8-K Cover Page - 3Q 2014 Earnings

0000750556-14-000175.txt : 20141104 0000750556-14-000175.hdr.sgml : 20141104 20141104080645 ACCESSION NUMBER: 0000750556-14-000175 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20141104 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20141104 DATE AS OF CHANGE: 20141104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNTRUST BANKS INC CENTRAL INDEX KEY: 0000750556 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 581575035 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08918 FILM NUMBER: 141191138 BUSINESS ADDRESS: STREET 1: 303 PEACHTREE ST N E CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045887711 MAIL ADDRESS: STREET 1: 303 PEACHTREE ST N E CITY: ATLANTA STATE: GA ZIP: 30308 8-K 1 a8-kcoverpagex3q2014earnin.htm 8-K 8-K Cover Page - 3Q 2014 Earnings - Filed

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):		November 4, 2014

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		(404) 558-7711



		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))

Item 8.01 Other Events.

On October 17, 2014, SunTrust Banks, Inc. (the “Company”) furnished to the Securities and Exchange Commission (the “Commission”) a copy of a news release announcing the Company’s results for the quarter ended September 30, 2014 as Exhibit 99.1 to a current report on Form 8-K. The Company is filing this current report on Form 8-K for the purpose of causing portions of such news release to be deemed filed with the Commission and thereby incorporated into certain registration statements. The portion of the October 17, 2014 news release that the Company is filing with the Commission is attached hereto as Exhibit 99.1, and Exhibit 99.1 to this current report is incorporated herein by reference. All information in Exhibit 99.1 is provided as of the date thereof, and the Company does not assume any obligation to update said information in the future.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits



99.1		Financial data as of September 30, 2014

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:	November 4, 2014	By: /s/ Thomas E. Panther
		Thomas E. Panther,
		Senior Vice President, Director of Corporate Finance and Controller

EX-99.1 2 a093014ernarrativeandtable.htm EXHIBIT 09.30.14 ER Narrative and Tables - Streamlined

Exhibit 99.1

Third Quarter 2014 Financial Highlights

Income Statement


•	Net income available to common shareholders was $563 million, or $1.06 per average common diluted share; excluding the $130 million tax benefit in the current quarter, net income available to common shareholders was $433 million, or $0.81 per share.


◦	On an adjusted basis, earnings per share were flat compared to the prior quarter and increased $0.15, or 23%, compared to the third quarter of 2013.


•	Total revenue declined $170 million, compared to the prior quarter primarily driven by the $105 million gain on sale of RidgeWorth in the prior quarter and foregone RidgeWorth-related revenue, as well as a decline in investment banking income.


•	Compared to the third quarter of 2013, total revenue increased 6%. Excluding the $63 million incremental mortgage repurchase provision incurred in the third quarter of 2013, total revenue increased 2% driven primarily by higher mortgage servicing income.


•	Reported noninterest expense decreased $258 million compared to the prior quarter. Excluding the $179 million in specific legacy mortgage-related losses incurred in the prior quarter, noninterest expense declined $79 million, or 6%.


•	The efficiency and tangible efficiency ratios in the quarter were 62.0% and 61.7%, respectively.

Balance Sheet


•	For the third quarter, total loans (on a period-end basis) increased 2% and 6% compared to June 30, 2014 and September 30, 2013, respectively, with the growth occurring in C&I, commercial real estate, and consumer loans, while residential mortgage loans continued to trend down.


◦	Average performing loans were unchanged as growth in the commercial and consumer portfolios was offset by the $2 billion transfer of guaranteed residential mortgage loans to loans held for sale in the second quarter. The ultimate sale was subsequently completed in the third quarter.


•	Average investment securities increased 6% sequentially and 7% compared to the third quarter of 2013 in anticipation of forthcoming liquidity-related regulatory requirements.


•	Average client deposits increased 1% sequentially and 4% compared to the third quarter of 2013, with the favorable mix shift toward lower-cost deposits continuing.

Capital


•	Estimated capital ratios continued to be well above regulatory requirements. The Basel I Tier 1 common and Basel III common equity Tier 1 ratios were estimated to be 9.6% and 9.7%, respectively.


•	During the quarter, the Company repurchased $215 million of common shares.


•	Book value per share was $40.85 and tangible book value per common share was $29.21, both up 2% compared to June 30, 2014. The increase was primarily due to growth in retained earnings.

Asset Quality


•	Asset quality continued to improve as nonperforming loans decreased 15% from the prior quarter and totaled 0.58% of total loans at September 30, 2014.


•	Annualized net charge-offs increased 4 basis points sequentially, representing 0.39% of average loans.


•	The provision for credit losses increased $20 million compared to the prior quarter primarily due to a modest increase in net charge-offs.




(Dollars in millions, except per share data)
Income Statement (presented on a fully taxable-equivalent basis)	3Q 2013			2Q 2014			3Q 2014
Net income available to common shareholders	$179			$387			$563
Earnings per average common diluted share	0.33			0.72			1.06
Adjusted earnings per average common diluted share ⁽¹⁾	0.66			0.81			0.81
Total revenue	1,920			2,201			2,031
Net interest income	1,240			1,244			1,251
Provision for credit losses	95			73			93
Noninterest income	680			957			780
Noninterest expense	1,730			1,517			1,259
Net interest margin	3.19		%	3.11		%	3.03		%

Balance Sheet
(Dollars in billions)
Average loans		$122.7			$130.7			$130.7
Average consumer and commercial deposits	126.6			130.5			132.2

Capital
Tier 1 capital ratio ⁽²⁾	10.97		%	10.66		%	10.50		%
Tier 1 common ratio ⁽²⁾	9.94		%	9.72		%	9.60		%
Total average shareholders’ equity to total average assets	12.24		%	12.23		%	12.10		%

Asset Quality
Net charge-offs to average loans (annualized)	0.47		%	0.35		%	0.39		%
Allowance for loan and lease losses to period-end loans	1.67		%	1.55		%	1.49		%
Nonperforming loans to total loans	0.83		%	0.69		%	0.58		%

(1) See page 16 for non-GAAP reconciliation

(2) Current period Tier 1 capital and Tier 1 common ratios are estimated as of the date of this financial information.

Consolidated Financial Performance Details

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

Revenue

Total revenue was $2.0 billion for the current quarter, a decline of $170 million, compared to the prior quarter. Excluding the $105 million gain on sale of RidgeWorth in the prior quarter, total revenue declined $65 million, or 3%. The decrease was primarily driven by a decline in investment banking income and foregone RidgeWorth-related revenue. Compared to the third quarter of 2013, total revenue increased $111 million; however, the third quarter of 2013 included a $63 million incremental mortgage repurchase provision expense in conjunction with the settlement of Government Sponsored Entities ("GSE") repurchase claims. The remaining increase was primarily driven by higher mortgage servicing income, gains on the sale of mortgage loans held for sale in the current quarter, higher retail investment services income and a slight increase in net interest income, partially offset by the foregone RidgeWorth revenue.

For the nine months ended September 30, 2014, total revenue was $6.3 billion, an increase of $128 million compared to the first nine months of 2013. The increase was primarily driven by the gain on the sale of RidgeWorth (partially offset by the foregone associated wealth management revenue), gains on the sale of mortgage loans in 2014, and higher mortgage servicing, investment banking, and retail investment income. These revenue increases were partially offset by significantly lower mortgage production income driven by a decline in loan production volume.

Net Interest Income

Net interest income was $1.3 billion for the current quarter, an increase of $7 million compared to the prior quarter. The increase was primarily due to one additional day in the current quarter and higher average earning assets, partially offset by an 8 basis point decline in net interest margin. Compared to the third quarter of 2013, net interest income increased $11 million primarily due to higher average loan balances, partially offset by a 16 basis point decline in net interest margin.

Net interest margin for the current quarter was 3.03%, a decline of 8 basis points from the prior quarter, primarily driven by a 7 basis point decline in loan yields and a 9 basis point decline in investment securities yields. Compared to the third quarter of 2013, net interest margin declined 16 basis points due to a 21 basis point reduction in loan yields.

For the nine months ended September 30, 2014 and 2013, net interest income was virtually unchanged at $3.7 billion. The net interest margin was 3.11% for the first nine months of 2014, a 14 basis point decline compared to the same period in 2013. The decline in net interest margin was primarily driven by lower loan yields.

Noninterest Income

Noninterest income was $780 million for the current quarter, compared to $957 million for the prior quarter and $680 million for the third quarter of 2013. Excluding the $105 million gain on sale of RidgeWorth from the prior quarter, noninterest income declined $72 million sequentially. The sequential quarter decrease was due to a $31 million decline in investment banking income, a $23 million decline in trust and investment management revenue as a result of the sale of RidgeWorth, the recognition of a $49 million impairment of lease financing assets, and a $9 million loss on the sale of investment securities. These declines were partially offset by a $41 million gain related to the $2 billion guaranteed residential mortgage loan sale in the current quarter. Compared to the third quarter of 2013, noninterest income increased $100 million of which $63 million related to aforementioned mortgage repurchase provision. The remaining increase was primarily due to the aforementioned $41 million gain, higher mortgage servicing income, partially offset by the foregone RidgeWorth wealth management revenue. Additionally, retail investment income, service charges on deposit accounts and other fee-based income increased modestly over the same period last year.

Mortgage production income for the current quarter was $45 million compared to $52 million for the prior quarter and a $10 million loss for the third quarter of 2013. The $7 million decrease compared to the prior quarter was primarily driven by a decline in gain on sale margins. Compared to the third quarter of 2013, mortgage production income increased $55 million. This was primarily due to the aforementioned $63 million mortgage repurchase provision incurred last year. Mortgage production volume declined 43% during the current quarter compared to the third quarter of 2013 largely attributable to the decline in refinance activity, while gain on sale margins improved compared to the same period last year.

Mortgage servicing income was $44 million in the current quarter compared to $45 million in the prior quarter and $11 million the third quarter of 2013. Compared to the third quarter of 2013, the $33 million increase was primarily due to a decline in loan prepayments, resulting in lower decay and improved net MSR hedge performance. The servicing portfolio was $136 billion at September 30, 2014 compared to $140 billion at September 30, 2013.

Investment banking income was $88 million for the current quarter compared to $119 million in the prior quarter and $99 million in the third quarter of 2013. The sequential quarter decrease was driven by the strong performance in the second quarter in addition to seasonally lower client activity levels. Compared to the third quarter of 2013, the decline was largely attributable to lower M&A advisory revenues. Trading income was $46 million for the current quarter compared to $47 million for the prior quarter and $33 million for the third quarter of 2013. The $13 million increase compared to the third quarter of 2013 was partially driven by a $7 million improvement in mark-to-market valuations on the Company's debt carried at fair value and slightly higher core trading revenue.

Trust and investment management income was $93 million for the current quarter compared to $116 million in the prior quarter and $133 million in the third quarter of 2013. The declines compared to both periods were due to the foregone revenue as a result of the sale of RidgeWorth.

Other noninterest income was $52 million for the current quarter compared to $170 million for the prior quarter and $10 million for the third quarter of 2013. The $118 million decrease compared to the prior quarter was driven by the $105 million gain on sale of RidgeWorth in the prior quarter and a $49 million impairment of lease financing assets in the current quarter, partially offset by a $22 million increase in gains on the sale of government guaranteed residential mortgage loans over the prior quarter and higher leasing-related income. The $42 million increase compared to the third quarter of 2013 was primarily driven by the previously discussed $41 million loan sale gain.

For the nine months ended September 30, 2014, noninterest income was $2.5 billion, an increase of $127 million over the same period in 2013. Excluding the $105 million gain on sale of RidgeWorth, noninterest income increased $22 million, largely driven by higher mortgage servicing, investment banking, retail investment income, and gains related to the sale of mortgage loans. These increases were partially offset by declines in mortgage production income and foregone wealth management revenue related to the sale of RidgeWorth.

Noninterest Expense

Noninterest expense for the current quarter was $1.3 billion compared to $1.5 billion in the prior quarter and $1.7 billion in the third quarter of 2013. Both the prior quarter and third quarter of 2013 included charges of $179 million and $419 million, respectively, related to the resolution of certain legacy mortgage-related matters. Excluding these items from the prior quarters, noninterest expense declined $79 million on a sequential quarter basis and $52 million compared to the third quarter of 2013. The decline compared to both prior quarters was the result of our overall efficiency and expense management focus, the sale of RidgeWorth, and a decline in cyclical costs.

Employee compensation and benefits expense was $730 million in the current quarter compared to $763 million in the prior quarter and $682 million in the third quarter of 2013. The sequential quarter decrease of $33 million was primarily the result of the sale of RidgeWorth, a reduction in the number of full time-equivalent employees, and declines in payroll taxes and 401(k) and medical costs. The $48 million increase from the third quarter of 2013 was primarily due to a $37 million incentive accrual reduction recognized in the third quarter of 2013.

Operating losses were $29 million in the current quarter compared to $218 million in the prior quarter, which included $179 million of legacy mortgage-related expenses, and $350 million in the third quarter of 2013, which included $323 million of legacy mortgage-related expenses.

Outside processing and software expense was $184 million in the current quarter compared to $181 million in the prior quarter and $190 million in the third quarter of 2013. The $6 million decrease compared to the third quarter of 2013 was primarily due to lower mortgage production volume.

Marketing and customer development expense was $35 million in the current quarter compared to $30 million in the prior quarter and $34 million in the third quarter of 2013. The $5 million sequential quarter increase was due to a seasonal increase in advertising expenses.

FDIC premium and regulatory costs were $29 million in the current quarter and reflected an $8 million refund received from the FDIC. FDIC premium and regulatory costs were $40 million in the prior quarter and $45 million in the third quarter of 2013. The decline related to both periods was due to a reduction in the FDIC insurance premium related to improvements in the Company's risk profile.

Other noninterest expense was $120 million in the current quarter compared to $156 million in the prior quarter and $292 million in the third quarter of 2013. The $36 million sequential quarter decrease was driven by certain discrete charges incurred in the prior quarter, an $8 million recovery during the third quarter of the market value of legacy affordable housing investments that were impaired in the first quarter of 2014, and a reduction in severance costs. The $172 million decrease from the prior year was driven by a $96 million increase in the mortgage servicing advance allowance in the third quarter of 2013 and lower credit and collections services expenses, severance costs, and real estate-related charges compared to 2013.

For the nine months ended September 30, 2014, noninterest expense was $4.1 billion compared to $4.5 billion in 2013. The $336 million decrease was due to lower legacy mortgage-related charges as described previously and broad-based declines in other operating expenses driven by the continued focus on expense management, which were partially offset by higher employee compensation costs.

Income Taxes

For the current quarter, the Company recorded an income tax provision of $67 million compared to $173 million for the prior quarter and a $133 million tax benefit for the third quarter of 2013. The current quarter tax provision included a $130 million tax benefit as a result of the completion of a tax authority examination. Excluding this benefit, the effective tax rate in the current quarter was 30.6%.

Balance Sheet

At September 30, 2014, the Company had total assets of $186.8 billion and shareholders’ equity of $22.3 billion, representing 12% of total assets. Book value per share was $40.85 and tangible book value per common share was $29.21, both up 2% compared to June 30, 2014, driven by growth in retained earnings.

Loans

Average performing loans were $129.9 billion for the current quarter, relatively stable compared to the prior quarter; however, the current quarter was impacted by the transfer and subsequent sale of $2 billion of government guaranteed mortgage loans. The Company invested the proceeds of this sale into high-quality liquid securities in anticipation of forthcoming liquidity-related regulatory requirements. The decline in mortgage loans was offset by a $1.6 billion, or 3%, increase in C&I loans, a $334 million, or 6%, increase in commercial real estate loans, and a $534 million, or 16%, increase in consumer direct loans as targeted loan growth continued during the quarter. Compared to the third quarter of 2013, average performing loans increased $8.3 billion, or 7%, as growth occurred in most portfolios with the exception of residential-related loans.

Deposits

Average client deposits for the current quarter were $132.2 billion compared to $130.5 billion in the prior quarter and $126.6 billion in the third quarter of 2013. Average client deposits increased $1.7 billion, or 1%, during the current quarter due to a $0.9 billion, or 2%, increase in average demand deposits, along with a $2.6 billion, or 6%, increase in money market account balances. The growth in these deposit balances was partially offset by a $1.0 billion, or 3%, decline in NOW account balances and a $0.7 billion, or 6%, decline in time deposit balances. Compared to the third quarter of 2013, average client deposits increased $5.6 billion, or 4%. The growth was driven by increases in lower-cost deposits and was partially offset by a $2.4 billion, or 17%, decrease in time deposits.

Capital and Liquidity

The Company’s estimated capital ratios are well above current regulatory requirements with Basel I Tier 1 capital, Basel I Tier 1 common, and Basel III common equity Tier 1 ratios at an estimated 10.50%, 9.60%, and 9.70%, respectively, at September 30, 2014. The ratios of total average equity to total average assets and tangible equity to tangible assets were 12.10% and 8.94%, respectively, at September 30, 2014, and declined slightly compared to June 30, 2014 due to balance sheet growth. The Company continues to have substantial available liquidity in the form of its client deposit base, cash, high-quality government-backed securities, and other available funding sources.

During the third quarter, the Company declared a common stock dividend of $0.20 per common share. Additionally, during the current quarter, the Company repurchased $215 million of its common stock. The Company currently expects to repurchase approximately $230 million of additional common stock over the next two quarters.

Asset Quality

Total nonperforming assets were $934 million at September 30, 2014, down 10% compared to the prior quarter and 28% compared to third quarter of 2013. During the current quarter the Company transferred $53 million of nonperforming mortgage loans to held for sale and recognized a $9 million charge-off upon transfer. At September 30, 2014, the percentage of nonperforming loans to total loans was 0.58% compared to 0.69% at June 30, 2014. Other real estate owned totaled $112 million, an 18% decrease from the prior quarter.

The provision for credit losses was $93 million, compared to $73 million for the prior quarter, as net charge-offs increased modestly, while positive loan growth was offset by improvements in asset quality. The provision for credit losses was essentially stable compared to the third quarter of 2013. Net charge-offs were $128 million during the current quarter, a $15 million increase that was partially driven by the aforementioned charge-off related to the transfer of nonperforming mortgage loans to held for sale. Compared to the third quarter 2013, net charge-offs declined $18 million mostly attributable to C&I loans and the home equity portfolio. The ratio of annualized net charge-offs to total average loans was 0.39% during the current quarter compared to 0.35% during the prior quarter and 0.47% during the third quarter of 2013.

At September 30, 2014, the allowance for loan and lease losses was $2.0 billion and represented 1.49% of total loans, a $35 million and six basis point decrease from June 30, 2014. The decline in the allowance for loan and lease losses and the allowance to total loans ratio was due to asset quality improvements during the quarter.

Early stage delinquencies declined 4 basis points from the prior quarter to 0.59% at September 30, 2014. Excluding government-guaranteed loans, early stage delinquencies were 0.30%, generally stable to the prior quarter.

Accruing restructured loans totaled $2.6 billion, and nonaccruing restructured loans totaled $0.3 billion at September 30, 2014, of which $2.7 billion of restructured loans related to residential loans, $0.1 billion were commercial loans, and $0.1 billion related to consumer loans.

BUSINESS SEGMENT FINANCIAL PERFORMANCE

Business Segment Results

The Company has included business segment financial tables as part of this financial information on the Investor Relations portion of its website at www.suntrust.com/investorrelations. The Company’s business segments include: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. All revenue in the business segment tables is reported on a fully taxable-equivalent basis. For the business segments, results include net interest income, which is computed using matched-maturity funds transfer pricing. Further, provision for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances. SunTrust also reports results for Corporate Other, which includes the Treasury department as well as the residual expense associated with operational and support expense allocations. The Corporate Other segment also includes differences created between internal management accounting practices and generally accepted accounting principles ("GAAP") and certain matched-maturity funds transfer pricing credits and charges. A detailed discussion of the business segment results will be included in the Company’s forthcoming Form 10-Q.

Corresponding Financial Tables and Information

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

Important Cautionary Statement About Forward-Looking Statements

This financial information includes non-GAAP financial measures to describe SunTrust’s performance. The reconciliations of those measures to GAAP measures are provided within or in the appendix to this financial information. In this financial information, the Company presents net interest income and net interest margin on a fully taxable-equivalent (“FTE”) basis, and ratios on an annualized basis. The FTE basis adjusts for the tax-favored status of income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

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

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward looking statements. Future dividends, and the amount of any such dividend, must be declared by our board of directors in the future in their discretion. Also, future share repurchases and the timing of any such repurchase are subject to market conditions and management's discretion. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013 and in other periodic reports that we file with the SEC.

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS

(Dollars in millions and shares in thousands, except per share data) (Unaudited)



	Three Months Ended September 30						Nine Months Ended September 30
	2014			2013			2014			2013
EARNINGS & DIVIDENDS
Net income		$576			$189			$1,380			$918
Net income available to common shareholders	563			179			1,343			884
Net income available to common shareholders, excluding the impact of Form 8-K and other legacy mortgage-related items ¹	433			358			1,262			1,063
Total revenue - FTE ^{1, 2}	2,031			1,920			6,262			6,134
Total revenue - FTE excluding gain on sale of asset management subsidiary ^{1, 2}	2,031			1,920			6,157			6,134
Net income per average common share
Diluted	1.06			0.33			2.51			1.64
Diluted, excluding the impact of Form 8-K and other legacy mortgage-related items ¹	0.81			0.66			2.35			1.97
Basic	1.07			0.33			2.54			1.65
Dividends paid per common share	0.20			0.10			0.50			0.25
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets		$183,433			$171,838			$180,098			$172,061
Earning assets	163,688			154,235			160,491			153,412
Loans	130,747			122,672			130,010			121,649
Intangible assets including MSRs	7,615			7,643			7,632			7,493
MSRs	1,262			1,232			1,249			1,077
Consumer and commercial deposits	132,195			126,618			130,369			126,947
Brokered time and foreign deposits	1,624			2,007			1,841			2,083
Total shareholders’ equity	22,191			21,027			21,972			21,138
Preferred stock	725			725			725			725
As of
Total assets							186,818			171,777
Earning assets							165,434			154,802
Loans							132,151			124,340
Allowance for loan and lease losses							1,968			2,071
Consumer and commercial deposits							135,077			126,861
Brokered time and foreign deposits							1,430			2,022
Total shareholders’ equity							22,269			21,070
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.25		%	0.44		%	1.02		%	0.71		%
Return on average common shareholders’ equity	10.41			3.49			8.45			5.79
Return on average tangible common shareholders' equity ¹	14.59			5.10			11.92			8.44
Net interest margin ²	3.03			3.19			3.11			3.25
Efficiency ratio ^{2, 3}	62.03			90.13			66.01			72.88
Tangible efficiency ratio ^{1, 2, 3}	61.69			89.82			65.79			72.58
Effective tax rate^{3, 5}	10.37			NM			20.90			16.67
Tier 1 common ⁴							9.60			9.94
Tier 1 capital ⁴							10.50			10.97
Total capital ⁴							12.30			13.04
Tier 1 leverage ⁴							9.50			9.46
Total average shareholders’ equity to total average assets	12.10			12.24			12.20			12.29
Tangible equity to tangible assets ¹							8.94			8.98

Book value per common share								$40.85			$37.85
Tangible book value per common share ¹							29.21			26.27
Market price:
High		$40.86			$36.29		41.26			36.29
Low	36.42			31.59			36.23			26.93
Close							38.03			32.42
Market capitalization							20,055			17,427
Average common shares outstanding
Diluted	533,230			538,850			535,222			539,488
Basic	527,402			533,829			529,429			534,887
Full-time equivalent employees							25,074			26,409
Number of ATMs							2,192			2,846
Full service banking offices							1,454			1,508


¹	See Appendix A for reconcilements of non-GAAP performance measures.

Total revenue, net interest margin, and efficiency ratios 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 a FTE basis plus noninterest income.


³	Amounts for periods prior to the first quarter of 2014 have been recalculated as a result of the Company’s early adoption of ASU 2014-01, which required retrospective application.


⁴	Current period tier 1 common, tier 1 capital, total capital, and tier 1 leverage ratios are estimated as of the earnings release date.

⁵ "NM" - Not meaningful. Calculated rate was not considered to be meaningful.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions and shares in thousands, except per share data) (Unaudited)



	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
Interest income		$1,353			$1,339			$4,036			$4,045
Interest expense	138			131			407			405
NET INTEREST INCOME	1,215			1,208			3,629			3,640
Provision for credit losses	93			95			268			453
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	1,122			1,113			3,361			3,187
NONINTEREST INCOME
Service charges on deposit accounts	169			168			483			492
Other charges and fees	95			91			274			277
Card fees	81			77			239			231
Trust and investment management income	93			133			339			387
Retail investment services	76			68			224			198
Investment banking income	88			99			296			260
Trading income	46			33			141			124
Mortgage production related income/(loss)	45			(10		)	140			282
Mortgage servicing related income	44			11			143			50
Net securities (losses)/gains	(9		)	—			(11		)	2
Other noninterest income	52			10			260			98
Total noninterest income	780			680			2,528			2,401
NONINTEREST EXPENSE
Employee compensation and benefits	730			682			2,293			2,178
Outside processing and software	184			190			535			555
Net occupancy expense	84			86			254			261
Equipment expense	41			45			127			136
FDIC premium/regulatory exams	29			45			109			140
Marketing and customer development	35			34			91			95
Operating losses	29			350			268			461
Amortization	7			6			14			18
Other noninterest expense ¹	120			292			443			626
Total noninterest expense	1,259			1,730			4,134			4,470
INCOME BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	643			63			1,755			1,118
Provision/(benefit) for income taxes ¹	67			(133		)	364			184
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	576			196			1,391			934
Net income attributable to noncontrolling interest	—			7			11			16
NET INCOME		$576			$189			$1,380			$918
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$563			$179			$1,343			$884
Net interest income - FTE ²	1,251			1,240			3,734			3,733
Net income per average common share
Diluted	1.06			0.33			2.51			1.64
Basic	1.07			0.33			2.54			1.65
Cash dividends paid per common share	0.20			0.10			0.50			0.25
Average common shares outstanding
Diluted	533,230			538,850			535,222			539,488
Basic	527,402			533,829			529,429			534,887

¹ Amortization expense related to qualified affordable housing investment costs is recognized in provision/(benefit) for income taxes for the three and nine months ended September 30, 2014 as allowed by a recently adopted accounting standard. Prior to the first quarter of 2014, these amounts were recognized in other noninterest expense and therefore, for comparative purposes, $13 million and $33 million of amortization expense have been reclassified to provision/(benefit) for income taxes for the three and nine months ended September 30, 2013, respectively.

²Net interest income includes the effects of FTE adjustments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis. See Appendix A for a reconcilement of this non-GAAP measure to the related GAAP measure.

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Dollars in millions and shares in thousands, except per share data) (Unaudited)



	September 30			December 31
	2014			2013
ASSETS
Cash and due from banks		$7,178			$4,258
Federal funds sold and securities borrowed or purchased under agreements to resell	1,125			983
Interest-bearing deposits in other banks	22			22
Trading assets and derivatives	5,782			5,040
Securities available for sale	26,162			22,542
Loans held for sale	1,739			1,699
Loans held for investment:
Commercial and industrial	63,140			57,974
Commercial real estate	6,704			5,481
Commercial construction	1,250			855
Residential mortgages - guaranteed	651			3,416
Residential mortgages - nonguaranteed	23,718			24,412
Residential home equity products	14,389			14,809
Residential construction	464			553
Consumer student loans - guaranteed	5,314			5,545
Consumer other direct	4,110			2,829
Consumer indirect	11,594			11,272
Consumer credit cards	817			731
Total loans held for investment	132,151			127,877
Allowance for loan and lease losses	(1,968		)	(2,044		)
Net loans held for investment	130,183			125,833
Goodwill	6,337			6,369
Other intangible assets	1,320			1,334
Other real estate owned	112			170
Other assets	6,858			7,085
Total assets ¹		$186,818			$175,335
LIABILITIES
Deposits:
Noninterest-bearing consumer and commercial deposits		$42,542			$38,800
Interest-bearing consumer and commercial deposits:
NOW accounts	28,414			28,164
Money market accounts	46,892			41,873
Savings	6,046			5,842
Consumer time	7,068			8,475
Other time	4,115			4,581
Total consumer and commercial deposits	135,077			127,735
Brokered time deposits	1,180			2,024
Foreign deposits	250			—
Total deposits	136,507			129,759
Funds purchased	1,000			1,192
Securities sold under agreements to repurchase	2,089			1,759
Other short-term borrowings	7,283			5,788
Long-term debt	12,942			10,700
Trading liabilities and derivatives	1,231			1,181
Other liabilities	3,497			3,534
Total liabilities	164,549			153,913
SHAREHOLDERS’ EQUITY
Preferred stock, no par value	725			725
Common stock, $1.00 par value	550			550
Additional paid in capital	9,090			9,115
Retained earnings	13,020			11,936
Treasury stock, at cost, and other	(939		)	(615		)
Accumulated other comprehensive loss	(177		)	(289		)
Total shareholders’ equity	22,269			21,422
Total liabilities and shareholders’ equity		$186,818			$175,335

Common shares outstanding	527,358			536,097
Common shares authorized	750,000			750,000
Preferred shares outstanding	7			7
Preferred shares authorized	50,000			50,000
Treasury shares of common stock	22,563			13,824

¹Includes earning assets of $165,434 and $156,856 at September 30, 2014 and December 31, 2013, respectively.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, AVERAGE YIELDS EARNED AND RATES PAID (Dollars in millions; yields on taxable-equivalent basis) (Unaudited)
	Three Months Ended
	September 30, 2014							September 30, 2013
	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
Loans:
Commercial and industrial - FTE ¹		$61,700			$548	3.53	%		$54,666			$535	3.88	%
Commercial real estate	6,386			46		2.86		4,615			37		3.18
Commercial construction	1,162			9		3.21		704			6		3.38
Residential mortgages - guaranteed	635			6		3.64		3,526			28		3.14
Residential mortgages - nonguaranteed	23,722			236		3.99		23,258			238		4.09
Home equity products	14,260			129		3.58		14,549			133		3.63
Residential construction	445			6		5.27		529			7		4.88
Guaranteed student loans	5,360			49		3.66		5,453			52		3.81
Other direct	3,876			41		4.20		2,563			28		4.33
Indirect	11,556			92		3.15		11,069			94		3.36
Credit cards	788			19		9.74		656			16		9.73
Nonaccrual	857			5		2.16		1,084			6		2.37
Total loans	130,747			1,186		3.60		122,672			1,180		3.81
Securities available for sale:
Taxable	24,195			151		2.49		22,494			140		2.49
Tax-exempt - FTE¹	235			3		5.24		243			3		5.16
Total securities available for sale	24,430			154		2.52		22,737			143		2.52
Federal funds sold and securities borrowed or purchased under agreements to resell	1,036			—		—		1,029			—		0.01
Loans held for sale	3,367			30		3.53		3,344			30		3.58
Interest-bearing deposits	53			—		0.05		22			—		0.11
Interest earning trading assets	4,055			19		1.85		4,431			18		1.64
Total earning assets	163,688			1,389		3.37		154,235			1,371		3.53
Allowance for loan and lease losses	(1,988		)					(2,112		)
Cash and due from banks	5,573							3,867
Other assets	14,613							14,271
Noninterest earning trading assets and derivatives	1,215							1,529
Unrealized gains on securities available for sale, net	332							48
Total assets		$183,433							$171,838
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$28,224			$5	0.07	%		$25,435			$4	0.06	%
Money market accounts	45,562			17		0.15		43,019			13		0.12
Savings	6,098			1		0.03		5,802			1		0.04
Consumer time	7,186			14		0.75		8,895			25		1.12
Other time	4,182			10		0.99		4,830			15		1.26
Total interest-bearing consumer and commercial deposits	91,252			47		0.20		87,981			58		0.26
Brokered time deposits	1,392			7		1.91		1,989			12		2.44
Foreign deposits	232			—		0.11		18			—		0.11
Total interest-bearing deposits	92,876			54		0.23		89,988			70		0.31
Funds purchased	937			—		0.10		505			—		0.09
Securities sold under agreements to repurchase	2,177			1		0.13		1,885			1		0.13
Interest-bearing trading liabilities	778			5		2.72		720			5		2.58
Other short-term borrowings	6,559			4		0.23		5,222			3		0.27
Long-term debt	13,064			74		2.24		9,891			52		2.06
Total interest-bearing liabilities	116,391			138		0.47		108,211			131		0.48
Noninterest-bearing deposits	40,943							38,637
Other liabilities	3,620							3,428
Noninterest-bearing trading liabilities and derivatives	288							535
Shareholders’ equity	22,191							21,027
Total liabilities and shareholders’ equity		$183,433							$171,838
Interest Rate Spread						2.90	%						3.05	%
Net Interest Income - FTE¹					$1,251							$1,240
Net Interest Margin ²						3.03	%						3.19	%

¹The fully taxable-equivalent (“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.

² The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets.



SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, AVERAGE YIELDS EARNED AND RATES PAID, continued (Dollars in millions; yields on taxable-equivalent basis) (Unaudited)
	Nine Months Ended
	September 30, 2014							September 30, 2013
	Average Balances			Interest Income/ Expense		Yields/ Rates		Average Balances			Interest Income/ Expense		Yields/ Rates
ASSETS
Loans:
Commercial and industrial - FTE ¹		$60,055			$1,630	3.63	%		$54,310			$1,635	4.03	%
Commercial real estate	6,021			131		2.90		4,325			107		3.31
Commercial construction	1,022			25		3.31		665			18		3.53
Residential mortgages - guaranteed	2,316			63		3.63		3,789			81		2.86
Residential mortgages - nonguaranteed	23,834			717		4.01		22,708			717		4.21
Home equity products	14,389			386		3.58		14,424			393		3.64
Residential construction	468			16		4.66		567			21		4.97
Guaranteed student loans	5,448			149		3.67		5,397			155		3.84
Other direct	3,396			107		4.22		2,466			81		4.39
Indirect	11,415			273		3.19		11,046			284		3.43
Credit cards	746			54		9.64		630			46		9.69
Nonaccrual	900			16		2.31		1,322			27		2.71
Total loans	130,010			3,567		3.67		121,649			3,565		3.92
Securities available for sale:
Taxable	23,145			448		2.58		22,514			421		2.49
Tax-exempt - FTE¹	254			10		5.26		266			10		5.19
Total securities available for sale	23,399			458		2.61		22,780			431		2.53
Federal funds sold and securities borrowed or purchased under agreements to resell	1,021			—		—		1,075			—		0.02
Loans held for sale	2,172			61		3.77		3,544			90		3.37
Interest-bearing deposits	33			—		0.10		22			—		0.10
Interest earning trading assets	3,856			55		1.90		4,342			52		1.59
Total earning assets	160,491			4,141		3.45		153,412			4,138		3.61
Allowance for loan and lease losses	(2,016		)					(2,144		)
Cash and due from banks	5,474							4,258
Other assets	14,706							14,361
Noninterest earning trading assets and derivatives	1,221							1,667
Unrealized gains on securities available for sale, net	222							507
Total assets		$180,098							$172,061
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts		$28,378			$16	0.07	%		$25,941			$13	0.07	%
Money market accounts	43,771			45		0.14		42,621			42		0.13
Savings	6,105			2		0.04		5,713			2		0.05
Consumer time	7,731			53		0.92		9,158			78		1.14
Other time	4,370			35		1.08		5,036			50		1.32
Total interest-bearing consumer and commercial deposits	90,355			151		0.22		88,469			185		0.28
Brokered time deposits	1,762			29		2.16		2,037			39		2.53
Foreign deposits	79			—		0.11		46			—		0.14
Total interest-bearing deposits	92,196			180		0.26		90,552			224		0.33
Funds purchased	917			—		0.09		625			1		0.10
Securities sold under agreements to repurchase	2,176			2		0.12		1,824			2		0.15
Interest-bearing trading liabilities	753			16		2.76		731			13		2.36
Other short-term borrowings	5,984			11		0.24		4,794			9		0.26
Long-term debt	12,155			198		2.17		9,652			156		2.15
Total interest-bearing liabilities	114,181			407		0.48		108,178			405		0.50
Noninterest-bearing deposits	40,014							38,478
Other liabilities	3,584							3,743
Noninterest-bearing trading liabilities and derivatives	347							524
Shareholders’ equity	21,972							21,138
Total liabilities and shareholders’ equity		$180,098							$172,061
Interest Rate Spread						2.97	%						3.11	%
Net Interest Income - FTE¹					$3,734							$3,733
Net Interest Margin ²						3.11	%						3.25	%

²The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets.



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA (Dollars in millions) (Unaudited)
	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
CREDIT DATA
Allowance for credit losses - beginning		$2,046			$2,172			$2,094			$2,219
Provision/(benefit) for unfunded commitments	—			3			(7		)	5
Provision/(benefit) for loan losses:
Commercial	25			77			82			183
Residential	34			(6		)	114			184
Consumer	34			21			79			81
Total provision for loan losses	93			92			275			448
Charge-offs:
Commercial	(26		)	(52		)	(97		)	(176		)
Residential	(104		)	(109		)	(279		)	(430		)
Consumer	(34		)	(28		)	(97		)	(89		)
Total charge-offs	(164		)	(189		)	(473		)	(695		)
Recoveries:
Commercial	14			13			40			48
Residential	12			21			52			67
Consumer	10			9			30			29
Total recoveries	36			43			122			144
Net charge-offs	(128		)	(146		)	(351		)	(551		)
Allowance for credit losses - ending		$2,011			$2,121			$2,011			$2,121
Components:
Allowance for loan and lease losses								$1,968			$2,071
Unfunded commitments reserve							43			50
Allowance for credit losses								$2,011			$2,121
Net charge-offs to average loans (annualized):
Commercial	0.07		%	0.26		%	0.11		%	0.29		%
Residential	0.91			0.82			0.73			1.14
Consumer	0.45			0.39			0.43			0.41
Total net charge-offs to total average loans	0.39			0.47			0.36			0.61
Period Ended
Nonaccrual/nonperforming loans:
Commercial								$219			$275
Residential							535			752
Consumer							8			10
Total nonaccrual/nonperforming loans							762			1,037
Other real estate owned (“OREO”)							112			196
Other repossessed assets							7			9
Nonperforming loans held for sale ("LHFS")							53			59
Total nonperforming assets								$934			$1,301
Accruing restructured loans								$2,596			$2,744
Nonaccruing restructured loans							316			406
Accruing loans past due > 90 days (guaranteed)							1,031			1,108
Accruing loans past due > 90 days (non-guaranteed)							35			55
Nonperforming loans to total loans							0.58		%	0.83		%
Nonperforming assets to total loans plus OREO, other repossessed assets, and nonperforming LHFS							0.71			1.04
Allowance to period-end loans ^1,2							1.49			1.67
Allowance to period-end loans, excluding government guaranteed loans ^1,2,3							1.56			1.80
Allowance to nonperforming loans ^1,2							260			201
Allowance to annualized net charge-offs ¹	3.88x			3.58x

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

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

³ See Appendix A for reconciliation of non-GAAP performance measures.



SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued (Dollars in millions and shares in thousands) (Unaudited)
	Three Months Ended September 30												Nine Months Ended September 30
	Core Deposit Intangibles			MSRs - Fair Value			Other			Total			Core Deposit Intangibles			MSRs - Fair Value			Other			Total
OTHER INTANGIBLE ASSET ROLLFORWARD
Balance, beginning of period		$10			$1,199			$35			$1,244			$17			$899			$40			$956
Amortization	(3		)	—			(3		)	(6		)	(10		)	—			(8		)	(18		)
Mortgage servicing rights (“MSRs”) originated	—			99			—			99			—			302			—			302
Fair value changes due to inputs and assumptions ¹	—			10			—			10			—			260			—			260
Other changes in fair value ²	—			(60		)	—			(60		)	—			(212		)	—			(212		)
Sale of MSRs	—			—			—			—			—			(1		)	—			(1		)
Balance, September 30, 2013		$7			$1,248			$32			$1,287			$7			$1,248			$32			$1,287

Balance, beginning of period		$1			$1,259			$17			$1,277			$4			$1,300			$30			$1,334
Amortization	(1		)	—			(2		)	(3		)	(4		)	—			(6		)	(10		)
MSRs originated	—			68			—			68			—			137			—			137
MSRs purchased	—			33			—			33			—			109			—			109
Fair value changes due to inputs and assumptions ¹	—			(9		)	—			(9		)	—			(117		)	—			(117		)
Other changes in fair value ²	—			(45		)	—			(45		)	—			(123		)	—			(123		)
Sale of MSRs	—			(1		)	—			(1		)	—			(1		)	—			(1		)
Sale of asset management subsidiary	—			—			—			—			—			—			(9		)	(9		)
Balance, September 30, 2014		$—			$1,305			$15			$1,320			$—			$1,305			$15			$1,320

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

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



SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE EARNINGS RELEASE (Dollars in millions, except per share data) (Unaudited)
	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
NON-GAAP MEASURES PRESENTED IN THE EARNINGS RELEASE ¹
Net interest income		$1,215			$1,208			$3,629			$3,640
Taxable-equivalent adjustment	36			32			105			93
Net interest income - FTE	1,251			1,240			3,734			3,733
Noninterest income	780			680			2,528			2,401
Total revenue - FTE	2,031			1,920			6,262			6,134
Gain on sale of asset management subsidiary	—			—			(105		)	—
Total revenue - FTE excluding gain on sale of asset management subsidiary ²		$2,031			$1,920			$6,157			$6,134
Noninterest income		$780			$680			$2,528			$2,401
Gain on sale of asset management subsidiary	—			—			(105		)	—
Noninterest income excluding gain on sale of asset management subsidiary ²		$780			$680			$2,423			$2,401
Return on average common shareholders’ equity	10.41		%	3.49		%	8.45		%	5.79		%
Effect of removing average intangible assets, excluding MSRs	4.18			1.61			3.47			2.65
Return on average tangible common shareholders' equity ³	14.59		%	5.10		%	11.92		%	8.44		%
Efficiency ratio ^{4, 5}	62.03		%	90.13		%	66.01		%	72.88		%
Impact of excluding amortization of intangible assets	(0.34		)	(0.31		)	(0.22		)	(0.30		)
Tangible efficiency ratio ^{5, 6}	61.69		%	89.82		%	65.79		%	72.58		%

	September 30			September 30
	2014			2013
Total shareholders' equity		$22,269			$21,070
Goodwill, net of deferred taxes of $210 million and $180 million, respectively	(6,127		)	(6,189		)
Other intangible assets, net of deferred taxes of $0 and $2 million, respectively, and MSRs	(1,320		)	(1,285		)
MSRs	1,305			1,248
Tangible equity	16,127			14,844
Preferred stock	(725		)	(725		)
Tangible common equity		$15,402			$14,119
Total assets		$186,818			$171,777
Goodwill	(6,337		)	(6,369		)
Other intangible assets including MSRs	(1,320		)	(1,287		)
MSRs	1,305			1,248
Tangible assets		$180,466			$165,369
Tangible equity to tangible assets ⁷	8.94		%	8.98		%
Tangible book value per common share ⁸		$29.21			$26.27

Total loans		$132,151			$124,340
Government guaranteed loans	(5,965		)	(9,016		)
Loans held at fair value	(284		)	(316		)
Total loans, excluding government guaranteed and fair value loans		$125,902			$115,008
Allowance to total loans, excluding government guaranteed and fair value loans ⁹	1.56		%	1.80		%



SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE EARNINGS RELEASE, continued (Dollars in millions, except per share data) (Unaudited)
	Three Months Ended									Nine Months Ended
	September 30			June 30			September 30			September 30
	2014			2014			2013			2014			2013
NON-GAAP MEASURES PRESENTED IN THE EARNINGS RELEASE ¹
Net income available to common shareholders		$563			$387			$179			$1,343			$884
Form 8-K and other legacy mortgage-related items:
Operating losses related to settlement of certain legal matters	—			204			323			204			323
Mortgage repurchase provision related to repurchase settlements	—			—			63			—			63
Provision for unrecoverable servicing advances	—			—			96			—			96
Gain on sale of asset management subsidiary	—			(105		)	—			(105		)	—
Other legacy mortgage-related adjustments	—			(25		)	—			(25		)	—
Tax benefit related to above items	—			(25		)	(190		)	(25		)	(190		)
Tax benefit related to completion of tax authority exam	(130		)	—			—			(130		)	—
Net tax benefit related to subsidiary reorganization and other	—			—			(113		)	—			(113		)
Total Form 8-K and other legacy mortgage-related items	(130		)	49			179			(81		)	179
Net income available to common shareholders, excluding the impact of Form 8-K and other legacy mortgage-related items ¹⁰		$433			$436			$358			$1,262			$1,063

Net income per average common share, diluted		$1.06			$0.72			$0.33			$2.51			$1.64
Impact of Form 8-K and other legacy mortgage-related items	(0.25		)	0.09			0.33			(0.16		)	0.33
Net income per average common diluted share, excluding the impact of Form 8-K and other legacy mortgage-related items ¹⁰		$0.81			$0.81			$0.66			$2.35			$1.97

¹ Certain amounts in this schedule are presented net of applicable income taxes, which are calculated based on each subsidiary’s federal and state tax rates and laws. In general, the federal marginal tax rate is 35%, but the state marginal tax rates range from 1% to 8% in accordance with the subsidiary’s income tax filing requirements with various tax authorities. Additionally, the effective tax rate may differ from the federal and state marginal tax rates in certain cases where a permanent difference exists.

² SunTrust presents total revenue - FTE excluding gain on sale of asset management subsidiary and noninterest income excluding gain on sale of asset management subsidiary. The Company believes revenue and noninterest income excluding the gain on sale of the asset management subsidiary is more indicative of the Company’s performance because it isolates income that is primarily client relationship and client transaction driven and is more indicative of normalized operations.

³ SunTrust presents return on average tangible common shareholders' equity to exclude intangible assets, except for MSRs. The Company believes this measure is useful to investors because, by removing the effect of intangible assets, except for MSRs, (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 who present a similar measure. The Company also believes that removing intangible assets, except for MSRs, is a more relevant measure of the return on the Company's common shareholders' equity.

⁴ Computed by dividing noninterest expense by total revenue - FTE. 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.

⁵ Amounts for periods prior to the first quarter of 2014 have been recalculated as a result of the Company’s early adoption of ASU 2014-01, which required retrospective application.

⁶ SunTrust presents a tangible efficiency ratio which excludes the amortization of intangible assets. The Company believes this measure is useful to investors because, by removing the effect of these intangible asset costs (the level of which may vary from company to company), it allows investors to more easily compare the Company’s efficiency to other companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.

⁷ SunTrust presents a tangible equity to tangible assets ratio that excludes the after-tax impact of purchase accounting intangible assets. The Company believes this measure is 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. This measure is used by management to analyze capital adequacy.

⁸ SunTrust presents a tangible book value per common share that excludes the after-tax impact of purchase accounting intangible assets and also excludes preferred stock from tangible equity. The Company believes this measure is useful to investors because, by removing the effect of intangible assets that result from merger and acquisition activity as well as preferred stock (the level of which may vary from company to company), it allows investors to more easily compare the Company’s book value on common stock to other companies in the industry.

⁹ SunTrust presents a ratio of allowance to total loans, excluding government guaranteed and fair value loans. The Company believes that the exclusion of loans that are held at fair value with no related allowance and loans guaranteed by a government agency that do not have an associated allowance recorded due to nominal risk of principal loss better depicts the allowance relative to loans that are covered by it.

¹⁰SunTrust presents net income available to common shareholders and net income per average common diluted share excluding items previously announced on Form 8-Ks filed with the SEC on September 9, 2014, July 3, 2014, and October 10, 2013, as well as other legacy mortgage-related items. The Company believes this measure is useful to investors because it removes the effect of material items impacting current and prior periods' results, allowing a more useful view of normalized operations. Removing these items also allows investors to compare the Company's results to other companies in the industry that may not have had similar items impacting their results.



SunTrust Banks, Inc. and Subsidiaries CONSUMER BANKING AND PRIVATE WEALTH MANAGEMENT (Dollars in millions) (Unaudited)
	Three Months Ended September 30						Nine Months Ended September 30
	2014			2013			2014			2013
Statements of Income:
Net interest income		$668			$653			$1,963			$1,945
FTE adjustment	—			—			—			—
Net interest income - FTE	668			653			1,963			1,945
Provision for credit losses ¹	40			23			135			201
Net interest income - FTE - after provision for credit losses	628			630			1,828			1,744
Noninterest income before securities gains/(losses)	399			378			1,142			1,105
Securities gains/(losses), net	—			—			—			—
Total noninterest income	399			378			1,142			1,105
Noninterest expense before amortization	722			686			2,161			2,072
Amortization	3			5			9			16
Total noninterest expense	725			691			2,170			2,088
Income - FTE - before provision for income taxes	302			317			800			761
Provision for income taxes	111			117			294			280
FTE adjustment	—			—			—			—
Net income including income attributable to noncontrolling interest	191			200			506			481
Less: net income attributable to noncontrolling interest	—			—			—			—
Net income		$191			$200			$506			$481

Total revenue - FTE		$1,067			$1,031			$3,105			$3,050
Selected Average Balances:
Total loans		$41,893			$40,529			$41,553			$40,360
Goodwill	4,262			4,262			4,262			4,262
Other intangible assets excluding MSRs	16			30			19			35
Total assets	47,338			45,576			47,154			45,398
Consumer and commercial deposits	86,468			84,159			85,456			84,447
Performance Ratios:
Efficiency ratio	67.90		%	67.04		%	69.86		%	68.45		%
Impact of excluding amortization and associated funding cost of intangible assets	(1.82		)	(2.33		)	(1.96		)	(2.49		)
Tangible efficiency ratio	66.08		%	64.71		%	67.90		%	65.96		%
Other Information (End of Period):
Managed (discretionary) assets								$48,793			$48,721
Non-managed assets							54,388			53,800
Total assets under administration							103,181			102,521
Brokerage assets							46,382			42,515
Total assets under advisement								$149,563			$145,036


¹	Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances.



SunTrust Banks, Inc. and Subsidiaries WHOLESALE BANKING (Dollars in millions) (Unaudited)
	Three Months Ended September 30 ¹						Nine Months Ended September 30 ¹
	2014			2013			2014			2013
Statements of Income:
Net interest income		$423			$392			$1,234			$1,165
FTE adjustment	34			31			102			90
Net interest income - FTE	457			423			1,336			1,255
Provision for credit losses ²	9			52			39			120
Net interest income - FTE - after provision for credit losses	448			371			1,297			1,135
Noninterest income before securities gains/(losses)	241			248			827			795
Securities gains/(losses), net	—			—			—			—
Total noninterest income	241			248			827			795
Noninterest expense before amortization	359			381			1,164			1,085
Amortization	4			—			4			—
Total noninterest expense	363			381			1,168			1,085
Income - FTE - before provision for income taxes	326			238			956			845
Provision for income taxes	63			44			203			185
FTE adjustment	34			31			102			90
Net income including income attributable to noncontrolling interest	229			163			651			570
Less: net income attributable to noncontrolling interest	—			—			—			—
Net income		$229			$163			$651			$570

Total revenue - FTE		$698			$671			$2,163			$2,050
Selected Average Balances:
Total loans		$63,552			$54,185			$61,307			$53,413
Goodwill	2,075			2,067			2,072			2,067
Other intangible assets excluding MSRs	—			—			—			—
Total assets	75,137			66,038			72,647			65,592
Consumer and commercial deposits	43,144			39,269			42,750			39,030
Performance Ratios:
Efficiency ratio	51.94		%	56.64		%	53.95		%	52.90		%
Impact of excluding amortization and associated funding cost of intangible assets	(1.44		)	(1.17		)	(1.09		)	(1.11		)
Tangible efficiency ratio	50.50		%	55.47		%	52.86		%	51.79		%

During the second quarter of 2014 the Company sold its registered asset management subsidiary, RidgeWorth; the results of which were previously reported within the Wholesale Banking segment. The financial results of RidgeWorth, including the gain on sale, have been transferred to the Corporate Other segment to provide for enhanced comparability for the Wholesale Banking segment excluding RidgeWorth.


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



SunTrust Banks, Inc. and Subsidiaries MORTGAGE BANKING (Dollars in millions) (Unaudited)
	Three Months Ended September 30						Nine Months Ended September 30
	2014			2013			2014			2013
Statements of Income:
Net interest income		$148			$141			$422			$409
FTE adjustment	—			—			—			—
Net interest income - FTE	148			141			422			409
Provision for credit losses ¹	44			20			94			133
Net interest income - FTE - after provision for credit losses	104			121			328			276
Noninterest income before securities gains/(losses)	130			(1		)	350			328
Securities gains/(losses), net	—			—			—			—
Total noninterest income	130			(1		)	350			328
Noninterest expense before amortization	166			638			717			1,248
Amortization	—			—			—			—
Total noninterest expense	166			638			717			1,248
Income/(loss) - FTE - before benefit for income taxes	68			(518		)	(39		)	(644		)
Provision/(benefit) for income taxes	25			(129		)	(16		)	(181		)
FTE adjustment	—			—			—			—
Net income/(loss) including income attributable to noncontrolling interest	43			(389		)	(23		)	(463		)
Less: net income attributable to noncontrolling interest	—			—			—			—
Net income/(loss) ²		$43			($389	)		($23	)		($463	)

Total revenue - FTE		$278			$140			$772			$737
Selected Average Balances:
Total loans		$25,262			$27,920			$27,106			$27,830
Goodwill	—			—			—			—
Other intangible assets excluding MSRs	—			—			—			—
Total assets	30,414			33,025			31,067			32,973
Consumer and commercial deposits	2,664			3,247			2,260			3,501
Performance Ratios:
Efficiency ratio	59.68		%	456.43		%	92.91		%	169.25		%
Impact of excluding amortization and associated funding cost of intangible assets	—			—			—			—
Tangible efficiency ratio	59.68		%	456.43		%	92.91		%	169.25		%
Other Information:
Production Data
Channel mix
Retail		$2,047			$4,434			$5,932			$14,068
Wholesale	—			739			1			3,032
Correspondent	2,481			2,822			5,785			8,826
Total production		$4,528			$7,995			$11,718			$25,926
Channel mix - percent
Retail	45		%	56		%	51		%	54		%
Wholesale	—			9			—			12
Correspondent	55			35			49			34
Total production	100		%	100		%	100		%	100		%
Purchase and refinance mix
Refinance		$1,593			$4,334			$4,315			$17,421
Purchase	2,935			3,661			7,403			8,505
Total production		$4,528			$7,995			$11,718			$25,926
Purchase and refinance mix - percent
Refinance	35		%	54		%	37		%	67		%
Purchase	65			46			63			33
Total production	100		%	100		%	100		%	100		%
Applications		$6,420			$7,116			$18,169			$32,228
Mortgage Servicing Data (End of Period):
Total loans serviced								$135,804			$139,710
Total loans serviced for others							109,142			109,224
Net carrying value of MSRs							1,305			1,248
Ratio of net carrying value of MSRs to total loans serviced for others							1.196		%	1.143		%

¹ Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances.

² Excluding the $179 million net pre-tax charge during the second quarter of 2014 related to legacy mortgage matters, presented in Appendix A to the Earnings Release, Mortgage Banking net income was $92 million for the nine months ended September 30, 2014.



SunTrust Banks, Inc. and Subsidiaries CORPORATE OTHER (Dollars in millions) (Unaudited)
	Three Months Ended September 30 ¹						Nine Months Ended September 30 ¹
	2014			2013			2014			2013
Statements of Income:
Net interest (loss)/income		($24	)		$22			$10			$121
FTE adjustment	2			1			3			3
Net interest (loss)/income - FTE	(22		)	23			13			124
Benefit for credit losses ²	—			—			—			(1		)
Net interest (loss)/income - FTE - after benefit for credit losses	(22		)	23			13			125
Noninterest income before securities (losses)/gains	19			55			220			171
Securities (losses)/gains, net	(9		)	—			(11		)	2
Total noninterest income	10			55			209			173
Noninterest expense before amortization	5			19			78			47
Amortization	—			1			1			2
Total noninterest expense	5			20			79			49
(Loss)/income - FTE - before benefit for income taxes	(17		)	58			143			249
Benefit for income taxes	(132		)	(165		)	(117		)	(100		)
FTE adjustment	2			1			3			3
Net income including income attributable to noncontrolling interest	113			222			257			346
Less: net income attributable to noncontrolling interest	—			7			11			16
Net income		$113			$215			$246			$330

Total revenue - FTE		($12	)		$78			$222			$297
Selected Average Balances:
Total loans		$40			$38			$44			$46
Securities available for sale	24,354			22,579			23,311			22,606
Goodwill	—			40			24			40
Other intangible assets excluding MSRs	—			11			6			12
Total assets	30,544			27,199			29,230			28,098
Consumer and commercial deposits	(81		)	(57		)	(97		)	(31		)
Other Information (End of Period):
Managed (discretionary) assets								$—			$44,332
Non-managed assets							—			—
Total assets under administration							—			44,332
Brokerage assets							—			—
Total assets under advisement								$—			$44,332
Duration of investment portfolio (in years)							4.0			4.1
Net interest income interest rate sensitivity:
% Change in net interest income under:
Instantaneous 100 bp increase in rates over next 12 months							3.9		%	1.0		%
Instantaneous 200 bp increase in rates over next 12 months							7.4		%	1.7		%
Instantaneous 25 bp decrease in rates over next 12 months							(1.0		)%	(0.8		)%


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