STI 2018 Annual Report

“Our mission and purpose-driven cultures are incredibly complementary, and they will be the foundation upon which we build the combined company.” The next derivative of leadership is culture—and culture matters. A merger of equals does not work unless the two companies are like-minded and have strong cultural alignment. At SunTrust, we define our purpose as Lighting the Way to Financial Well-Being. At BB&T, their mission is to Make the World a Better Place to Live. Our mission and purpose-driven cultures are incredibly complementary, and they will be the foundation upon which we build the combined company. We both believe that teammates and associates want to work for companies that stand for something, and we are committed to making this the best bank in the country to work for. Culture and leadership are the two big qualitative factors in any combination, but equally important are the strategic and financial merits of the transaction. On this front, you could not draw up a better partnership than SunTrust and BB&T. The combination between our two institutions is highly synergistic, financially compelling, and transformative. › This merger brings two highly synergistic and complementary business models together to create one of the most diverse and comprehensive business mixes in banking. We believe this is a powerful combination with compelling revenue synergy opportunities as we each grow our specialized businesses into an expanded client base and drive further scale into certain To my fellow owners, I must admit that it is incredibly bittersweet to be writing my final letter as Chairman and CEO of SunTrust Banks, Inc. SunTrust is a truly great Company—the SunTrust brand and legacy is one that I am incredibly attached to and proud of, one that is well respected within the community, and one that many current and former teammates have worked extremely hard to build and enhance. We all stand on the shoulders of others, and I thank all past CEOs who built something special. But, great companies cannot stand still. We must be focused forward, we must be willing to evolve and respond to changing dynamics in our industry, and we must be willing to take risks and disrupt ourselves. On February 7th, we announced a merger of equals with BB&T. Some view this announcement as the end of an era. I view this as the beginning of something epic and profoundly transformational. I am extremely confident in our future, and I have the utmost conviction that this merger of equals between two great companies positions us to achieve so much more together than we could ever do alone. I do not want you to think of this transaction as the coming together of two legacy institutions, but rather the combination of two strong foundations to create a different bank, to create the premier financial institution. Individually, SunTrust and BB&T are two very strong financial institutions; together, we have an opportunity to be the best. A common question I get is, ‘Why BB&T?’ The answer starts with leadership— Kelly King, Chairman and CEO of BB&T, is a strong, purposeful leader and I have the utmost respect for him and his team. Kelly and I share a common vision about the future of banking, the importance of embracing the opportunity for disruption, and the need to make significant investments in transformational technology to drive a sustainable competitive advantage. William H. Rogers, Jr. Chairman and Chief Executive Officer SunTrust Banks, Inc. businesses, while attracting new clients along the way. We also have a great opportunity to recognize top talent and select the best business processes, technology, and locations from both SunTrust and BB&T, which will position us for success for years to come. › The results of this transaction could not be more financially compelling . It has the potential to produce industry-leading financial performance, evidenced by a 51% tangible efficiency ratio and a return on tangible common equity of 22% 1 . › And finally, this combination is transformational —it provides us with the scale we need to compete and win in the rapidly evolving world of financial services. Together, we have the capacity for accelerated investments in technology. We will lead with an innovative mindset and embrace the opportunity for disruption, all with the goal of creating a superior, differentiated client experience. Kelly and I have had many conversations about our mutual desire to focus forward and position our companies for future success. Our increased capacity for investments, when combined with our revenue synergy opportunities, creates a compelling growth story which is one of the many reasons we believe this is the beginning of something epic. “I am extremely confident in our future, and I have the utmost conviction that this merger of equals between two great companies positions us to achieve so much more together than we could ever do alone.” Building Financial Confidence 1 Represents pro forma adjusted tangible efficiency ratio (FTE) and pro forma cash ROTCE. See slide 32 of the merger of equals investor presentation filed by the Company on Form 8-K on February 7, 2019, for the illustrative combined financials. Page 4