SunTrust Banks, Inc. (NYSE:STI) Files An 8-K Other Events
Item 8.01 Other Events.

On December 1, 2017, SunTrust Banks, Inc. (“SunTrust” or the “Company”) completed the sale of Premium Assignment Corporation (“PAC”), SunTrust’s commercial lines insurance premium finance subsidiary, to IPFS Corporation. As a result of this transaction, the Company will recognize a pre-tax gain of approximately $105 million in the fourth quarter of 2017. As of and for the twelve months ended September 30, 2017, PAC had $1.3 billion in assets and contributed approximately $20 million of net income to SunTrust.

Separately, the Company continues to execute on its efficiency plans and is taking certain actions in the fourth quarter of 2017. Specifically, the Company offered a voluntary early retirement program to certain employees based on age, job grade and tenure, which will result in the recognition of separation benefits for participating employees. Additionally, the Company continues to optimize its real estate footprint, including consolidating operations centers, terminating leases and disposing of certain owned real estate. Lastly, the Company will write-off certain software assets due to related technology enhancements. Collectively, these items are expected to result in a pre-tax charge of approximately $35 to $40 million in the fourth quarter of 2017.

In addition, SunTrust Mortgage, Inc. ("STM") will increase the valuation allowance against some of its state carryforward deferred tax assets by approximately $25 million, after-tax, in the fourth quarter of 2017 primarily due to changes in the projected future taxable income of the STM legal entity.

In the aggregate, the aforementioned matters are expected to positively impact the Company’s fourth quarter 2017 earnings by approximately $15 million after-tax, which is estimated to be $0.03 per share.

Important Cautionary Statement

This report contains forward-looking statements. For example, statements regarding the estimated financial impact of the items disclosed above are forward-looking statements. 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. Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Such statements speak as of the date hereof, and SunTrust does 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. 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, 2016 and in subsequent periodic reports that SunTrust files with the SEC. In addition, SunTrust disclaims any inference regarding the materiality of the information disclosed herein which otherwise may arise as a result of its filing such information under Item 8.01 of this Current Report on Form 8-K.

About SunTrust Banks, Inc. (NYSE:STI)

SunTrust Banks, Inc. is a bank holding company and a financial holding company. Through its principal subsidiary, SunTrust Bank, the Company offers a line of financial services for consumers and businesses, including deposit, credit, mortgage banking, and trust and investment services. The Company’s other subsidiaries provide asset and wealth management, securities brokerage, and capital market services. The Company operates through three segments: Consumer Banking and Private Wealth Management, Wholesale Banking and Mortgage Banking. It also operates a Corporate Other segment, which includes the management of the Company’s investment securities portfolio, long-term debt, end user derivative instruments, short-term liquidity and funding activities, balance sheet risk management, and real estate assets. The Company operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and the District of Columbia.