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Lighting the Way to
Financial Well-Being
ANNUAL REPORT 2015

Table of contents

  • Page 1
    ANNUAL REPORT Lighting the Way to Financial Well-Being 2015

  • Page 2
    ..., commercial, corporate, and institutional clients nationally. As of December 31, 2015, SunTrust had total assets of $191 billion and total deposits of $150 billion. The company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services...

  • Page 3
    ... to the prior year, as we were able to offset the 16 basis point decline in net interest margin with positive loan and deposit growth and higher investment banking and mortgage-related revenue, each of which reflected solid execution of our strategies. Adjusted expenses1 declined approximately $60...

  • Page 4
    ... our enhanced Treasury & Payment Solutions (T&PS) product offerings. Our strong deposit growth directly enabled us to reduce higher-cost long-term debt by $4.6 billion, or 35%, over the past year. Asset quality continued to be strong, as net charge-offs declined 23% to 0.26% of average loans, and...

  • Page 5
    ..., and treasury capabilities to our CRE clients. This has resulted in 80% growth in deposit balances and a quadrupling in capital markets fees since 2011, albeit from small bases. In T&PS, we have been upgrading digital capabilities across our small business, commercial, and corporate cash management...

  • Page 6
    ... high, as it will help fund investments in growth and, thus, result in continued improvement in overall efficiency." a SunTrust credit card. In the second half of 2015, 18% of our mortgage clients accepted this offer. In addition, the number of converted referrals from Mortgage to Private Wealth...

  • Page 7
    ... your community, you build your bank." Those words still inspire us today. In December 2015, SunTrust welcomed two new directors, Dallas S. Clement, executive vice president and chief financial officer of Cox Enterprises, and Bruce L. Tanner, executive vice president and chief financial officer for...

  • Page 8
    OUR PURPOSE HAS NEVER BEEN MORE IMPORTANT When you ask Americans what keeps them up at night, over 80% will say one word: "MONEY." 80% We believe financial stress deeply impacts lives-it ruins our health, makes us less productive, and it robs us of the things in life that matter most. 6

  • Page 9
    ...'t have anything saved for retirement 70% Over 70% of Americans identify as financially stressed *Stress report, American Psychological Association, 2013 At SunTrust, we feel we are in a position to take the lead and alleviate the stress that people feel when it comes to their finances. We believe...

  • Page 10
    ... lives of the people we serve-from helping parents send their kids to college, to helping someone buy their first car to drive to their first job, to helping a business expand and hire more employees. We are committed to providing the products and expertise our clients need to achieve the confidence...

  • Page 11
    ... BUSINESS WITH US Created a more user-friendly interface for our Online Treasury Management platform Introduced a new online banking website and added key features to mobile banking, including auto capture for mobile deposits and touch ID sign-on Implemented new loan origination systems in Wholesale...

  • Page 12
    ... THE SUNTRUST ONLINE RESOURCE CENTER provides rich content and robust tools to help clients budget, monitor their finances, and wisely save and invest for the future Includes tools for buying a home, saving for college, and planning for retirement OUR WHOLESALE CLIENTS Within Wholesale Banking, our...

  • Page 13
    FINANCIAL ISSUES ARE THE NUMBER ONE CAUSE OF WORKPLACE STRESS. Employees worry about, calculate, or stress over their finances at work for an average of 28 hours per month. There is a 3 to 1 return on investment for employee Financial Well-Being programs in the workplace. 11

  • Page 14
    BUILDING OUR COMMUNITIES Linton Allen, a founder of SunBank said, "If you build your community, you build your bank." These words still inspire us today and drive us to invest both time and money in the places we work and live. 12

  • Page 15
    ...were low- to moderateincome borrowers or homes in low- to moderate-income communities In addition, SunTrust provided $2.7 BILLION IN BUSINESS LOANS AND INVESTMENTS that supported affordable housing, economic development and job growth, community services, and the revitalization and stabilization of...

  • Page 16
    ... of VA mortgages, helping thousands of veterans and their spouses buy, build, or renovate a house Our veteran hiring rate increased 18% over 2014 and has more than doubled since 2013, giving hundreds of veterans new career opportunities, while allowing our company and clients to benefit from their...

  • Page 17
    "From Florida to Montana, we've revitalized fire and droughtdamaged national park and wilderness areas. As one of our top 20 donors, LightStream has made a valuable contribution to these critical efforts." - LEA SLOAN, VICE PRESIDENT OF COMMUNICATIONS AT AMERICAN FORESTS 15

  • Page 18
    GUIDING OUR TEAMMATES TO BETTER INSPIRE OTHERS As a company, we work as one team, and our dedication to Financial Well-Being begins with our teammates. As with our clients, we are also committed to helping our teammates achieve their own financial confidence. 16

  • Page 19
    ... off to get their personal finances in order, in addition to a VOLUNTEER DAY, to spend time helping others We implemented new programs aimed at IMPROVING TEAMMATES' PHYSICAL WELL-BEING by providing physical activity tracking devices and health assessments through on-site health clinics Through our...

  • Page 20
    ...Leadership Program) is a 36-credit certificate program providing deeper understanding of the banking industry and our Company myCareer, a newly launched online tool, helps teammates access the many career resources available at SunTrust and empowers them to move ahead in their career development 18

  • Page 21
    "I am thrilled with the Financial Fitness Program so far and am thankful this was offered...I am already feeling more comfortable with the steps I have learned and am applying them for results." - SUNTRUST TEAMMATE 19

  • Page 22
    ... educating and equipping people to take action throughout all our lines of business, we can reduce financial stress and help everyone pursue a life well spent. TAKE THE NEXT STEP WITH US Together, we can make a difference. Visit onUp.com and join the growing number of people who are using positive...

  • Page 23
    21

  • Page 24
    ... 3,5 CEO Adesso Group Royal Oak, Maryland Wholesale Banking Executive SUSAN S. JOHNSON Chief Marketing Officer ANIL T. CHERIYAN Chief Information Officer JEROME T. LIENHARD, II Chief Risk Officer DAVID M. RATCLIFFE 1,3,5 Retired Chairman, President and CEO Southern Company Atlanta, Georgia HUGH...

  • Page 25
    ... by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No The aggregate market value of the voting and non-voting common stock held by non-affiliates at June 30, 2015 was approximately $22.6 billion based on the New York Stock Exchange closing price...

  • Page 26
    ... Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accountant Fees and Services 18 20...

  • Page 27
    ... Community Reinvestment Act of 1977. CRC - Corporate Risk Committee. CRE - Commercial real estate. CRM - Corporate Risk Management. CRO - Chief Risk Officer. CSA - Credit support annex. CVA - Credit valuation adjustment. DDA - Demand deposit account. DFAST - Dodd-Frank Act Stress Test. DIF - Deposit...

  • Page 28
    ... funding ratio. NYSE - New York Stock Exchange. OCC - Office of the Comptroller of the Currency. OCI - Other comprehensive income. OFAC - Office of Foreign Assets Control. OREO - Other real estate owned. OTC - Over-the-counter. OTTI - Other-than-temporary impairment. Parent Company - SunTrust Banks...

  • Page 29
    ... branch, call center, Teller Connectâ„¢ machines, ATMs, internet, mobile, and tablet. Other subsidiaries provide capital markets, mortgage banking, securities brokerage, and wealth management services. At December 31, 2015, the Company had total assets of $191 billion and total deposits of $150...

  • Page 30
    ... real estate loans, including small business loans, and owner-occupied business properties. The Capital Rules also require certain institutions to include unrealized gains and losses on securities AFS, accumulated gains and losses on cash flow hedges, and AOCI related to defined benefit plans...

  • Page 31
    ... nine month planning horizon. In September 2013, the FRB issued a final rule 3 specifying how these large bank holding companies should incorporate the U.S. Basel III capital standards into their capital plans and Dodd-Frank Act company-run stress tests. Prior to executing a capital plan, non...

  • Page 32
    ... Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt...

  • Page 33
    ... a private equity or hedge fund. The term "banking entity" covers insured depository institutions, their holding companies, and certain other entities and their affiliates. There are limited exceptions to the prohibition on proprietary trading, such as trading in certain U.S. government or agency...

  • Page 34
    ... the MD&A). The Bank's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge on the Company's website at www.suntrust.com, in the...

  • Page 35
    ...quantitative review and assessment by our regulators. Regulatory capital and liquidity requirements limit how we use our capital, and can restrict our ability to pay dividends or to make stock repurchases. Market Risks The fiscal and monetary policies of the federal government and its agencies could...

  • Page 36
    ... access capital markets to raise funds to support our business, such changes could affect the cost of such funds or the ability to raise such funds. Our net interest income is the interest we earn on loans, debt securities, and other assets we hold less the interest we pay on our deposits, long-term...

  • Page 37
    ... of debt investors, our depositors or counterparties participating in the capital markets, or a downgrade of our debt rating, may adversely affect our funding costs and our ability to raise funding and, in turn, our liquidity. Credit Risks We are subject to credit risk. When we lend money, commit...

  • Page 38
    ...in economic conditions, housing conditions, or real estate values in the markets in which we operate could result in materially higher credit losses. For additional information, see the "Loans," "Allowance for Credit Losses," "Risk Management-Credit Risk Management" and "Critical Accounting Policies...

  • Page 39
    ...to bank deposits, causing us to lose a relatively inexpensive source of funding. Checking and savings account balances and other forms of client deposits could decrease if clients perceive alternative investments as providing superior expected returns. When clients move money out of bank deposits in...

  • Page 40
    ... to industry trends or developments in technology, or those new products may not achieve market acceptance. As a result, we could lose business, be forced to price products and services on less advantageous terms to retain or attract clients, or be subject to cost increases, any of which would...

  • Page 41
    ... to obtain funding and increase our cost of capital. Credit ratings are one of numerous factors that influence our funding costs. A credit downgrade might also affect our ability to attract or retain deposits from commercial and corporate customers. See Item 7, MD&A, "Liquidity Risk Management." We...

  • Page 42
    ... networks. Our banking, brokerage, investment advisory, and capital markets businesses rely on our digital technologies, computer and email systems, software, and networks to conduct their operations. In addition, to access our products and services, our clients may use personal smartphones, tablet...

  • Page 43
    ...or enhance our protective measures or to investigate and remediate information security vulnerabilities. As a necessary aspect of operating our business we must provide access to customer and sensitive company information to our employees, contractors, consultants, third parties and other authorized...

  • Page 44
    ... in our quarterly results • changes in market valuations of companies in the financial services industry • governmental and regulatory legislation or actions • issuances of shares of common stock or other securities in the future • changes in dividends and capital returns • the addition or...

  • Page 45
    ... 8 of this Form 10-K for further discussion of our properties. Our principal executive offices are located in SunTrust Plaza, Atlanta, Georgia. The 60-story office building is majority-owned by SunTrust Banks, Inc. At December 31, 2015, the Bank operated 1,401 full-service banking offices, of which...

  • Page 46
    ... of some risks related to the Company's dividend, and Item 7, "MD&A- Capital Resources," for a discussion of the dividends paid during the year and factors that may affect the future level of dividends. The information under the caption "Equity Compensation Plans" in the Company's definitive proxy...

  • Page 47
    ...SunTrust's employee stock option plans to be repurchased pursuant to the authority and terms of the applicable stock option plan rather than pursuant to publicly announced share repurchase programs. 2 During December 2015, the Company repurchased $39 million of its outstanding common stock at market...

  • Page 48
    ... Dividends paid per average common share Book value per common share Tangible book value per common share 2 Market capitalization Period End Balances: Total assets Earning assets Loans ALLL Consumer and commercial deposits Brokered time and foreign deposits Long-term debt Total shareholders' equity...

  • Page 49
    ... III Final Rules became effective for the Company on January 1, 2015; thus, Basel III CET1 ratios are not applicable ("N/A") in periods ending prior to January 1, 2015 and Basel I Tier 1 common equity ratio is N/A in periods ending after January 1, 2015. Tier 1 capital, Total capital, and Leverage...

  • Page 50
    ...are at risk of increased losses from fraud; a failure in or breach lending and other businesses and our financial results and of our operational or security systems or infrastructure, or those condition; changes in market interest rates or capital markets of our third party vendors and other service...

  • Page 51
    ...financial services with our headquarters located in Atlanta, Georgia. Our principal banking subsidiary, SunTrust Bank, offers a full line of financial services for consumers, businesses, corporations, and institutions, both through its branches (located primarily in Florida, Georgia, Maryland, North...

  • Page 52
    ... arising from consistent execution of our strategies and the diversity of our business model. Targeted loan and deposit growth during the year, as well as efforts to further optimize our balance sheet, helped offset the negative impact of the prolonged low interest rate environment. We were also...

  • Page 53
    ... mortgage, residential home equity, and consumer indirect portfolios. The momentum in our consumer direct portfolio continues to be strong, driven by our online and third-party origination channels, and increased success with our credit card offering. The reduction in consumer indirect loans...

  • Page 54
    ... Banking and Private Wealth Management Consumer Banking and Private Wealth Management net income increased 8% compared to 2014, due to strong deposit growth, our balance sheet optimization efforts, and further improvements in credit quality. Loan balances declined 3% in 2015, due to loan sales...

  • Page 55
    ... paid per average common share Book value per common share Tangible book value per common share 3 Market capitalization Market price per common share: High Low Close Selected Average Balances: Total assets Earning assets Loans Consumer and commercial deposits Brokered time and foreign deposits...

  • Page 56
    ...amortization Tangible efficiency ratio 6 Impact of excluding Form 8-K and other legacy mortgage-related items Adjusted tangible efficiency ratio1, 6 ROE Impact of removing average intangible assets (net of deferred taxes), excluding MSRs, from average common shareholders' equity ROTCE 4 Net interest...

  • Page 57
    ... intangible assets, net of deferred taxes, and MSRs 10 MSRs Tangible equity Preferred stock Tangible common equity Total assets Goodwill Other intangible assets including MSRs MSRs Tangible assets Tangible equity to tangible assets 7 Tangible book value per common share3 Period-end LHFI Government...

  • Page 58
    ... amortization Tangible efficiency ratio 6, 12 Impact of excluding Form 8-K and other legacy mortgage-related items Adjusted tangible efficiency ratio 1, 6, 12 ROE Impact of removing average intangible assets (net of deferred taxes), excluding MSRs, from average common shareholders' equity ROTCE...

  • Page 59
    ... charges on deposit accounts Other charges and fees Card fees Investment banking income Trading income Trust and investment management income Retail investment services Mortgage production related income Mortgage servicing related income Gain on sale of subsidiary Net securities (losses)/gains...

  • Page 60
    ... net income, adjusted net income available to common shareholders, an adjusted efficiency ratio, an adjusted tangible efficiency ratio, adjusted ROTCE, and the effective tax rate, excluding Form 8-K items and other legacy mortgage-related items. We believe these measures are useful to investors...

  • Page 61
    ... Money market accounts Savings Consumer time Other time Total interest-bearing consumer and commercial deposits Brokered time deposits Foreign deposits Total interest-bearing deposits Funds purchased Securities sold under agreements to repurchase Interest-bearing trading liabilities Other short-term...

  • Page 62
    ... NOW accounts Money market accounts Savings Consumer time Other time Brokered time deposits Securities sold under agreements to repurchase Interest-bearing trading liabilities Other short-term borrowings Long-term debt Total (decrease)/increase in interest expense Increase/(decrease) in net interest...

  • Page 63
    ... of new loan production at lower rates than the existing portfolio due to the highly competitive, low interest rate environment. Additionally, yields on securities AFS declined 31 basis points compared to the year ended December 31, 2014, driven largely by the addition of loweryielding U.S. Treasury...

  • Page 64
    ...$3,277 Service charges on deposit accounts Other charges and fees Card fees Investment banking income Trading income Trust and investment management income Retail investment services Mortgage production related income Mortgage servicing related income Gain on sale of subsidiary Net securities gains...

  • Page 65
    ..., and a return to more normal accrual rates on certain incentive and benefit costs. Outside processing and software expenses increased $74 million, or 10%, compared to 2014. The increase was due to the higher utilization of third party services, increased business and compliance activity, as well...

  • Page 66
    ..., loans secured by owner-occupied properties, corporate credit cards, and other wholesale lending activities. Commercial loans secured by owner-occupied properties are classified as C&I loans because the primary source of loan repayment for these properties is business income and not real estate...

  • Page 67
    ...31, 2015 (Dollars in millions) Total $68,695 1,954 $70,649 Due in 1 Year or Less $17,490 228 $17,718 Due After 1 Year through 5 Years $41,512 1,430 $42,942 Due After 5 Years $9,693 296 $9,989 Loan Maturity C&I and CRE 1 Commercial construction Total Interest Rate Sensitivity Selected loans with...

  • Page 68
    ...% Balance $12,712 9,820 6,650 4,220 4,106 4,710 3,362 1,517 1,375 4,100 52,572 4,489 1,651 1,563 2,165 9,868 3,368 2,059 5,427 1,614 885 3,360 5,859 1,526 $75,252 % of Total Commercial 17% 13 9 6 5 6 4 2 2 5 70 6 2 2 3 13 4 3 7 2 1 4 8 2 100% South region: Florida Georgia Virginia Maryland North...

  • Page 69
    ... a balance, are closed or refinanced into an amortizing loan or a new line of credit. We perform credit management activities to limit our loss exposure on home equity accounts. These activities may result in the suspension of available credit and curtailment of available draws of most home equity...

  • Page 70
    ... consumer indirect auto loans during 2015, partially offset by new originations. Going forward, we may periodically conduct additional auto loan securitization transactions, as they allow us to more efficiently use the balance sheet and diversify our funding sources, while still being an active loan...

  • Page 71
    ... for Credit Summary of Credit Losses Experience Year Ended December 31 (Dollars in millions) Losses," to the Consolidated Financial Statements in this Form 10-K, as well as the "Allowance for Credit Losses" section within "Critical Accounting Policies" in this MD&A for further information regarding...

  • Page 72
    ...geopolitical and economic risks, and the increasing availability of credit and resultant higher levels of leverage for consumers and commercial borrowers. Table 11 At December 31 2015 $1,047 534 171 $1,752 60% 30 10 100% 55% 29 16 100% 2014 $986 777 174 $1,937 51% 40 9 100% 55% 29 16 100% 2013 $946...

  • Page 73
    ...) 2015 2014 2013 2012 2011 Nonaccrual/NPLs: Commercial loans: C&I CRE Commercial construction Total commercial NPLs Residential loans: Residential mortgages - nonguaranteed Residential home equity products Residential construction Total residential NPLs Consumer loans: Other direct Indirect...

  • Page 74
    ..., 2014. Commercial NPLs increased $146 million, or 84%, due largely to downgrades of certain energy-related loans. While certain of these loans may be current with respect to their contractual debt service agreements, the recent decline in oil prices and projected slowdown in global economic growth...

  • Page 75
    ... in CP and net derivative instruments. These decreases were offset partially by an increase in U.S. Treasury securities and trading loans, resulting from normal changes in the trading portfolio product mix as we manage our business and continue 47 to meet our clients' needs. Trading liabilities and...

  • Page 76
    ...Reserve Bank of Atlanta stock, $93 million of mutual fund investments, and $6 million of other. (Dollars in millions) U.S. Treasury securities Federal agency securities U.S. states and political subdivisions MBS - agency MBS - private ABS Corporate and other debt securities Other equity securities...

  • Page 77
    ... reflect our efforts to maintain a high quality, liquid portfolio, while managing our interest rate risk profile. The amortized cost of the portfolio increased $1.3 billion during the year ended December 31, 2015, primarily due to the addition of U.S. Treasury securities in preparation for the LCR...

  • Page 78
    ...rate risk management objectives. Accordingly, the size and composition of the securities AFS portfolio could change over time. Federal Home Loan Bank and Federal Reserve Bank Stock We previously acquired capital stock in the FHLB of Atlanta as a precondition for becoming a member of that institution...

  • Page 79
    ... Form 10-K for additional information regarding time deposit maturities. BORROWINGS Short-Term Borrowings December 31, 2015 (Dollars in millions) Table 18 Year Ended December 31, 2015 Maximum Outstanding at Balance Rate any Month-End $822 0.11% $2,180 1,821 0.21 2,064 2,135 0.16 4,426 $4,778 Daily...

  • Page 80
    ... assets, certain DTAs, the impact on capital arising from mark-to-market adjustments related to our credit spreads, and certain defined benefit pension fund net assets. Further, banks employing the standardized approach to Basel III were granted a one-time permanent election to exclude AOCI from the...

  • Page 81
    ..., 2014, and 2013, the Bank's capacity to pay cash dividends to the Parent Company under these regulations totaled approximately $2.7 billion, $2.9 billion, and $2.6 billion, respectively. During the first quarter of 2015, we announced capital plans in response to the Federal Reserve's review of and...

  • Page 82
    ... in the portfolio. When the data supporting such assumptions has limitations, our judgment and experience inform the specific ALLL estimates. Key judgments used in determining the ALLL include internal risk ratings, market and collateral values, discount rates, loss rates, and our view of current...

  • Page 83
    ... claims and losses related to loans sold since 2009 as a result of stronger credit performance, more stringent credit guidelines, and underwriting process improvements. During the third quarter of 2013, we reached agreements with Freddie Mac and Fannie Mae under which they released us from certain...

  • Page 84
    ... related line of business, but also from risk management and finance, to ultimately arrive at an appropriate estimate of the instrument's fair value. This process involves the gathering of multiple sources of information, including broker quotes, values provided by pricing services, trading activity...

  • Page 85
    ... impairment. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, client service and retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical...

  • Page 86
    ... is accountable for the development and execution of business strategies that are aligned with the risk appetite, measures, and limits established by the Board, as well as the associated processes and controls. It is also responsible for accurate and timely identification, management, and reporting...

  • Page 87
    ... of our capital actions and our enterprise stress analytics programs that, among other things, support our annual CCAR/DFAST submissions. • PMC is chaired by the Wholesale Banking Executive and provides active portfolio management and oversight of balance sheet allocations to ensure that new asset...

  • Page 88
    ...systems of third parties to perform business activities. The use of digital technologies introduces cyber-security risk that can manifest in the form of information theft, physical disruptions, criminal acts by individuals, groups, or nation states, and a client's inability to access online services...

  • Page 89
    ... not limited to, extending receive-fixed interest rate swaps, an increase in the securities AFS portfolio related to LCR compliance, slightly shorter deposit lives, and reduced prepayment speeds on mortgage loans and securities. While an instantaneous and severe shift in interest rates was used in...

  • Page 90
    ... prior year, also due largely to higher levels of volatility in the markets. However, risk mitigating activities along with balance sheet optimization efforts within our equity derivatives and credit trading businesses during the second half of 2015 contributed toward a lower period end Stressed VAR...

  • Page 91
    ... shocks. All trading 63 positions within each applicable market risk category (interest rate risk, equity risk, foreign exchange rate risk, credit spread risk, and commodity price risk) are included in our comprehensive stress testing framework. We review stress testing scenarios on an ongoing...

  • Page 92
    ... short- and long-term liquidity management strategies, funding plans, and liquidity stress tests, and also monitors early warning indicators. Corporate Treasury primarily monitors and manages liquidity risk at the Parent Company and Bank levels as the non-bank subsidiaries are relatively small...

  • Page 93
    ..., we measure how long the Parent Company can meet its capital and debt service obligations after experiencing material attrition of short-term unsecured funding and without the support of dividends from the Bank or access to the capital markets. In accordance with these risk limits established by

  • Page 94
    ... traded securities. We manage the Parent Company cash balance to provide sufficient liquidity to fund all forecasted obligations (primarily debt and capital service) for an extended period of months in accordance with our risk limits. The primary uses of Parent Company liquidity include debt service...

  • Page 95
    ... Benefit Plans," to the Consolidated Financial Statements in this Form 10-K. Capital lease obligations and foreign time deposits were immaterial at December 31, 2015 and are not reflected in the table below. For additional information regarding our time deposits, operating leases, and long-term debt...

  • Page 96
    ... segments: Net Income/(Loss) by Business Segment (Dollars in millions) Table 29 2015 Year Ended December 31 2014 2013 $754 $695 $653 954 875 807 287 (53) (527) 434 (177) 257 $1,774 508 (97) 411 $1,344 Consumer Banking and Private Wealth Management Wholesale Banking Mortgage Banking Corporate Other...

  • Page 97
    ... the overall rate paid on average deposits. Net interest income related to loans increased $27 million, or 3%, driven by an overall 13 basis point increase in loan spreads, partially offset by a $1.1 billion, or 3%, decrease in average loan balances. Declines in student and indirect auto loans were...

  • Page 98
    ... by a decline in funding rates. Provision for credit losses was $191 million, a decrease of $70 million, or 27%, compared to 2013. The decrease was primarily driven by declines in home equity line and commercial loan net charge-offs, partially offset by an increase in nonguaranteed student loan net...

  • Page 99
    ... to 2013. A $49 million, or 14%, increase in investment banking income along with higher structured real estate gains, card fees, and non-margin loan fees was largely offset by declines in affordable housing partnership revenue and related gains driven by the sale of certain affordable housing...

  • Page 100
    ... in long-term debt, partially offset by a slight decline in earning asset yields. Net interest margin increased two basis points to 2.98% for the fourth quarter of 2015, compared to the same period in 2014, due primarily to a shift towards lower-cost funding sources. The provision for credit losses...

  • Page 101
    ... the accompanying consolidated balance sheets of SunTrust Banks, Inc. (the Company) as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2015. These...

  • Page 102
    ... with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of SunTrust Banks, Inc. as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the...

  • Page 103
    ... Income Service charges on deposit accounts Other charges and fees Card fees Investment banking income Trading income Trust and investment management income Retail investment services Mortgage production related income Mortgage servicing related income Gain on sale of subsidiary Net securities gains...

  • Page 104
    SunTrust Banks, Inc. Consolidated Statements of Comprehensive Income Year Ended December 31 (Dollars in millions) 2015 $1,933 2014 $1,774 2013 $1,344 Net income Components of other comprehensive (loss)/income: Change in net unrealized (losses)/gains on securities available for sale, net of tax ...

  • Page 105
    ... purchased Securities sold under agreements to repurchase Other short-term borrowings Long-term debt 4 ($973 and $1,283 at fair value at December 31, 2015 and 2014, respectively) Trading liabilities and derivative instruments Other liabilities Total liabilities Shareholders' Equity Preferred stock...

  • Page 106
    ... of treasury stock Exercise of stock options and stock compensation expense Restricted stock activity Amortization of restricted stock compensation Change in equity related to the sale of subsidiary Issuance of stock for employee benefit plans and other Balance, December 31, 2014 Net income...

  • Page 107
    ... from the sale of other real estate owned and other assets Net cash used in investing activities Cash Flows from Financing Activities Net increase/(decrease) in total deposits Net (decrease)/increase in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings...

  • Page 108
    ... with its headquarters in Atlanta, Georgia. Through its principal subsidiary, SunTrust Bank, the Company offers a full line of financial services for consumers, businesses, corporations, and institutions, both through its branches (located primarily within Florida, Georgia, Maryland, North Carolina...

  • Page 109
    ... with its contractual terms, the loan may be returned to accrual status upon meeting all regulatory, accounting, and internal policy requirements. Consumer loans (guaranteed and private student loans, other direct, indirect, and credit card) are considered to be past due when payment is not received...

  • Page 110
    ... and certain consumer (other direct, indirect, and credit card), residential (nonguaranteed residential mortgages, residential home equity products, and residential construction), and certain commercial (all classes) loans whose terms have been modified in a TDR are reviewed to determine the amount...

  • Page 111
    ... market information. In addition to the ALLL, the Company also estimates probable losses related to unfunded lending commitments, such as letters of credit and binding unfunded loan commitments. Unfunded lending commitments are analyzed and segregated by risk based on the Company's internal risk...

  • Page 112
    ... cash flow analyses. If market prices are not available, fair value is calculated using management's best estimates of key assumptions, including credit losses, loan repayment speeds, and discount rates commensurate with the risks involved. The Company transfers first lien residential mortgage loans...

  • Page 113
    ... and as a risk management tool to economically hedge certain identified market risks, along with certain IRLCs on residential mortgage loans that are a normal part of the Company's operations. The Company also evaluates contracts, such as brokered deposits and short-term debt, to determine whether...

  • Page 114
    ... additional information on the Company's stock-based compensation plans, see Note 15, "Employee Benefit Plans." Employee Benefits Employee benefits expense includes expenses related to (i) net periodic benefit costs or credits associated with the pension and other postretirement benefit plans, (ii...

  • Page 115
    ... the years ended December 31, 2015, 2014, and 2013, the Company had the following notable disposition: (Dollars in millions) Date 5/30/2014 Cash Received/ (Paid) $193 Goodwill ($40) Other Intangibles ($9) Pre-tax Gain $105 2014 Sale of RidgeWorth In 2014, the Company completed the sale of...

  • Page 116
    ... business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and presented net on the Company's Consolidated Balance...

  • Page 117
    ... master netting agreement or similar agreement exists. Includes loans related to TRS. Various trading and derivative instruments are used as part of the Company's overall balance sheet management strategies and to support client requirements executed through the Bank and/ or the Company's broker...

  • Page 118
    ... private ABS Corporate and other debt securities Other equity securities 1 Total securities AFS (Dollars in millions) U.S. Treasury securities Federal agency securities U.S. states and political subdivisions MBS - agency MBS - private ABS Corporate and other debt securities Other equity securities...

  • Page 119
    ... subdivisions MBS - agency MBS - private ABS Corporate and other debt securities Total debt securities AFS Weighted average yield 1 1 Weighted average yields are based on amortized cost and are presented on an FTE basis. Securities AFS in an Unrealized Loss Position The Company held certain...

  • Page 120
    ... private MBS and ABS for the year ended December 31: 2015 1 Default rate Prepayment rate Loss severity 1 2014 1 2% 16% 46% 2013 2 - 9% 7 - 21% 46 - 74% Securities AFS in an unrealized loss position are evaluated quarterly for other-than-temporary credit impairment, which is determined using cash...

  • Page 121
    ... was used to support $4.0 billion of long-term debt, $4.0 billion of short-term debt, and $7.9 billion of letters of credit issued on the Company's behalf. Credit Quality Evaluation The Company evaluates the credit quality of its loan portfolio by employing a dual internal risk rating system, which...

  • Page 122
    ... $67,062 December 31, 2014 $64,228 1,061 151 $65,440 Risk rating: Pass Criticized accruing Criticized nonaccruing Total Residential Loans 1 Residential Mortgages Nonguaranteed (Dollars in millions) Residential Home Equity Products December 31, 2015 $10,772 1,741 658 $13,171 December 31, 2014 $11...

  • Page 123
    ... Total commercial loans Residential loans: Residential mortgages - guaranteed Residential mortgages - nonguaranteed 1 Residential home equity products Residential construction Total residential loans Consumer loans: Guaranteed student Other direct Indirect Credit cards Total consumer loans Total...

  • Page 124
    ... recorded: Commercial loans: C&I CRE Total commercial loans Residential loans: Residential mortgages - nonguaranteed Residential home equity products Residential construction Total residential loans Consumer loans: Other direct Indirect Credit cards Total consumer loans Total impaired loans 1 $55...

  • Page 125
    ... Total commercial loans Residential loans: Residential mortgages - nonguaranteed Residential home equity products Residential construction Total residential loans Consumer loans: Other direct Indirect Credit cards Total consumer loans Total impaired loans 1 $58 10 68 390 11 401 $2 - 2 17...

  • Page 126
    ... table: (Dollars in millions) December 31, 2015 December 31, 2014 Nonaccrual/NPLs: Commercial loans: C&I CRE Commercial construction Residential loans: Residential mortgages - nonguaranteed Residential home equity products Residential construction Consumer loans: Other direct Indirect Total...

  • Page 127
    ... - 166 138 6 1 52 3 $375 Commercial loans: C&I CRE Residential loans: Residential mortgages - nonguaranteed Residential home equity products Residential construction Consumer loans: Other direct Indirect Credit cards Total TDRs 1 2 Includes loans modified under the terms of a TDR that were charged...

  • Page 128
    ..., continued 2013 1 (Dollars in millions) Commercial loans: C&I CRE Commercial construction Residential loans: Residential mortgages - nonguaranteed Residential home equity products Residential construction Consumer loans: Other direct Indirect Credit cards Total TDRs 1 2 Number of Loans Modified...

  • Page 129
    ... loans: Residential mortgages Residential home equity products Residential construction Consumer loans: Other direct Indirect Credit cards Total TDRs With respect to collateral concentration, at December 31, 2015, the Company owned $38.9 billion in loans secured by residential real estate...

  • Page 130
    ... ALLL by loan segment for the years ended December 31 is presented in the following tables: (Dollars in millions) Balance, beginning of period Provision/(benefit) for loan losses Loan charge-offs Loan recoveries Balance, end of period Commercial $986 133 (117) 45 $1,047 2015 Residential Consumer...

  • Page 131
    ... test with the availability of key inputs. 103 The Company performed goodwill impairment analyses for its Wholesale Banking reporting unit as of October 1, 2015, September 30, 2015, December 31, 2014, and September 30, 2014, as well as for its Consumer Banking and Private Wealth Management reporting...

  • Page 132
    ...the Company's Consolidated Balance Sheets. Mortgage Servicing Rights Income earned by the Company on its MSRs is derived primarily from contractually specified mortgage servicing fees and late fees, net of curtailment costs. Such income earned for the year ended December 31, 2015, 2014, and 2013 was...

  • Page 133
    ... in the form of securities representing retained interests in transferred assets and, at times, servicing rights and collateral management fees. When determining whether to consolidate the VIE, the Company evaluates whether it has both (i) the power to direct the activities that most significantly...

  • Page 134
    ..., no events occurred during the year ended December 31, 2015 that changed the Company's sale conclusion with regards to previously transferred residential mortgage loans, indirect auto loans, student loans, or commercial and corporate loans. Transfers of Financial Assets The following discussion...

  • Page 135
    ... Indirect Auto Loans In June 2015, the Company transferred indirect auto loans to a securitization entity, which was determined to be a VIE, and accounted for the transfer as a sale. The Company retained servicing rights for the transferred loans, but did not retain any debt or equity interest...

  • Page 136
    ... in the funds plus any additional unfunded equity commitments, was $321 million and $236 million, respectively. During the year ended December 31, 2015, 2014, and 2013, the Company recognized $68 million, $66 million, and $64 million of tax credits for qualified affordable housing projects, and...

  • Page 137
    ... the year. Restrictive provisions of several long-term debt agreements prevent the Company from creating liens on, disposing of, or issuing (except to related parties) voting stock of subsidiaries. Furthermore, there are restrictions on mergers, consolidations, certain leases, sales or transfers of...

  • Page 138
    ... $39 million of its outstanding common stock at market value, which was incremental to and separate from the existing availability under the 2015 CCAR capital plan. 110 During the years ended December 31, 2015, 2014, and 2013, the Company declared and paid common dividends of $475 million, or...

  • Page 139
    ... is not applicable ("N/A") in periods ending prior to January 1, 2015 and Basel I Tier 1 common equity is N/A in periods ending after January 1, 2015. Tier 1 capital, Total capital, and Leverage ratio for periods ended prior to January 1, 2015 were calculated under Basel I. On October 11, 2013, the...

  • Page 140
    ... capital planning and stress testing process. NOTE 14 - INCOME TAXES The components of income tax provision included in the Consolidated Statements of Income during the years ended December 31 were as follows: (Dollars in millions) 2015 $707 36 743 27 (6) 21 1 2014 $365 29 394 99 - 99 $493 2013...

  • Page 141
    Notes to Consolidated Financial Statements, continued A reconciliation of the income tax provision, using the statutory federal income tax rate of 35%, to the Company's actual income tax provision and effective tax rate during the years ended December 31 were as follows: 2015 (Dollars in millions) ...

  • Page 142
    ... three years from the date of the award and are paid in cash. Compensation expense for incentive plans with cash payouts was $245 million, $203 million, and $150 million for the years ended December 31, 2015, 2014, and 2013, respectively. Stock-Based Compensation The Company provides stock-based...

  • Page 143
    ..., continued The Company used the projected dividend to be paid as the dividend yield assumption. The expected stock price volatility represented the implied volatility of SunTrust stock. The riskfree interest rate was derived from the U.S. Treasury yield curve in effect at the time of grant based...

  • Page 144
    ... RSUs Total stock-based compensation Stock-based compensation tax benefit 2015 $1 16 32 46 $95 $36 2014 $2 27 13 34 $76 $29 2013 $6 32 - 18 $56 $21 each PPA was 3.00% for 2015. The Company monitors the funding status of the plan closely and due to the current funded status, the Company did not...

  • Page 145
    ... Employer contributions 3 Plan participants' contributions Benefits paid Administrative expenses paid from pension trust Fair value of plan assets, end of year 4 Funded status at end of year 5, 6 Funded status at end of year (%) Accumulated benefit obligation Discount rate 1 Pension Benefits 1 2015...

  • Page 146
    ... used in the year-end measurement calculations for each plan. The discount rate for each plan, used to determine the present value of future benefit obligations, is determined by matching the expected cash flows of each plan to a yield curve based on long-term, high quality fixed income debt...

  • Page 147
    ..., service cost, and interest cost are less than $1 million, respectively. Assumed discount rates and expected returns on plan assets affect the amounts of net periodic benefit. A 25 basis point increase/decrease in the expected long-term return on plan assets would increase/decrease the net periodic...

  • Page 148
    ... benefit payments for the SERP will be paid directly from the Company's corporate assets. Defined Contribution Plans SunTrust's employee benefit program includes a qualified defined contribution plan. For years ended December 31, 2015, 2014, and 2013, the 401(k) plan provided a dollar-for-dollar...

  • Page 149
    .... The net carrying amount of unearned fees was immaterial at December 31, 2015 and 2014. Loan Sales and Servicing STM, a consolidated subsidiary of the Company, originates and purchases residential mortgage loans, a portion of which are sold to outside investors in the normal course of business...

  • Page 150
    ... LHFS Total carrying value of outstanding repurchased mortgage loans In addition to representations and warranties related to loan sales, the Company makes representations and warranties that it will service the loans in accordance with investor servicing guidelines and standards, which may include...

  • Page 151
    ... are also used as a risk management tool to hedge the Company's balance sheet exposure to changes in identified cash flow and fair value risks, either economically or in accordance with hedge accounting provisions. The Company's Corporate Treasury function is responsible for employing the various...

  • Page 152
    ... rise to an ATE that permits the counterparties to close-out net and apply collateral or, where a CSA is present, require the Bank to post additional collateral. At December 31, 2015, the Bank carried senior long-term debt credit ratings of Baal/A-/A- from Moody's, S&P, and Fitch, respectively. At...

  • Page 153
    ... exchange rate contracts hedging trading activity Credit contracts hedging: Loans Trading activity Other contracts: IRLCs and other 7 Commodities Total Total derivative instruments Total gross derivative instruments, before netting Less: Legally enforceable master netting agreements Less: Cash...

  • Page 154
    ... exchange rate contracts hedging trading activity Credit contracts hedging: Loans Trading activity Other contracts: IRLCs and other 7 Commodities Total Total derivative instruments Total gross derivative instruments, before netting Less: Legally enforceable master netting agreements Less: Cash...

  • Page 155
    ... LHFI Trading activity Foreign exchange rate contracts hedging trading activity Credit contracts hedging: Loans Trading activity Equity contracts hedging trading activity Other contracts: IRLCs Commodities Total Mortgage production related income Trading income 156 2 $311 Mortgage servicing related...

  • Page 156
    ... exchange rate contracts hedging trading activity Credit contracts hedging: Loans Trading activity Equity contracts hedging trading activity Other contracts - IRLCs Total Other noninterest income Trading income Trading income Mortgage production related income (1) 17 4 261 $507 Mortgage servicing...

  • Page 157
    ... on long-term debt Interest and fees on loans (Dollars in millions) Derivative instruments in cash flow hedging relationships: Interest rate contracts hedging forecasted debt Interest rate contracts hedging floating rate loans 1 Total 1 During the year ended December 31, 2013, the Company also...

  • Page 158
    ... or paid on the net amount reported in the Consolidated Balance Sheets. Also included in the tables are financial instrument collateral related to legally enforceable master netting agreements that represents securities collateral received or pledged and customer cash collateral held at third party...

  • Page 159
    Notes to Consolidated Financial Statements, continued Credit Derivative Instruments As part of SunTrust's trading businesses, the Company enters into contracts that are, in form or substance, written guarantees: specifically, CDS, risk participations, and TRS. The Company accounts for these ...

  • Page 160
    ... enters into foreign exchange rate contracts that provide for the future receipt and delivery of foreign currency at previously agreedupon terms. The Company enters into CDS to hedge credit risk associated with certain loans held within its Wholesale Banking segment. The Company accounts for these...

  • Page 161
    ... in model performance is addressed. This review is performed by an internal group that reports to the Corporate Risk Function. The Company has formal processes and controls in place to support the appropriateness of its fair value estimates. For fair values obtained from a third party, or those that...

  • Page 162
    ... Other equity securities 2 Total securities AFS Residential LHFS LHFI MSRs Liabilities Trading liabilities and derivative instruments: U.S. Treasury securities MBS - agency Corporate and other debt securities Derivative instruments Total trading liabilities and derivative instruments Long-term debt...

  • Page 163
    ... Other equity securities 2 Total securities AFS Residential LHFS LHFI MSRs Liabilities Trading liabilities and derivative instruments: U.S. Treasury securities MBS - agency Corporate and other debt securities Derivative instruments Total trading liabilities and derivative instruments Long-term debt...

  • Page 164
    ... nonaccrual status. Fair Value at December 31, 2015 $2,655 1,494 254 3 Aggregate UPB at December 31, 2015 $2,605 1,453 259 5 Fair Value Over/(Under) Unpaid Principal $50 41 (5) (2) (Dollars in millions) Assets: Trading loans LHFS: Accruing LHFI: Accruing Nonaccrual Liabilities: Long-term debt 973...

  • Page 165
    ...) (Dollars in millions) Assets: Trading loans LHFS LHFI MSRs Liabilities: Brokered time deposits Long-term debt 1 6 17 - - - - 6 17 Income related to LHFS does not include income from IRLCs. For the year ended December 31, 2014, income related to MSRs includes income recognized upon the sale...

  • Page 166
    ... (Dollars in millions) Assets: Trading loans LHFS LHFI MSRs Liabilities: Brokered time deposits Long-term debt 1 2 8 36 - - - - 8 36 Income related to LHFS does not include income from IRLCs. For the year ended December 31, 2013, income related to MSRs includes income recognized upon the sale...

  • Page 167
    ...index yields as limited observable market data exists. Commercial Paper From time to time, the Company acquires third party CP that is generally short-term in nature (less than 30 days) and highly rated. The Company estimates the fair value of this CP based on observable pricing from executed trades...

  • Page 168
    ... and are priced using current market pricing for similar securities, adjusted for servicing, interest rate risk, and credit risk. Non-agency residential mortgages are also included in level 2 LHFS. Transfers of certain mortgage LHFS into level 3 during the years ended December 31, 2015 and 2014 were...

  • Page 169
    ... subdivisions MBS - private ABS Corporate and other debt securities Other equity securities Residential LHFS Fair value December 31, 2015 Valuation Technique Unobservable Input 1 Range (weighted average) $89 15 Market comparables Internal model Yield adjustment Pull through rate MSR value...

  • Page 170
    ... (weighted average) Assets Trading assets and derivative instruments: Derivative instruments, net 2 Securities AFS: U.S. states and political subdivisions MBS - private ABS Corporate and other debt securities Other equity securities Residential LHFS $20 Internal model Pull through rate MSR value...

  • Page 171
    ... Transfers to/from Other Balance Sheet Line Items Included in Earnings (held at December 31, 2015) 1 (Dollars in millions) Assets Trading assets: Corporate and other debt securities Derivative instruments, net Total trading assets Securities AFS: U.S. states and political subdivisions MBS - private...

  • Page 172
    ...31, 2014) 1 (Dollars in millions) Assets Trading assets: CDO/CLO securities ABS Derivative instruments, net Total trading assets Securities AFS: U.S. states and political subdivisions MBS - private ABS Corporate and other debt securities Other equity securities Total securities AFS Residential LHFS...

  • Page 173
    ...corporate loans, all of which are accounted for at LOCOM. Level 3 assets at December 31, 2014 consisted primarily of indirect auto loans and tax-exempt municipal leases that incurred fair value adjustments upon being transferred to LHFS, as the Company elected to actively market these loans for sale...

  • Page 174
    ... the year ended December 31, 2015, the Company did not recognize impairment or increased estimated net realizable values on any of its affordable housing properties. During the first quarter of 2014, the Company decided to actively market for sale certain consolidated affordable housing properties...

  • Page 175
    ... on the loans. (e) Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow...

  • Page 176
    ... the action on behalf of all Georgia citizens who incurred such overdraft fees within the four years before the complaint was filed where the overdraft fee resulted in an interest rate being charged in excess of the usury rate. The Bank filed a motion to compel arbitration and on March 16, 2012, the...

  • Page 177
    ... 13, 2011, SunTrust, SunTrust Bank, and STM entered into a Consent Order with the FRB in which SunTrust, SunTrust Bank, and STM agreed to strengthen oversight of, and improve risk management, internal audit, and compliance programs concerning the residential mortgage loan servicing, loss mitigation...

  • Page 178
    ... also implemented all of the prescribed servicing standards within the required timeframes. Compliance with the servicing standards continues to be monitored, tested, and reported quarterly by an internal review group and semi-annually by the OMSO. As a result, the Company does not expect to incur...

  • Page 179
    ...internet (www.suntrust.com), mobile banking, and telephone (1-800-SUNTRUST). Financial products and services offered to consumers and small business clients include deposits, home equity lines and loans, credit lines, indirect auto, student lending, bank card, other lending products, and various fee...

  • Page 180
    ... was reported in the Wholesale Banking segment. See Note 2, "Acquisitions/Dispositions," for additional information related to the sale of RidgeWorth. Because the business segment results are presented based on management accounting practices, the transition to the consolidated results, which...

  • Page 181
    Notes to Consolidated Financial Statements, continued Year Ended December 31, 2015 Consumer Banking and Private Wealth Management $40,632 91,127 46,498 91,776 - $2,729 1 2,730 137 2,593 1,508 2,902 1,199 445 754 - $754 Wholesale Banking $67,853 50,376 80,951 55,995 - $1,771 138 1,909 137 1,772 1,215...

  • Page 182
    Notes to Consolidated Financial Statements, continued Year Ended December 31, 2013 Consumer Banking and Private Wealth Management $40,510 84,289 45,538 85,167 - $2,595 1 2,596 261 2,335 1,482 2,783 1,034 381 653 - $653 Wholesale Banking $54,142 39,572 66,095 46,693 - $1,547 124 1,671 124 1,547 1,103...

  • Page 183
    ... of AOCI, net of tax, were calculated as follows: (Dollars in millions) Securities AFS $298 (150) (13) (163) $135 Derivative Instruments $97 154 (164) (10) $87 Employee Benefit Plans ($517) - (165) (165) ($682) Total ($122) 4 (342) (338) ($460) Year Ended December 31, 2015 Balance, beginning of...

  • Page 184
    ... subsidiaries Trading (losses)/gains Gain on sale of subsidiary Other income Total income Expense Interest on short-term borrowings Interest on long-term debt Employee compensation and benefits 2 Service fees to subsidiaries Other expense Total expense Income before income tax benefit and equity in...

  • Page 185
    ...bearing deposits held at other banks Cash and cash equivalents Trading assets and derivative instruments Securities available for sale Loans to subsidiaries Investment in capital stock of subsidiaries stated on the basis of the Company's equity in subsidiaries' capital accounts: Banking subsidiaries...

  • Page 186
    ...in short-term borrowings Proceeds from long-term debt Repayment of long-term debt Proceeds from the issuance of preferred stock Repurchase of common stock Common and preferred dividends paid Incentive compensation related activity Net cash used in financing activities Net (decrease)/increase in cash...

  • Page 187
    ... by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to the Company's management, including its...

  • Page 188
    ... annual meeting of shareholders to be held on April 26, 2016 and to be filed with the Commission is incorporated by reference into this Item 10. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information at the captions "Equity Compensation Plans...

  • Page 189
    ... Statements of Shareholders' Equity for the years ended December 31, 2015, 2014, and 2013; and Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014, and 2013. (a)(2) Financial Statement Schedules All financial statement schedules for the Company have been included in...

  • Page 190
    ... 4.2 to Registrant's Current Report on Form 8-K filed December 20, 2012. Form of Series F Preferred Stock Certificate, incorporated by reference to Exhibit 4.2 to Registrant's Current Report on Form 8-K filed November 7, 2014. SunTrust Banks, Inc. Annual Incentive Plan, amended and restated as...

  • Page 191
    ...Unit Agreement, 2014 Return on Tangible Common Equity (corrected); (xxviii)Form of Restricted Stock Unit Agreement, 2015 Return on Tangible Common Equity; and (xxix) Form of Restricted Stock Unit Agreement, 2015 Type I, three-year cliff, incorporated by reference to (i) Exhibit 10.1.1 to the Company...

  • Page 192
    ...Inc. 401(k) Plan Trust Agreement, amended and restated as of July 1, 2011, incorporated by reference to Exhibit 10.23 to the Registrant's Annual Report on Form 10-K filed February 24, 2012. Consent Order dated April 13, 2011 by and among the Board of Governors of the Federal Reserve System, SunTrust...

  • Page 193
    ...Certification of Corporate Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Recoupment Policy. Interactive Data File. Certain instruments defining rights of holders of long-term debt of...

  • Page 194
    ... to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated: Signatures Principal Executive Officer: /s/ William H. Rogers, Jr. William H. Rogers...

  • Page 195
    ... Act, are accessible as soon as reasonably practicable at no cost on the Investor Relations website at investors.suntrust.com. Credit Ratings Ratings as of December 31, 2015 Standard Moody's & Poor's Bank Level Long-term ratings Deposits Senior debt Subordinated debt Short-term ratings Corporate...

  • Page 196
    SunTrust Banks, Inc. 303 Peachtree Street, NE Atlanta, GA 30308 SunTrust Bank, Member FDIC. ©2016 SunTrust Banks, Inc. SunTrust and LIghtStream are federally registered service marks of SunTrust Banks, Inc. onUp and OneTeam Approach are service marks of SunTrust Banks, Inc.