Truist Financial 8K Regulation FD Disclosure | TFC 23 Dec 19

EX99.1

Supplemental Historical Financial Information

Effective December 6, 2019, Truist Financial Corporation ("Truist," previously, BB&T Corporation, "BB&T") completed its previously announced merger of equals with SunTrust Banks, Inc. ("SunTrust") pursuant to an Agreement and Plan of Merger dated as of February 7, 2019 and amended as of June 14, 2019. At the closing, SunTrust merged with and into BB&T, with BB&T surviving the merger as the surviving corporation. Also in connection with the closing, BB&T changed its name from BB&T Corporation to Truist.

Effective December 31, 2019, Truist intends to make certain financial reporting changes and reclassifications with respect to the presentation of its financial statements on a prospective basis, which changes and reclassifications relate to the completion of the merger of BB&T and SunTrust.

Truist is providing this supplemental historical financial information which conforms the historical financial statement presentation of SunTrust and BB&T for the periods presented to the new financial statement presentation anticipated to be effective December 31, 2019. A mapping of the changes to financial presentation are included in Appendix 1. This information is presented on a combined basis with BB&T and SunTrust financial information included in Appendix 2. The supplemental historical financial information does not revise or restate the previously reported consolidated financial statements of BB&T and SunTrust for any period.

The unaudited combined financial information contained herein does not reflect:

•future costs of any integration activities or benefits that may result from the realization of cost savings from operating efficiencies, or any other synergies that may result from the merger;

•application of the acquisition method of accounting under the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification, which we refer to as ASC 805, "Business Combinations," to reflect estimated merger consideration in exchange for 100% of all outstanding shares of SunTrust common stock; and

•the divestiture of 30 SunTrust branches, including related assets and liabilities, to be acquired by First Horizon Bank, a wholly owned subsidiary of First Horizon National Corporation, to satisfy regulatory requirements in connection with the merger.

This information is being provided for illustrative purposes only to indicate the manner in which Truist intends to present financial information and does not purport to represent what the combined company's actual results of operations or financial position would have been had the merger been completed at an earlier date, nor is it necessarily indicative of the combined company's future results of operations or financial position for any future period. This information is not intended to comply with Regulation S-X Article 11 or U.S. generally accepted accounting principles. Management believes this combined financial information will be useful to the investment community in understanding how to analyze the combined Truist's financial results for future periods.

This information is preliminary and based on data available at the time of the Form 8-K filing to which this information is included as a exhibit. The combined company is continuing to finalize its review of accounting policies and financial information. As a result of that review, additional differences could be identified between the financial presentation of the two companies. As a result of the foregoing, the adjustments reflected in this information are preliminary, and are subject to change as additional information becomes available and as additional analysis is performed. These preliminary adjustments have been made solely for the purpose of providing the illustrative unaudited combined financial information included herein.

Truist is under no obligation to, and disclaims any duty to, update the selected financial information included herein.


Historical Unaudited Combined Ending Balance Sheets
BB&T Corporation and SunTrust Banks, Inc.
	Sept. 30		June 30		March 31		Dec. 31		Sept. 30
(Dollars in millions)	2019		2019		2019		2018		2018
Assets
Cash and due from banks	$	3,842	$	3,434	$	3,614	$	5,296	$	4,139
Interest-bearing deposits with banks	6,932		2,896		3,652		4,364		5,110
Federal funds sold and securities borrowed or purchased under agreements to resell	1,428		1,399		1,638		1,822		1,509
Trading assets	5,734		6,582		6,755		5,258		5,723
Securities available for sale at fair value	67,355		58,289		58,168		56,480		55,270
Securities held to maturity at amortized cost	18,768		19,487		20,095		20,552		21,082
Loans and leases:
Commercial:
Commercial and industrial	132,876		131,731		130,368		128,281		123,324
CRE	26,584		25,631		24,607		24,073		23,591
Commercial construction	5,933		6,111		6,673		6,790		7,630
Lease financing	6,395		6,362		6,228		6,082		5,862
Consumer:
Residential mortgage	57,708		61,996		60,667		60,872		59,657
Residential home equity and direct	28,930		28,766		28,443		28,519		28,338
Indirect auto	24,116		23,647		23,147		22,192		21,811
Indirect other	11,463		11,017		10,246		10,209		10,116
Student	7,931		7,973		8,105		8,011		7,829
Credit card	5,545		5,520		5,365		5,357		5,250
PCI	387		421		441		466		497
Total loans and leases held for investment	307,868		309,175		304,290		300,852		293,905
Loans held for sale (1)	3,448		3,466		2,615		2,456		2,983
Total loans and leases	311,316		312,641		306,905		303,308		296,888
Allowance for loan and lease losses	(3,272)		(3,276)		(3,204)		(3,173)		(3,161)
Premises and equipment	3,575		3,529		3,629		3,748		3,275
Goodwill	16,163		16,161		16,149		16,149		16,163
Core deposit and other intangible assets	690		725		739		771		803
Mortgage servicing rights (1)	2,565		2,765		2,998		3,171		3,318
Other assets	29,615		29,196		27,647		24,133		24,785
Total assets	$	464,711	$	453,828	$	448,785	$	441,879	$	434,904
Liabilities
Deposits:
Noninterest-bearing deposits	$	93,027	$	92,404	$	93,464	$	93,795	$	95,611
Interest-bearing deposits	236,924		228,345		228,552		229,993		219,418
Total deposits	329,951		320,749		322,016		323,788		315,029
Short-term borrowings	18,655		20,956		18,040		15,144		18,758
Long-term debt	45,889		42,840		42,124		38,781		37,525
Other liabilities	11,424		11,657		10,899		9,708		9,446
Total liabilities	405,919		396,202		393,079		387,421		380,758
Shareholders' Equity





Shareholders' equity, excluding noncontrolling interests	58,622		57,462		55,545		54,299		53,986
Noncontrolling interests	170		164		161		159		160
Total shareholders' equity	58,792		57,626		55,706		54,458		54,146
Total liabilities and shareholders' equity	$	464,711	$	453,828	$	448,785	$	441,879	$	434,904
(1) Includes amounts at cost and fair value.


Historical Unaudited Combined Statements of Income
BB&T Corporation and SunTrust Banks, Inc.
	Quarter Ended
	Sept. 30		June 30		March 31		Dec. 31		Sept. 30
(Dollars in millions)	2019		2019		2019		2018		2018
Interest Income
Interest and fees on loans and leases	$	3,600	$	3,607	$	3,536	$	3,486	$	3,333
Interest and dividends on securities	530		523		523		513		495
Interest on other earning assets	98		96		104		86		79
Total interest income	4,228		4,226		4,163		4,085		3,907
Interest Expense
Interest on deposits	564		542		502		434		365
Interest on long-term debt	343		343		317		309		276
Interest on other borrowings	106		117		101		85		63
Total interest expense	1,013		1,002		920		828		704
Net Interest Income	3,215		3,224		3,243		3,257		3,203
Provision for credit losses	249		299		308		233		196
Net Interest Income After Provision for Credit Losses	2,966		2,925		2,935		3,024		3,007
Noninterest Income
Insurance income	489		568		512		490		450
Wealth management income	336		327		308		323		326
Service charges on deposits	329		320		308		331		327
Investment banking and trading income	241		238		211		217		221
Card and payment related fees	215		221		210		218		207
Residential mortgage income	186		177		149		143		139
Operating lease income	80		80		81		84		83
Lending related fees	74		76		72		68		77
Commercial real estate related income	64		72		38		96		47
Income from bank-owned life insurance	43		47		43		42		39

Securities gains (losses), net	4		(42)		—		2		—
Other income	114		326		88		66		133
Total noninterest income	2,175		2,410		2,020		2,080		2,049
Noninterest Expense
Personnel expense	1,928		1,894		1,872		1,868		1,816
Net occupancy expense	224		218		224		222		209
Software expense	230		217		220		210		204
Professional fees and outside processing	246		201		187		262		237
Equipment expense	109		112		118		119		117
Marketing and customer development	84		78		71		77		78
Depreciation - property under operating leases	70		64		65		67		67

Regulatory costs	37		36		37		25		76
Loan-related expense	48		54		48		52		52
Amortization	29		32		32		34		33

Merger-related restructuring and charges, net	56		31		125		76		18
Other expense	287		484		295		286		251
Total noninterest expense	3,348		3,421		3,294		3,298		3,158
Earnings
Income before income taxes	1,793		1,914		1,661		1,806		1,898
Provision for income taxes	340		339		281		341		305
Net income	1,453		1,575		1,380		1,465		1,593
Noncontrolling interests	5		1		8		9		9
Preferred stock dividends	116		69		69		70		69
Net income available to common shareholders	$	1,332	$	1,505	$	1,303	$	1,386	$	1,515

Appendix 1: Financial Statement Caption Mapping

Appendix 2: Heritage Company Historical Detail


Historical Unaudited Ending Balance Sheets
	September 30, 2019										June 30, 2019								March 31, 2019										December 31, 2018		September 30, 2018
(Dollars in millions)	BB&T		SunTrust		Combined		BB&T		SunTrust		Combined		BB&T		SunTrust		Combined		BB&T		SunTrust		Combined		BB&T		SunTrust		Combined
Assets
Cash and due from banks	$	2,027	$	1,815	$	3,842	$	1,831	$	1,603	$	3,434	$	1,873	$	1,741	$	3,614	$	2,753	$	2,543	$	5,296	$	2,123	$	2,016	$	4,139
Interest-bearing deposits with banks	877		6,055		6,932		722		2,174		2,896		847		2,805		3,652		1,091		3,273		4,364		895		4,215		5,110
Federal funds sold and securities borrowed or purchased under agreements to resell	114		1,314		1,428		148		1,251		1,399		252		1,386		1,638		143		1,679		1,822		135		1,374		1,509
Trading assets	400		5,334		5,734		1,429		5,153		6,582		1,524		5,231		6,755		391		4,867		5,258		669		5,054		5,723
Securities available for sale at fair value	35,997		31,358		67,355		25,802		32,487		58,289		26,315		31,853		58,168		25,038		31,442		56,480		24,286		30,984		55,270
Securities held to maturity at amortized cost	18,768		—		18,768		19,487		—		19,487		20,095		—		20,095		20,552		—		20,552		21,082		—		21,082
Loans and leases:
Commercial:
Commercial and industrial	64,324		68,552		132,876		63,693		68,038		131,731		61,978		68,390		130,368		61,935		66,346		128,281		59,722		63,602		123,324
CRE	17,093		9,491		26,584		16,976		8,655		25,631		16,718		7,889		24,607		16,808		7,265		24,073		16,973		6,618		23,591
Commercial construction	3,791		2,142		5,933		3,746		2,365		6,111		4,111		2,562		6,673		4,252		2,538		6,790		4,493		3,137		7,630
Lease financing	2,356		4,039		6,395		2,203		4,159		6,362		2,098		4,130		6,228		2,018		4,064		6,082		2,028		3,834		5,862
Consumer:
Residential mortgage	28,297		29,411		57,708		32,607		29,389		61,996		31,572		29,095		60,667		31,393		29,479		60,872		30,821		28,836		59,657
Residential home equity and direct	11,646		17,284		28,930		11,675		17,091		28,766		11,646		16,797		28,443		11,775		16,744		28,519		11,808		16,530		28,338
Indirect auto	11,871		12,245		24,116		11,756		11,891		23,647		11,506		11,641		23,147		11,282		10,910		22,192		11,246		10,565		21,811
Indirect other	6,590		4,873		11,463		6,453		4,564		11,017		6,017		4,229		10,246		6,143		4,066		10,209		6,222		3,894		10,116
Student	—		7,931		7,931		—		7,973		7,973				8,105		8,105				8,011		8,011		—		7,829		7,829
Credit card	3,058		2,487		5,545		3,056		2,464		5,520		2,970		2,395		5,365		2,941		2,416		5,357		2,880		2,370		5,250
PCI	387		—		387		421		—		421		441		—		441		466		—		466		497		—		497
Total loans and leases held for investment	149,413		158,455		307,868		152,586		156,589		309,175		149,057		155,233		304,290		149,013		151,839		300,852		146,690		147,215		293,905
Loans held for sale (1)	1,442		2,006		3,448		1,237		2,229		3,466		834		1,781		2,615		988		1,468		2,456		1,022		1,961		2,983
Total loans and leases	150,855		160,461		311,316		153,823		158,818		312,641		149,891		157,014		306,905		150,001		153,307		303,308		147,712		149,176		296,888
Allowance for loan and lease losses	(1,573)		(1,699)		(3,272)		(1,595)		(1,681)		(3,276)		(1,561)		(1,643)		(3,204)		(1,558)		(1,615)		(3,173)		(1,538)		(1,623)		(3,161)
Premises and equipment	2,022		1,553		3,575		2,029		1,500		3,529		2,078		1,551		3,629		2,118		1,630		3,748		2,154		1,121		3,275
Goodwill	9,832		6,331		16,163		9,830		6,331		16,161		9,818		6,331		16,149		9,818		6,331		16,149		9,832		6,331		16,163
Core deposit and other intangible assets	678		12		690		712		13		725		726		13		739		758		13		771		789		14		803
Mortgage servicing rights (1)	929		1,636		2,565		982		1,783		2,765		1,049		1,949		2,998		1,122		2,049		3,171		1,193		2,125		3,318
Other assets	15,824		13,791		29,615		15,672		13,524		29,196		14,776		12,871		27,647		13,470		10,663		24,133		13,553		11,232		24,785
Total assets	$	236,750	$	227,961	$	464,711	$	230,872	$	222,956	$	453,828	$	227,683	$	221,102	$	448,785	$	225,697	$	216,182	$	441,879	$	222,885	$	212,019	$	434,904
Liabilities
Deposits:
Noninterest-bearing deposits	$	52,667	$	40,360	$	93,027	$	52,458	$	39,946	$	92,404	$	53,021	$	40,443	$	93,464	$	53,025	$	40,770	$	93,795	$	53,646	$	41,965	$	95,611
Interest-bearing deposits	109,613		127,311		236,924		107,063		121,282		228,345		106,745		121,807		228,552		108,174		121,819		229,993		100,910		118,508		219,418
Total deposits	162,280		167,671		329,951		159,521		161,228		320,749		159,766		162,250		322,016		161,199		162,589		323,788		154,556		160,473		315,029
Short-term borrowings	10,405		8,250		18,655		10,344		10,612		20,956		6,305		11,735		18,040		5,178		9,966		15,144		9,652		9,106		18,758
Long-term debt	25,520		20,369		45,889		22,640		20,200		42,840		24,729		17,395		42,124		23,709		15,072		38,781		23,236		14,289		37,525
Other liabilities	6,242		5,182		11,424		6,603		5,054		11,657		6,000		4,899		10,899		5,433		4,275		9,708		5,434		4,012		9,446
Total liabilities	204,447		201,472		405,919		199,108		197,094		396,202		196,800		196,279		393,079		195,519		191,902		387,421		192,878		187,880		380,758
Shareholders' Equity





Shareholders' equity, excluding noncontrolling interests	32,234		26,388		58,622		31,703		25,759		57,462		30,823		24,722		55,545		30,122		24,177		54,299		29,948		24,038		53,986
Noncontrolling interests	69		101		170		61		103		164		60		101		161		56		103		159		59		101		160
Total shareholders' equity	32,303		26,489		58,792		31,764		25,862		57,626		30,883		24,823		55,706		30,178		24,280		54,458		30,007		24,139		54,146
Total liabilities and shareholders' equity	$	236,750	$	227,961	$	464,711	$	230,872	$	222,956	$	453,828	$	227,683	$	221,102	$	448,785	$	225,697	$	216,182	$	441,879	$	222,885	$	212,019	$	434,904
(1) Includes amounts at cost and fair value.

Appendix 2: Heritage Company Historical Detail


Historical Unaudited Income Statements
	September 30, 2019										June 30, 2019								March 31, 2019										December 31, 2018		September 30, 2018
(Dollars in millions)	BB&T		SunTrust		Combined		BB&T		SunTrust		Combined		BB&T		SunTrust		Combined		BB&T		SunTrust		Combined		BB&T		SunTrust		Combined
Interest Income
Interest and fees on loans and leases	$	1,886	$	1,714	$	3,600	$	1,886	$	1,721	$	3,607	$	1,839	$	1,697	$	3,536	$	1,830	$	1,656	$	3,486	$	1,772	$	1,561	$	3,333
Interest and dividends on securities	315		215		530		300		223		523		302		221		523		292		221		513		283		212		495
Interest on other earning assets	17		81		98		20		76		96		32		72		104		14		72		86		14		65		79
Total interest income	2,218		2,010		4,228		2,206		2,020		4,226		2,173		1,990		4,163		2,136		1,949		4,085		2,069		1,838		3,907
Interest Expense
Interest on deposits	271		293		564		273		269		542		253		249		502		206		228		434		172		193		365
Interest on long-term debt	193		150		343		193		150		343		192		125		317		186		123		309		181		95		276
Interest on other borrowings	54		52		106		50		67		117		32		69		101		39		46		85		29		34		63
Total interest expense	518		495		1,013		516		486		1,002		477		443		920		431		397		828		382		322		704
Net Interest Income	1,700		1,515		3,215		1,690		1,534		3,224		1,696		1,547		3,243		1,705		1,552		3,257		1,687		1,516		3,203
Provision for credit losses	117		132		249		172		127		299		155		153		308		146		87		233		135		61		196
Net Interest Income After Provision for Credit Losses	1,583		1,383		2,966		1,518		1,407		2,925		1,541		1,394		2,935		1,559		1,465		3,024		1,552		1,455		3,007
Noninterest Income
Insurance income	487		2		489		566		2		568		510		2		512		487		3		490		448		2		450
Wealth management income	182		154		336		179		148		327		168		140		308		175		148		323		172		154		326
Service charges on deposits	188		141		329		181		139		320		171		137		308		185		146		331		183		144		327
Investment banking and trading income	53		188		241		41		197		238		21		190		211		47		170		217		29		192		221
Card and payment related fees	132		83		215		139		82		221		128		82		210		135		83		218		132		75		207
Residential mortgage income	80		106		186		91		86		177		49		100		149		58		85		143		56		83		139
Operating lease income	36		44		80		35		45		80		35		46		81		35		49		84		37		46		83
Lending related fees	24		50		74		28		48		76		25		47		72		19		49		68		28		49		77
Commercial real estate related income	32		32		64		22		50		72		14		24		38		28		68		96		23		24		47
Income from bank-owned life insurance	29		14		43		34		13		47		28		15		43		28		14		42		27		12		39

Securities gains (losses), net	—		4		4		—		(42)		(42)		—		—		—		2		—		2		—		—		—
Other income	60		54		114		36		290		326		53		35		88		36		30		66		104		29		133
Total noninterest income	1,303		872		2,175		1,352		1,058		2,410		1,202		818		2,020		1,235		845		2,080		1,239		810		2,049
Noninterest Expense
Personnel expense	1,161		767		1,928		1,120		774		1,894		1,087		785		1,872		1,096		772		1,868		1,104		712		1,816
Net occupancy expense	122		102		224		116		102		218		122		102		224		120		102		222		123		86		209
Software expense	77		153		230		71		146		217		72		148		220		70		140		210		70		134		204
Professional fees and outside processing	102		144		246		84		117		201		86		101		187		103		159		262		90		147		237
Equipment expense	64		45		109		68		44		112		65		53		118		68		51		119		66		51		117
Marketing and customer development	36		48		84		29		49		78		27		44		71		22		55		77		29		49		78
Depreciation - property under operating leases	35		35		70		29		35		64		29		36		65		30		37		67		30		37		67

Regulatory costs	20		17		37		19		17		36		18		19		37		18		7		25		37		39		76
Loan-related expense	26		22		48		30		24		54		25		23		48		25		27		52		28		24		52
Amortization	29		—		29		32		—		32		32		—		32		34		—		34		33		—		33

Merger-related restructuring and charges, net	34		22		56		23		8		31		80		45		125		76		—		76		18		—		18
Other expense	134		153		287		130		354		484		125		170		295		122		164		286		114		137		251
Total noninterest expense	1,840		1,508		3,348		1,751		1,670		3,421		1,768		1,526		3,294		1,784		1,514		3,298		1,742		1,416		3,158
Earnings
Income before income taxes	1,046		747		1,793		1,119		795		1,914		975		686		1,661		1,010		796		1,806		1,049		849		1,898
Provision for income taxes	218		122		340		234		105		339		177		104		281		205		136		341		210		95		305
Net income	828		625		1,453		885		690		1,575		798		582		1,380		805		660		1,465		839		754		1,593
Noncontrolling interests	3		2		5		(1)		2		1		6		2		8		7		2		9		7		2		9
Preferred stock dividends	90		26		116		44		25		69		43		26		69		44		26		70		43		26		69
Net income available to common shareholders	$	735	$	597	$	1,332	$	842	$	663	$	1,505	$	749	$	554	$	1,303	$	754	$	632	$	1,386	$	789	$	726	$	1,515

Appendix 3: Historical Selected Items

The table below includes the selected items, other than merger-related and restructuring charges, and securities gains and losses, that were historically disclosed by BB&T and SunTrust. This information is being provided to assist the investment community in understanding the impacts of significant items on the historical unaudited combined income statements.


		Favorable (Unfavorable)
		BB&T												SunTrust
(Dollars in millions) Description	Financial Statement Caption	Pre-Tax				After-Tax at Marginal Tax Rate				Pre-Tax				After-Tax at Marginal Tax Rate
Third Quarter 2019
Incremental operating expenses related to the merger:
Personnel expense	Personnel expense	$	(39)							$	(4)
Professional services	Professional services	(12)								—
Other expense	Other expense	(1)								$	(7)
Total				$	(52)			$	(40)			$	(11)			$	(8)

Redemption of preferred shares	Preferred stock dividends			$	(46)			$	(46)

Allowance release related to residential mortgage portfolio sale	Provision for credit losses			$	16			$	12
Gain on residential mortgage portfolio sale	Residential mortgage income	4				3
Impact of mortgage portfolio sale		$	20			$	15

Insurance Settlement	Other income									$	5			$	4

Second Quarter 2019
Insurance Settlement	Other income									$	205			$	156

Charitable Contribution	Other expense									$	(205)			$	(156)

Incremental operating expenses related to the merger:
Personnel expense	Personnel expense	$	(4)							$	(2)
Professional services	Professional services	(5)								—
Other expense	Other expense	—								$	(4)
Total		$	(9)			$	(7)			$	(6)			$	(5)

First Quarter 2019
Incremental operating expenses related to the merger:
Professional services	Professional services	$	(1)
Other expense	Other expense	(1)
Total				$	(2)			$	(1)

Fourth Quarter 2018
Legacy pension settlement charge	Personnel expense											$	(60)			$	(46)

Third Quarter 2018
None

Truist Financial (TFC) 8-KRegulation FD Disclosure