Total shareholders’ equity	24,477			23,484			23,618			24,464
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.03		%	0.93		%	0.91		%	1.00		%
Return on average common shareholders’ equity	9.08			8.19			7.85			8.43
Return on average tangible common shareholders' equity ¹	12.51			11.28			10.76			11.54
Net interest margin	3.06			3.02			2.93			2.91
Net interest margin-FTE ¹	3.14			3.09			3.00			2.99
Efficiency ratio	62.24			66.20			64.74			61.53
Efficiency ratio-FTE ¹	61.24			65.19			63.73			60.56
Tangible efficiency ratio-FTE ¹	60.59			64.60			63.08			60.05
Effective tax rate	30			25			29			29
Basel III capital ratios at period end (transitional) ²:
CET1	9.68		%	9.69		%	9.59		%	9.84		%
Tier 1 capital	10.81			10.40			10.28			10.57
Total capital	12.75			12.37			12.26			12.68
Leverage	9.55			9.08			9.22			9.35
Basel III fully phased-in CET1 ratio ^{1, 2}	9.53			9.54			9.43			9.73
Total average shareholders’ equity to total average assets	11.80			11.59			11.84			12.11
Tangible equity to tangible assets ¹	9.15			8.72			8.82			9.54
Tangible common equity to tangible assets ¹	8.11			8.06			8.15			8.85
Book value per common share		$46.51			$45.62			$45.38			$46.14
Tangible book value per common share ¹	33.83			33.05			32.95			33.98
Market capitalization	27,319			26,860			26,942			20,598
Average common shares outstanding:
Diluted	488,020			496,002			497,055			505,633
Basic	482,913			490,091			491,497			501,374
Full-time equivalent employees	24,278			24,215			24,375			23,940
Number of ATMs	2,104			2,132			2,165			2,144
Full service banking offices	1,281			1,316			1,367			1,389


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


²	Current period capital ratios are estimated as of the document date.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME



	Three Months Ended				Six Months Ended
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30				June 30
	2017		2016		2017		2016
Interest income		$1,583		$1,424		$3,111		$2,834
Interest expense	180		136		342		265
NET INTEREST INCOME	1,403		1,288		2,769		2,569
Provision for credit losses	90		146		209		246
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,313		1,142		2,560		2,323
NONINTEREST INCOME
Service charges on deposit accounts	151		162		299		315
Other charges and fees	103		104		198		197
Card fees	87		83		169		160
Investment banking income	147		126		314		225
Trading income	46		34		97		89
Trust and investment management income	76		75		151		150
Retail investment services	70		72		139		141
Mortgage production related income	56		111		109		171
Mortgage servicing related income	44		52		102		114
Commercial real estate related income ¹	24		10		44		28
Net securities gains	1		4		1		4
Other noninterest income ¹	22		65		51		86
Total noninterest income	827		898		1,674		1,680
NONINTEREST EXPENSE
Employee compensation and benefits	796		763		1,648		1,536
Outside processing and software	204		202		409		400
Net occupancy expense	94		78		185		163
Equipment expense	43		42		83		82
FDIC premium/regulatory exams	49		44		97		80
Marketing and customer development	42		38		84		82
Operating losses	19		25		51		50
Amortization	15		11		28		21
Other noninterest expense	126		142		268		249
Total noninterest expense	1,388		1,345		2,853		2,663
INCOME BEFORE PROVISION FOR INCOME TAXES	752		695		1,381		1,340
Provision for income taxes	222		201		381		396
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	530		494		1,000		944
Net income attributable to noncontrolling interest	2		2		5		5
NET INCOME		$528		$492		$995		$939
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$505		$475		$956		$906
Net interest income-FTE ²	1,439		1,323		2,839		2,640
Total revenue	2,230		2,186		4,443		4,249
Total revenue-FTE ²	2,266		2,221		4,513		4,320
Net income per average common share:
Diluted	1.03		0.94		1.94		1.78
Basic	1.05		0.95		1.97		1.80
Cash dividends paid per common share	0.26		0.24		0.52		0.48
Average common shares outstanding:
Diluted	488,020		505,633		491,989		508,012
Basic	482,913		501,374		486,482		503,428

¹ Beginning January 1, 2017, the Company began presenting income related to the Company's Pillar & Cohen Financial, Community Capital, and Structured Real Estate businesses as a separate line item on the Consolidated Statements of Income titled Commercial real estate related income. For periods prior to January 1, 2017, these amounts were previously presented in Other noninterest income and have been reclassified to Commercial real estate related income for comparability.

² See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME, continued



	Three Months Ended
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30		March 31		December 31		June 30
	2017		2017		2016		2016
Interest income		$1,583		$1,528		$1,492		$1,424
Interest expense	180		162		149		136
NET INTEREST INCOME	1,403		1,366		1,343		1,288
Provision for credit losses	90		119		101		146
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,313		1,247		1,242		1,142
NONINTEREST INCOME
Service charges on deposit accounts	151		148		154		162
Other charges and fees	103		95		90		104
Card fees	87		82		84		83
Investment banking income	147		167		122		126
Trading income	46		51		58		34
Trust and investment management income	76		75		73		75
Retail investment services	70		68		69		72
Mortgage production related income	56		53		78		111
Mortgage servicing related income	44		58		25		52
Commercial real estate related income ¹	24		20		33		10
Net securities gains	1		—		—		4
Other noninterest income ¹	22		30		29		65
Total noninterest income	827		847		815		898
NONINTEREST EXPENSE
Employee compensation and benefits	796		852		762		763
Outside processing and software	204		205		209		202
Net occupancy expense	94		92		94		78
Equipment expense	43		39		43		42
FDIC premium/regulatory exams	49		48		46		44
Marketing and customer development	42		42		52		38
Operating losses	19		32		23		25
Amortization	15		13		14		11
Other noninterest expense	126		142		154		142
Total noninterest expense	1,388		1,465		1,397		1,345
INCOME BEFORE PROVISION FOR INCOME TAXES	752		629		660		695
Provision for income taxes	222		159		193		201
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	530		470		467		494
Net income attributable to noncontrolling interest	2		2		2		2
NET INCOME		$528		$468		$465		$492
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$505		$451		$448		$475
Net interest income-FTE ²	1,439		1,400		1,377		1,323
Total revenue	2,230		2,213		2,158		2,186
Total revenue-FTE ²	2,266		2,247		2,192		2,221
Net income per average common share:
Diluted	1.03		0.91		0.90		0.94
Basic	1.05		0.92		0.91		0.95
Cash dividends paid per common share	0.26		0.26		0.26		0.24
Average common shares outstanding:
Diluted	488,020		496,002		497,055		505,633
Basic	482,913		490,091		491,497		501,374

² See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS



	June 30
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2017			2016
ASSETS
Cash and due from banks		$6,968			$4,134
Federal funds sold and securities borrowed or purchased under agreements to resell	1,249			1,107
Interest-bearing deposits in other banks	24			24
Trading assets and derivative instruments	5,847			6,850
Securities available for sale	31,142			29,336
Loans held for sale ("LHFS")	2,826			2,468
Loans held for investment ("LHFI"):
Commercial and industrial ("C&I")	68,511			68,603
Commercial real estate ("CRE")	5,250			6,228
Commercial construction	4,019			2,617
Residential mortgages - guaranteed	501			534
Residential mortgages - nonguaranteed	26,594			26,037
Residential home equity products	11,173			12,481
Residential construction	364			397
Consumer student - guaranteed	6,543			5,562
Consumer other direct	8,249			6,825
Consumer indirect	11,639			11,195
Consumer credit cards	1,425			1,177
Total LHFI	144,268			141,656
Allowance for loan and lease losses ("ALLL")	(1,731		)	(1,774		)
Net loans held for investment	142,537			139,882
Goodwill	6,338			6,337
MSRs	1,608			1,061
Other assets	8,684			7,693
Total assets ¹		$207,223			$198,892
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$44,006			$42,466
Interest-bearing consumer and commercial deposits:
NOW accounts	43,973			39,869
Money market accounts	53,000			53,410
Savings	6,599			6,343
Consumer time	5,610			5,836
Other time	5,131			3,855
Total consumer and commercial deposits	158,319			151,779
Brokered time deposits	944			972
Foreign deposits	610			—
Total deposits	159,873			152,751
Funds purchased	3,007			1,352
Securities sold under agreements to repurchase	1,503			1,622
Other short-term borrowings	2,640			1,883
Long-term debt	10,511			12,264
Trading liabilities and derivative instruments	1,090			1,245
Other liabilities	4,122			3,311
Total liabilities	182,746			174,428
SHAREHOLDERS' EQUITY
Preferred stock, no par value	1,975			1,225
Common stock, $1.00 par value	550			550
Additional paid-in capital	8,973			9,003
Retained earnings	16,701			15,353
Treasury stock, at cost, and other	(2,945		)	(1,900		)
Accumulated other comprehensive (loss)/income, net of tax	(777		)	233
Total shareholders' equity	24,477			24,464
Total liabilities and shareholders' equity		$207,223			$198,892

Common shares outstanding	481,644			501,412
Common shares authorized	750,000			750,000
Preferred shares outstanding	20			12
Preferred shares authorized	50,000			50,000
Treasury shares of common stock	68,369			48,509

¹ Includes earning assets of $184,518 and $178,852 at June 30, 2017 and 2016, respectively.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS, continued



(Dollars in millions and shares in thousands, except per share data) (Unaudited)	June 30			March 31			December 31			June 30
	2017			2017			2016			2016
ASSETS
Cash and due from banks		$6,968			$6,957			$5,091			$4,134
Federal funds sold and securities borrowed or purchased under agreements to resell	1,249			1,292			1,307			1,107
Interest-bearing deposits in other banks	24			25			25			24
Trading assets and derivative instruments	5,847			6,007			6,067			6,850
Securities available for sale	31,142			31,127			30,672			29,336
LHFS	2,826			2,109			4,169			2,468
LHFI:
C&I	68,511			68,971			69,213			68,603
CRE	5,250			5,067			4,996			6,228
Commercial construction	4,019			4,215			4,015			2,617
Residential mortgages - guaranteed	501			549			537			534
Residential mortgages - nonguaranteed	26,594			26,110			26,137			26,037
Residential home equity products	11,173			11,511			11,912			12,481
Residential construction	364			380			404			397
Consumer student - guaranteed	6,543			6,396			6,167			5,562
Consumer other direct	8,249			7,904			7,771			6,825
Consumer indirect	11,639			11,067			10,736			11,195
Consumer credit cards	1,425			1,359			1,410			1,177
Total LHFI	144,268			143,529			143,298			141,656
ALLL	(1,731		)	(1,714		)	(1,709		)	(1,774		)
Net loans held for investment	142,537			141,815			141,589			139,882
Goodwill	6,338			6,338			6,337			6,337
MSRs	1,608			1,645			1,572			1,061
Other assets	8,684			8,327			8,046			7,693
Total assets ¹		$207,223			$205,642			$204,875			$198,892
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$44,006			$43,437			$43,431			$42,466
Interest-bearing consumer and commercial deposits:
NOW accounts	43,973			46,222			45,534			39,869
Money market accounts	53,000			55,261			54,166			53,410
Savings	6,599			6,668			6,266			6,343
Consumer time	5,610			5,495			5,534			5,836
Other time	5,131			4,448			3,933			3,855
Total consumer and commercial deposits	158,319			161,531			158,864			151,779
Brokered time deposits	944			917			924			972
Foreign deposits	610			405			610			—
Total deposits	159,873			162,853			160,398			152,751
Funds purchased	3,007			1,037			2,116			1,352
Securities sold under agreements to repurchase	1,503			1,704			1,633			1,622
Other short-term borrowings	2,640			1,955			1,015			1,883
Long-term debt	10,511			10,496			11,748			12,264
Trading liabilities and derivative instruments	1,090			1,225			1,351			1,245
Other liabilities	4,122			2,888			2,996			3,311
Total liabilities	182,746			182,158			181,257			174,428
SHAREHOLDERS’ EQUITY
Preferred stock, no par value	1,975			1,225			1,225			1,225
Common stock, $1.00 par value	550			550			550			550
Additional paid-in capital	8,973			8,966			9,010			9,003
Retained earnings	16,701			16,322			16,000			15,353
Treasury stock, at cost, and other	(2,945		)	(2,712		)	(2,346		)	(1,900		)
Accumulated other comprehensive (loss)/income, net of tax	(777		)	(867		)	(821		)	233
Total shareholders’ equity	24,477			23,484			23,618			24,464
Total liabilities and shareholders’ equity		$207,223			$205,642			$204,875			$198,892

Common shares outstanding	481,644			485,712			491,188			501,412
Common shares authorized	750,000			750,000			750,000			750,000
Preferred shares outstanding	20			12			12			12
Preferred shares authorized	50,000			50,000			50,000			50,000
Treasury shares of common stock	68,369			64,301			58,738			48,509

¹ Includes earning assets of $184,518, $183,279, $184,610, and $178,852 at June 30, 2017, March 31, 2017, December 31, 2016, and June 30, 2016, respectively.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID
	Three Months Ended
	June 30, 2017							March 31, 2017
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
Loans held for investment ("LHFI"): ¹
Commercial and industrial ("C&I")		$69,122			$574	3.33	%		$69,076			$554	3.25	%
Commercial real estate ("CRE")	5,157			44		3.38		5,038			39		3.18
Commercial construction	4,105			37		3.63		4,076			34		3.39
Residential mortgages - guaranteed	532			4		2.95		567			4		3.07
Residential mortgages - nonguaranteed	26,090			248		3.80		25,918			247		3.80
Residential home equity products	11,113			118		4.27		11,466			116		4.10
Residential construction	363			4		4.19		385			4		4.04
Consumer student - guaranteed	6,462			71		4.42		6,278			65		4.20
Consumer other direct	8,048			97		4.84		7,819			97		5.02
Consumer indirect	11,284			98		3.50		10,847			92		3.43
Consumer credit cards	1,391			35		9.96		1,369			33		9.79
Nonaccrual	773			8		4.37		831			4		2.03
Total LHFI	144,440			1,338		3.72		143,670			1,289		3.64
Securities available for sale:
Taxable	30,654			189		2.47		30,590			185		2.42
Tax-exempt	348			3		3.04		286			2		3.04
Total securities available for sale	31,002			192		2.47		30,876			187		2.42
Federal funds sold and securities borrowed or purchased under agreements to resell	1,237			2		0.68		1,236			1		0.33
Loans held for sale ("LHFS")	2,222			21		3.86		2,611			24		3.71
Interest-bearing deposits in other banks	25			—		0.62		25			—		0.64
Interest earning trading assets	5,131			30		2.33		5,188			27		2.09
Total earning assets	184,057			1,583		3.45		183,606			1,528		3.38
Allowance for loan and lease losses ("ALLL")	(1,723		)					(1,700		)
Cash and due from banks	4,901							5,556
Other assets	16,248							15,952
Noninterest earning trading assets and derivative instruments	918							888
Unrealized gains/(losses) on securities available for sale, net	93							(50		)
Total assets		$204,494							$204,252
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$44,437			$30	0.27	%		$44,745			$23	0.21	%
Money market accounts	54,199			38		0.28		54,902			34		0.25
Savings	6,638			—		0.03		6,415			—		0.02
Consumer time	5,555			10		0.71		5,487			9		0.69
Other time	4,691			12		1.05		4,232			10		0.97
Total interest-bearing consumer and commercial deposits	115,520			90		0.31		115,781			76		0.27
Brokered time deposits	929			3		1.29		917			3		1.28
Foreign deposits	720			2		0.95		678			1		0.66
Total interest-bearing deposits	117,169			95		0.32		117,376			80		0.28
Funds purchased	1,155			3		0.96		872			1		0.65
Securities sold under agreements to repurchase	1,572			3		0.89		1,715			3		0.61
Interest-bearing trading liabilities	992			6		2.66		1,002			6		2.61
Other short-term borrowings	2,008			3		0.55		1,753			2		0.49
Long-term debt	10,518			70		2.66		11,563			70		2.45
Total interest-bearing liabilities	133,414			180		0.54		134,281			162		0.49
Noninterest-bearing deposits	43,616							43,093
Other liabilities	2,976							2,860
Noninterest-bearing trading liabilities and derivative instruments	349							347
Shareholders’ equity	24,139							23,671
Total liabilities and shareholders’ equity		$204,494							$204,252
Interest Rate Spread						2.91	%						2.89	%
Net Interest Income					$1,403							$1,366
Net Interest Income-FTE ²					$1,439							$1,400
Net Interest Margin ³						3.06	%						3.02	%
Net Interest Margin-FTE ^{2, 3}						3.14							3.09

¹Interest income includes loan fees of $45 million for both the three months ended June 30, 2017 and March 31, 2017.

²See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for both the three months ended June 30, 2017 and March 31, 2017 was attributed to C&I loans.

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



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued
	Three Months Ended
	December 31, 2016							June 30, 2016
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
LHFI: ¹
C&I		$68,407			$549	3.19	%		$68,918			$533	3.11	%
CRE	5,141			38		2.93		6,055			44		2.91
Commercial construction	3,852			31		3.22		2,589			21		3.25
Residential mortgages - guaranteed	542			4		2.57		580			6		3.98
Residential mortgages - nonguaranteed	26,065			244		3.75		25,408			241		3.80
Residential home equity products	11,809			116		3.91		12,464			122		3.95
Residential construction	382			4		4.24		376			4		4.41
Consumer student - guaranteed	5,990			62		4.12		5,412			54		3.98
Consumer other direct	7,556			88		4.64		6,590			74		4.54
Consumer indirect	10,633			92		3.44		10,771			90		3.37
Consumer credit cards	1,324			33		9.93		1,125			29		10.09
Nonaccrual	877			8		3.77		950			4		1.67
Total LHFI	142,578			1,269		3.54		141,238			1,222		3.48
Securities available for sale:
Taxable	29,314			166		2.27		27,910			159		2.29
Tax-exempt	273			2		3.08		151			2		3.60
Total securities available for sale	29,587			168		2.28		28,061			161		2.29
Federal funds sold and securities borrowed or purchased under agreements to resell	1,332			—		(0.03	)	1,227			—		0.17
LHFS	3,570			30		3.42		2,015			18		3.61
Interest-bearing deposits in other banks	24			—		0.47		23			—		0.29
Interest earning trading assets	5,384			25		1.83		5,491			23		1.65
Total earning assets	182,475			1,492		3.25		178,055			1,424		3.22
ALLL	(1,724		)					(1,756		)
Cash and due from banks	5,405							5,127
Other assets	15,375							14,675
Noninterest earning trading assets and derivative instruments	1,103							1,527
Unrealized gains on securities available for sale, net	512							677
Total assets		$203,146							$198,305
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$42,929			$17	0.16	%		$41,691			$13	0.12	%
Money market accounts	54,416			30		0.22		53,186			25		0.19
Savings	6,259			—		0.03		6,399			1		0.02
Consumer time	5,599			10		0.69		5,984			11		0.76
Other time	3,954			10		0.97		3,881			10		1.03
Total interest-bearing consumer and commercial deposits	113,157			67		0.23		111,141			60		0.22
Brokered time deposits	935			3		1.28		913			3		1.35
Foreign deposits	308			—		0.45		46			—		0.34
Total interest-bearing deposits	114,400			70		0.24		112,100			63		0.23
Funds purchased	1,008			1		0.43		1,032			1		0.36
Securities sold under agreements to repurchase	1,708			2		0.45		1,718			2		0.40
Interest-bearing trading liabilities	1,146			6		2.13		1,006			6		2.39
Other short-term borrowings	978			—		0.11		1,220			—		0.20
Long-term debt	11,632			70		2.37		10,517			64		2.46
Total interest-bearing liabilities	130,872			149		0.45		127,593			136		0.43
Noninterest-bearing deposits	44,839							43,025
Other liabilities	3,112							3,217
Noninterest-bearing trading liabilities and derivative instruments	279							452
Shareholders’ equity	24,044							24,018
Total liabilities and shareholders’ equity		$203,146							$198,305
Interest Rate Spread						2.80	%						2.79	%
Net Interest Income					$1,343							$1,288
Net Interest Income-FTE ²					$1,377							$1,323
Net Interest Margin ³						2.93	%						2.91	%
Net Interest Margin-FTE ^{2, 3}						3.00							2.99


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


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


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



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued
	Six Months Ended
	June 30, 2017							June 30, 2016
(Dollars in millions) (Unaudited)	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
LHFI: ¹
C&I		$69,099			$1,128	3.29	%		$68,488			$1,063	3.12	%
CRE	5,098			83		3.28		6,061			88		2.91
Commercial construction	4,090			71		3.51		2,410			39		3.26
Residential mortgages - guaranteed	550			8		3.01		610			12		3.89
Residential mortgages - nonguaranteed	26,004			494		3.80		25,060			476		3.80
Residential home equity products	11,289			235		4.19		12,657			248		3.95
Residential construction	374			8		4.12		372			8		4.42
Consumer student - guaranteed	6,371			136		4.31		5,252			104		3.98
Consumer other direct	7,934			194		4.93		6,414			144		4.51
Consumer indirect	11,067			190		3.46		10,525			177		3.38
Consumer credit cards	1,380			68		9.87		1,101			56		10.20
Nonaccrual	802			13		3.16		855			9		2.14
Total LHFI	144,058			2,628		3.68		139,805			2,424		3.49
Securities available for sale:
Taxable	30,622			373		2.44		27,537			321		2.33
Tax-exempt	317			5		3.04		151			3		3.62
Total securities available for sale	30,939			378		2.45		27,688			324		2.34
Federal funds sold and securities borrowed or purchased under agreements to resell	1,237			3		0.51		1,231			1		0.17
LHFS	2,415			46		3.78		1,915			37		3.87
Interest-bearing deposits in other banks	25			—		0.63		23			—		0.38
Interest earning trading assets	5,159			56		2.21		5,460			48		1.75
Total earning assets	183,833			3,111		3.41		176,122			2,834		3.24
ALLL	(1,711		)					(1,753		)
Cash and due from banks	5,227							4,571
Other assets	16,100							14,657
Noninterest earning trading assets and derivative instruments	903							1,457
Unrealized gains on securities available for sale, net	22							606
Total assets		$204,374							$195,660
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$44,590			$53	0.24	%		$39,842			$22	0.11	%
Money market accounts	54,549			71		0.26		53,125			49		0.18
Savings	6,527			1		0.03		6,289			1		0.02
Consumer time	5,521			19		0.70		6,044			23		0.78
Other time	4,463			22		1.01		3,847			20		1.04
Total interest-bearing consumer and commercial deposits	115,650			166		0.29		109,147			115		0.21
Brokered time deposits	923			6		1.28		906			6		1.36
Foreign deposits	699			3		0.81		25			—		0.34
Total interest-bearing deposits	117,272			175		0.30		110,078			121		0.22
Funds purchased	1,014			4		0.83		1,216			2		0.35
Securities sold under agreements to repurchase	1,643			6		0.74		1,768			4		0.40
Interest-bearing trading liabilities	997			13		2.63		1,012			12		2.48
Other short-term borrowings	1,881			5		0.52		1,785			3		0.28
Long-term debt	11,038			139		2.55		9,577			123		2.58
Total interest-bearing liabilities	133,845			342		0.52		125,436			265		0.42
Noninterest-bearing deposits	43,356							42,551
Other liabilities	2,919							3,269
Noninterest-bearing trading liabilities and derivative instruments	348							497
Shareholders’ equity	23,906							23,907
Total liabilities and shareholders’ equity		$204,374							$195,660
Interest Rate Spread						2.89	%						2.82	%
Net Interest Income					$2,769							$2,569
Net Interest Income-FTE ²					$2,839							$2,640
Net Interest Margin ³						3.04	%						2.93	%
Net Interest Margin-FTE ^{2, 3}						3.11							3.01

¹ Interest income includes loan fees of $90 million and $84 million for the six months ended June 30, 2017 and 2016, respectively.

² See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for both the six months ended June 30, 2017 and 2016 was attributed to C&I loans.

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



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA
	Three Months Ended						Six Months Ended
	June 30						June 30
(Dollars in millions) (Unaudited)	2017			2016			2017			2016
CREDIT DATA
Allowance for credit losses, beginning of period		$1,783			$1,831			$1,776			$1,815
Provision for unfunded commitments	3			5			5			3
Provision/(benefit) for loan losses:
Commercial	39			114			84			212
Residential	(2		)	(4		)	4			(37		)
Consumer	50			31			116			68
Total provision for loan losses	87			141			204			243
Charge-offs:
Commercial	(26		)	(99		)	(89		)	(131		)
Residential	(26		)	(33		)	(55		)	(73		)
Consumer	(49		)	(35		)	(104		)	(74		)
Total charge-offs	(101		)	(167		)	(248		)	(278		)
Recoveries:
Commercial	7			9			21			19
Residential	11			9			19			15
Consumer	13			12			26			23
Total recoveries	31			30			66			57
Net charge-offs	(70		)	(137		)	(182		)	(221		)
Allowance for credit losses, end of period		$1,803			$1,840			$1,803			$1,840
Components:
Allowance for loan and lease losses ("ALLL")								$1,731			$1,774
Unfunded commitments reserve							72			66
Allowance for credit losses								$1,803			$1,840
Net charge-offs to average loans held for investment ("LHFI") (annualized):
Commercial	0.10		%	0.46		%	0.18		%	0.29		%
Residential	0.16			0.24			0.19			0.30
Consumer	0.54			0.39			0.59			0.44
Total net charge-offs to total average LHFI	0.20			0.39			0.26			0.32
Period Ended
Nonaccrual/nonperforming loans ("NPLs"):
Commercial								$325			$503
Residential							419			433
Consumer							10			8
Total nonaccrual/NPLs							754			944
Other real estate owned (“OREO”)							61			49
Other repossessed assets							6			8
Total nonperforming assets ("NPAs")								$821			$1,001
Accruing restructured loans								$2,524			$2,541
Nonaccruing restructured loans							321			307
Accruing LHFI past due > 90 days (guaranteed)							1,221			999
Accruing LHFI past due > 90 days (non-guaranteed)							30			42
Accruing LHFS past due > 90 days							1			1
NPLs to total LHFI							0.52		%	0.67		%
NPAs to total LHFI plus OREO and other repossessed assets							0.57			0.71
ALLL to period-end LHFI ^{1, 2}							1.20			1.25
ALLL to NPLs ^{1, 2}							2.31x			1.89x

¹This ratio is computed using the ALLL.

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



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued
	Three Months Ended
	June 30			March 31			December 31			June 30
(Dollars in millions) (Unaudited)	2017			2017			2016			2016
CREDIT DATA
Allowance for credit losses, beginning of period		$1,783			$1,776			$1,811			$1,831
Provision/(benefit) for unfunded commitments	3			2			(1		)	5
Provision/(benefit) for loan losses:
Commercial	39			46			36			114
Residential	(2		)	5			13			(4		)
Consumer	50			66			53			31
Total provision for loan losses	87			117			102			141
Charge-offs:
Commercial	(26		)	(63		)	(78		)	(99		)
Residential	(26		)	(29		)	(34		)	(33		)
Consumer	(49		)	(54		)	(51		)	(35		)
Total charge-offs	(101		)	(146		)	(163		)	(167		)
Recoveries:
Commercial	7			13			9			9
Residential	11			9			8			9
Consumer	13			12			10			12
Total recoveries	31			34			27			30
Net charge-offs	(70		)	(112		)	(136		)	(137		)
Allowance for credit losses, end of period		$1,803			$1,783			$1,776			$1,840
Components:
ALLL		$1,731			$1,714			$1,709			$1,774
Unfunded commitments reserve	72			69			67			66
Allowance for credit losses		$1,803			$1,783			$1,776			$1,840
Net charge-offs to average LHFI (annualized):
Commercial	0.10		%	0.26		%	0.35		%	0.46		%
Residential	0.16			0.22			0.26			0.24
Consumer	0.54			0.64			0.64			0.39
Total net charge-offs to total average LHFI	0.20			0.32			0.38			0.39
Period Ended
Nonaccrual/NPLs:
Commercial		$325			$352			$414			$503
Residential	419			428			424			433
Consumer	10			9			7			8
Total nonaccrual/NPLs	754			789			845			944
OREO	61			62			60			49
Other repossessed assets	6			7			14			8
Total NPAs		$821			$858			$919			$1,001
Accruing restructured loans		$2,524			$2,545			$2,535			$2,541
Nonaccruing restructured loans	321			329			306			307
Accruing LHFI past due > 90 days (guaranteed)	1,221			1,190			1,254			999
Accruing LHFI past due > 90 days (non-guaranteed)	30			37			34			42
Accruing LHFS past due > 90 days	1			1			1			1
NPLs to total LHFI	0.52		%	0.55		%	0.59		%	0.67		%
NPAs to total LHFI plus OREO and other repossessed assets	0.57			0.60			0.64			0.71
ALLL to period-end LHFI ^{1, 2}	1.20			1.20			1.19			1.25
ALLL to NPLs ^{1, 2}	2.31x			2.18x			2.03x			1.89x

¹This ratio is computed using the ALLL.

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



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued
	Three Months Ended June 30									Six Months Ended June 30
(Dollars in millions) (Unaudited)	MSRs - Fair Value			Other			Total			MSRs - Fair Value			Other			Total
OTHER INTANGIBLE ASSETS ROLLFORWARD
Balance, beginning of period		$1,182			$16			$1,198			$1,307			$18			$1,325
Amortization	—			(2		)	(2		)	—			(4		)	(4		)
Servicing rights originated	64			—			64			110			—			110
Servicing rights purchased	—			—			—			77			—			77
Fair value changes due to inputs and assumptions ¹	(129		)	—			(129		)	(333		)	—			(333		)
Other changes in fair value ²	(56		)	—			(56		)	(99		)	—			(99		)
Servicing rights sold	—			—			—			(1		)	—			(1		)
Balance, June 30, 2016		$1,061			$14			$1,075			$1,061			$14			$1,075

Balance, beginning of period		$1,645			$84			$1,729			$1,572			$85			$1,657
Amortization	—			(5		)	(5		)	—			(10		)	(10		)
Servicing rights originated	65			2			67			162			7			169
Fair value changes due to inputs and assumptions ¹	(43		)	—			(43		)	(16		)	—			(16		)
Other changes in fair value ²	(58		)	—			(58		)	(109		)	—			(109		)
Servicing rights sold	(1		)	—			(1		)	(1		)	—			(1		)
Other ³	—			—			—			—			(1		)	(1		)
Balance, June 30, 2017		$1,608			$81			$1,689			$1,608			$81			$1,689

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

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

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



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

	Three Months Ended												Six Months Ended
	June 30			March 31			December 31			June 30			June 30
(Dollars in millions) (Unaudited)	2017			2017			2016			2016			2017			2016
Net interest income		$1,403			$1,366			$1,343			$1,288			$2,769			$2,569
Fully taxable-equivalent ("FTE") adjustment	36			34			34			35			70			71
Net interest income-FTE ²	1,439			1,400			1,377			1,323			2,839			2,640
Noninterest income	827			847			815			898			1,674			1,680
Total revenue-FTE ²		$2,266			$2,247			$2,192			$2,221			$4,513			$4,320

Return on average common shareholders’ equity	9.08		%	8.19		%	7.85		%	8.43		%	8.64		%	8.07		%
Impact of removing average intangible assets and related pre-tax amortization, other than MSRs and other servicing rights	3.43			3.09			2.91			3.11			3.26			3.00
Return on average tangible common shareholders' equity ³	12.51		%	11.28		%	10.76		%	11.54		%	11.90		%	11.07		%

Net interest margin	3.06		%	3.02		%	2.93		%	2.91		%	3.04		%	2.93		%
Impact of FTE adjustment	0.08			0.07			0.07			0.08			0.07			0.08
Net interest margin-FTE ²	3.14		%	3.09		%	3.00		%	2.99		%	3.11		%	3.01		%

Noninterest expense		$1,388			$1,465			$1,397			$1,345			$2,853			$2,663
Total revenue	2,230			2,213			2,158			2,186			4,443			4,249
Efficiency ratio ⁴	62.24		%	66.20		%	64.74		%	61.53		%	64.21		%	62.67		%
Impact of FTE adjustment	(1.00		)	(1.01		)	(1.01		)	(0.97		)	(1.00		)	(1.02		)
Efficiency ratio-FTE ^{2, 4}	61.24			65.19			63.73			60.56			63.21			61.65
Impact of excluding amortization related to intangible assets and certain tax credits	(0.65		)	(0.59		)	(0.65		)	(0.51		)	(0.62		)	(0.49		)
Tangible efficiency ratio-FTE ^{2, 5}	60.59		%	64.60		%	63.08		%	60.05		%	62.59		%	61.16		%

Basel III Common Equity Tier 1 ("CET1") ratio (transitional)⁶	9.68		%	9.69		%	9.59		%	9.84		%
Impact of MSRs and other under fully phased-in approach	(0.15		)	(0.15		)	(0.16		)	(0.11		)
Basel III fully phased-in CET1 ratio⁶	9.53		%	9.54		%	9.43		%	9.73		%

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

⁴ Efficiency ratio is computed by dividing noninterest expense by total revenue. Efficiency ratio-FTE is computed by dividing noninterest expense by total revenue-FTE.

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

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



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

	June 30			March 31			December 31			June 30
(Dollars in millions, except per share data) (Unaudited)	2017			2017			2016			2016
Total shareholders' equity		$24,477			$23,484			$23,618			$24,464
Goodwill, net of deferred taxes of $253 million, $252 million, $251 million, and $246 million, respectively	(6,085		)	(6,086		)	(6,086		)	(6,091		)
Other intangible assets (including MSRs and other servicing rights)	(1,689		)	(1,729		)	(1,657		)	(1,075		)
MSRs and other servicing rights	1,671			1,711			1,638			1,067
Tangible equity ²	18,374			17,380			17,513			18,365
Noncontrolling interest	(103		)	(101		)	(103		)	(103		)
Preferred stock	(1,975		)	(1,225		)	(1,225		)	(1,225		)
Tangible common equity ²		$16,296			$16,054			$16,185			$17,037

Total assets		$207,223			$205,642			$204,875			$198,892
Goodwill	(6,338		)	(6,338		)	(6,337		)	(6,337		)
Other intangible assets (including MSRs and other servicing rights)	(1,689		)	(1,729		)	(1,657		)	(1,075		)
MSRs and other servicing rights	1,671			1,711			1,638			1,067
Tangible assets		$200,867			$199,286			$198,519			$192,547
Tangible equity to tangible assets ²	9.15		%	8.72		%	8.82		%	9.54		%
Tangible common equity to tangible assets ²	8.11			8.06			8.15			8.85
Tangible book value per common share ³		$33.83			$33.05			$32.95			$33.98

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

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

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



SunTrust Banks, Inc. and Subsidiaries CONSUMER BUSINESS SEGMENT ¹
	Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions) (Unaudited)	2017			2016			2017			2016
Statements of Income:
Net interest income		$910			$849			$1,793			$1,692
FTE adjustment	—			—			—			—
Net interest income-FTE ²	910			849			1,793			1,692
Provision for credit losses ³	75			43			163			61
Net interest income-FTE - after provision for credit losses ²	835			806			1,630			1,631
Noninterest income before net securities gains	465			532			928			1,013
Net securities gains	—			—			—			—
Total noninterest income	465			532			928			1,013
Noninterest expense before amortization	945			932			1,932			1,849
Amortization	1			1			1			1
Total noninterest expense	946			933			1,933			1,850
Income-FTE - before provision for income taxes ²	354			405			625			794
Provision for income taxes	127			152			224			297
Tax credit adjustment	—			—			—			—
FTE adjustment	—			—			—			—
Net income including income attributable to noncontrolling interest	227			253			401			497
Less: net income attributable to noncontrolling interest	—			—			—			—
Net income		$227			$253			$401			$497

Total revenue		$1,375			$1,381			$2,721			$2,705
Total revenue-FTE ²	1,375			1,381			2,721			2,705
Selected Average Balances:
Total LHFI		$72,088			$69,170			$71,658			$68,391
Goodwill	4,262			4,262			4,262			4,262
Other intangible assets excluding MSRs	8			14			9			15
Total assets	81,803			78,387			81,574			77,476
Consumer and commercial deposits	103,145			100,482			102,488			98,265
Performance Ratios:
Efficiency ratio	68.80		%	67.63		%	71.02		%	68.37		%
Impact of FTE adjustment	—			—			—			—
Efficiency ratio-FTE ²	68.80			67.63			71.02			68.37
Impact of excluding amortization and associated funding cost of intangible assets	(1.14		)	(1.09		)	(1.17		)	(1.14		)
Tangible efficiency ratio-FTE ^{2, 4}	67.66		%	66.54		%	69.85		%	67.23		%
Mortgage Production Data:
Channel mix
Retail		$2,692			$3,404			$4,984			$5,655
Correspondent	3,733			3,879			6,932			6,580
Total production		$6,425			$7,283			$11,916			$12,235
Channel mix - percent
Retail	42		%	47		%	42		%	46		%
Correspondent	58			53			58			54
Total production	100		%	100		%	100		%	100		%
Purchase and refinance mix
Refinance		$1,962			$3,269			$4,493			$5,881
Purchase	4,463			4,014			7,423			6,354
Total production		$6,425			$7,283			$11,916			$12,235
Purchase and refinance mix - percent
Refinance	31		%	45		%	38		%	48		%
Purchase	69			55			62			52
Total production	100		%	100		%	100		%	100		%
Applications		$8,273			$11,225			$16,017			$20,430
Mortgage Servicing Data (End of Period):
Total loans serviced								$165,601			$154,474
Total loans serviced for others							136,115			125,408
Net carrying value of MSRs							1,608			1,061
Ratio of net carrying value of MSRs to total loans serviced for others							1.181		%	0.846		%



Assets Under Administration (End of Period):
Trust and institutional managed assets		$41,572		$40,541
Retail brokerage managed assets	14,826		11,751
Total managed assets	56,398		52,292
Non-managed assets	95,463		92,917
Total assets under advisement		$151,861		$145,209

Beginning in the second quarter of 2017, the Company realigned its business segment structure from three segments to two segments based on, among other things, the manner in which financial information is evaluated by management and in conjunction with Company-wide organizational changes that were announced during the first quarter of 2017. Specifically, the Company retained the previous composition of the Wholesale Banking segment and changed the basis of presentation of the Consumer Banking and Private Wealth Management segment and Mortgage Banking segment such that those segments were combined into a single Consumer segment. Accordingly, prior period information has been revised to conform to the new business segment structure and updated internal funds transfer pricing methodology for consistent presentation.

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


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

⁴

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



SunTrust Banks, Inc. and Subsidiaries WHOLESALE BUSINESS SEGMENT
	Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions) (Unaudited)	2017			2016			2017			2016
Statements of Income:
Net interest income		$555			$486			$1,095			$978
FTE adjustment	35			34			69			69
Net interest income-FTE ¹	590			520			1,164			1,047
Provision for credit losses ²	15			103			47			186
Net interest income-FTE - after provision for credit losses ¹	575			417			1,117			861
Noninterest income before net securities gains	386			329			788			640
Net securities gains	—			—			—			—
Total noninterest income	386			329			788			640
Noninterest expense before amortization	443			404			914			801
Amortization	14			11			27			20
Total noninterest expense	457			415			941			821
Income-FTE - before provision for income taxes ¹	504			331			964			680
Provision for income taxes	116			60			216			128
Tax credit adjustment	36			29			73			57
FTE adjustment	35			34			69			69
Net income including income attributable to noncontrolling interest	317			208			606			426
Less: net income attributable to noncontrolling interest	—			—			—			—
Net income		$317			$208			$606			$426

Total revenue		$941			$815			$1,883			$1,618
Total revenue-FTE ¹	976			849			1,952			1,687
Selected Average Balances:
Total LHFI		$72,278			$72,010			$72,329			$71,353
Goodwill	2,076			2,075			2,076			2,075
Other intangible assets excluding MSRs	75			1			75			1
Total assets	85,735			85,988			85,764			85,137
Consumer and commercial deposits	55,801			53,651			56,389			53,386
Performance Ratios:
Efficiency ratio	48.58		%	50.82		%	49.93		%	50.75		%
Impact of FTE adjustment	(1.76		)	(2.06		)	(1.76		)	(2.08		)
Efficiency ratio-FTE ¹	46.82			48.76			48.17			48.67
Impact of excluding amortization and associated funding cost of intangible assets	(1.96		)	(1.84		)	(1.90		)	(1.79		)
Tangible efficiency ratio-FTE ^{1, 3}	44.86		%	46.92		%	46.27		%	46.88		%


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.



SunTrust Banks, Inc. and Subsidiaries CORPORATE OTHER
	Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions) (Unaudited)	2017			2016			2017			2016
Statements of Income:
Net interest income/(expense) ¹		($62	)		($47	)		($119	)		($101	)
FTE adjustment	1			1			1			2
Net interest income/(expense)-FTE ²	(61		)	(46		)	(118		)	(99		)
Provision/(benefit) for credit losses ³	—			—			(1		)	(1		)
Net interest income/(expense)-FTE - after provision/(benefit) for credit losses ²	(61		)	(46		)	(117		)	(98		)
Noninterest income/(expense) before net securities gains	(25		)	33			(43		)	23
Net securities gains	1			4			1			4
Total noninterest income/(expense)	(24		)	37			(42		)	27
Noninterest expense/(income) before amortization	(15		)	(2		)	(21		)	(8		)
Amortization	—			(1		)	—			—
Total noninterest expense/(income)	(15		)	(3		)	(21		)	(8		)
Income/(loss)-FTE - before benefit for income taxes ²	(70		)	(6		)	(138		)	(63		)
Benefit for income taxes	(21		)	(11		)	(59		)	(29		)
Tax credit adjustment	(36		)	(29		)	(73		)	(57		)
FTE adjustment	1			1			1			2
Net income/(loss) including income attributable to noncontrolling interest	(14		)	33			(7		)	21
Less: net income attributable to noncontrolling interest	2			2			5			5
Net income/(loss)		($16	)		$31			($12	)		$16

Total revenue		($86	)		($10	)		($161	)		($74	)
Total revenue-FTE ²	(85		)	(9		)	(160		)	(72		)

Selected Average Balances:
Total LHFI		$74			$58			$71			$61
Securities available for sale	30,967			28,021			30,902			27,647
Goodwill	—			—			—			—
Other intangible assets excluding MSRs	—			—			—			—
Total assets	36,956			33,930			37,036			33,047
Consumer and commercial deposits	190			33			129			47

Other Information (End of Period):
Duration of investment portfolio (in years)							4.5			4.1
Net interest income interest rate sensitivity:
% Change in net interest income under:
Instantaneous 200 basis point increase in rates over next 12 months							3.7		%	4.2		%
Instantaneous 100 basis point increase in rates over next 12 months							2.1		%	2.3		%
Instantaneous 25 basis point decrease in rates over next 12 months							(0.7		)%	(0.7		)%


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

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


³	Provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision/(benefit) attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitments reserve balances.

Suntrust Banks Inactive 8-KSecond Quarter 2017 Financial Highlights