TRUIST FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - TRUIST FINANCIAL CORP	tfc-20191223.htm

EX99.1

Supplemental Historical Financial Information

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

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

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

The unaudited combined financial information contained herein does not reflect:

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

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

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

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

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

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


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





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


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

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

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

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