UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

			
Date of Report (Date of earliest event reported):	 	January 18, 2019	

SunTrust Banks, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

					
 	 	 	 	 	
Georgia	 	001-08918	 	58-1575035	
(State or other jurisdiction of incorporation)	 	(Commission File Number)	 	(I.R.S. Employer Identification No.)	

303 Peachtree Street, N.E., Atlanta, Georgia	 	 	 	30308	
(Address of principal executive offices)	 	 	 	(Zip Code)	

	
			
Registrant's telephone number, including area code:	 	(800) 786-8787	

	
					
 	 	Not Applicable	 	 	
Former name or former address, if changed since last report	

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company     ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

Item 7.01 Regulation FD.
On January 18, 2019 , SunTrust Banks, Inc. (the “Registrant”) announced financial results for the period ended December 31, 2018 . A copy of the news release announcing such results is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The Registrant intends to hold an investor call and webcast to discuss these results on January 18, 2019 , at 8:00 a.m. Eastern time. Additional presentation materials relating to such call are furnished hereto as Exhibit 99.2 and are incorporated herein by reference.
The foregoing information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and Item 7.01, “Regulation FD.” Consequently, it is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. It may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. All information in the news release and presentation materials speak as of the date thereof and the Registrant does not assume any obligation to update said information in the future. In addition, the Registrant disclaims any inference regarding the materiality of such information which otherwise may arise as a result of its furnishing such information under Item 2.02 or Item 7.01 of this report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits

		
99.1	News release dated January 18, 2019 (furnished with the Commission as a part of this Form 8-K).	

		
99.2	Presentation slides dated January 18, 2019 (furnished with the Commission as a part of this Form 8-K).	

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	
				
 	 	 	SUNTRUST BANKS, INC.	
 	 	 	(Registrant)	

Date:	January 18, 2019	 	By: /s/ R. Ryan Richards	
 	 	 	R. Ryan Richards,
Senior Vice President and Controller	

Exhibit 99.1

News Release

				
Contact:	 	 	 	
Investors	 	Media	 	
Ankur Vyas	 	Mike McCoy	 	
(404) 827-6714	 	(404) 588-7230	 	
For Immediate Release
January 18 , 2019

SunTrust Reports Fourth Quarter and Full Year 2018 Results
7th Consecutive Year of Performance Improvement
Continued Efficiency Improvements, Higher Capital Return,
and Favorable Operating Environment Drive Strong Year-over-Year EPS Growth

ATLANTA -- For the fourth quarter of 2018, SunTrust Banks, Inc. (NYSE: STI) reported net income available to common shareholders of $632 million , or $1.40 per average common diluted share, which includes a $(0.10) per share discrete charge associated with the settlement of a legacy pension plan.

For the full year, diluted earnings per share was $5.74 , up 28% relative to 2017 diluted earnings per share and up 40% relative to 2017 adjusted earnings per share. 2017 diluted earnings per share was $4.47 and included $0.39 net discrete benefits from Form 8-K items announced on December 4, 2017 and other items related to tax reform.

“Our performance this quarter provided a good conclusion to a strong year for SunTrust. In 2018, we continued to deliver on the commitments we have made to our owners: we achieved our sub-60% adjusted tangible efficiency ratio target one year ahead of schedule, and we delivered our seventh consecutive year of improved earnings per share, efficiency, and capital returns,” said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. “Going into 2019, our diverse business mix, ongoing investments in growth and technology, and consistent underwriting discipline, give me confidence in our ability to continue to deliver long-term value for our owners.”

1

Fourth Quarter 2018 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 21% marginal federal tax rate for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018, as well as state income taxes, where applicable. We provide unadjusted amounts in the table on page 3 of this news release and detailed reconciliations and additional information in Appendix A on pages 22 and 23 .)

Income Statement

•	Net income available to common shareholders was $632 million , or $1.40 per average common diluted share, compared to $1.56 for the prior quarter and $1.48 for the fourth quarter of 2017 .	

◦	The fourth quarter of 2018 included $(0.10) per average common share related to a discrete charge associated with the settlement of a legacy pension plan.	

◦	The prior quarter and prior year quarter included $0.14 per share and $0.39 per share of discrete benefits, respectively.	

•	Total revenue was up 3% sequentially and 4% year-over-year. The sequential increase was driven by both higher net interest income and noninterest income, while the year-over-year increase was driven by higher net interest income.	

•	Net interest margin was 3.27% in the current quarter, stable sequentially and up 10 basis points compared to the prior year. Compared to the prior quarter, the benefit of higher benchmark interest rates was generally offset by increased wholesale funding, given strong loan growth. The year-over-year increase was driven primarily by higher benchmark interest rates in addition to positive mix shift in the loans held for investment (“LHFI”) portfolio, offset partially by higher funding costs.	

•	Provision for credit losses increased $26 million sequentially and $8 million year-over-year, driven by loan growth, partially offset by a lower allowance for loan and lease losses (“ALLL”) to period-end LHFI ratio.	

•	Noninterest expense increased $98 million sequentially and decreased $38 million year-over-year. The sequential increase was driven primarily by a $60 million pre-tax pension plan settlement charge recognized in the fourth quarter of 2018. The year-over-year decrease includes the impacts of the December 4, 2017 Form 8-K and tax reform-related items recognized during the fourth quarter of 2017. Excluding these discrete items, noninterest expense increased $38 million sequentially and $13 million year-over-year.	

•	The efficiency and tangible efficiency ratios for the current quarter were 62.1% and 61.1% , respectively, which were unfavorably impacted by the legacy pension plan settlement charge. Excluding this item, the adjusted tangible efficiency ratio was 58.6% for the current quarter, compared to 58.9% for the prior quarter and 59.9% for the prior year quarter.	

Balance Sheet

•	Average performing LHFI was up 3% compared to the prior quarter and up 4% year-over-year, driven by growth across most loan categories.	

•	Average consumer and commercial deposits increased 1% compared to both the prior quarter and the prior year, driven primarily by growth in NOW accounts and time deposits, offset partially by declines in money market accounts and demand deposits.	

Capital

•	Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 (“CET1”) ratio was estimated to be 9.2% as of December 31, 2018 , lower than the prior quarter due to loan growth and increased share repurchases.	

•	During the quarter, the Company repurchased $750 million of its outstanding common stock. The Company has $750 million remaining authorization per its 2018 Capital Plan. The Company also issued $1.4 billion of long-term debt in the fourth quarter of 2018 .	

•	Book value per common share was $49.57 and tangible book value per common share was $35.73 , both up from September 30, 2018 , driven primarily by growth in retained earnings and a decrease in accumulated other comprehensive loss.	

2

Asset Quality

•	Nonperforming loans (“NPLs”) decreased $169 million from the prior quarter and represented 0.35% of period-end LHFI at December 31, 2018 . The decrease was driven primarily by payoffs and the resolution of certain commercial loans.	

•	Net charge-offs for the current quarter were $97 million , or 0.26% of total average LHFI on an annualized basis, compared to 0.24% during the prior quarter and 0.29% during the fourth quarter of 2017 .	

•	At December 31, 2018 , ALLL to period-end LHFI ratio was 1.06% , down 4 basis points compared to the prior quarter, driven by continued improvements in asset quality.	

•	Provision for credit losses increased $26 million sequentially and $8 million year-over-year, driven primarily by loan growth, partially offset by a lower ALLL to period-end LHFI ratio.	

	

Income Statement (Dollars in millions, except per share data)	4Q 2018	 	3Q 2018	 	2Q 2018	 	1Q 2018	 	4Q 2017	
Net interest income	$1,547	 	$1,512	 	$1,488	 	$1,441	 	$1,434	
Net interest income-FTE 1	1,570	 	1,534	 	1,510	 	1,461	 	1,472	
Net interest margin	3.22	%	 	3.22	%	 	3.23	%	 	3.20	%	 	3.09	%	
Net interest margin-FTE 1	3.27		 	3.27		 	3.28		 	3.24		 	3.17		
Noninterest income	$818	 	$782	 	$829	 	$796	 	$833	
Total revenue	2,365		 	2,294		 	2,317		 	2,237		 	2,267		
Total revenue-FTE 1	2,388		 	2,316		 	2,339		 	2,257		 	2,305		
Noninterest expense	1,482		 	1,384		 	1,390		 	1,417		 	1,520		
Provision for credit losses	87		 	61		 	32		 	28		 	79		
Net income available to common shareholders	632		 	726		 	697		 	612		 	710		
Earnings per average common diluted share	1.40		 	1.56		 	1.49		 	1.29		 	1.48		
 	 	 	 	 	 	 	 	 	 	
Balance Sheet   (Dollars in billions)	 	 	 	 	 	 	 	 	 	
Average LHFI		$149.7		 		$146.0		 		$144.2		 		$142.9		 		$144.0		
Average consumer and commercial deposits	161.6		 	159.3		 	159.0		 	159.2		 	160.7		
 	 	 	 	 	 	 	 	 	 	
Capital	 	 	 	 	 	 	 	 	 	
Basel III capital ratios at period end 2  :	 	 	 	 	 	 	 	 	 	
Tier 1 capital	10.30	%	 	10.72	%	 	10.86	%	 	11.00	%	 	11.15	%	
Common Equity Tier 1 ("CET1")	9.21		 	9.60		 	9.72		 	9.84		 	9.74		
Total average shareholders’ equity to total average assets	11.21		 	11.71		 	11.78		 	12.05		 	12.09		
 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	
Net charge-offs to total average LHFI (annualized)	0.26	%	 	0.24	%	 	0.20	%	 	0.22	%	 	0.29	%	
ALLL to period-end LHFI 3	1.06		 	1.10		 	1.14		 	1.19		 	1.21		
NPLs to period-end LHFI	0.35		 	0.47		 	0.52		 	0.50		 	0.47		
1 See Appendix A on pages 22 and 23 for non-U.S. GAAP reconciliations and additional information.
2 Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018. Capital ratios at December 31, 2018 are estimated as of the date of this document.
3 LHFI measured at fair value were excluded from period-end LHFI in the calculation as no allowance is recorded for loans measured at fair value.

3

Consolidated Financial Performance Details
(Commentary is on a fully taxable-equivalent basis unless otherwise noted)
Revenue
Total revenue was $2.4 billion for the current quarter, an increase of $72 million , or 3% , compared to the prior quarter, driven by higher net interest income and noninterest income. The sequential increase in net interest income was driven by growth in average earning assets. Noninterest income increase d $36 million sequentially due largely to higher commercial real estate-related income, offset partially by lower capital markets-related income. Compared to the fourth quarter of 2017 , total revenue increased $83 million , or 4% , driven by a $98 million increase in net interest income as a result of net interest margin expansion and growth in average earning assets, partially offset by lower mortgage-related income.
Net Interest Income
Net interest income was $1.6 billion for the fourth quarter of 2018, an increase of $36 million compared to the prior quarter due primarily to $4.4 billion growth in average earning assets. The $98 million increase relative to the prior year was driven by a 10 basis point expansion in the net interest margin and a $6.4 billion increase in average earning assets.
Net interest margin for the current quarter was 3.27% , stable compared to the prior quarter and 10 basis points higher than the prior year. The year-over-year increase was driven primarily by higher earning asset yields, offset partially by higher funding costs.
For the year ended December 31 , 2018 , net interest income was $6.1 billion , a $297 million , or 5% , increase compared to the year ended December 31 , 2017 . The net interest margin for the full year of 2018 was 3.26% , a 12 basis point increase compared to the same period in 2017. The increases in both net interest income and net interest margin were driven by the same factors that impacted the prior year comparison above.
Noninterest Income
Noninterest income was $818 million for the current quarter, compared to $782 million for the prior quarter and $833 million for the fourth quarter of 2017 . The $36 million sequential increase was due largely to higher commercial real estate-related income, offset partially by lower capital markets-related income. Compared to the prior year, noninterest income decreased $15 million driven primarily by lower mortgage production-related income.
Client transaction-related fees (namely service charges on deposits, other charges and fees, and card fees) increased $13 million sequentially due primarily to a $7 million one-time charge related to changes in our process for recognizing card rewards expenses in the third quarter of 2018 (recorded as contra-revenue) . The $8 million year-over-year decrease was due primarily to the impact of adopting the revenue recognition accounting standard during the first quarter of 2018, which resulted in the netting of certain expense items against card fees, other charges and fees, and service charges on deposit accounts.
Investment banking income was $146 million for the current quarter, compared to $150 million in the prior quarter and $122 million for the fourth quarter of 2017. The $4 million sequential decrease was due to lower transaction activity as a result of adverse market conditions during the fourth quarter of 2018. The year-over-year increase was due primarily to higher transaction activity in M&A and loan syndications, offset partially by lower transaction activity in high yield bond originations and equity offerings.
Trading income was $24 million for the current quarter, compared to $42 million in the prior quarter and $41 million in the prior year. The $18 million sequential and $17 million year-over-year decreases were due primarily to mark-to-market valuation losses resulting from adverse market conditions and higher counterparty credit valuation reserves in the fourth quarter of 2018.

4

Mortgage servicing-related income was $49 million for the current quarter compared to $43 million in both the prior quarter and fourth quarter of 2017 . The sequential and year-over-year increases were due primarily to higher servicing fees, offset partially by lower net hedge performance. At December 31, 2018 , the servicing portfolio totaled $171.4 billion , relatively stable compared to the prior quarter and a 4% increase compared to the prior year due to MSRs purchased in the first and third quarters of 2018.
Mortgage production-related income for the current quarter was $36 million , compared to $40 million for the prior quarter and $61 million for the fourth quarter of 2017 . The $4 million sequential and $25 million year-over-year decreases were due to lower production volume, offset partially by a repurchase reserve release during the fourth quarter of 2018. The year-over-year decline was also impacted by lower gain-on-sale margins. Mortgage application volume decreased 28% sequentially and 23% compared to the fourth quarter of 2017 . Closed loan volume decreased 20% sequentially and 22% year-over-year.
Trust and investment management income was $74 million for the current quarter, compared to $80 million for both the prior quarter and prior year. The $6 million sequential decrease was due primarily to seasonally higher trust fees recognized during the prior quarter. The $6 million year-over-year decrease was due to trust termination fees received during the fourth quarter of 2017.
Retail investment services income was $74 million for the current quarter, stable relative to the prior quarter and $4 million higher than the fourth quarter of 2017 . The $4 million year-over-year increase was due primarily to higher assets under management.
Commercial real estate-related income was $68 million for the current quarter, compared to $24 million for the prior quarter and $62 million for the prior year. The increase compared to the prior quarter and prior year was driven primarily by increased client-driven structured real estate transactions. The sequential increase is also impacted by seasonality in SunTrust Community Capital (tax credit-related income) and the Company's agency lending business.
Net securities gains/(losses) totaled $0 for both the current quarter and prior quarter. In the fourth quarter of 2017, the Company recognized ($109) million of securities losses as a result of a securities AFS portfolio restructuring in response to tax reform.
Other noninterest income was $26 million for the current quarter, compared to $21 million in the prior quarter and $134 million in the fourth quarter of 2017 . The $5 million sequential increase was due primarily to mark-to-market gains from credit default swap hedges, offset partially by mark-to-market losses on certain FinTech investments. The $108 million year-over-year decrease was due primarily to the $107 million pre-tax gain from the sale of Premium Assignment Corporation ("PAC") during the fourth quarter of 2017.
For the year ended December 31 , 2018 , noninterest income was $3.2 billion , compared to $3.4 billion for the year ended December 31 , 2017 . The $128 million decrease was driven by declines across most categories as a result of market conditions (which negatively impacted capital markets and mortgage-related income) as well as the impact of the adoption of revenue recognition accounting standards during the first quarter of 2018, offset partially by higher commercial real estate and wealth management-related income. For the year ended December 31, 2018, the adoption of the revenue recognition accounting standards resulted in a net reduction of $26 million to noninterest income and noninterest expense (prior periods were not restated).
Noninterest Expense
Noninterest expense was $1.5 billion in the current quarter, up $98 million sequentially and down $38 million compared to the fourth quarter of 2017 . The sequential increase was driven by the $60 million pre-tax legacy pension plan settlement charge recognized in the fourth quarter of 2018 as well as higher operating losses, net occupancy expense, and other noninterest expense, offset partially by lower regulatory assessment costs. The year-over-year decrease was due primarily to the $111 million of net expenses recognized in the fourth quarter of 2017 related to the December 4, 2017 Form 8-K and tax reform-related items. Excluding these discrete items, noninterest expense increased $38 million sequentially and $13 million year-over-year.

5

Employee compensation and benefits expense was $857 million in the current quarter, compared to $795 million in the prior quarter and $803 million in the fourth quarter of 2017 . The $62 million sequential and $54 million year-over-year increases were due primarily to the $60 million of legacy pension plan settlement charge recognized during the fourth quarter of 2018.
Outside processing and software expense was $242 million in the current quarter, compared to $234 million in the prior quarter and $214 million in the fourth quarter of 2017 . The $8 million sequential and $28 million year-over-year increases were driven primarily by higher software-related costs resulting from the amortization of new and upgraded technology assets.
Net occupancy expense was $102 million in the current quarter, compared to $86 million in the prior quarter and $97 million in the prior year. The $16 million sequential increase was driven primarily by lease termination gains recognized during the prior quarter.
Marketing and customer development expense was $49 million in the current quarter, compared to $45 million in the prior quarter and $104 million in the fourth quarter of 2017 . The $4 million sequential increase was driven by normal seasonal trends. The $55 million year-over-year decrease was driven primarily by the $50 million tax reform-related charitable contribution to support financial well-being initiatives during the fourth quarter of 2017.
Regulatory assessments expense was $7 million in the current quarter, compared to $39 million in the prior quarter and $43 million in the prior year. The sequential and year-over-year decrease was driven by the cessation of the FDIC Deposit Insurance Fund surcharge in the fourth quarter of 2018, in addition to a separate $9 million regulatory assessment credit in the fourth quarter of 2018.
Operating losses were $39 million in the current quarter, compared to $18 million in the prior quarter and $23 million in the fourth quarter of 2017 . The sequential and year-over-year increases were due primarily to higher legal and fraud-related costs.
Other noninterest expense was $122 million in the current quarter, compared to $108 million in the prior quarter and $170 million in the fourth quarter of 2017 . The $14 million sequential increase was driven primarily by costs associated with a vendor contract termination as well as higher consulting costs. The $48 million year-over-year decrease was driven primarily by certain efficiency actions taken during the fourth quarter of 2017, including severance costs in conjunction with the voluntary early retirement program, branch and corporate real estate closure costs, and software write-downs.
Noninterest expense for the year ended December 31 , 2018 decreased $91 million compared to the year ended December 31 , 2017 . The 2% decrease was driven primarily by the $111 million of discrete charges in the fourth quarter of 2017, in addition to ongoing efficiency initiatives, offset partially by higher outside processing and software costs and the $60 million pre-tax legacy pension plan settlement charge recognized in the fourth quarter of 2018.
Income Taxes
For the fourth quarter of 2018, the Company recorded a provision for income taxes of $136 million compared to $95 million for the prior quarter and a benefit of $74 million for the fourth quarter of 2017 . The effective tax rate for the current quarter was 17% , compared to 11% in the prior quarter and (11)% in the fourth quarter of 2017 . The fourth quarter of 2018 included $10 million of discrete tax benefits. The prior quarter included $67 million of discrete tax benefits related to the finalization of the impact of tax reform and the completion of the merger of SunTrust Mortgage into SunTrust Bank. The prior year included a net $264 million tax benefit for the estimated impact of the re-measurement of the Company's estimated net deferred tax liabilities at December 31, 2017, due to tax reform, partially offset by certain discrete tax charges. The year-over-year change in the effective tax rate was also impacted by the reduction in the U.S. federal corporate income tax rate from 35% to 21% .

6

Balance Sheet
At December 31, 2018 , the Company had total assets of $215.5 billion and total shareholders’ equity of $24.3 billion , representing 11% of total assets. Book value per common share was $49.57 and tangible book value per common share was $35.73 , up 3% and 4% , respectively, compared to September 30, 2018 , driven primarily by growth in retained earnings and a decrease in accumulated other comprehensive loss.
Loans and Deposits
Average performing LHFI totaled $149.1 billion for the current quarter, up 3% compared to the prior quarter and up 4% compared to the prior year driven by broad-based growth across most loan categories.
Average consumer and commercial deposits totaled $161.6 billion for the current quarter, up 1% compared to both the prior quarter and fourth quarter of 2017 . The sequential and year-over-year increase was driven by growth in NOW accounts and time deposits, offset partially by declines in money market accounts and demand deposits.
Capital and Liquidity
The Company’s estimated capital ratios were well above current regulatory requirements with the Common Equity Tier 1 ratio estimated to be 9.2% at December 31, 2018 . The ratios of average total equity to average total assets and tangible common equity to tangible assets were 11.2% and 7.6% , respectively, at December 31 , 2018 . 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 $0.50 per common share and repurchased $750 million of its outstanding common stock in the fourth quarter of 2018 . The Company has $750 million remaining authorization per its 2018 Capital Plan. Additionally, SunTrust Bank issued $600 million of 3-year fixed-to-floating rate senior notes, $500 million of 7-year fixed rate senior notes, and $300 million of 3-year floating rate senior notes in the fourth quarter of 2018 .
Asset Quality
Overall asset quality performance continues to be strong. Nonperforming assets ("NPAs") totaled $589 million at December 31, 2018 , down $165 million from the prior quarter and $152 million year-over-year. The ratio of NPLs to period-end LHFI was 0.35% , 0.47% , and 0.47% at December 31 , 2018 , September 30 , 2018 , and December 31 , 2017 , respectively. The decrease was driven primarily by payoffs and the resolution of certain nonaccruing commercial loans. In addition, residential mortgage nonperforming loans declined due to loans transitioning from non-accruing (as a result of forbearance relief provided after hurricanes) back to accruing status. 
Net charge-offs totaled $97 million during the current quarter, an increase of $9 million compared to the prior quarter and a decrease of $10 million compared to the fourth quarter of 2017 . The ratio of annualized net charge-offs to total average LHFI was 0.26% during the current quarter, compared to 0.24% during the prior quarter and 0.29% during the prior year.
The provision for credit losses was $87 million in the current quarter, a sequential increase of $26 million and a year-over-year increase of $8 million . These increases were driven primarily by loan growth, partially offset by a lower ALLL to period-end LHFI ratio. At December 31 , 2018 , the ALLL was $1.6 billion , which represented 1.06% of period-end loans, a 4 basis point decline relative to September 30 , 2018 , driven by continued improvements in asset quality.
Early stage delinquencies decreased 1 basis point from the prior quarter and 7 basis points from December 31 , 2017 to 0.73% at December 31 , 2018 . Excluding government-guaranteed loans, early stage delinquencies were 0.27% , up 3 basis points compared to the prior quarter, given typical seasonal trends, and down 5 basis points compared to the fourth quarter of 2017 .

7

OTHER INFORMATION

About SunTrust Banks, Inc.
SunTrust Banks, Inc. (NYSE: STI) is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. 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  December 31, 2018 , SunTrust had total assets of  $216 billion  and total deposits of  $163 billion . The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. Learn more at suntrust.com .
Business Segment Results
The Company has included its business segment financial tables as part of this release. Revenue and income amounts labeled "FTE" in the business segment tables are reported on a fully taxable-equivalent basis. 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 ("ALLL") 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 Total Corporate Other results presented in this document also include Reconciling Items, which are comprised of differences created between internal management accounting practices and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and certain matched-maturity funds transfer pricing credits and charges. A detailed discussion of the business segment results will be included in the Company’s forthcoming Form 10-K .
Corresponding Financial Tables and Information
Investors are encouraged to review the foregoing summary and discussion of SunTrust’s earnings and financial condition in conjunction with the detailed financial tables included in this release and the earnings presentation which SunTrust has also published today and SunTrust’s forthcoming Form 10-K . Detailed financial tables and the earnings presentation are also available at investors.suntrust.com . This information is also included in a current report on Form 8-K furnished with the SEC today.
Conference Call
SunTrust management will host a conference call on January 18 , 2019 , at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals may call in beginning at 7:30 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 will be available approximately one hour after the call ends on January 18 , 2019 , and will remain available until February 18, 2019 , by dialing 1-800-475-6701 (domestic) or 1-320-365-3844 (international) (Passcode: 461298). Alternatively, individuals may listen to the live webcast of the presentation by visiting the SunTrust investor relations website at investors.suntrust.com. Beginning the afternoon of January 18 , 2019 , individuals may access an archived version of the webcast in the “Events & Presentations” section of the SunTrust investor relations website. This webcast will be archived and available for one year.
Non-GAAP Financial Measures
This news release includes non-GAAP financial measures to describe SunTrust’s performance. Additional information and reconciliations of those measures to GAAP measures are provided in the appendix to this news release beginning at page 22 .
In this news release, consistent with SEC 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 21% for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018, as well as 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

8

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), they allow 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 capital adequacy and profitability of the Company.	
		
•	Similarly, the Company presents Efficiency ratio-FTE, Tangible efficiency ratio-FTE, and Adjusted 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. 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. Adjusted tangible efficiency ratio-FTE removes the pre-tax impact of the legacy pension plan settlement charge recognized in the fourth quarter of 2018 as well as Form 8-K items announced on December 4, 2017 and the impacts of tax reform-related items recognized in the fourth quarter of 2017 from the calculation of Tangible efficiency ratio-FTE. See slide 21 in the earnings presentation (Exhibit 99.2) as well as Appendix A in this news release for more details on these items. The Company believes this measure (adjusted tangible efficiency ratio-FTE) is useful to investors because it is more reflective of normalized operations as it reflects results that are primarily client relationship and client transaction driven. This measure is utilized by management to assess the efficiency of the Company and its lines of business.	
Important Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements. Statements regarding our ability to continue to deliver long-term value to our owners 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 their discretion. Also, future share repurchases and the timing of any such repurchases 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, 2017 and in other periodic reports that we file with the SEC.

9

SunTrust Banks, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS

																						
(Dollars in millions and shares in thousands, except per share data) (Unaudited) 	Three Months Ended December 31	 	 % 3	 	Year Ended December 31	 	%	
	2018		2017	 	 Change	 	2018		2017	 	 Change	
EARNINGS & DIVIDENDS	 		 	 	 	 	 		 	 	 	
Net income		$658		 		$740		 	(11	)%	 		$2,775		 		$2,273		 	22	 %	
Net income available to common shareholders	632		 	710		 	(11	)	 	2,668		 	2,179		 	22		
Total revenue	2,365		 	2,267		 	4		 	9,213		 	8,987		 	3		
Total revenue-FTE  1	2,388		 	2,305		 	4		 	9,301		 	9,132		 	2		
Net income per average common share:	 	 	 	 	 	 	 	 	 	 	 	
Diluted		$1.40				$1.48		 	(5	)%	 		$5.74				$4.47		 	28	 %	
Basic	1.41			1.50		 	(6	)	 	5.79			4.53		 	28		
Dividends declared per common share	0.50			0.40		 	25		 	1.80			1.32		 	36		
CONDENSED BALANCE SHEETS	 	 	 	 	 	 	 	 	 	 	 	
Selected Average Balances:	 	 	 	 	 	 	 	 	 	 	 	
Total assets		$212,934				$205,219		 	4	 %	 		$207,277				$204,931		 	1	 %	
Earning assets	190,742			184,306		 	3		 	186,154			184,212		 	1		
Loans held for investment ("LHFI")	149,708			144,039		 	4		 	145,714			144,216		 	1		
Intangible assets including residential mortgage servicing rights ("MSRs")	8,491			8,077		 	5		 	8,372			8,034		 	4		
Residential MSRs	2,083			1,662		 	25		 	1,963			1,615		 	22		
Consumer and commercial deposits	161,573			160,745		 	1		 	159,768			159,549		 	—		
Total shareholders’ equity	23,873			24,806		 	(4	)	 	24,210			24,301		 	—		
Preferred stock	2,025			2,236		 	(9	)	 	2,115			1,792		 	18		
Period End Balances:	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	 	 	 	 	 		$215,543				$205,962		 	5	 %	
Earning assets	 	 	 	 	 	 	192,497			182,710		 	5		
LHFI	 	 	 	 	 	 	151,839			143,181		 	6		
Allowance for loan and lease losses ("ALLL")	 	 	 	 	 	 	1,615			1,735		 	(7	)	
Consumer and commercial deposits	 	 	 	 	 	 	161,544			159,795		 	1		
Total shareholders’ equity	 	 	 	 	 	 	24,280			25,154		 	(3	)	
FINANCIAL RATIOS & OTHER DATA	 	 	 	 	 	 	 	 	 	 	 	
Return on average total assets	1.23	%		1.43	 %	 	(14	)%	 	1.34	%		1.11	%	 	21	 %	
Return on average common shareholders’ equity	11.54			12.54		 	(8	)	 	12.13			9.72		 	25		
Return on average tangible common shareholders' equity 1	16.13			17.24		 	(6	)	 	16.89			13.39		 	26		
Net interest margin	3.22			3.09		 	4		 	3.22			3.06		 	5		
Net interest margin-FTE  1	3.27		 	3.17		 	3		 	3.26		 	3.14		 	4		
Efficiency ratio	62.66		 	67.03		 	(7	)	 	61.58		 	64.14		 	(4	)	
Efficiency ratio-FTE  1	62.06			65.94		 	(6	)	 	60.99			63.12		 	(3	)	
Tangible efficiency ratio-FTE  1	61.13			64.84		 	(6	)	 	60.21			62.30		 	(3	)	
Adjusted tangible efficiency ratio-FTE  1	58.63		 	59.85		 	(2	)	 	59.56		 	61.04		 	(2	)	
Effective tax rate  	17			(11	)	 	NM		 	16			19		 	(16	)	
Basel III capital ratios at period end 2 :	 	 	 	 	 	 	 	 	 	 	 	
Common Equity Tier 1 ("CET1")	 	 	 	 	 	 	9.21	%	 	9.74	%	 	(5	)%	
Tier 1 capital	 	 	 	 	 	 	10.30		 	11.15		 	(8	)	
Total capital	 	 	 	 	 	 	12.02		 	13.09		 	(8	)	
Leverage	 	 	 	 	 	 	9.26		 	9.80		 	(6	)	
Total average shareholders’ equity to total average assets	11.21	%		12.09	 %	 	(7	)%	 	11.68			11.86		 	(2	)	
Tangible equity to tangible assets  1	 	 	 	 	 	 	8.65			9.50		 	(9	)	
Tangible common equity to tangible assets 1	 	 	 	 	 	 	7.63		 	8.21		 	(7	)	
Book value per common share	 	 	 	 	 	 		$49.57				$47.94		 	3		
Tangible book value per common share  1	 	 	 	 	 	 	35.73			34.82		 	3		
Market capitalization	 	 	 	 	 	 	22,541			30,417		 	(26	)	
Average common shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	
Diluted	452,957			480,359		 	(6	)	 	464,961			486,954		 	(5	)	
Basic	449,404			474,300		 	(5	)	 	460,922			481,339		 	(4	)	
Full-time equivalent employees	 	 	 	 	 	 	22,899			23,785		 	(4	)	
Number of ATMs	 	 	 	 	 	 	2,082			2,116		 	(2	)	
Full service banking offices	 	 	 	 	 	 	1,218			1,268		 	(4	)	

1  	See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.	
		
2  	Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018 . Capital ratios at December 31, 2018 are estimated as of the date of this release.	
3 “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

10

SunTrust Banks, Inc. and Subsidiaries
FIVE QUARTER FINANCIAL HIGHLIGHTS

																				
 	Three Months Ended	
 	December 31	 	September 30	 	June 30	 	March 31	 	December 31	
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2018	 	2018	 	2018	 	2018	 	2017	
EARNINGS & DIVIDENDS	 	 	 	 	 	 	 	 	 	
Net income		$658		 		$752		 		$722		 		$643		 		$740		
Net income available to common shareholders	632		 	726		 	697		 	612		 	710		
Total revenue	2,365		 	2,294		 	2,317		 	2,237		 	2,267		
Total revenue-FTE 1	2,388		 	2,316		 	2,339		 	2,257		 	2,305		
Net income per average common share:	 	 	 	 	 	 	 	 	 	
Diluted		$1.40		 		$1.56		 		$1.49		 		$1.29		 		$1.48		
Basic	1.41		 	1.58		 	1.50		 	1.31		 	1.50		
Dividends declared per common share	0.50		 	0.50		 	0.40		 	0.40		 	0.40		
CONDENSED BALANCE SHEETS	 	 	 	 	 	 	 	 	 	
Selected Average Balances:	 	 	 	 	 	 	 	 	 	
Total assets		$212,934		 		$207,395		 		$204,548		 		$204,132		 		$205,219		
Earning assets	190,742		 	186,344		 	184,566		 	182,874		 	184,306		
LHFI	149,708		 	145,995		 	144,156		 	142,920		 	144,039		
Intangible assets including residential MSRs	8,491		 	8,396		 	8,355		 	8,244		 	8,077		
Residential MSRs	2,083		 	1,987		 	1,944		 	1,833		 	1,662		
Consumer and commercial deposits	161,573		 	159,348		 	158,957		 	159,169		 	160,745		
Total shareholders’ equity	23,873		 	24,275		 	24,095		 	24,605		 	24,806		
Preferred stock	2,025		 	2,025		 	2,025		 	2,390		 	2,236		
Period End Balances:	 	 	 	 	 	 	 	 	 	
Total assets		$215,543		 		$211,276		 		$207,505		 		$204,885		 		$205,962		
Earning assets	192,497		 	188,141		 	185,304		 	182,913		 	182,710		
LHFI	151,839		 	147,215		 	144,935		 	142,618		 	143,181		
ALLL	1,615		 	1,623		 	1,650		 	1,694		 	1,735		
Consumer and commercial deposits	161,544		 	159,332		 	160,410		 	161,357		 	159,795		
Total shareholders’ equity	24,280		 	24,139		 	24,316		 	24,269		 	25,154		
FINANCIAL RATIOS & OTHER DATA	 	 	 	 	 	 	 	 	 	
Return on average total assets	1.23	%	 	1.44	%	 	1.42	%	 	1.28	%	 	1.43	 %	
Return on average common shareholders’ equity	11.54		 	13.01		 	12.73		 	11.23		 	12.54		
Return on average tangible common shareholders' equity 1	16.13		 	18.06		 	17.74		 	15.60		 	17.24		
Net interest margin	3.22		 	3.22		 	3.23		 	3.20		 	3.09		
Net interest margin-FTE  1	3.27		 	3.27		 	3.28		 	3.24		 	3.17		
Efficiency ratio	62.66		 	60.34		 	59.98		 	63.35		 	67.03		
Efficiency ratio-FTE 1	62.06		 	59.76		 	59.41		 	62.77		 	65.94		
Tangible efficiency ratio-FTE 1	61.13		 	58.94		 	58.69		 	62.11		 	64.84		
Adjusted tangible efficiency ratio-FTE  1	58.63		 	58.94		 	58.69		 	62.11		 	59.85		
Effective tax rate	17		 	11		 	19		 	19		 	(11	)	
Basel III capital ratios at period end 2 :	 	 	 	 	 	 	 	 	 	
CET1	9.21	%	 	9.60	%	 	9.72	%	 	9.84	%	 	9.74	 %	
Tier 1 capital	10.30		 	10.72		 	10.86		 	11.00		 	11.15		
Total capital	12.02		 	12.47		 	12.67		 	12.90		 	13.09		
Leverage	9.26		 	9.66		 	9.82		 	9.75		 	9.80		
Total average shareholders’ equity to total average assets	11.21		 	11.71		 	11.78		 	12.05		 	12.09		
Tangible equity to tangible assets  1	8.65		 	8.76		 	9.01		 	9.11		 	9.50		
Tangible common equity to tangible assets 1	7.63		 	7.72		 	7.96		 	8.04		 	8.21		
Book value per common share		$49.57		 		$48.00		 		$47.70		 		$47.14		 		$47.94		
Tangible book value per common share  1	35.73		 	34.51		 	34.40		 	33.97		 	34.82		
Market capitalization	22,541		 	30,632		 	30,712		 	31,959		 	30,417		
Average common shares outstanding:	 	 	 	 	 	 	 	 	 	
Diluted	452,957		 	464,164		 	469,339		 	473,620		 	480,359		
Basic	449,404		 	460,252		 	465,529		 	468,723		 	474,300		
Full-time equivalent employees	22,899		 	22,839		 	23,199		 	23,208		 	23,785		
Number of ATMs	2,082		 	2,053		 	2,062		 	2,075		 	2,116		
Full service banking offices	1,218		 	1,217		 	1,222		 	1,236		 	1,268		

1  	See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.	
		
2  	Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018. Capital ratios at December 31, 2018 are estimated as of the date of this release.	

11

SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME

																														
 	Three Months Ended	 	Increase/(Decrease)	 	Year Ended	 	Increase/(Decrease)	
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	December 31	 			December 31	 		
	2018		2017	 	Amount	 	 % 4	 	2018		2017	 	Amount	 	 % 4	
Interest income		$1,944				$1,640		 		$304		 	19	 %	 		$7,205				$6,387		 		$818		 	13	 %	
Interest expense	397			206		 	191		 	93		 	1,218			754		 	464		 	62		
NET INTEREST INCOME	1,547			1,434		 	113		 	8		 	5,987			5,633		 	354		 	6		
Provision for credit losses	87			79		 	8		 	10		 	208			409		 	(201	)	 	(49	)	
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,460			1,355		 	105		 	8		 	5,779			5,224		 	555		 	11		
NONINTEREST INCOME	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Service charges on deposit accounts	146		 	150		 	(4	)	 	(3	)	 	579			603		 	(24	)	 	(4	)	
Other charges and fees 1	92		 	91		 	1		 	1		 	356			361		 	(5	)	 	(1	)	
Card fees	83		 	88		 	(5	)	 	(6	)	 	324			344		 	(20	)	 	(6	)	
Investment banking income 1	146		 	122		 	24		 	20		 	599			623		 	(24	)	 	(4	)	
Trading income	24		 	41		 	(17	)	 	(41	)	 	161			189		 	(28	)	 	(15	)	
Trust and investment management income	74		 	80		 	(6	)	 	(8	)	 	304		 	309		 	(5	)	 	(2	)	
Retail investment services	74		 	70		 	4		 	6		 	292		 	278		 	14		 	5		
Commercial real estate related income	68		 	62		 	6		 	10		 	134		 	123		 	11		 	9		
Mortgage servicing related income 2	49		 	43		 	6		 	14		 	188		 	191		 	(3	)	 	(2	)	
Mortgage production related income 2	36		 	61		 	(25	)	 	(41	)	 	154		 	231		 	(77	)	 	(33	)	
Net securities gains/(losses)	—		 	(109	)	 	109		 	100		 	1			(108	)	 	109		 	NM		
Other noninterest income	26		 	134		 	(108	)	 	(81	)	 	134			210		 	(76	)	 	(36	)	
Total noninterest income	818			833		 	(15	)	 	(2	)	 	3,226			3,354		 	(128	)	 	(4	)	
NONINTEREST EXPENSE	 	 	 	 	 	 	 	 	 		 	 	 	 	 	
Employee compensation and benefits	857		 	803		 	54		 	7		 	3,308			3,257		 	51		 	2		
Outside processing and software	242		 	214		 	28		 	13		 	909			826		 	83		 	10		
Net occupancy expense	102		 	97		 	5		 	5		 	372			377		 	(5	)	 	(1	)	
Marketing and customer development	49		 	104		 	(55	)	 	(53	)	 	175		 	232		 	(57	)	 	(25	)	
Equipment expense	42		 	41		 	1		 	2		 	166		 	164		 	2		 	1		
Regulatory assessments	7		 	43		 	(36	)	 	(84	)	 	126		 	187		 	(61	)	 	(33	)	
Amortization	22		 	25		 	(3	)	 	(12	)	 	73		 	75		 	(2	)	 	(3	)	
Operating losses	39		 	23		 	16		 	70		 	79			40		 	39		 	98		
Other noninterest expense	122		 	170		 	(48	)	 	(28	)	 	465			606		 	(141	)	 	(23	)	
Total noninterest expense	1,482			1,520		 	(38	)	 	(3	)	 	5,673			5,764		 	(91	)	 	(2	)	
INCOME BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	796			668		 	128		 	19		 	3,332			2,814		 	518		 	18		
Provision/(benefit) for income taxes	136			(74	)	 	210		 	NM		 	548			532		 	16		 	3		
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	660			742		 	(82	)	 	(11	)	 	2,784			2,282		 	502		 	22		
Less: Net income attributable to noncontrolling interest	2			2		 	—		 	—		 	9			9		 	—		 	—		
NET INCOME		$658				$740		 		($82	)	 	(11	)%	 		$2,775				$2,273		 		$502		 	22	 %	
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$632				$710		 		($78	)	 	(11	)%	 		$2,668				$2,179		 		$489		 	22	 %	
Net interest income-FTE  3	1,570			1,472		 	98		 	7		 	6,075			5,778		 	297		 	5		
Total revenue	2,365		 	2,267		 	98		 	4		 	9,213		 	8,987		 	226		 	3		
Total revenue-FTE 3	2,388		 	2,305		 	83		 	4		 	9,301		 	9,132		 	169		 	2		
Net income per average common share:	 	 	 	 		 		 	 	 	 	 	 	 	 	
Diluted	1.40			1.48		 	(0.08	)	 	(5	)	 	5.74			4.47		 	1.27		 	28		
Basic	1.41			1.50		 	(0.09	)	 	(6	)	 	5.79			4.53		 	1.26		 	28		
Dividends declared per common share	0.50			0.40		 	0.10		 	25		 	1.80			1.32		 	0.48		 	36		
Average common shares outstanding:	 	 	 	 		 		 	 	 	 	 	 	 	 	
Diluted	452,957			480,359		 	(27,402	)	 	(6	)	 	464,961			486,954		 	(21,993	)	 	(5	)	
Basic	449,404			474,300		 	(24,896	)	 	(5	)	 	460,922			481,339		 	(20,417	)	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1 Beginning July 1, 2018, the Company began presenting bridge commitment fee income related to capital market transactions in Investment banking income on the Consolidated Statements of Income. For periods prior to July 1, 2018, this income was previously presented in Other charges and fees and has been reclassified to Investment banking income for comparability.
2 Beginning with the Company's forthcoming Annual Report on Form 10-K for the year ended December 31, 2018, the Company will begin presenting Mortgage production related income and Mortgage servicing related income as a single line item on the Consolidated Statements of Income titled Mortgage related income. Prior periods will conform with this updated presentation for comparability.
3 See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.
4 “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

12

SunTrust Banks, Inc. and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

																											
 	Three Months Ended	 	 	 	Three Months Ended	
(Dollars in millions and shares in thousands, except per share data)
(Unaudited)	December 31	 	September 30	 	Increase/(Decrease)	 	June 30	 	March 31	 	December 31	
	2018	 	2018	 	Amount	 	 % 4	 	2018	 	2018	 	2017	
Interest income		$1,944		 		$1,834		 		$110		 	6	 %	 		$1,759		 		$1,668		 		$1,640		
Interest expense	397		 	322		 	75		 	23		 	271		 	227		 	206		
NET INTEREST INCOME	1,547		 	1,512		 	35		 	2		 	1,488		 	1,441		 	1,434		
Provision for credit losses	87		 	61		 	26		 	43		 	32		 	28		 	79		
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,460		 	1,451		 	9		 	1		 	1,456		 	1,413		 	1,355		
NONINTEREST INCOME	 	 	 	 	 	 	 	 	 	 	 	 	 	
Service charges on deposit accounts	146		 	144		 	2		 	1		 	144		 	146		 	150		
Other charges and fees 1	92		 	89		 	3		 	3		 	91		 	85		 	91		
Card fees	83		 	75		 	8		 	11		 	85		 	81		 	88		
Investment banking income 1	146		 	150		 	(4	)	 	(3	)	 	169		 	133		 	122		
Trading income	24		 	42		 	(18	)	 	(43	)	 	53		 	42		 	41		
Trust and investment management income	74		 	80		 	(6	)	 	(8	)	 	75		 	75		 	80		
Retail investment services	74		 	74		 	—		 	—		 	73		 	72		 	70		
Commercial real estate related income	68		 	24		 	44		 	NM		 	18		 	23		 	62		
Mortgage servicing related income 2	49		 	43		 	6		 	14		 	40		 	54		 	43		
Mortgage production related income 2	36		 	40		 	(4	)	 	(10	)	 	43		 	36		 	61		
Net securities gains/(losses)	—		 	—		 	—		 	—		 	—		 	1		 	(109	)	
Other noninterest income	26		 	21		 	5		 	24		 	38		 	48		 	134		
Total noninterest income	818		 	782		 	36		 	5		 	829		 	796		 	833		
NONINTEREST EXPENSE	 	 	 	 	 	 	 	 	 	 	 	 	 	
Employee compensation and benefits	857		 	795		 	62		 	8		 	802		 	853		 	803		
Outside processing and software	242		 	234		 	8		 	3		 	227		 	206		 	214		
Net occupancy expense	102		 	86		 	16		 	19		 	90		 	94		 	97		
Marketing and customer development	49		 	45		 	4		 	9		 	40		 	41		 	104		
Equipment expense	42		 	40		 	2		 	5		 	44		 	40		 	41		
Regulatory assessments	7		 	39		 	(32	)	 	(82	)	 	39		 	41		 	43		
Amortization	22		 	19		 	3		 	16		 	17		 	15		 	25		
Operating losses	39		 	18		 	21		 	NM		 	17		 	6		 	23		
Other noninterest expense	122		 	108		 	14		 	13		 	114		 	121		 	170		
Total noninterest expense	1,482		 	1,384		 	98		 	7		 	1,390		 	1,417		 	1,520		
INCOME BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	796		 	849		 	(53	)	 	(6	)	 	895		 	792		 	668		
Provision/(benefit) for income taxes	136		 	95		 	41		 	43		 	171		 	147		 	(74	)	
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	660		 	754		 	(94	)	 	(12	)	 	724		 	645		 	742		
Less: Net income attributable to noncontrolling interest	2		 	2		 	—		 	—		 	2		 	2		 	2		
NET INCOME		$658		 		$752		 		($94	)	 	(13	)%	 		$722		 		$643		 		$740		
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$632		 		$726		 		($94	)	 	(13	)%	 		$697		 		$612		 		$710		
Net interest income-FTE  3	1,570		 	1,534		 	36		 	2		 	1,510		 	1,461		 	1,472		
Total revenue	2,365		 	2,294		 	71		 	3		 	2,317		 	2,237		 	2,267		
Total revenue-FTE 3	2,388		 	2,316		 	72		 	3		 	2,339		 	2,257		 	2,305		
Net income per average common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	1.40		 	1.56		 	(0.16	)	 	(10	)	 	1.49		 	1.29		 	1.48		
Basic	1.41		 	1.58		 	(0.17	)	 	(11	)	 	1.50		 	1.31		 	1.50		
Dividends declared per common share	0.50		 	0.50		 	—		 	—		 	0.40		 	0.40		 	0.40		
Average common shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	452,957		 	464,164		 	(11,207	)	 	(2	)	 	469,339		 	473,620		 	480,359		
Basic	449,404		 	460,252		 	(10,848	)	 	(2	)	 	465,529		 	468,723		 	474,300		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1 Beginning July 1, 2018, the Company began presenting bridge commitment fee income related to capital market transactions in Investment banking income on the Consolidated Statements of Income. For periods prior to July 1, 2018, this income was previously presented in Other charges and fees and has been reclassified to Investment banking income for comparability.
2 Beginning with the Company's forthcoming Annual Report on Form 10-K for the year ended December 31, 2018, the Company will begin presenting Mortgage production related income and Mortgage servicing related income as a single line item on the Consolidated Statements of Income titled Mortgage related income. Prior periods will conform with this updated presentation for comparability.
3 See Appendix A for additional information and reconcilements of non-U.S. GAAP measures to the related U.S.GAAP measures.
4 “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

13

SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS

															
 	December 31	 	Increase/(Decrease)	
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	2018	 	2017	 	Amount	 	 % 3	
ASSETS	 	 	 	 	 	 	 	
Cash and due from banks		$5,791		 		$5,349		 		$442		 	8	 %	
Federal funds sold and securities borrowed or purchased under agreements to resell	1,679		 	1,538		 	141		 	9		
Interest-bearing deposits in other banks	25		 	25		 	—		 	—		
Trading assets and derivative instruments	5,506		 	5,093		 	413		 	8		
Securities available for sale 1	31,442		 	30,947		 	495		 	2		
Loans held for sale ("LHFS")	1,468		 	2,290		 	(822	)	 	(36	)	
Loans held for investment ("LHFI"):	 	 	 	 	 	 	 	
Commercial and industrial ("C&I")	71,137		 	66,356		 	4,781		 	7		
Commercial real estate ("CRE")	7,265		 	5,317		 	1,948		 	37		
Commercial construction	2,538		 	3,804		 	(1,266	)	 	(33	)	
Residential mortgages - guaranteed	459		 	560		 	(101	)	 	(18	)	
Residential mortgages - nonguaranteed	28,836		 	27,136		 	1,700		 	6		
Residential home equity products	9,468		 	10,626		 	(1,158	)	 	(11	)	
Residential construction	184		 	298		 	(114	)	 	(38	)	
Consumer student - guaranteed	7,229		 	6,633		 	596		 	9		
Consumer other direct	10,615		 	8,729		 	1,886		 	22		
Consumer indirect	12,419		 	12,140		 	279		 	2		
Consumer credit cards	1,689		 	1,582		 	107		 	7		
Total LHFI	151,839		 	143,181		 	8,658		 	6		
Allowance for loan and lease losses ("ALLL")	(1,615	)	 	(1,735	)	 	(120	)	 	(7	)	
Net LHFI	150,224		 	141,446		 	8,778		 	6		
Goodwill	6,331		 	6,331		 	—		 	—		
Residential MSRs	1,983		 	1,710		 	273		 	16		
Other assets 1	11,094		 	11,233		 	(139	)	 	(1	)	
Total assets 2		$215,543		 		$205,962		 		$9,581		 	5	 %	
LIABILITIES	 	 	 	 	 	 	 	
Deposits:	 	 	 	 	 	 	 	
Noninterest-bearing consumer and commercial deposits		$40,770		 		$42,784		 		($2,014	)	 	(5	)%	
Interest-bearing consumer and commercial deposits:	 	 	 	 	 	 	 	
NOW accounts	49,031		 	47,379		 	1,652		 	3		
Money market accounts	49,868		 	51,088		 	(1,220	)	 	(2	)	
Savings	6,520		 	6,468		 	52		 	1		
Consumer time	6,583		 	5,839		 	744		 	13		
Other time	8,772		 	6,237		 	2,535		 	41		
Total consumer and commercial deposits	161,544		 	159,795		 	1,749		 	1		
Brokered time deposits	1,045		 	985		 	60		 	6		
Total deposits	162,589		 	160,780		 	1,809		 	1		
Funds purchased	2,141		 	2,561		 	(420	)	 	(16	)	
Securities sold under agreements to repurchase	1,774		 	1,503		 	271		 	18		
Other short-term borrowings	4,857		 	717		 	4,140		 	NM		
Long-term debt	15,072		 	9,785		 	5,287		 	54		
Trading liabilities and derivative instruments	1,604		 	1,283		 	321		 	25		
Other liabilities	3,226		 	4,179		 	(953	)	 	(23	)	
Total liabilities	191,263		 	180,808		 	10,455		 	6		
SHAREHOLDERS' EQUITY	 	 	 	 	 	 	 	
Preferred stock, no par value	2,025		 	2,475		 	(450	)	 	(18	)	
Common stock, $1.00 par value	553		 	550		 	3		 	1		
Additional paid-in capital	9,022		 	9,000		 	22		 	—		
Retained earnings	19,522		 	17,540		 	1,982		 	11		
Treasury stock, at cost, and other	(5,422	)	 	(3,591	)	 	1,831		 	51		
Accumulated other comprehensive loss, net of tax	(1,420	)	 	(820	)	 	600		 	73		
Total shareholders' equity	24,280		 	25,154		 	(874	)	 	(3	)	
Total liabilities and shareholders' equity		$215,543		 		$205,962		 		$9,581		 	5	 %	
 	 	 	 	 	 	 	 	
Common shares outstanding	446,888		 	470,931		 	(24,043	)	 	(5	)%	
Common shares authorized	750,000		 	750,000		 	—		 	—		
Preferred shares outstanding	20		 	25		 	(5	)	 	(20	)	
Preferred shares authorized	50,000		 	50,000		 	—		 	—		
Treasury shares of common stock	105,896		 	79,133		 	26,763		 	34		
1 Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. Prior periods have been revised to conform to the current presentation for comparability.
2 Includes earning assets of $192,497 and $182,710 at December 31 , 2018 and 2017 , respectively.
3 “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

14

SunTrust Banks, Inc. and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEETS

																											
(Dollars in millions and shares in thousands, except per share data) (Unaudited)	December 31	 	September 30	 	(Decrease)/Increase	 	June 30	 	March 31	 	December 31	
	2018	 	2018	 	Amount	 	 %	 	2018	 	2018	 	2017	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and due from banks		$5,791		 		$6,206		 		($415	)	 	(7	)%	 		$5,858		 		$5,851		 		$5,349		
Federal funds sold and securities borrowed or purchased under agreements to resell	1,679		 	1,374		 	305		 	22		 	1,365		 	1,428		 	1,538		
Interest-bearing deposits in other banks	25		 	25		 	—		 	—		 	25		 	25		 	25		
Trading assets and derivative instruments	5,506		 	5,676		 	(170	)	 	(3	)	 	5,050		 	5,112		 	5,093		
Securities available for sale 1	31,442		 	30,984		 	458		 	1		 	30,942		 	30,934		 	30,947		
LHFS	1,468		 	1,961		 	(493	)	 	(25	)	 	2,283		 	2,377		 	2,290		
LHFI:	 	 	 	 	 	 	 	 	 	 	 	 	 	
C&I	71,137		 	68,203		 	2,934		 	4		 	67,343		 	66,321		 	66,356		
CRE	7,265		 	6,618		 	647		 	10		 	6,302		 	5,352		 	5,317		
Commercial construction	2,538		 	3,137		 	(599	)	 	(19	)	 	3,456		 	3,651		 	3,804		
Residential mortgages - guaranteed	459		 	452		 	7		 	2		 	525		 	611		 	560		
Residential mortgages - nonguaranteed	28,836		 	28,187		 	649		 	2		 	27,556		 	27,165		 	27,136		
Residential home equity products	9,468		 	9,669		 	(201	)	 	(2	)	 	9,918		 	10,241		 	10,626		
Residential construction	184		 	197		 	(13	)	 	(7	)	 	217		 	256		 	298		
Consumer student - guaranteed	7,229		 	7,039		 	190		 	3		 	6,892		 	6,693		 	6,633		
Consumer other direct	10,615		 	10,100		 	515		 	5		 	9,448		 	8,941		 	8,729		
Consumer indirect	12,419		 	12,010		 	409		 	3		 	11,712		 	11,869		 	12,140		
Consumer credit cards	1,689		 	1,603		 	86		 	5		 	1,566		 	1,518		 	1,582		
Total LHFI	151,839		 	147,215		 	4,624		 	3		 	144,935		 	142,618		 	143,181		
ALLL	(1,615	)	 	(1,623	)	 	(8	)	 	—		 	(1,650	)	 	(1,694	)	 	(1,735	)	
Net LHFI	150,224		 	145,592		 	4,632		 	3		 	143,285		 	140,924		 	141,446		
Goodwill	6,331		 	6,331		 	—		 	—		 	6,331		 	6,331		 	6,331		
Residential MSRs	1,983		 	2,062		 	(79	)	 	(4	)	 	1,959		 	1,916		 	1,710		
Other assets 1	11,094		 	11,065		 	29		 	—		 	10,407		 	9,987		 	11,233		
Total assets 2		$215,543		 		$211,276		 		$4,267		 	2	 %	 		$207,505		 		$204,885		 		$205,962		
LIABILITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deposits:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noninterest-bearing consumer and commercial deposits		$40,770		 		$41,870		 		($1,100	)	 	(3	)%	 		$44,755		 		$43,494		 		$42,784		
Interest-bearing consumer and commercial deposits:	 	 	 	 	 	 	 	 	 	 	 	 		
NOW accounts	49,031		 	45,745		 	3,286		 	7		 	45,430		 	46,672		 	47,379		
Money market accounts	49,868		 	49,960		 	(92	)	 	—		 	49,176		 	50,627		 	51,088		
Savings	6,520		 	6,591		 	(71	)	 	(1	)	 	6,757		 	6,849		 	6,468		
Consumer time	6,583		 	6,499		 	84		 	1		 	6,316		 	6,205		 	5,839		
Other time	8,772		 	8,667		 	105		 	1		 	7,976		 	7,510		 	6,237		
Total consumer and commercial deposits	161,544		 	159,332		 	2,212		 	1		 	160,410		 	161,357		 	159,795		
Brokered time deposits	1,045		 	1,046		 	(1	)	 	—		 	1,038		 	1,022		 	985		
Total deposits	162,589		 	160,378		 	2,211		 	1		 	161,448		 	162,379		 	160,780		
Funds purchased	2,141		 	3,354		 	(1,213	)	 	(36	)	 	1,251		 	1,189		 	2,561		
Securities sold under agreements to repurchase	1,774		 	1,730		 	44		 	3		 	1,567		 	1,677		 	1,503		
Other short-term borrowings	4,857		 	2,856		 	2,001		 	70		 	2,470		 	706		 	717		
Long-term debt	15,072		 	14,289		 	783		 	5		 	11,995		 	10,692		 	9,785		
Trading liabilities and derivative instruments	1,604		 	1,863		 	(259	)	 	(14	)	 	1,958		 	1,737		 	1,283		
Other liabilities	3,226		 	2,667		 	559		 	21		 	2,500		 	2,236		 	4,179		
Total liabilities	191,263		 	187,137		 	4,126		 	2		 	183,189		 	180,616		 	180,808		
SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred stock, no par value	2,025		 	2,025		 	—		 	—		 	2,025		 	2,025		 	2,475		
Common stock, $1.00 par value	553		 	553		 	—		 	—		 	552		 	552		 	550		
Additional paid-in capital	9,022		 	9,001		 	21		 	—		 	8,980		 	8,960		 	9,000		
Retained earnings	19,522		 	19,111		 	411		 	2		 	18,616		 	18,107		 	17,540		
Treasury stock, at cost, and other	(5,422	)	 	(4,677	)	 	745		 	16		 	(4,178	)	 	(3,853	)	 	(3,591	)	
Accumulated other comprehensive loss, net of tax	(1,420	)	 	(1,874	)	 	(454	)	 	(24	)	 	(1,679	)	 	(1,522	)	 	(820	)	
Total shareholders’ equity	24,280		 	24,139		 	141		 	1		 	24,316		 	24,269		 	25,154		
Total liabilities and shareholders’ equity		$215,543		 		$211,276		 		$4,267		 	2	 %	 		$207,505		 		$204,885		 		$205,962		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common shares outstanding	446,888		 	458,626		 	(11,738	)	 	(3	)%	 	465,199		 	469,708		 	470,931		
Common shares authorized	750,000		 	750,000		 	—		 	—		 	750,000		 	750,000		 	750,000		
Preferred shares outstanding	20		 	20		 	—		 	—		 	20		 	20		 	25		
Preferred shares authorized	50,000		 	50,000		 	—		 	—		 	50,000		 	50,000		 	50,000		
Treasury shares of common stock	105,896		 	94,038		 	11,858		 	13		 	87,071		 	82,223		 	79,133		
1 Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. Prior periods have been revised to conform to the current presentation for comparability.
2 Includes earning assets of $192,497 , $188,141 , $185,304 , $182,913 , and $182,710 at December 31 , 2018 , September 30 , 2018 , June 30 , 2018 , March 31 , 2018 , and December 31 , 2017 , respectively.

15

	
																																				
SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID	
 	Three Months Ended	 	Increase/(Decrease) From	
 	December 31, 2018	 	September 30, 2018	 	Sequential Quarter	 	Prior Year Quarter	
(Dollars in millions) (Unaudited)	Average
Balances  	 	Interest Income/
Expense	 	Yields/
Rates	 	Average
Balances	 	Interest Income/
Expense	 	Yields/
Rates	 	Average
Balances	 	Yields/
Rates	 	Average
Balances  	 	Yields/
Rates	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loans held for investment ("LHFI"): 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and industrial ("C&I")		$69,446				$695			3.97	%	 		$67,632		 		$659		 	3.87	%	 		$1,814		 	0.10		 		$2,208		 	0.58		
Commercial real estate ("CRE")	7,030			77			4.33		 	6,418		 	68		 	4.19		 	612		 	0.14		 	1,821		 	0.76		
Commercial construction	2,964			38			5.10		 	3,300		 	40		 	4.76		 	(336	)	 	0.34		 	(983	)	 	1.18		
Residential mortgages - guaranteed	476			4			3.04		 	502		 	3		 	2.76		 	(26	)	 	0.28		 	(70	)	 	0.92		
Residential mortgages - nonguaranteed	28,268			278			3.93		 	27,584		 	268		 	3.89		 	684		 	0.04		 	1,410		 	0.15		
Residential home equity products	9,421			122			5.14		 	9,632		 	121		 	4.97		 	(211	)	 	0.17		 	(1,110	)	 	0.77		
Residential construction	180			1			3.34		 	193		 	2		 	4.75		 	(13	)	 	(1.41	)	 	(123	)	 	(0.81	)	
Consumer student - guaranteed	7,114			93			5.18		 	6,912		 	88		 	5.05		 	202		 	0.13		 	538		 	0.58		
Consumer other direct	10,363			150			5.76		 	9,726		 	135		 	5.49		 	637		 	0.27		 	1,712		 	0.82		
Consumer indirect	12,165			125			4.08		 	11,770		 	114		 	3.86		 	395		 	0.22		 	166		 	0.55		
Consumer credit cards	1,625			48			11.78		 	1,573		 	46		 	11.71		 	52		 	0.07		 	121		 	1.38		
Nonaccrual	656			4			2.32		 	753		 	5		 	2.70		 	(97	)	 	(0.38	)	 	(21	)	 	(2.80	)	
Total LHFI	149,708			1,635			4.33		 	145,995		 	1,549		 	4.21		 	3,713		 	0.12		 	5,669		 	0.54		
Securities available for sale: 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxable	31,197			216			2.77		 	30,927		 	207		 	2.68		 	270		 	0.09		 	888		 	0.23		
Tax-exempt	612			5			2.99		 	625		 	5		 	2.99		 	(13	)	 	—		 	23		 	0.02		
Total securities available for sale	31,809			221			2.78		 	31,552		 	212		 	2.69		 	257		 	0.09		 	911		 	0.25		
Federal funds sold and securities borrowed or purchased under agreements to resell	1,514			8			2.12		 	1,426		 	7		 	1.79		 	88		 	0.33		 	316		 	1.25		
Loans held for sale ("LHFS")	2,037			34			6.60		 	2,022		 	22		 	4.40		 	15		 	2.20		 	(585	)	 	2.07		
Interest-bearing deposits in other banks	25			—			1.38		 	25		 	—		 	3.90		 	—		 	(2.52	)	 	—		 	(0.24	)	
Interest earning trading assets	5,064			41			3.25		 	4,789		 	39		 	3.18		 	275		 	0.07		 	68		 	0.72		
Other earning assets 2	585		 	5		 	3.47		 	535		 	5		 	3.79		 	50		 	(0.32	)	 	57		 	(0.05	)	
Total earning assets	190,742			1,944			4.04		 	186,344		 	1,834		 	3.90		 	4,398		 	0.14		 	6,436		 	0.51		
Allowance for loan and lease losses ("ALLL")	(1,633	)		 	 	 	 	(1,665	)	 	 	 	 	 	(32	)	 	 	 	(135	)	 	 	
Cash and due from banks	5,256			 	 	 	 	4,575		 	 	 	 	 	681		 	 	 	238		 	 	
Other assets	18,953			 	 	 	 	18,192		 	 	 	 	 	761		 	 	 	2,159		 	 	
Noninterest earning trading assets and derivative instruments	627			 	 	 	 	668		 	 	 	 	 	(41	)	 	 	 	(231	)	 	 	
Unrealized (losses)/gains on securities available for sale, net	(1,011	)		 	 	 	 	(719	)	 	 	 	 	 	(292	)	 	 	 	(1,022	)	 	 	
Total assets		$212,934			 	 	 	 		$207,395		 	 	 	 	 		$5,539		 	 	 		$7,715		 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-bearing deposits:	 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOW accounts		$47,400				$79			0.66	%	 		$45,345		 		$65		 	0.57	%	 		$2,055		 	0.09		 		$1,162		 	0.30		
Money market accounts	49,863			87			0.69		 	49,926		 	73		 	0.58		 	(63	)	 	0.11		 	(2,162	)	 	0.36		
Savings	6,538			—			0.02		 	6,658		 	—		 	0.02		 	(120	)	 	—		 	51		 	—		
Consumer time	6,546			19			1.15		 	6,413		 	17		 	1.03		 	133		 	0.12		 	761		 	0.33		
Other time	8,892			39			1.73		 	8,357		 	33		 	1.55		 	535		 	0.18		 	2,802		 	0.54		
Total interest-bearing consumer and commercial deposits	119,239			224			0.74		 	116,699		 	188		 	0.64		 	2,540		 	0.10		 	2,614		 	0.35		
Brokered time deposits	1,044			4			1.54		 	1,041		 	4		 	1.54		 	3		 	—		 	73		 	0.22		
Foreign deposits	15			—			2.44		 	172		 	1		 	1.94		 	(157	)	 	0.50		 	15		 	2.44		
Total interest-bearing deposits	120,298			228			0.75		 	117,912		 	193		 	0.65		 	2,386		 	0.10		 	2,702		 	0.35		
Funds purchased	2,165			12			2.21		 	1,352		 	7		 	1.94		 	813		 	0.27		 	1,022		 	1.04		
Securities sold under agreements to repurchase	1,861			10			2.07		 	1,638		 	8		 	1.85		 	223		 	0.22		 	378		 	0.93		
Interest-bearing trading liabilities	1,421			12			3.27		 	1,233		 	10		 	3.33		 	188		 	(0.06	)	 	452		 	0.54		
Other short-term borrowings	2,701			12			1.82		 	2,259		 	9		 	1.57		 	442		 	0.25		 	1,886		 	1.60		
Long-term debt	14,898			123			3.29		 	12,922		 	95		 	2.92		 	1,976		 	0.37		 	3,917		 	0.69		
Total interest-bearing liabilities	143,344			397			1.10		 	137,316		 	322		 	0.93		 	6,028		 	0.17		 	10,357		 	0.49		
Noninterest-bearing deposits	42,334			 	 	 	 	42,649		 	 	 	 	 	(315	)	 	 	 	(1,786	)	 	 	
Other liabilities	2,693			 	 	 	 	2,465		 	 	 	 	 	228		 	 	 	(167	)	 	 	
Noninterest-bearing trading liabilities and derivative instruments	690			 	 	 	 	690		 	 	 	 	 	—		 	 	 	244		 	 	
Shareholders’ equity	23,873			 	 	 	 	24,275		 	 	 	 	 	(402	)	 	 	 	(933	)	 	 	
Total liabilities and shareholders’ equity		$212,934			 	 	 	 		$207,395		 	 	 	 	 		$5,539		 	 	 		$7,715		 	 	
Interest Rate Spread	 		 		2.94	%	 	 	 	 	 	2.97	%	 	 	 	(0.03	)	 	 	 	0.02		
Net Interest Income	 			$1,547			 	 	 	 		$1,512		 	 	 	 	 	 	 	 	 	 	
Net Interest Income-FTE 3	 	 		$1,570		 	 	 	 	 		$1,534		 	 	 	 	 	 	 	 	 	 	
Net Interest Margin  4	 		 		3.22	%	 	 	 	 	 	3.22	%	 	 	 	—		 	 	 	0.13		
Net Interest Margin-FTE  3, 4	 	 	 	 	3.27		 	 	 	 	 	3.27		 	 	 	—		 	 	 	0.10		
1 Interest income includes loan fees of $45 million and $43 million for the three months ended December 31, 2018 and September 30, 2018 , respectively.
2 Beginning January 1, 2018, the Company began presenting equity securities previously presented in securities available for sale as other earning assets. Prior periods have been revised to conform to the current presentation for comparability.   
3 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 three months ended December 31, 2018 and September 30, 2018 was attributed to C&I loans.
4 Net interest margin is calculated by dividing annualized Net interest income by average Total earning assets.

16

	
																																	
SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued	
 	Three Months Ended	
 	June 30, 2018	 	March 31, 2018	 	December 31, 2017	
(Dollars in millions) (Unaudited)	Average
Balances  	 	Interest Income/
Expense	 	Yields/
Rates	 	Average
Balances  	 	Interest Income/
Expense	 	Yields/
Rates	 	Average
Balances  	 	Interest Income/
Expense	 	Yields/
Rates	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LHFI: 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
C&I		$67,211		 		$633		 	3.78	%	 		$66,269		 		$588		 	3.60	%	 		$67,238				$575			3.39	%	
CRE	5,729		 	58		 	4.06		 	5,201		 	49		 	3.84		 	5,209			47			3.57		
Commercial construction	3,559		 	40		 	4.58		 	3,749		 	40		 	4.27		 	3,947			39			3.92		
Residential mortgages - guaranteed	588		 	5		 	3.33		 	637		 	5		 	3.12		 	546			3			2.12		
Residential mortgages - nonguaranteed	27,022		 	258		 	3.81		 	26,863		 	254		 	3.79		 	26,858			254			3.78		
Residential home equity products	9,918		 	119		 	4.81		 	10,243		 	116		 	4.60		 	10,531			116			4.37		
Residential construction	216		 	3		 	5.26		 	261		 	3		 	4.47		 	303			3			4.15		
Consumer student - guaranteed	6,763		 	83		 	4.92		 	6,655		 	78		 	4.76		 	6,576			76			4.60		
Consumer other direct	9,169		 	120		 	5.26		 	8,804		 	110		 	5.08		 	8,651			108			4.94		
Consumer indirect	11,733		 	108		 	3.68		 	12,001		 	108		 	3.63		 	11,999			107			3.53		
Consumer credit cards	1,524		 	43		 	11.45		 	1,526		 	43		 	11.26		 	1,504			39			10.40		
Nonaccrual	724		 	6		 	3.35		 	711		 	4		 	2.25		 	677			9			5.12		
Total LHFI	144,156		 	1,476		 	4.11		 	142,920		 	1,398		 	3.97		 	144,039			1,376			3.79		
Securities available for sale: 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxable	30,959		 	205		 	2.65		 	30,849		 	201		 	2.61		 	30,309			192			2.54		
Tax-exempt	637		 	5		 	2.99		 	628		 	5		 	2.98		 	589			4			2.97		
Total securities available for sale	31,596		 	210		 	2.66		 	31,477		 	206		 	2.62		 	30,898			196			2.53		
Federal funds sold and securities borrowed or purchased under agreements to resell	1,471		 	6		 	1.58		 	1,334		 	4		 	1.18		 	1,198			2			0.87		
LHFS	2,117		 	24		 	4.54		 	2,025		 	21		 	4.12		 	2,622			30			4.53		
Interest-bearing deposits in other banks	25		 	—		 	2.32		 	25		 	—		 	1.85		 	25			—			1.62		
Interest earning trading assets	4,677		 	38		 	3.23		 	4,564		 	34		 	3.05		 	4,996			32			2.53		
Other earning assets 2	524		 	5		 	3.97		 	529		 	5		 	3.50		 	528		 	4		 	3.52		
Total earning assets	184,566		 	1,759		 	3.82		 	182,874		 	1,668		 	3.70		 	184,306			1,640			3.53		
ALLL	(1,682	)	 	 	 	 	 	(1,726	)	 	 	 	 	 	(1,768	)		 	 	 	
Cash and due from banks	4,223		 	 	 	 	 	5,329		 	 	 	 	 	5,018			 	 	 	
Other assets	17,573		 	 	 	 	 	17,256		 	 	 	 	 	16,794			 	 	 	
Noninterest earning trading assets and derivative instruments	512		 	 	 	 	 	772		 	 	 	 	 	858			 	 	 	
Unrealized (losses)/gains on securities available for sale, net	(644	)	 	 	 	 	 	(373	)	 	 	 	 	 	11			 	 	 	
Total assets		$204,548		 	 	 	 	 		$204,132		 	 	 	 	 		$205,219			 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 		 	 	 	
Interest-bearing deposits:	 	 	 	 	 	 	 	 	 	 	 	 	 		 	 	 	
NOW accounts		$45,344		 		$52		 	0.46	%	 		$46,590		 		$45		 	0.39	%	 		$46,238				$42			0.36	%	
Money market accounts	49,845		 	60		 	0.49		 	50,543		 	48		 	0.39		 	52,025			43			0.33		
Savings	6,805		 	1		 	0.03		 	6,587		 	—		 	0.02		 	6,487			—			0.02		
Consumer time	6,280		 	15		 	0.95		 	6,085		 	13		 	0.87		 	5,785			12			0.82		
Other time	7,643		 	27		 	1.41		 	7,026		 	22		 	1.25		 	6,090			18			1.19		
Total interest-bearing consumer and commercial deposits	115,917		 	155		 	0.54		 	116,831		 	128		 	0.44		 	116,625			115			0.39		
Brokered time deposits	1,029		 	4		 	1.46		 	1,006		 	3		 	1.35		 	971			4			1.32		
Foreign deposits	139		 	—		 	1.90		 	51		 	—		 	1.42		 	—			—			—		
Total interest-bearing deposits	117,085		 	159		 	0.55		 	117,888		 	131		 	0.45		 	117,596			119			0.40		
Funds purchased	1,102		 	5		 	1.73		 	876		 	3		 	1.45		 	1,143			3			1.17		
Securities sold under agreements to repurchase	1,656		 	7		 	1.71		 	1,595		 	5		 	1.39		 	1,483			4			1.14		
Interest-bearing trading liabilities	1,314		 	10		 	3.12		 	1,110		 	8		 	2.84		 	969			7			2.73		
Other short-term borrowings	1,807		 	7		 	1.54		 	2,084		 	6		 	1.11		 	815			1			0.22		
Long-term debt	11,452		 	83		 	2.92		 	10,506		 	74		 	2.84		 	10,981			72			2.60		
Total interest-bearing liabilities	134,416		 	271		 	0.81		 	134,059		 	227		 	0.69		 	132,987			206			0.61		
Noninterest-bearing deposits	43,040		 	 	 	 	 	42,338		 	 	 	 	 	44,120			 	 	 	
Other liabilities	2,309		 	 	 	 	 	2,499		 	 	 	 	 	2,860			 	 	 	
Noninterest-bearing trading liabilities and derivative instruments	688		 	 	 	 	 	631		 	 	 	 	 	446			 	 	 	
Shareholders’ equity	24,095		 	 	 	 	 	24,605		 	 	 	 	 	24,806			 	 	 	
Total liabilities and shareholders’ equity		$204,548		 	 	 	 	 		$204,132		 	 	 	 	 		$205,219			 	 	 	
Interest Rate Spread	 	 	 	 	3.01	%	 	 	 	 	 	3.01	%	 	 	 	 		2.92	%	
Net Interest Income	 	 		$1,488		 	 	 	 	 		$1,441		 	 	 	 			$1,434			 	
Net Interest Income-FTE 3	 	 		$1,510		 	 	 	 	 		$1,461		 	 	 	 	 		$1,472		 	 	
Net Interest Margin 4	 	 	 	 	3.23	%	 	 	 	 	 	3.20	%	 	 	 	 		3.09	%	
Net Interest Margin-FTE  3, 4	 	 	 	 	3.28		 	 	 	 	 	3.24		 	 	 	 	 	3.17		
		
1  	Interest income includes loan fees of $39 million , $39 million , and $42 million for the three months ended June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively.	
		
2  	Beginning January 1, 2018, the Company began presenting equity securities previously presented in securities available for sale as other earning assets. Prior periods have been revised to conform to the current presentation for comparability.	
		
3  	See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for the three months ended June 30, 2018 , March 31, 2018 , and December 31, 2017 was attributed to C&I loans.	
		
4  	Net interest margin is calculated by dividing annualized Net interest income by average Total earning assets.	

17

	
																													
SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued	
 	Year Ended	 	 	 	 	
 	December 31, 2018	 	December 31, 2017	 	(Decrease)/Increase	
(Dollars in millions) (Unaudited)	Average
Balances	 	Interest
Income/
Expense	 	Yields/
Rates	 	Average
Balances	 	Interest
Income/
Expense	 	Yields/
Rates	 	Average
Balances	 	Yields/
Rates	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LHFI: 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
C&I		$67,648		 		$2,575		 	3.81	%	 		$68,423		 		$2,286		 	3.34	%	 		($775	)	 	0.47		
CRE	6,100		 	252		 	4.13		 	5,158		 	177		 	3.43		 	942		 	0.70		
Commercial construction	3,391		 	158		 	4.65		 	4,011		 	148		 	3.70		 	(620	)	 	0.95		
Residential mortgages - guaranteed	550		 	17		 	3.08		 	539		 	16		 	2.92		 	11		 	0.16		
Residential mortgages - nonguaranteed	27,439		 	1,058		 	3.86		 	26,392		 	1,003		 	3.80		 	1,047		 	0.06		
Residential home equity products	9,801		 	478		 	4.87		 	10,969		 	470		 	4.28		 	(1,168	)	 	0.59		
Residential construction	212		 	10		 	4.49		 	346		 	15		 	4.26		 	(134	)	 	0.23		
Consumer student - guaranteed	6,862		 	342		 	4.98		 	6,464		 	286		 	4.42		 	398		 	0.56		
Consumer other direct	9,521		 	515		 	5.41		 	8,239		 	406		 	4.93		 	1,282		 	0.48		
Consumer indirect	11,917		 	454		 	3.81		 	11,492		 	401		 	3.49		 	425		 	0.32		
Consumer credit cards	1,562		 	180		 	11.55		 	1,429		 	145		 	10.12		 	133		 	1.43		
Nonaccrual	711		 	19		 	2.67		 	754		 	32		 	4.28		 	(43	)	 	(1.61	)	
Total LHFI	145,714		 	6,058		 	4.16		 	144,216		 	5,385		 	3.73		 	1,498		 	0.43		
Securities available for sale: 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxable	30,984		 	830		 	2.68		 	30,106		 	743		 	2.47		 	878		 	0.21		
Tax-exempt	625		 	19		 	2.99		 	433		 	13		 	2.99		 	192		 	—		
Total securities available for sale	31,609		 	849		 	2.69		 	30,539		 	756		 	2.47		 	1,070		 	0.22		
Federal funds sold and securities borrowed or purchased under
agreements to resell	1,437		 	25		 	1.68		 	1,215		 	9		 	0.69		 	222		 	0.99		
LHFS	2,050		 	101		 	4.91		 	2,483		 	99		 	4.00		 	(433	)	 	0.91		
Interest-bearing deposits in other banks	25		 	—		 	2.36		 	25		 	—		 	1.20		 	—		 	1.16		
Interest earning trading assets	4,775		 	152		 	3.18		 	5,152		 	120		 	2.33		 	(377	)	 	0.85		
Other earning assets 2	544		 	20		 	3.68		 	582		 	18		 	3.12		 	(38	)	 	0.56		
Total earning assets	186,154		 	7,205		 	3.87		 	184,212		 	6,387		 	3.47		 	1,942		 	0.40		
ALLL	(1,676	)	 	 	 	 	 	(1,735	)	 	 	 	 	 	(59	)	 	 	
Cash and due from banks	4,845		 	 	 	 	 	5,123		 	 	 	 	 	(278	)	 	 	
Other assets	17,999		 	 	 	 	 	16,376		 	 	 	 	 	1,623		 	 	
Noninterest earning trading assets and derivative instruments	644		 	 	 	 	 	903		 	 	 	 	 	(259	)	 	 	
Unrealized (losses)/gains on securities available for sale, net	(689	)	 	 	 	 	 	52		 	 	 	 	 	(741	)	 	 	
Total assets		$207,277		 	 	 	 	 		$204,931		 	 	 	 	 		$2,346		 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-bearing deposits:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOW accounts		$46,170		 		$241		 	0.52	%	 		$45,009		 		$131		 	0.29	%	 		$1,161		 	0.23		
Money market accounts	50,042		 	268		 	0.54		 	53,592		 	157		 	0.29		 	(3,550	)	 	0.25		
Savings	6,647		 	1		 	0.02		 	6,519		 	1		 	0.02		 	128		 	—		
Consumer time	6,332		 	64		 	1.00		 	5,626		 	42		 	0.75		 	706		 	0.25		
Other time	7,986		 	120		 	1.50		 	5,148		 	57		 	1.10		 	2,838		 	0.40		
Total interest-bearing consumer and commercial deposits	117,177		 	694		 	0.59		 	115,894		 	388		 	0.34		 	1,283		 	0.25		
Brokered time deposits	1,031		 	15		 	1.47		 	941		 	12		 	1.29		 	90		 	0.18		
Foreign deposits	94		 	2		 	1.88		 	421		 	4		 	0.86		 	(327	)	 	1.02		
Total interest-bearing deposits	118,302		 	711		 	0.60		 	117,256		 	404		 	0.34		 	1,046		 	0.26		
Funds purchased	1,377		 	27		 	1.93		 	1,217		 	13		 	1.02		 	160		 	0.91		
Securities sold under agreements to repurchase	1,688		 	31		 	1.77		 	1,558		 	15		 	0.92		 	130		 	0.85		
Interest-bearing trading liabilities	1,270		 	40		 	3.16		 	968		 	26		 	2.70		 	302		 	0.46		
Other short-term borrowings	2,214		 	34		 	1.53		 	1,591		 	8		 	0.50		 	623		 	1.03		
Long-term debt	12,458		 	375		 	3.01		 	11,065		 	288		 	2.60		 	1,393		 	0.41		
Total interest-bearing liabilities	137,309		 	1,218		 	0.89		 	133,655		 	754		 	0.56		 	3,654		 	0.33		
Noninterest-bearing deposits	42,591		 	 	 	 	 	43,655		 	 	 	 	 	(1,064	)	 	 	
Other liabilities	2,492		 	 	 	 	 	2,936		 	 	 	 	 	(444	)	 	 	
Noninterest-bearing trading liabilities and derivative instruments	675		 	 	 	 	 	384		 	 	 	 	 	291		 	 	
Shareholders’ equity	24,210		 	 	 	 	 	24,301		 	 	 	 	 	(91	)	 	 	
Total liabilities and shareholders’ equity		$207,277		 	 	 	 	 		$204,931		 	 	 	 	 		$2,346		 	 	
Interest Rate Spread	 	 	 	 	2.98	%	 	 	 	 	 	2.91	%	 	 	 	0.07		
Net Interest Income	 	 		$5,987		 	 	 	 	 		$5,633		 	 	 	 	 	 	
Net Interest Income-FTE 3	 	 		$6,075		 	 	 	 	 		$5,778		 	 	 	 	 	 	
Net Interest Margin  4	 	 	 	 	3.22	%	 	 	 	 	 	3.06	%	 	 	 	0.16		
Net Interest Margin-FTE  3, 4	 	 	 	 	3.26		 	 	 	 	 	3.14		 	 	 	0.12		
1 Interest income includes loan fees of $166 million and $177 million for the year ended December 31 , 2018 and 2017 , respectively.
2 Beginning January 1, 2018, the Company began presenting equity securities previously presented in securities available for sale as other earning assets. Prior periods have been revised to conform to the current presentation for comparability.   
3 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 year ended December 31 , 2018 and 2017 was attributed to C&I loans.
4 Net interest margin is calculated by dividing Net interest income by average Total earning assets.

18

	
																														
SunTrust Banks, Inc. and Subsidiaries
OTHER FINANCIAL DATA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	 	 	 	 	Year Ended	 	 	 	 	
 	December 31	 	(Decrease)/Increase	 	December 31	 	Increase/(Decrease)	
(Dollars in millions) (Unaudited)	2018		2017	 	Amount	 	 % 4	 	2018		2017	 	Amount	 	 % 4	
CREDIT DATA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for credit losses, beginning of period		$1,695				$1,845		 		($150	)	 	(8	)%	 		$1,814				$1,776		 		$38		 	2	 %	
(Benefit)/provision for unfunded commitments	(3	)		6		 	(9	)	 	NM		 	(10	)		12		 	(22	)	 	NM		
Provision for loan losses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 			
Commercial	49			19		 	30		 	NM		 	86			108		 	(22	)	 	(20	)	
Consumer	40			55		 	(15	)	 	(27	)	 	132			289		 	(157	)	 	(54	)	
Total provision for loan losses	89			74		 	15		 	20		 	218			397		 	(179	)	 	(45	)	
Charge-offs:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	(35	)		(44	)	 	(9	)	 	(20	)	 	(131	)		(167	)	 	(36	)	 	(22	)	
Consumer	(88	)		(90	)	 	(2	)	 	(2	)	 	(322	)		(324	)	 	(2	)	 	(1	)	
Total charge-offs	(123	)		(134	)	 	(11	)	 	(8	)	 	(453	)		(491	)	 	(38	)	 	(8	)	
Recoveries:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	4			7		 	(3	)	 	(43	)	 	24			40		 	(16	)	 	(40	)	
Consumer	22			20		 	2		 	10		 	91			84		 	7		 	8		
Total recoveries	26			27		 	(1	)	 	(4	)	 	115			124		 	(9	)	 	(7	)	
Net charge-offs	(97	)		(107	)	 	(10	)	 	(9	)	 	(338	)		(367	)	 	(29	)	 	(8	)	
Other	—		 	(4	)	 	(4	)	 	(100	)	 	—		 	(4	)	 	(4	)	 	(100	)	
Allowance for credit losses, end of period		$1,684				$1,814		 		($130	)	 	(7	)%	 		$1,684				$1,814		 		($130	)	 	(7	)%	
Components:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for loan and lease losses ("ALLL")	 	 	 	 	 	 	 	 		$1,615				$1,735		 		($120	)	 	(7	)%	
Unfunded commitments reserve	 	 	 	 	 	 	 	 	69			79		 	(10	)	 	(13	)	
Allowance for credit losses	 	 	 	 	 	 	 	 		$1,684		 		$1,814		 		($130	)	 	(7	)%	
Net charge-offs to average loans held for investment ("LHFI") (annualized):	 	 	 	 	 			 	 	 	 	 	 	 	 	
Commercial	0.15	%		0.19	%	 	(0.04	)	 	(21	)%	 	0.14	%		0.16	%	 	(0.02	)	 	(13	)%	
Consumer	0.37			0.41		 	(0.04	)	 	(10	)	 	0.34			0.36		 	(0.02	)	 	(6	)	
Total net charge-offs to total average LHFI	0.26			0.29		 	(0.03	)	 	(10	)	 	0.23			0.25		 	(0.02	)	 	(8	)	
Period Ended	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nonaccrual/nonperforming loans ("NPLs"):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 		$159		 		$240		 		($81	)	 	(34	)%	
Consumer	 	 	 	 	 	 	 	 	367		 	434		 	(67	)	 	(15	)	
Total nonaccrual/NPLs	 	 	 	 	 	 	 	 	526		 	674		 	(148	)	 	(22	)	
Other real estate owned (“OREO”)	 	 	 	 	 	 	 	 	54		 	57		 	(3	)	 	(5	)	
Other repossessed assets	 	 	 	 	 	 	 	 	9		 	10		 	(1	)	 	(10	)	
Total nonperforming assets ("NPAs")	 	 	 	 	 	 	 	 		$589		 		$741		 		($152	)	 	(21	)%	
Accruing restructured loans	 	 	 	 	 	 	 	 		$2,339		 		$2,468		 		($129	)	 	(5	)%	
Nonaccruing restructured loans 1	 	 	 	 	 	 	 	 	291		 	286		 	5		 	2		
Accruing LHFI past due > 90 days (guaranteed)	 	 	 	 	 	 	 	 	1,603		 	1,374		 	229		 	17		
Accruing LHFI past due > 90 days (non-guaranteed)	 	 	 	 	 	 	 	 	49		 	31		 	18		 	58		
Accruing LHFS past due > 90 days	 	 	 	 	 	 	 	 	1		 	2		 	(1	)	 	(50	)	
NPLs to period-end LHFI	 	 	 	 	 	 	 	 	0.35	%	 	0.47	%	 	(0.12	)	 	(26	)%	
NPAs to period-end LHFI plus OREO and other repossessed assets	 	 	 	 	 	 	 	 	0.39		 	0.52		 	(0.13	)	 	(25	)	
ALLL to period-end LHFI 2, 3	 	 	 	 	 	 	 	 	1.06		 	1.21		 	(0.15	)	 	(12	)	
ALLL to NPLs 2, 3	 	 	 	 	 	 	 	 	3.10x		 	2.59x		 	0.51x		 	20		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1 Nonaccruing restructured loans are included in total nonaccrual/NPLs.
2 This ratio is computed using the ALLL.
3 Loans measured at fair value were excluded from the calculation as no allowance is recorded for loans measured at fair value. The Company believes that this presentation more appropriately reflects the relationship between the ALLL and loans that attract an allowance.
4 "NM" - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

19

	
																											
SunTrust Banks, Inc. and Subsidiaries
FIVE QUARTER OTHER FINANCIAL DATA	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	 	 	 	 	Three Months Ended	
 	December 31	 	September 30	 	(Decrease)/Increase	 	June 30	 	March 31	 	December 31	
(Dollars in millions) (Unaudited)	2018	 	2018	 	Amount	 	 % 4	 	2018	 	2018	 	2017	
CREDIT DATA	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for credit losses, beginning of period		$1,695		 		$1,722		 		($27	)	 	(2	)%	 		$1,763		 		$1,814		 		$1,845		
(Benefit)/provision for unfunded commitments	(3	)	 	—		 	(3	)	 	NM		 	3		 	(10	)	 	6		
Provision/(benefit) for loan losses:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	49		 	36		 	13		 	36		 	17		 	(16	)	 	19		
Consumer	40		 	25		 	15		 	60		 	12		 	54		 	55		
Total provision for loan losses	89		 	61		 	28		 	46		 	29		 	38		 	74		
Charge-offs:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	(35	)	 	(51	)	 	(16	)	 	(31	)	 	(21	)	 	(23	)	 	(44	)	
Consumer	(88	)	 	(71	)	 	17		 	24		 	(80	)	 	(83	)	 	(90	)	
Total charge-offs	(123	)	 	(122	)	 	1		 	1		 	(101	)	 	(106	)	 	(134	)	
Recoveries:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	4		 	9		 	(5	)	 	(56	)	 	4		 	6		 	7		
Consumer	22		 	25		 	(3	)	 	(12	)	 	24		 	21		 	20		
Total recoveries	26		 	34		 	(8	)	 	(24	)	 	28		 	27		 	27		
Net charge-offs	(97	)	 	(88	)	 	9		 	10		 	(73	)	 	(79	)	 	(107	)	
Other	—		 	—		 	—		 	—		 	—		 	—		 	(4	)	
Allowance for credit losses, end of period		$1,684		 		$1,695		 		($11	)	 	(1	)%	 		$1,722		 		$1,763		 		$1,814		
Components:	 	 	 	 	 	 	 	 	 	 	 	 	 	
ALLL		$1,615		 		$1,623		 		($8	)	 	—	 %	 		$1,650		 		$1,694		 		$1,735		
Unfunded commitments reserve	69		 	72		 	(3	)	 	(4	)	 	72		 	69		 	79		
Allowance for credit losses		$1,684		 		$1,695		 		($11	)	 	(1	)%	 		$1,722		 		$1,763		 		$1,814		
Net charge-offs to average LHFI (annualized):	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	0.15	%	 	0.22	%	 	(0.07	)	 	(32	)	 	0.09	%	 	0.09	%	 	0.19	%	
Consumer	0.37		 	0.27		 	0.10		 	37		 	0.34		 	0.37		 	0.41		
Total net charge-offs to total average LHFI	0.26		 	0.24		 	0.02		 	8		 	0.20		 	0.22		 	0.29		
Period Ended	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nonaccrual/NPLs:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial		$159		 		$299		 		($140	)	 	(47	)%	 		$341		 		$262		 		$240		
Consumer	367		 	396		 	(29	)	 	(7	)	 	414		 	450		 	434		
Total nonaccrual/NPLs	526		 	695		 	(169	)	 	(24	)	 	755		 	712		 	674		
OREO	54		 	52		 	2		 	4		 	53		 	59		 	57		
Other repossessed assets	9		 	7		 	2		 	29		 	6		 	7		 	10		
Total NPAs		$589		 		$754		 		($165	)	 	(22	)%	 		$814		 		$778		 		$741		
Accruing restructured loans		$2,339		 		$2,327		 		$12		 	1	 %	 		$2,418		 		$2,476		 		$2,468		
Nonaccruing restructured loans 1	291		 	345		 	(54	)	 	(16	)	 	326		 	279		 	286		
Accruing LHFI past due > 90 days (guaranteed)	1,603		 	1,440		 	163		 	11		 	1,201		 	1,312		 	1,374		
Accruing LHFI past due > 90 days (non-guaranteed)	49		 	42		 	7		 	17		 	41		 	36		 	31		
Accruing LHFS past due > 90 days	1		 	2		 	(1	)	 	(50	)	 	1		 	3		 	2		
NPLs to period-end LHFI	0.35	%	 	0.47	%	 	(0.12	)	 	(26	)%	 	0.52	%	 	0.50	%	 	0.47	%	
NPAs to period-end LHFI plus OREO and other repossessed assets	0.39		 	0.51		 	(0.12	)	 	(24	)	 	0.56		 	0.55		 	0.52		
ALLL to period-end LHFI 2, 3	1.06		 	1.10		 	(0.04	)	 	(4	)	 	1.14		 	1.19		 	1.21		
ALLL to NPLs 2, 3	3.10x		 	2.35x		 	0.75x		 	32		 	2.20x		 	2.40x		 	2.59x		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1 Nonaccruing restructured loans are included in total nonaccrual/NPLs.
2 This ratio is computed using the ALLL.
3 Loans measured at fair value were excluded from the calculation as no allowance is recorded for loans measured at fair value. The Company believes that this presentation more appropriately reflects the relationship between the ALLL and loans that attract an allowance.
4 "NM" - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

20

	
																								
SunTrust Banks, Inc. and Subsidiaries
OTHER FINANCIAL DATA, continued	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended December 31		Year Ended December 31	
(Dollars in millions) (Unaudited)	Residential MSRs - Fair Value		Commercial Mortgage Servicing Rights and Other		Total		Residential MSRs - Fair Value		Commercial Mortgage Servicing Rights and Other		Total	
OTHER INTANGIBLE ASSETS ROLLFORWARD	 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period		$1,628				$78				$1,706				$1,572				$85				$1,657		
Amortization	—			(3	)		(3	)		—			(20	)		(20	)	
Servicing rights originated	142			6			148			394			17			411		
Fair value changes due to inputs and assumptions 1	5			—			5			(22	)		—			(22	)	
Other changes in fair value 2	(58	)		—			(58	)		(226	)		—			(226	)	
Servicing rights sold	(7	)		—			(7	)		(8	)		—			(8	)	
Other 3	—		 	—		 	—		 	—		 	(1	)	 	(1	)	
Balance, December 31, 2017		$1,710				$81				$1,791				$1,710				$81				$1,791		
 	 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period		$2,062				$78				$2,140				$1,710				$81				$1,791		
Amortization	—			(5	)		(5	)		—			(18	)		(18	)	
Servicing rights originated	87			6			93			336			16			352		
Servicing rights purchased	—		 	—		 	—		 	89		 	—		 	89		
Fair value changes due to inputs and assumptions 1	(108	)		—			(108	)		90			—			90		
Other changes in fair value 2	(57	)		—			(57	)		(239	)		—			(239	)	
Servicing rights sold	(1	)		—			(1	)		(3	)		—			(3	)	
Balance, December 31, 2018		$1,983				$79				$2,062				$1,983				$79				$2,062		
1 Primarily 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.

	
															
 	Three Months Ended	
 	December 31	 	September 30	 	June 30	 	March 31	 	December 31	
(Shares in thousands) (Unaudited)	2018	 	2018	 	2018	 	2018	 	2017	
COMMON SHARES OUTSTANDING ROLLFORWARD	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	458,626		 	465,199		 	469,708		 	470,931		 	476,001		
Common shares issued	165		 	471		 	402		 	3,615		 	244		
Repurchases of common stock	(11,903	)	 	(7,044	)	 	(4,911	)	 	(4,838	)	 	(5,314	)	
Balance, end of period	446,888		 	458,626		 	465,199		 	469,708		 	470,931		

21

	
																												
SunTrust Banks, Inc. and Subsidiaries
APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES  1	 	 	
 	 	 	 	
 	Three Months Ended	 	Year Ended	
 	December 31	 	September 30	 	June 30	 	March 31	 	December 31	 	December 31	
(Dollars in millions) (Unaudited)	2018	 	2018	 	2018	 	2018	 	2017	 	2018		2017	
Net interest income		$1,547		 		$1,512		 		$1,488		 		$1,441		 		$1,434		 		$5,987		 		$5,633		
Fully taxable-equivalent ("FTE") adjustment	23		 	22		 	22		 	20		 	38		 	88		 	145		
Net interest income-FTE 2	1,570		 	1,534		 	1,510		 	1,461		 	1,472		 	6,075		 	5,778		
Noninterest income	818		 	782		 	829		 	796		 	833		 	3,226		 	3,354		
Total revenue-FTE 2		$2,388		 		$2,316		 		$2,339		 		$2,257		 		$2,305		 		$9,301		 		$9,132		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on average common shareholders’ equity	11.54	 %	 	13.01	 %	 	12.73	 %	 	11.23	 %	 	12.54	 %	 	12.13	 %		9.72	 %	
Impact of removing average intangible assets and related pre-tax amortization, other than residential MSRs and other servicing rights	4.59		 	5.05		 	5.01		 	4.37		 	4.70		 	4.76			3.67		
Return on average tangible common shareholders' equity 3	16.13	%	 	18.06	%	 	17.74	%	 	15.60	%	 	17.24	%	 	16.89	%		13.39	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net interest margin	3.22	 %	 	3.22	 %	 	3.23	 %	 	3.20	 %	 	3.09	 %	 	3.22	 %	 	3.06	 %	
Impact of FTE adjustment	0.05		 	0.05		 	0.05		 	0.04		 	0.08		 	0.04		 	0.08		
Net interest margin-FTE 2	3.27	 %	 	3.27	 %	 	3.28	 %	 	3.24	 %	 	3.17	 %	 	3.26	 %	 	3.14	 %	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noninterest expense		$1,482		 		$1,384		 		$1,390		 		$1,417		 		$1,520		 		$5,673		 		$5,764		
Total revenue	2,365			2,294			2,317			2,237			2,267			9,213			8,987		
Efficiency ratio 4	62.66	%		60.34	%		59.98	%		63.35	%		67.03	%		61.58	%		64.14	%	
Impact of FTE adjustment	(0.60	)	 	(0.58	)	 	(0.57	)	 	(0.58	)	 	(1.09	)	 	(0.59	)	 	(1.02	)	
Efficiency ratio-FTE 2, 4	62.06		 	59.76		 	59.41		 	62.77		 	65.94		 	60.99			63.12		
Impact of excluding amortization related to intangible assets and certain tax credits	(0.93	)	 	(0.82	)	 	(0.72	)	 	(0.66	)	 	(1.10	)	 	(0.78	)		(0.82	)	
Tangible efficiency ratio-FTE 2, 5	61.13		 	58.94		 	58.69		 	62.11		 	64.84		 	60.21			62.30		
Impact of excluding legacy pension plan settlement charge as well as Form 8-K and other tax reform-related items	(2.50	)	 	—		 	—		 	—		 	(4.99	)	 	(0.65	)	 	(1.26	)	
Adjusted tangible efficiency ratio-FTE 2, 5, 6	58.63	%	 	58.94	%	 	58.69	%	 	62.11	%	 	59.85	%	 	59.56	%	 	61.04	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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, Tangible efficiency ratio-FTE, and Adjusted 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 21% for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018, as well as 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 Tangible efficiency ratio-FTE and Adjusted tangible efficiency ratio-FTE, which remove the amortization related to intangible assets and certain tax credits from the calculation of Efficiency ratio-FTE. The Company believes these measures are 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. These measures are utilized by management to assess the efficiency of the Company and its lines of business.
6 The Company presents Adjusted tangible efficiency ratio-FTE, which removes the $60 million pre-tax impact of the legacy National Commerce Financial Corporation ("NCF") pension plan settlement charge recognized in the fourth quarter of 2018, as well as Form 8-K and other tax reform-related items recognized in the fourth quarter of 2017 from the calculation of Tangible efficiency ratio-FTE. The Company believes this measure is useful to investors because it is more reflective of normalized operations as it reflects results that are primarily client relationship and client transaction driven. Removing these items also allows investors to more easily compare the Company's tangible efficiency to other companies in the industry that may not have had similar items impacting their results. Additional detail on these items can be found in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2018 and in its Form 8-K furnished with the SEC on January 19, 2018.

22

	
																				
SunTrust Banks, Inc. and Subsidiaries
APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES, continued  1	
 	 	
 	December 31	 	September 30	 	June 30	 	March 31	 	December 31	
(Dollars in millions, except per share data) (Unaudited)	2018	 	2018	 	2018	 	2018	 	2017	
Total shareholders' equity		$24,280		 		$24,139		 		$24,316		 		$24,269		 		$25,154		
Goodwill, net of deferred taxes of $161 million, $160 million, $159 million, $159 million, and $163 million, respectively	(6,170	)	 	(6,171	)	 	(6,172	)	 	(6,172	)	 	(6,168	)	
Other intangible assets (including residential MSRs and other servicing rights)	(2,063	)	 	(2,140	)	 	(2,036	)	 	(1,996	)	 	(1,791	)	
Residential MSRs and other servicing rights	2,049		 	2,126		 	2,022		 	1,981		 	1,776		
Tangible equity 2	18,096		 	17,954		 	18,130		 	18,082		 	18,971		
Noncontrolling interest	(103	)	 	(101	)	 	(103	)	 	(101	)	 	(103	)	
Preferred stock	(2,025	)	 	(2,025	)	 	(2,025	)	 	(2,025	)	 	(2,475	)	
Tangible common equity 2		$15,968		 		$15,828		 		$16,002		 		$15,956		 		$16,393		
 	 	 	 	 	 	 	 	 	 	
Total assets		$215,543		 		$211,276		 		$207,505		 		$204,885		 		$205,962		
Goodwill	(6,331	)	 	(6,331	)	 	(6,331	)	 	(6,331	)	 	(6,331	)	
Other intangible assets (including residential MSRs and other servicing rights)	(2,062	)	 	(2,140	)	 	(2,036	)	 	(1,996	)	 	(1,791	)	
Residential MSRs and other servicing rights	2,049		 	2,126		 	2,022		 	1,981		 	1,776		
Tangible assets		$209,199		 		$204,931		 		$201,160		 		$198,539		 		$199,616		
Tangible equity to tangible assets 2	8.65	%	 	8.76	%	 	9.01	%	 	9.11	%	 	9.50	%	
Tangible common equity to tangible assets 2	7.63			7.72			7.96			8.04			8.21		
Tangible book value per common share 3		$35.73		 		$34.51		 		$34.40		 		$33.97		 		$34.82		
 	 	 	 	 	 	 	 	 	 	
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 and these measures are more consistent with regulatory capital definitions and calculations.
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.

23

	
																						
SunTrust Banks, Inc. and Subsidiaries
CONSUMER BUSINESS SEGMENT	
 	Three Months Ended	 	 	 	Year Ended	 	 	
 	December 31	 	 	 	December 31	 	 	
(Dollars in millions) (Unaudited)	2018	 	 2017 1	 	% Change	 	2018	 	 2017 1	 	% Change	
Statements of Income:	 	 	 	 	 	 	 	 	 	 	 	
Net interest income		$1,097		 		$1,000		 	10	 %	 		$4,235		 		$3,906		 	8	 %	
FTE adjustment	—		 	—		 	—		 	—		 	—		 	—		
Net interest income-FTE 2	1,097		 	1,000		 	10		 	4,235		 	3,906		 	8		
Provision for credit losses  3	46		 	64		 	(28	)	 	148		 	366		 	(60	)	
Net interest income-FTE - after provision for credit losses 2	1,051		 	936		 	12		 	4,087		 	3,540		 	15		
Noninterest income before net securities gains/(losses)	457		 	480		 	(5	)	 	1,804		 	1,905		 	(5	)	
Net securities gains/(losses)	—		 	—		 	—		 	—		 	—		 	—		
Total noninterest income	457		 	480		 	(5	)	 	1,804		 	1,905		 	(5	)	
Noninterest expense before amortization	1,034		 	1,046		 	(1	)	 	4,016		 	3,978		 	1		
Amortization	—		 	—		 	—		 	1		 	4		 	(75	)	
Total noninterest expense	1,034		 	1,046		 	(1	)	 	4,017		 	3,982		 	1		
Income-FTE - before provision for income taxes 2	474		 	370		 	28		 	1,874		 	1,463		 	28		
Provision for income taxes	107		 	134		 	(20	)	 	424		 	529		 	(20	)	
Tax credit adjustment	—		 	—		 	—		 	—		 	—		 	—		
FTE adjustment	—		 	—		 	—		 	—		 	—		 	—		
Net income including income attributable to noncontrolling interest	367		 	236		 	56		 	1,450		 	934		 	55		
Less: Net income attributable to noncontrolling interest	—		 	—		 	—		 	—		 	—		 	—		
Net income		$367		 		$236		 	56	 %	 		$1,450		 		$934		 	55	 %	
 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue		$1,554		 		$1,480		 	5	 %	 		$6,039		 		$5,811		 	4	 %	
Total revenue-FTE 2	1,554		 	1,480		 	5		 	6,039		 	5,811		 	4		
 	 	 	 	 	 	 	 	 	 	 	 	
Selected Average Balances:	 	 	 	 	 	 	 	 	 	 	 	
Total LHFI		$76,991		 		$74,706		 	3	 %	 		$75,427		 		$73,578		 	3	 %	
Goodwill	4,390		 	4,262		 	3		 	4,359		 	4,262		 	2		
Other intangible assets excluding residential MSRs	2		 	4		 	(50	)	 	3		 	7		 	(57	)	
Total assets	87,322		 	84,422		 	3		 	85,509		 	83,278		 	3		
Consumer and commercial deposits	112,102		 	109,445		 	2		 	111,235		 	109,298		 	2		
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios:	 	 	 	 	 	 	 	 	 	 	 	
Efficiency ratio	66.58	 %	 	70.66	 %	 	 	 	66.52	 %	 	68.51	 %	 	 	
Impact of FTE adjustment	—		 	—		 	 	 	—		 	—		 	 	
Efficiency ratio-FTE 2	66.58		 	70.66		 	 	 	66.52		 	68.51		 	 	
Impact of excluding amortization and associated funding cost of intangible assets	(1.16	)	 	(1.12	)	 	 	 	(1.13	)	 	(1.11	)	 	 	
Tangible efficiency ratio-FTE 2, 4	65.42	 %	 	69.54	 %	 	 	 	65.39	 %	 	67.40	 %	 	 	

1  	During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.	
		
2  	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.	

24

	
																						
SunTrust Banks, Inc. and Subsidiaries
CONSUMER BUSINESS SEGMENT, continued	
 	Three Months Ended	 	 	 	Year Ended	 	 	
 	December 31	 	 	 	December 31	 	 	
(Dollars in millions) (Unaudited)	2018	 	2017	 	% Change	 	2018	 	2017	 	% Change	
Residential Mortgage Production Data:	 	 	 	 	 	 	 	 	 	 	 	
Channel mix:	 	 	 	 	 	 	 	 	 	 	 	
Retail		$1,454		 		$2,215		 	(34	)%	 		$7,308		 		$9,637		 	(24	)%	
Correspondent	3,477		 	4,087		 	(15	)	 	15,167		 	14,734		 	3		
Total production		$4,931		 		$6,302		 	(22	)%	 		$22,475		 		$24,371		 	(8	)%	
Channel mix - percent:	 	 	 	 	 	 	 	 	 	 	 	
Retail	29	%	 	35	%	 	 	 	33	%	 	40	%	 	 	
Correspondent	71		 	65		 	 	 	67		 	60		 	 	
Total production	100	%	 	100	%	 	 	 	100	%	 	100	%	 	 	
Purchase and refinance mix:	 	 	 	 	 	 	 	 	 	 	 	
Refinance		$1,237		 		$2,344		 	(47	)%	 		$5,540		 		$8,817		 	(37	)%	
Purchase	3,694		 	3,958		 	(7	)	 	16,935		 	15,554		 	9		
Total production		$4,931		 		$6,302		 	(22	)%	 		$22,475		 		$24,371		 	(8	)%	
Purchase and refinance mix - percent:	 	 	 	 	 	 	 	 	 	 	 	
Refinance	25	%	 	37	%	 	 	 	25	%	 	36	%	 	 	
Purchase	75		 	63		 	 	 	75		 	64		 	 	
Total production	100	%	 	100	%	 	 	 	100	%	 	100	%	 	 	
Applications		$5,487		 		$7,082		 	(23	)%	 		$28,402		 		$30,758		 	(8	)%	
 	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage Servicing Data (End of Period):	 	 	 	 	 	 	 	 	 	 	 	
Total unpaid principal balance ("UPB") of residential mortgages serviced	 	 	 	 	 	 		$171,355		 		$165,488		 	4	 %	
Total UPB of residential mortgages serviced for others	 	 	 	 	 	 	140,801		 	136,071		 	3		
Net carrying value of residential MSRs	 	 	 	 	 	 	1,983		 	1,710		 	16		
Ratio of net carrying value of residential MSRs to total UPB of residential mortgages serviced for others	 	 	 	 	 	 	1.408	%	 	1.257	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Assets Under Administration (End of Period):	 	 	 	 	 	 	 	 	 	 	 	
Trust and institutional managed assets	 	 	 	 	 	 		$42,192		 		$42,914		 	(2	)%	
Retail brokerage managed assets	 	 	 	 	 	 	16,408		 	15,950		 	3		
Total managed assets	 	 	 	 	 	 	58,600		 	58,864		 	—		
Non-managed assets	 	 	 	 	 	 	93,462		 	97,933		 	(5	)	
Total assets under advisement	 	 	 	 	 	 		$152,062		 		$156,797		 	(3	)%	

25

	
																						
SunTrust Banks, Inc. and Subsidiaries
WHOLESALE BUSINESS SEGMENT	
 	Three Months Ended	 	 	 	Year Ended	 	 	
 	December 31	 	 	 	December 31	 	 	
(Dollars in millions) (Unaudited)	2018		 2017  1, 2	 	% Change 6	 	2018	 	 2017  1, 2	 	% Change	
Statements of Income:				 	 	 		 		 	 	
Net interest income		$570				$530		 	8	 %	 		$2,184		 		$2,029		 	8	 %	
FTE adjustment	22			36		 	(39	)	 	86		 	142		 	(39	)	
Net interest income-FTE 3	592			566		 	5		 	2,270		 	2,171		 	5		
Provision for credit losses 4	41			11		 	NM		 	60		 	39		 	54		
Net interest income-FTE - after provision for credit losses 3	551			555		 	(1	)	 	2,210		 	2,132		 	4		
Noninterest income before net securities gains/(losses)	408			403		 	1		 	1,534		 	1,573		 	(2	)	
Net securities gains/(losses)	—			—		 	—		 	—		 	—		 	—		
Total noninterest income	408			403		 	1		 	1,534		 	1,573		 	(2	)	
Noninterest expense before amortization	386			411		 	(6	)	 	1,648		 	1,656		 	—		
Amortization	22			25		 	(12	)	 	72		 	71		 	1		
Total noninterest expense	408			436		 	(6	)	 	1,720		 	1,727		 	—		
Income-FTE - before provision for income taxes 3	551			522		 	6		 	2,024		 	1,978		 	2		
Provision for income taxes	60			98		 	(39	)	 	245		 	414		 	(41	)	
Tax credit adjustment	48		 	60		 	(20	)	 	148		 	180		 	(18	)	
FTE adjustment	22			36		 	(39	)	 	86		 	142		 	(39	)	
Net income including income attributable to noncontrolling interest	421			328		 	28		 	1,545		 	1,242		 	24		
Less: Net income attributable to noncontrolling interest	—			—		 	—		 	—		 	—		 	—		
Net income		$421				$328		 	28	 %	 		$1,545		 		$1,242		 	24	 %	
 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue		$978		 		$933		 	5	 %	 		$3,718		 		$3,602		 	3	 %	
Total revenue-FTE 3	1,000			969		 	3		 	3,804		 	3,744		 	2		
 	 	 	 	 	 	 	 	 	 	 	 	
Selected Average Balances:	 	 	 	 	 	 	 	 	 	 	 	
Total LHFI		$72,627				$68,432		 	6	 %	 		$70,200		 		$69,394		 	1	 %	
Goodwill	1,941			2,074		 	(6	)	 	1,972		 	2,075		 	(5	)	
Other intangible assets excluding residential MSRs	76			75		 	1		 	76		 	75		 	1		
Total assets	87,926			82,377		 	7		 	84,413		 	83,091		 	2		
Consumer and commercial deposits	49,667			51,277		 	(3	)	 	48,675		 	50,155		 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios:	 	 	 	 	 	 	 	 	 	 	 	
Efficiency ratio	41.62	 %	 	46.68	 %	 	 	 	46.26	 %	 	47.93	 %	 	 	
Impact of FTE adjustment	(0.93	)	 	(1.75	)	 	 	 	(1.04	)	 	(1.81	)	 	 	
Efficiency ratio-FTE 3	40.69		 	44.93		 	 	 	45.22		 	46.12		 	 	
Impact of excluding amortization and associated funding cost of intangible assets	(2.67	)	 	(3.09	)	 	 	 	(2.44	)	 	(2.43	)	 	 	
Tangible efficiency ratio-FTE 3, 5	38.02	 %	 	41.84	 %	 	 	 	42.78	 %	 	43.69	 %	 	 	

1  	During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.	
		
2  	During the fourth quarter of 2017, the Company sold Premium Assignment Corporation ("PAC"), its commercial lines insurance premium finance subsidiary , the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC 's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.	
		
3  	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.	
		
4  	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.	
		
5  	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.	
		
6  	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.	

26

	
																						
SunTrust Banks, Inc. and Subsidiaries
TOTAL CORPORATE OTHER (including Reconciling Items)	
 	Three Months Ended	 	 	 	Year Ended	 	 	
 	December 31	 	 	 	December 31	 	 	
(Dollars in millions) (Unaudited)	2018		 2017  1	 	 % Change 5	 	2018	 	 2017  1	 	 % Change 5	
Statements of Income:				 	 	 	 	 	 	 	 	
Net interest income/(expense) 2		($120	)			($96	)	 	(25	)%	 		($432	)	 		($302	)	 	(43	)%	
FTE adjustment	1			2		 	(50	)	 	2		 	3		 	(33	)	
Net interest income/(expense)-FTE 3	(119	)		(94	)	 	(27	)	 	(430	)	 	(299	)	 	(44	)	
Provision/(benefit) for credit losses 4	—			4		 	(100	)	 	—		 	4		 	(100	)	
Net interest income/(expense)-FTE - after provision/(benefit) for credit losses 3	(119	)		(98	)	 	(21	)	 	(430	)	 	(303	)	 	(42	)	
Noninterest income/(expense) before net securities gains/(losses)	(47	)		59		 	NM		 	(113	)	 	(16	)	 	NM		
Net securities gains/(losses)	—			(109	)	 	100		 	1		 	(108	)	 	NM		
Total noninterest income/(expense)	(47	)		(50	)	 	6		 	(112	)	 	(124	)	 	10		
Noninterest expense/(income) before amortization	40			38		 	5		 	(64	)	 	55		 	NM		
Amortization	—			—		 	—		 	—		 	—		 	—		
Total noninterest expense/(income)	40			38		 	5		 	(64	)	 	55		 	NM		
Income/(loss)-FTE - before provision/(benefit) for income taxes 3	(206	)		(186	)	 	(11	)	 	(478	)	 	(482	)	 	1		
Provision/(benefit) for income taxes	(31	)		(306	)	 	90		 	(121	)	 	(411	)	 	71		
Tax credit adjustment	(48	)	 	(60	)	 	20		 	(148	)	 	(180	)	 	18		
FTE adjustment	1			2		 	(50	)	 	2		 	3		 	(33	)	
Net income/(loss) including income attributable to noncontrolling interest	(128	)		178		 	NM		 	(211	)	 	106		 	NM		
Less: Net income attributable to noncontrolling interest	2			2		 	—		 	9		 	9		 	—		
Net income/(loss)		($130	)			$176		 	NM		 		($220	)	 		$97		 	NM		
 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue		($167	)	 		($146	)	 	(14	)	 		($544	)	 		($426	)	 	(28	)%	
Total revenue-FTE 3	(166	)		(144	)	 	(15	)	 	(542	)	 	(423	)	 	(28	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Selected Average Balances:	 	 	 	 	 	 	 	 	 	 	 	
Total LHFI		$90				$901		 	(90	)%	 		$87		 		$1,244		 	(93	)%	
Securities available for sale	31,798			30,884		 	3		 	31,597		 	30,522		 	4		
Goodwill	—			—		 	—		 	—		 	1		 	(100	)	
Other intangible assets excluding residential MSRs	—			—		 	—		 	—		 	—		 	—		
Total assets	37,686			38,420		 	(2	)	 	37,355		 	38,562		 	(3	)	
Consumer and commercial deposits	(196	)		23		 	NM		 	(142	)	 	96		 	NM		
 	 	 	 	 	 	 	 	 	 	 	 	
Other Information (End of Period):	 	 	 	 	 	 	 	 	 	 	 	
Duration of securities available for sale portfolio (in years)	 	 	 	 	 	 	4.6		 	4.5		 	 	
Net interest income interest rate sensitivity:	 	 	 	 	 	 	 	 	 	 	 	
% Change in net interest income under:	 	 	 	 	 	 	 	 	 	 	 	
Instantaneous 200 basis point increase in rates over next 12 months	 	 	 	 	 	2.3	 %	 	2.4	 %	 	 	
Instantaneous 100 basis point increase in rates over next 12 months	 	 	 	 	 	1.2	 %	 	1.4	 %	 	 	
Instantaneous 50 basis point decrease in rates over next 12 months	 	 	 	 	 	(0.9	)%	 	(1.0	)%	 	 	

1  	During the fourth quarter of 2017, the Company sold Premium Assignment Corporation ("PAC"), its commercial lines insurance premium finance subsidiary , the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC 's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.	
		
2  	Net interest income/(expense) is driven by matched funds transfer pricing applied for segment reporting and actual Net interest income.	
		
3  	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.	
		
4  	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.	
		
5  	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.	

27

	
																						
SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED SEGMENT TOTALS	
 	Three Months Ended	 	 	 	Year Ended	 	 	
 	December 31	 	 	 	December 31	 	 	
(Dollars in millions) (Unaudited)	2018	 	2017	 	% Change 2	 	2018	 	2017	 	 % Change 2	
Statements of Income:	 	 	 	 	 	 	 	 	 	 	 	
Net interest income		$1,547		 		$1,434		 	8	 %	 		$5,987		 		$5,633		 	6	 %	
FTE adjustment	23		 	38		 	(39	)	 	88		 	145		 	(39	)	
Net interest income-FTE 1	1,570		 	1,472		 	7		 	6,075		 	5,778		 	5		
Provision for credit losses	87		 	79		 	10		 	208		 	409		 	(49	)	
Net interest income-FTE - after provision for credit losses 1	1,483		 	1,393		 	6		 	5,867		 	5,369		 	9		
Noninterest income before net securities gains/(losses)	818		 	942		 	(13	)	 	3,225		 	3,462		 	(7	)	
Net securities gains/(losses)	—		 	(109	)	 	100		 	1		 	(108	)	 	NM		
Total noninterest income	818		 	833		 	(2	)	 	3,226		 	3,354		 	(4	)	
Noninterest expense before amortization	1,460		 	1,495		 	(2	)	 	5,600		 	5,689		 	(2	)	
Amortization	22		 	25		 	(12	)	 	73		 	75		 	(3	)	
Total noninterest expense	1,482		 	1,520		 	(3	)	 	5,673		 	5,764		 	(2	)	
Income-FTE - before provision/(benefit) for income taxes 1	819		 	706		 	16		 	3,420		 	2,959		 	16		
Provision/(benefit) for income taxes	136		 	(74	)	 	NM		 	548		 	532		 	3		
Tax credit adjustment	—		 	—		 	—		 	—		 	—		 	—		
FTE adjustment	23		 	38		 	(39	)	 	88		 	145		 	(39	)	
Net income including income attributable to noncontrolling interest	660		 	742		 	(11	)	 	2,784		 	2,282		 	22		
Less: Net income attributable to noncontrolling interest	2		 	2		 	—		 	9		 	9		 	—		
Net income		$658		 		$740		 	(11	)%	 		$2,775		 		$2,273		 	22	 %	
 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue		$2,365		 		$2,267		 	4	 %	 		$9,213		 		$8,987		 	3	 %	
Total revenue-FTE 1	2,388		 	2,305		 	4		 	9,301		 	9,132		 	2		
 	 	 	 	 	 	 	 	 	 	 	 	
Selected Average Balances:	 	 	 	 	 	 	 	 	 	 	 	
Total LHFI		$149,708		 		$144,039		 	4	 %	 		$145,714		 		$144,216		 	1	 %	
Goodwill	6,331		 	6,336		 	—		 	6,331		 	6,338		 	—		
Other intangible assets excluding residential MSRs	78		 	79		 	(1	)	 	79		 	82		 	(4	)	
Total assets	212,934		 	205,219		 	4		 	207,277		 	204,931		 	1		
Consumer and commercial deposits	161,573		 	160,745		 	1		 	159,768		 	159,549		 	—		
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios:	 	 	 	 	 	 	 	 	 	 	 	
Efficiency ratio	62.66	 %	 	67.03	 %	 	 	 	61.58	 %	 	64.14	 %	 	 	
Impact of FTE adjustment	(0.60	)	 	(1.09	)	 	 	 	(0.59	)	 	(1.02	)	 	 	
Efficiency ratio-FTE 1	62.06		 	65.94		 	 	 	60.99		 	63.12		 	 	
Impact of excluding amortization and associated funding cost of intangible assets	(0.93	)	 	(1.10	)	 	 	 	(0.78	)	 	(0.82	)	 	 	
Tangible efficiency ratio-FTE 1	61.13	 %	 	64.84	 %	 	 	 	60.21	 %	 	62.30	 %	 	 	

1  	Net interest income-FTE, Income-FTE, Total revenue-FTE, Efficiency ratio-FTE, and Tangible efficiency ratio-FTE are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of Net interest income from certain loans and investments. See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures.	
		
2  	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.	

28

4Q 18 EARNINGS PRESENTATION January 18, 2019 © 2019 SunTrust Banks, Inc. SunTrust is a federally registered trademark of SunTrust Banks, Inc.

 

IMPORTANT CAUTIONARY STATEMENT This presentation should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2017 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Non-GAAP Financial Measures This presentation 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 of this presentation beginning on slide 21. In this presentation, 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”) and annualized basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments using applicable federal and state income tax rates 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, tangible book value per share, and return on average tangible common equity. These measures exclude the after-tax impact of purchase accounting intangible assets. The Company believes these measures are useful to investors because, by removing the effect of intangible assets that result from merger and acquisition activity (the level of which may vary from company to company), it allows investors to more easily compare the Company’s capital adequacy to other companies in the industry. These measures are used by management to analyze the capital adequacy and profitability of the Company. • Similarly, the Company presents Efficiency ratio-FTE, Tangible efficiency ratio-FTE, Adjusted efficiency ratio-FTE and Adjusted 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. 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. Adjusted efficiency ratio-FTE and adjusted tangible efficiency ratio-FTE remove the pre-tax impact of Form 8-K items announced on December 4, 2017 and the impacts of tax reform-related items or other income or expense items that are material and potentially non-recurring from the calculation of Efficiency ratio-FTE and Tangible efficiency ratio-FTE, respectively. The Company believes these measures are useful to investors because they are more reflective of normalized operations as they reflect results that are primarily client relationship and client transaction driven. These measures are utilized by management to assess the efficiency of the Company and its lines of business. • The Company presents adjusted EPS, adjusted noninterest income, adjusted noninterest expense, and adjusted ROTCE which exclude the impact of Form 8-K items announced on December 4, 2017 and the impacts of tax reform related items and/or a pension settlement charge in 4Q 18. The Company believes these measures are useful to investors because they are more reflective of normalized operations as they reflect results that are primarily business driven. These measures are utilized by management to assess the earnings 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 on slide 16. For December 31, 2017 and prior, fully-phased-in ratios considered a 250% risk-weighting for MSRs and deduction from capital of certain carryforward DTA, the overfunded pension asset, and other intangible assets. For March 31, 2018 and later, the fully-phased-in ratio considers a 250% risk-weighting for MSRs, as contemplated in the FRB’s ‘Simplifications’ NPR. The Company believes this measure is useful to investors who wish to understand the impact of potential future regulatory requirements. Important Cautionary Statement about Forward-Looking Statements This presentation contains forward-looking statements. Statements regarding future levels of net interest margin, tangible efficiency ratio, net charge-off ratio, loan loss provision expense, ALLL ratio, deposit costs, and the Company’s effective tax rate, and statements regarding future efficiency progress, investments in talent and technology, a potential preferred stock issuance, client adoption of our digital capabilities, and investment banking and lending pipelines 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,” “forecast”, “goals”, “plans,” “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 on the current beliefs and expectations of management and on information currently available to management. Such statements speak as of the date of this presentation, and we do not assume any obligation to update such 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. 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, 2017 and in other periodic reports that we file with the SEC. Those factors include: current and future legislation and regulation could require us to change our business practices, reduce revenue, impose additional costs, or otherwise adversely affect business operations or competitiveness; we are subject to stringent capital adequacy and liquidity requirements and our failure to meet these would adversely affect our financial condition; the monetary and fiscal policies of the federal government and its agencies could have a material adverse effect on our earnings; our financial results have been, and may continue to be, materially affected by general economic conditions, and a deterioration of economic conditions or of the financial markets may materially adversely affect our lending and other businesses and our financial results and condition; changes in market interest rates or capital markets could adversely affect our revenue and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; our earnings may be affected by volatility in mortgage production and servicing revenues, and by changes in carrying values of our servicing assets and mortgages held for sale due to changes in interest rates; interest rates on our outstanding financial instruments might be subject to change based on regulatory developments, which could adversely affect our revenue, expenses, and the value of those financial instruments; disruptions in our ability to access global capital markets may adversely affect our capital resources and liquidity; we are subject to credit risk; we may have more credit risk and higher credit losses to the extent that our loans are concentrated by loan type, industry segment, borrower type, or location of the borrower or collateral; we rely on the mortgage secondary market and GSEs for some of our liquidity; loss of customer deposits could increase our funding costs; any reduction in our credit rating could increase the cost of our funding from the capital markets; we are subject to litigation, and our expenses related to this litigation may adversely affect our results; we may incur fines, penalties and other negative consequences from regulatory violations, possibly even inadvertent or unintentional violations; we are subject to certain risks related to originating and selling mortgages, and may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, or borrower fraud, and this could harm our liquidity, results of operations, and financial condition; we face risks as a servicer of loans; consumers and small businesses may decide not to use banks to complete their financial transactions, which could affect net income; we have businesses other than banking which subject us to a variety of risks; negative public opinion could damage our reputation and adversely impact business and revenues; we may face more intense scrutiny of our sales, training, and incentive compensation practices; we rely on other companies to provide key components of our business infrastructure; competition in the financial services industry is intense and we could lose business or suffer margin declines as a result; we continually encounter technological change and must effectively develop and implement new technology; maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; we have in the past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to realize anticipated benefits; we depend on the expertise of key personnel, and if these individuals leave or change their roles without effective replacements, operations may suffer; we may not be able to hire or retain additional qualified personnel and recruiting and compensation costs may increase as a result of turnover, both of which may increase costs and reduce profitability and may adversely impact our ability to implement our business strategies; our framework for managing risks may not be effective in mitigating risk and loss to us; our controls and procedures may not prevent or detect all errors or acts of fraud; we are at risk of increased losses from fraud; our operational and communications systems and infrastructure may fail or may be the subject of a breach or cyber-attack that, if successful, could adversely affect our business and disrupt business continuity; a disruption, breach, or failure in the operational systems and infrastructure of our third party vendors and other service providers, including as a result of cyber-attacks, could adversely affect our business; natural disasters and other catastrophic events could have a material adverse impact on our operations or our financial condition and results; the soundness of other financial institutions could adversely affect us; we depend on the accuracy and completeness of information about clients and counterparties; our accounting policies and processes are critical to how we report our financial condition and results of operation, and they require management to make estimates about matters that are uncertain; depressed market values for our stock and adverse economic conditions sustained over a period of time may require us to write down some portion of our goodwill; our stock price can be volatile; we might not pay dividends on our stock; our ability to receive dividends from our subsidiaries or other investments could affect our liquidity and ability to pay dividends; and certain banking laws and certain provisions of our articles of incorporation may have an anti-takeover effect. 2

 

4Q 18 AND 2018 EPS OVERVIEW1 Quarterly & Full Year Trends Diluted EPS Adjusted EPS $1.56 $5.74 $1.48 $1.49 $1.40 $4.47 $1.29 $4.09 $1.09 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 2017 2018 Strong Overall Earnings Continued Improvements Asset Quality & Capital Momentum in Profitability Remain Strengths • 4Q: EPS includes $0.10 pension settlement charge; • 4Q: Reported efficiency ratio (ER) of 62.1%; • 4Q NCO ratio: 0.26% | NPL ratio: 0.35% excluding this, EPS is $1.50 adjusted tangible efficiency ratio (TER) of → Strong asset quality performance 58.6% (excludes pension) → Sequential decline driven by $0.14 discrete reflects favorable operating tax benefit in 3Q 18, partially offset by strong • FY: Achieved <60% adjusted TER target environment and consistent revenue trends (up 3%) → 2018 reported ER of 61.0%; TER of 60.2%2 underwriting discipline • FY: EPS up 28% (reported), 40% (adjusted) → 2018 adjusted TER: 59.6%, down 150 bps • 9.2% Basel III CET1 ratio → Driven by improved efficiency, increased relative to 2018 • Repurchased $750 million of common stock capital return, and favorable operating • FY: 12.1% ROE, 16.9% ROTCE3 in 4Q 18 | $750 million capacity remains environment 1. All commentary reflects sequential (3Q 18 to 4Q 18) trends, unless otherwise noted. Total revenue, net interest income, efficiency ratio, and tangible efficiency ratio are reported on a fully-taxable equivalent (FTE) basis. Please refer to page 22 of the earnings press release for GAAP reconciliations 3 2. Please refer to slide 21 for GAAP reconciliations 3. Please refer to page 22 of the earnings press release for GAAP reconciliations

 

2018 FULL YEAR HIGHLIGHTS Reported Adjusted 28% Growth in EPS 40% 3% Growth in Total Revenue 210 Improvement in Efficiency Ratio1 150 bps bps Improvement in ROE 240 2 470 bps Improvement in ROTCE bps 41% Increase in Total Capital Returns 1. The reported efficiency ratio (FTE) for 2017 and 2018 was 63.1% and 61.0%, respectively. The adjusted efficiency ratio (FTE) for 2017 and 2018 was 61.9% and 60.3%, respectively. The adjusted tangible efficiency ratio (FTE) for 2017 and 2018 was 61.0% and 59.6%, respectively. Please refer to slide 21 for GAAP reconciliation 4 2. Reported ROE for 2017 and 2018 was 9.7% and 12.1%, respectively. Reported ROTCE for 2017 and 2018 was 13.4% and 16.9%, respectively. Please refer to page 22 of the earnings press release for GAAP reconciliations. Adjusted ROTCE for 2017 was 12.2%, which excludes the (1.2%) impact from the discrete items listed on slide 23

 

NET INTEREST INCOME1 Net interest income (FTE) growth continues: up 2% QoQ and 7% YoY ($ in millions) $1,570 Prior Quarter Variance $1,534 $1,510 • Net interest income (FTE) increased $36 million, or 2%, as a result of 2.5% average loan growth $1,472 $1,461 • Net interest margin (FTE) stable 3.28% 3.27% 3.27% 3.24% → Benefit of September rate increase offset by increased wholesale funding, given strong loan 3.17% growth $1,547 Prior Year Variance $1,488 $1,512 $1,434 $1,441 • Net interest income (FTE) increased $98 million, or 7%, driven by NIM expansion and 4% average loan growth • Net interest margin (FTE) increased 10 bps, as a result of higher loan yields due to increases in short-term rates and positive mix shift, partially offset by higher funding costs 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Net Interest Income Net Interest Income (FTE) NIM (FTE) 1. On this slide, net interest income is reported on an unadjusted and fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of income from certain loans and investments. SunTrust believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. Net interest margin (FTE) is calculated as net interest income (FTE) divided by average 5 earning assets (on an annualized basis). Please refer to page 22 of the earnings press release for a reconciliation of net interest margin to net interest margin (FTE). Please refer to slide 21 for a reconciliation of net interest income to net interest income (FTE)

 

NONINTEREST INCOME Noninterest income up 5% QoQ ($ in millions) Prior Quarter Variance $840 • Noninterest income increased $36 million, or 5%, $7 $7 driven by: → $44 million increase in commercial real estate- related income, as a result of increased structured real estate activity and seasonality → Partially offset by $22 million decrease in capital markets-related income, as a result of market conditions $833 $829 $818 $796 $782 Prior Year Variance • Noninterest income decreased $15 million, or 2%, as a result of market conditions which negatively impacted mortgage-related income (lower volumes and margins) and trading income → Partially offset by $24 million increase in investment banking income, driven by M&A 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Non-core items1 6 1. Non-core items refers to items announced in the December 4, 2017 Form 8-K and tax reform-related items as outlined on slide 23. Please refer to slide 21 for a reconciliation of reported noninterest income to adjusted noninterest income

 

NONINTEREST EXPENSE Continued focus on disciplined expense management ($ in millions) $1,520 $1,482 Prior Quarter Variance $111 $60 • Excluding $60 million pension settlement charge, noninterest expense increased $38 million, as a result of certain discrete items → $35 million increase in operating losses and other noninterest expense, driven by discrete items in 4Q 18 and normal quarterly variability → $16 million increase in net occupancy expense, driven by lease termination benefit in 3Q 18 $1,409 $1,417 $1,390 $1,384 $1,422 • Partially offset by lower regulatory assessments, as a result of the removal of the FDIC surcharge and a separate $9 million regulatory assessment credit Prior Year Variance • Adjusted noninterest expense up $13 million, or 1%, as a result of 4% revenue growth and increased investments in technology, largely offset by ongoing 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 efficiency initiatives Non-core items1 7 1. Non-core items refers to items announced in the December 4, 2017 Form 8-K and tax reform-related items as outlined on slide 23, in addition to $60 million pension settlement charge in 4Q 18. Please refer to slide 21 for a reconciliation of reported noninterest expense to adjusted noninterest expense

 

EFFICIENCY RATIO & TANGIBLE EFFICIENCY RATIO1  Achieved <60% adjusted TER target one year earlier than stated goal  Medium-Term TER Target: 56-58% 5-Quarter Trends Annual Trends 72.0% 62.8% 60.9% 67.4% 59.8% 59.6% 59.4%  65.6% Achieved 63.7% <60% 63.1% 62.6% Target 61.9% 60.3% 71.5% 62.1% 59.9% 58.7% 58.9% 58.6% 66.9% 65.3% 63.3% 62.6% 62.0% 61.0% 59.6% 56-58% 4Q 17 2 1Q 18 2Q 18 3Q 18 4Q 18 2 2011 20122 2013 2 2014 2 2015 2016 2017 2 20182 Medium- Term TER Target Efficiency Ratio (FTE) Tangible Efficiency Ratio (FTE) 1. The efficiency ratio and tangible efficiency ratio are reported on fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts net interest income for the tax-favored status of income from certain loans and investments. Unadjusted net interest income can be found on slide 5. Please refer to slide 21 for the reconciliation to the GAAP efficiency ratio 8 2. 2012, 2013, 2014, 2017, 2018, 4Q 17, and 4Q 18 values represent the adjusted efficiency ratio and adjusted tangible efficiency ratio. Adjusted figures are intended to provide management and investors information on trends that are more comparable across periods and potentially more comparable across institutions. Please refer to slide 21 for reconciliations related to the GAAP efficiency ratio

 

CREDIT QUALITY Asset quality continues to be very strong ($ in millions) Net Charge-offs Nonperforming Loans . NCO ratio remains well below historical averages . Sequential decrease driven by resolution of certain nonaccruing commercial credits NCOs Total NCO Ratio (annualized) NPLs Total NPL Ratio $755 $712 $695 $107 $674 $97 $88 $526 $79 $73 0.29% 0.24% 0.26% 0.22% 0.20% 0.47% 0.50% 0.52% 0.47% 0.35% 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Allowance for Loan and Lease Losses (ALLL) Provision for Credit Losses . Continued asset quality improvements drive decline in ALLL ratio . Sequential increase driven by higher loan growth ALLL ALLL Ratio $1,735 $1,694 $1,650 $1,623 $1,615 $87 $79 $61 1.21% 1.19% 1.14% 1.10% 1.06% $28 $32 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 9

 

BALANCE SHEET ($ in billions) ($ in billions, average balances) Average Performing Loans Average Client Deposits $160.7 $159.2 $159.0 $159.3 $161.6 $145.2 $149.1 $143.4 $142.2 $143.4 $6.5 $6.6 $6.8 $6.7 $6.5 $11.9 $13.1 $13.9 $14.8 $15.4 $31.3 $28.7 $29.0 $29.2 $30.0 $46.2 $46.6 $45.3 $45.3 $47.4 $38.2 $38.0 $37.7 $37.9 $38.3 $44.1 $42.3 $43.0 $42.6 $42.3 $76.4 $75.2 $76.5 $77.4 $79.4 $52.0 $50.5 $49.8 $49.9 $49.9 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Commercial Residential Consumer Money Market DDA (Nonint bearing) NOW Time Savings Prior Quarter Variance Prior Quarter Variance • Average performing loans up 2.5%, driven by broad-based • Average client deposits increased 1%, driven by seasonal growth across both business segments growth in NOW accounts → Consumer up 2% | Wholesale up 3% • Interest-bearing deposit costs up 10 bps Prior Year Variance Prior Year Variance • Average client deposits increased 1%; mix shift towards • Average performing loans up 4%; driven by growth in C&I, higher cost deposits consumer direct, and CRE, partially offset by declines in home equity and commercial construction → $3.6 billion increase in time deposits offset by declines in money market and noninterest bearing deposits 10 Note: Totals may not foot due to rounding

 

CAPITAL POSITION Basel III Common Equity Tier 1 Ratio1 Basel III Tier 1 Capital Ratio1 11.2% 11.0% 10.9% 10.7% 10.3% 9.7% 9.8% 9.7% 9.6% 9.2% 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Book Value / Tangible Book Value Per Share2 $49.57 $47.94 $47.14 $47.70 $48.00 $35.73 $34.82 $33.97 $34.40 $34.51 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Book Value Per Share Tangible Book Value Per Share 11 1. Current quarter amounts are estimated at the time of the earnings release and subject to revision 2. Please refer to slide 22 for the reconciliation of book value per share to tangible book value per share

 

CONSUMER SEGMENT HIGHLIGHTS %Δ FY 2018 Highlights ($ in millions) 4Q 17 3Q 18 4Q 18 FY 17 FY 18 Prior Yr Net Interest Income $1,000 $1,079 $1,097 $3,906 $4,235 8 % • Good financial progress Noninterest Income 480 445 457 1,905 1,804 (5)% → Revenue up 4%: strong net interest income growth offset declines in mortgage Total Revenue 1,480 1,524 1,554 5,811 6,039 4 % → 200 bps improvement in efficiency Provision for Credit Losses 64 36 46 366 148 NM → Branch count down 4% Noninterest Expense 1,046 994 1,034 3,982 4,017 1 % → Net income up 55% Net Income $236 $381 $367 $934 $1,450 55 % • Strong, broad-based balance sheet growth improves the Company’s overall loan mix and provides Key Statistics ($ in billions) attractive funding Total Loans (average) $74.7 $75.4 $77.0 $73.6 $75.4 3 % → 3% loan growth driven by LightStream, third Client Deposits (average) $109.4 $111.9 $112.1 $109.3 $111.2 2 % party partnerships, and guaranteed student loans → 2% deposit growth driven by targeted CD growth Managed Assets (EOP) $58.9 $62.2 $58.6 $58.9 $58.6 (0)% Full-Service Branches 1,275 1,217 1,218 1,275 1,218 (4)% • Maintained conservative credit risk profile Efficiency Ratio 70.7% 65.3% 66.6% 68.5% 66.5% → New production FICO: 766 Tangible Efficiency Ratio¹ 69.5% 64.1% 65.4% 67.4% 65.4% • Investments in client facing technology drive increased digital adoption Mortgage Data: → Digital adoption: 70%, up from 68% in 2017 Servicing Portfolio for Others $136.1 $140.0 $141.1 $136.1 $141.1 4 % → Digital sales: 32%, up from 27% in 2017 (EOP) → 64% SmartGUIDE adoption rate (digital mortgage Production Volume $6.3 $6.1 $4.9 $24.4 $22.5 (8)% application introduced in 1Q 18) Application Volume $7.1 $7.6 $5.5 $30.8 $28.4 (8)% • Nationally recognized for superior client experience → Received four Javelin ‘Leader’ Awards for online and mobile banking capabilities → Awarded Top 5 Mortgage Servicer by JD Power → Named Top 3 Overall Auto Finance Lender by Auto Finance Performance → LightStream: Best Personal Loan Companies of 2018 (US News World Report) 12 Note: NM = not meaningful 1. Please refer to page 24 of the earnings press release for a reconciliation of efficiency ratio to tangible efficiency ratio

 

WHOLESALE SEGMENT HIGHLIGHTS %Δ FY 2018 Highlights ($ in millions) 4Q 17 3Q 18 4Q 18 FY 17 FY 18 Prior Yr Net Interest Income (FTE) $566 $574 $592 $2,171 $2,270 5 % . Record revenue and strong profitability Noninterest Income 403 374 408 1,573 1,534 (2)% → 2% revenue growth driven by net interest income (NIM expansion and 1% loan growth) Total Revenue (FTE) 969 948 1,000 3,744 3,804 2 % → Diversified platform helped overcome Provision for Credit Losses 11 24 41 39 60 NM adverse market conditions in 4Q 18 Noninterest Expense 436 434 408 1,727 1,720 (0)% → 43% tangible efficiency ratio (FTE), 90 bps improvement in 2018 Net Income $328 $374 $421 $1,242 $1,545 24 % → 24% increase in net income Key Statistics ($ in billions) . Positive underlying trends affirm strategic Total Loans (average) $68.4 $70.7 $72.6 $69.4 $70.2 1 % momentum and success of advice-driven model Client Deposits (average) $51.3 $47.9 $49.7 $50.2 $48.7 (3)% → Record performance in M&A and Equity Originations Efficiency Ratio (FTE)¹ 44.9% 45.8% 40.7% 46.1% 45.2% → Capital markets revenue from non-CIB clients up Tangible Efficiency Ratio (FTE)¹ 41.8% 43.3% 38.0% 43.7% 42.8% 49% → Loan growth driven by M&A activity, investments in enhanced CRE capabilities, expanded aging services vertical, and expansion markets . Maintained disciplined risk management → 15% decline in syndicated and leverage finance income (reflection of underwriting discipline and market conditions); all transactions fully syndicated at year end → <$5 million daily trading VaR → Positive remixing within CRE portfolio; construction balances down $1.3bn, term balances up $1.9bn → 9 bp NCO ratio in 2017 and 2018 13 Note: NM = not meaningful 1. Please refer to page 26 of the earnings press release for a reconciliation of efficiency ratio to tangible efficiency ratio

 

STRONG, CONSISTENT LONG-TERM TRENDS 7th consecutive year of improvement across key metrics Investing in Growth & Improving Efficiency Strong Capital & Technology & Returns Risk Position GAAP EPS GAAP ER (Dividends & share buybacks as a % of net income) 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 $0.94 $3.59 $2.41 $3.23 $3.58 $3.60 $4.47 $5.74 72.0% 59.3% 71.2% 66.7% 63.1% 62.6% 63.1% 61.0% 103% (Adjusted earnings per share1) (Adjusted tangible efficiency ratio2) 89% $5.74 71.5% 66.9% 73% $4.09 65.3% 62% $3.58$3.60 63.3%62.6%62.0% $3.24 61.0% 48% $2.74 59.6% $2.19 26% $0.94 8% 11% 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 . 40% adjusted EPS growth . Strong FY profitability improvements . 41% increase in capital returns → 3% revenue growth, even after 4% → Adjusted TER: 59.6%; 150 bps YoY → 36% increase in dividends per share decline in noninterest income, reflects improvement → 45% increase in share repurchases franchise diversity → NIM: 3.26%; 12 bps YoY improvement → 5% decline in average shares 3 . Investing in technology → ROTCE: 16.9% ; 470 bps YoY outstanding improvement → 70% digital adoption . Diverse, high quality balance sheet . → Completed transition to SunView (new Achieved <60% TER target (one year → 0.23% NCO ratio; 2 bps YoY T&PS platform for Wholesale clients) early) improvement → Received national recognition for → 56-58% Medium-Term TER Target → 0.35% NPL ratio; 12 bps YoY superior client experience (slide 12) improvement 1. 2012, 2013, and 2017 values represent adjusted earnings per share. The impact of excluding discrete items was ($1.40), $0.33, and ($0.39) for 2012, 2013, and 2017, respectively. For the reconciliation to GAAP EPS for 2012 and 2013, please refer to page 36 of the 2013 Form 10-K. For the 2017 reconciliation to GAAP EPS, please refer to slide 23 2. 2012, 2013, 2014, 2017 and 2018 values represent the adjusted tangible efficiency ratio. Adjusted figures are intended to provide management and investors information on trends that are more comparable across periods and potentially more comparable across institutions. Please refer to slide 21 for reconciliations related to the GAAP efficiency ratio 14 3. Reported ROE for 2017 and 2018 was 9.7% and 12.1%, respectively. Reported ROTCE for 2017 and 2018 was 13.4% and 16.9%, respectively. Please refer to page 22 of the earnings press release for GAAP reconciliations. Adjusted ROTCE for 2017 was 12.2%, which excludes the (1.2%) impact from the discrete items listed on slide 23

 

APPENDIX

 

5-QUARTER & 2-YEAR FINANCIAL HIGHLIGHTS 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 2017 2018 EPS (diluted) 59.60% $1.48 $1.29 $1.49 $1.56 $1.40 $4.47 $5.74 Adjusted EPS (diluted)1 $1.09 $1.29 $1.49 $1.56 $1.40 $4.09 $5.74 Efficiency Ratio (FTE) 65.9% 62.8% 59.4% 59.8% 62.1% 63.1% 61.0% Tangible Efficiency Ratio (FTE)2 64.8% 62.1% 58.7% 58.9% 61.1% 62.3% 60.2% Profitability Adjusted Tangible Efficiency Ratio (FTE)3 59.9% 62.1% 58.7% 58.9% 58.6% 61.0% 59.6% Net Interest Margin (FTE) 3.17% 3.24% 3.28% 3.27% 3.27% 3.14% 3.26% Return on Average Assets 1.43% 1.28% 1.42% 1.44% 1.23% 1.11% 1.34% Return on Average Common Equity 12.5% 11.2% 12.7% 13.0% 11.5% 9.7% 12.1% Return on Average Tangible Common Equity4 17.2% 15.6% 17.7% 18.1% 16.1% 13.4% 16.9% Balance Average Performing Loans ($ in billions) $143.4 $142.2 $143.4 $145.2 $149.1 $143.5 $145.0 Sheet Average Client Deposits ($ in billions) $160.7 $159.2 $159.0 $159.3 $161.6 $159.5 $159.8 NPL Ratio 0.47% 0.50% 0.52% 0.47% 0.35% 0.47% 0.35% NCO Ratio 0.29% 0.22% 0.20% 0.24% 0.26% 0.25% 0.23% ALLL Ratio 1.21% 1.19% 1.14% 1.10% 1.06% 1.21% 1.06% Credit & Basel III Common Equity Tier 1 Ratio (transitional) 9.7% 9.8% 9.7% 9.6% 9.2% 9.7% 9.2% Capital Basel III Common Equity Tier 1 Ratio (fully phased-in)5 9.6% 9.7% 9.6% 9.4% 9.1% 9.6% 9.1% Book Value Per Share $47.94 $47.14 $47.70 $48.00 $49.57 $47.94 $49.57 Tangible Book Value Per Share6 $34.82 $33.97 $34.40 $34.51 $35.73 $34.82 $35.73 1. Please refer to slide 23 for the 4Q 17 GAAP reconciliations 2. Please refer to page 22 of the earnings press release for GAAP reconciliations 3. Please refer to slide 21 for the GAAP reconciliations 4. Please refer to page 22 of the earnings press release for GAAP reconciliations 5. For 12/31/17 and prior, fully-phased-in ratios considered a 250% risk-weighting for MSRs and deduction from capital of certain carryforward DTA, the overfunded pension asset, and other intangible assets. For 2018, the fully-phased-in ratio 16 reflects a 250% risk-weighting for MSRs, as contemplated in the FRB’s ‘Simplifications’ NPR 6. Please refer to slide 22 for a reconcilement to book value per share

 

30-89 DAY DELINQUENCIES BY LOAN CLASS ($ in millions) Memo: 4Q 18 Loan 30-89 Accruing Delinquencies 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Balance Commercial & industrial 0.06% 0.05% 0.05% 0.06% 0.09% $71,137 Commercial real estate 0.00% 0.03% 0.23% 0.03% 0.03% $7,265 Commercial construction 0.00% 0.00% 0.38% 0.00% 0.01% $2,538 Total Commercial Loans 0.06% 0.05% 0.08% 0.05% 0.08% $80,940 Residential mortgages – guaranteed - - - - - $459 Residential mortgages – nonguaranteed 0.55% 0.24% 0.19% 0.26% 0.24% $28,836 Home equity products 0.71% 0.65% 0.60% 0.72% 0.66% $9,468 Residential construction 2.33% 0.11% 0.16% 0.48% 1.37% $184 Guaranteed student loans - - - - - $7,229 Other direct 0.42% 0.39% 0.32% 0.38% 0.43% $10,615 Indirect 0.91% 0.71% 0.75% 0.83% 1.01% $12,419 Credit cards 0.83% 0.89% 0.84% 0.95% 1.02% $1,689 Total Consumer Loans¹ 0.65% 0.44% 0.40% 0.48% 0.51% $70,899 Total SunTrust - excl. gov.-guaranteed delinquencies 1 0.32% 0.22% 0.22% 0.24% 0.27% $144,151 Impact of excluding gov.-guaranteed delinquencies 0.48% 0.46% 0.50% 0.50% 0.46% $7,688 Total SunTrust - incl. gov.-guaranteed delinquencies2 0.80% 0.68% 0.72% 0.74% 0.73% $151,839 1. Excludes delinquencies on federally guaranteed mortgages and student loans 17 2. Excludes mortgage loans guaranteed by GNMA that SunTrust has the option, but not the obligation, to repurchase Note: Totals may not foot due to rounding

 

NONPERFORMING LOANS BY LOAN CLASS ($ in millions) Memo: 4Q 18 Loan Nonperforming Loans 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Balance Commercial & industrial $215 $216 $296 $256 $157 $71,137 Commercial real estate 24 46 45 43 2 $7,265 Commercial construction 1 - - - - $2,538 Total Commercial Loans $240 $262 $341 $299 $159 $80,940 Residential mortgages – guaranteed - - - - - $459 Residential mortgages - nonguaranteed 206 253 240 225 204 $28,836 Home equity products 203 169 150 149 138 $9,468 Residential construction 11 16 10 9 11 $184 Guaranteed student loans - - - - - $7,229 Other direct 7 8 8 7 7 $10,615 Indirect 7 4 6 6 7 $12,419 Credit cards - - - - - $1,689 Total Consumer Loans $434 $450 $414 $396 $367 $70,899 Total SunTrust $674 $712 $755 $695 $526 $151,839 NPLs / Total Loans 0.47% 0.50% 0.52% 0.47% 0.35% 18 Note: Totals may not foot due to rounding

 

NET CHARGE-OFF RATIOS BY LOAN CLASS ($ in millions) Memo: 4Q 18 Loan Net Charge-off Ratio (annualized) 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Balance Commercial & industrial 0.22 % 0.08 % 0.10 % 0.25 % 0.16 % $71,137 Commercial real estate (0.01)% 0.28 % (0.01)% (0.01)% 0.19 % $7,265 Commercial construction (0.01)% (0.02)% (0.00)% (0.00)% (0.00)% $2,538 Total Commercial Loans 0.19 % 0.09 % 0.09 % 0.22 % 0.15 % $80,940 Residential mortgages – guaranteed - - - - - $459 Residential mortgages – nonguaranteed 0.20 % 0.14 % 0.18 % 0.03 % 0.09 % $28,836 Home equity products 0.19 % 0.10 % 0.05 % (0.01)% 0.09 % $9,468 Residential construction 3.39 % 0.69 % 2.76 % 0.69 % (0.10)% $184 Guaranteed student loans - - - - - $7,229 Other direct 0.81 % 0.82 % 0.77 % 0.68 % 1.05 % $10,615 Indirect 0.66 % 0.67 % 0.41 % 0.52 % 0.54 % $12,419 Credit cards 2.77 % 3.21 % 3.22 % 3.13 % 3.17 % $1,689 Total Consumer Loans 0.41 % 0.37 % 0.34 % 0.27 % 0.37 % $70,899 Total SunTrust 0.29 % 0.22 % 0.20 % 0.24 % 0.26 % $151,839 19

 

NET CHARGE-OFFS BY LOAN CLASS ($ in millions) Memo: 4Q 18 Loan Net Charge-offs 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Balance Commercial & industrial $37 $13 $17 $42 $28 $71,137 Commercial real estate - 4 - - 3 $7,265 Commercial construction - - - - - $2,538 Total Commercial Loans $37 $17 $17 $42 $31 $80,940 Residential mortgages – guaranteed - - - - - $459 Residential mortgages – nonguaranteed 14 9 12 2 7 $28,836 Home equity products 5 3 1 (1) 2 $9,468 Residential construction 3 - 2 - - $184 Guaranteed student loans - - - - - $7,229 Other direct 18 18 17 16 27 $10,615 Indirect 20 20 12 16 17 $12,419 Credit cards 10 12 12 13 13 $1,689 Total Consumer Loans $70 $62 $56 $46 $66 $70,899 Total SunTrust $107 $79 $73 $88 $97 $151,839 20 Note: Totals may not foot due to rounding

 

RECONCILIATION: ADJUSTED EFFICIENCY RATIO (FTE) & ADJUSTED TANGIBLE EFFICIENCY RATIO (FTE) ($ in millions) 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 2011 2012 2013 2014 2015 2016 2017 2018 Reported (GAAP) Basis Net Interest Income 1,434 1,441 1,488 1,512 1,547 5,065 5,102 4,853 4,840 4,764 5,221 5,633 5,987 Noninterest Income 833 796 829 782 818 3,421 5,373 3,214 3,323 3,268 3,383 3,354 3,226 Revenue 2,267 2,237 2,317 2,294 2,365 8,486 10,475 8,067 8,163 8,032 8,604 8,987 9,213 Noninterest Expense¹ 1,520 1,417 1,390 1,384 1,482 6,194 6,284 5,831 5,543 5,160 5,468 5,764 5,673 Efficiency Ratio 67.0% 63.3% 60.0% 60.3% 62.7% 73.0% 60.0% 72.3% 67.9% 64.2% 63.6% 64.1% 61.6% Reconciliation: Net Interest Income 1,434 1,441 1,488 1,512 1,547 5,065 5,102 4,853 4,840 4,764 5,221 5,633 5,987 FTE Adjustment 38 20 22 22 23 114 123 127 142 142 138 145 88 Net Interest Income-FTE 1,472 1,461 1,510 1,534 1,570 5,179 5,225 4,980 4,982 4,906 5,359 5,778 6,075 Noninterest Income 833 796 829 782 818 3,421 5,373 3,214 3,323 3,268 3,383 3,354 3,226 Revenue-FTE 2,305 2,257 2,339 2,316 2,388 8,600 10,598 8,194 8,305 8,174 8,742 9,132 9,301 Efficiency Ratio-FTE 65.9% 62.8% 59.4% 59.8% 62.1% 72.0% 59.3% 71.2% 66.7% 63.1% 62.6% 63.1% 61.0% Adjustment Items (Noninterest Income): 3Q-4Q 12 student / Ginnie Mae loan sale (losses) (92) Securities gain related to the sale of Coca Cola stock 1,938 Pre-tax mortgage repurchase provision related to loans sold to GSEs prior to 2009 (371) GSE mortgage repurchase settlements (63) RidgeWorth sale 105 Premium Assignment Corporation sale 107 107 Securities & MSR losses in connection with tax reform-related actions (114) (114) Adjusted Noninterest Income 840 796 829 782 818 3,421 3,898 3,277 3,218 3,268 3,383 3,361 3,226 Adjusted Revenue-FTE² 2,313 2,257 2,339 2,316 2,388 8,600 9,123 8,257 8,200 8,174 8,742 9,139 9,301 Noninterest Expense¹ 1,520 1,417 1,390 1,384 1,482 6,194 6,284 5,831 5,543 5,160 5,468 5,764 5,673 Adjustment Items (Noninterest Expense): Legacy affordable housing impairment 96 Charitable contribution of KO shares 38 Impact of certain legacy mortgage legal matters 323 324 Mortgage servicing advances allowance increase 96 Efficiency related charges as outlined in 12/4/17 8-K 36 36 Contribution to communities / teammates in connection with tax-reform 75 75 Legacy pension settlement charge 60 60 Adjusted Noninterest Expense² 1,409 1,417 1,390 1,384 1,422 6,194 6,150 5,412 5,219 5,160 5,468 5,653 5,613 Amortization Expense 25 15 17 19 22 43 46 23 25 40 49 75 73 Adjusted Tangible Expenses² 1,384 1,402 1,373 1,365 1,400 6,151 6,104 5,389 5,194 5,120 5,419 5,578 5,540 Adjusted Efficiency Ratio-FTE³ 60.9% 62.8% 59.4% 59.8% 59.6% 72.0% 67.4% 65.6% 63.7% 63.1% 62.6% 61.9% 60.3% Adjusted Tangible Efficiency Ratio-FTE³ 59.9% 62.1% 58.7% 58.9% 58.6% 71.5% 66.9% 65.3% 63.3% 62.6% 62.0% 61.0% 59.6% 1. In accordance with updated GAAP, amortization of affordable housing investments were reclassified and are now presented in provision for income taxes for 2013. Previously, the amortization was presented in other noninterest expense 2. Adjusted revenue and expenses are provided as they remove certain items that are material and potentially non-recurring. Adjusted figures are intended to provide management and investors information on trends that are more comparable across periods and potentially more comparable across institutions 21 3. Represents adjusted noninterest expense / adjusted revenue–FTE. Adjusted tangible efficiency ratio excludes amortization expense, the impact of which is (1.08%), (0.66%), (0.73%), (0.82%), (0.92%), (0.50%), (0.50%), (0.28%), (0.30%), (0.49%), (0.56%), (0.82%), (0.78%) for 4Q 17, 1Q 18, 2Q 18, 3Q 18, 4Q 18, 2011, 2012, 2013, 2014, 2015, 2016, 2017, and 2018 respectively

 

RECONCILIATION: OTHER NON-GAAP MEASURES ($ in billions, except per-share data) 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Total Shareholders' Equity $25.2 $24.3 $24.3 $24.1 $24.3 Goodwill, Net of Deferred Taxes (6.2) (6.2) (6.2) (6.2) (6.2) Other Intangible Assets Including MSRs, Net of Deferred Taxes (1.8) (2.0) (2.0) (2.1) (2.1) MSRs 1.8 2.0 2.0 2.1 2.0 Tangible Equity $19.0 $18.1 $18.1 $18.0 $18.1 Noncontrolling Interest (0.1) (0.1) (0.1) (0.1) (0.1) Preferred Stock (2.5) (2.0) (2.0) (2.0) (2.0) Tangible Common Equity $16.4 $16.0 $16.0 $15.8 $16.0 Total Assets 206.0 204.9 207.5 211.3 215.5 Goodwill (6.3) (6.3) (6.3) (6.3) (6.3) Other Intangible Assets Including MSRs, Net of Deferred Taxes (1.8) (2.0) (2.0) (2.1) (2.1) MSRs 1.8 2.0 2.0 2.1 2.0 Tangible Assets $199.6 $198.5 $201.2 $204.9 $209.2 Book Value Per Common Share $47.94 $47.14 $47.70 $48.00 $49.57 Tangible Book Value Per Common Share $34.82 $33.97 $34.40 $34.51 $35.73 22 Note: Totals may not foot due to rounding

 

4Q 2017 DISCRETE ITEMS ($ in millions, except per-share data) Pre-Tax After-Tax Line Item Impacted Segment Items Gain on sale of Premium Assignment Corporation (PAC) $107 $65 Other noninterest income Wholesale Announced SunTrust Mortgage state NOL valuation allowance adjustment - ($27) Provision for income taxes Corporate Other in Net charge related to efficiency actions ($36) ($22) Other noninterest expense All 12/4/2017 Sub-Total $16 8-K EPS Impact $0.03 Revaluation of the net DTL & other discrete tax items - $291 Provision for income taxes Corporate Other Tax Securities AFS portfolio restructuring losses ($109) ($69) Securities gains/(losses) Corporate Other Reform Charitable contribution to SunTrust Foundation ($50) ($31) Marketing & customer development Corporate Other Impacts & Discretionary 401(k) contribution and other employee benefits ($25) ($16) Employee compensation & benefits All Related Loss on sale of servicing rights ($5) ($3) Mortgage servicing related income Consumer Actions Sub-Total $172 EPS Impact $0.36 Reported Adjusted Earnings Per Share $1.48 $1.09 4Q 17 Efficiency Ratio (FTE)¹ 65.9% 60.9% Tangible Efficiency Ratio (FTE)¹ 64.8% 59.9% Earnings Per Share $4.47 $4.09 2017 Efficiency Ratio (FTE)¹ 63.1% 61.9% Tangible Efficiency Ratio (FTE)¹ 62.3% 61.0% 23 1. The efficiency ratio and tangible efficiency ratios are reported on fully taxable-equivalent (“FTE”) basis. Please refer to slide 21 for GAAP reconciliations. Numbers may not foot due to rounding