STI 2018 Annual Report

79 SunTrust Banks, Inc. Consolidated Statements of Income Year Ended December 31 (Dollars in millions and shares in thousands, except per share data) 2018 2017 2016 Interest Income Interest and fees on loans held for investment $6,058 $5,385 $4,939 Interest and fees on loans held for sale 101 99 92 Interest on securities available for sale 1 849 756 636 Trading account interest and other 1 197 147 111 Total interest income 7,205 6,387 5,778 Interest Expense Interest on deposits 711 404 259 Interest on long-term debt 375 288 260 Interest on other borrowings 132 62 38 Total interest expense 1,218 754 557 Net interest income 5,987 5,633 5,221 Provision for credit losses 208 409 444 Net interest income after provision for credit losses 5,779 5,224 4,777 Noninterest Income Service charges on deposit accounts 579 603 630 Other charges and fees 2 356 361 359 Card fees 324 344 327 Investment banking income 2 599 623 515 Trading income 161 189 211 Mortgage related income 3 342 422 555 Trust and investment management income 304 309 304 Retail investment services 292 278 281 Commercial real estate related income 134 123 69 Net securities gains/(losses) 1 (108) 4 Gain on sale of subsidiary — 107 — Other noninterest income 134 103 128 Total noninterest income 3,226 3,354 3,383 Noninterest Expense Employee compensation 2,878 2,854 2,698 Employee benefits 430 403 373 Outside processing and software 909 826 834 Net occupancy expense 372 377 349 Marketing and customer development 175 232 172 Equipment expense 166 164 170 Regulatory assessments 126 187 173 Operating losses 79 40 108 Amortization 73 75 49 Consulting and legal fees 62 71 93 Other staff expense 52 121 67 Other noninterest expense 351 414 382 Total noninterest expense 5,673 5,764 5,468 Income before provision for income taxes 3,332 2,814 2,692 Provision for income taxes 548 532 805 Net income including income attributable to noncontrolling interest 2,784 2,282 1,887 Less: Net income attributable to noncontrolling interest 9 9 9 Net income 2,775 2,273 1,878 Less: Preferred stock dividends and other 107 94 67 Net income available to common shareholders $2,668 $2,179 $1,811 Net income per average common share: Diluted $5.74 $4.47 $3.60 Basic 5.79 4.53 3.63 Dividends declared per common share 1.80 1.32 1.00 Average common shares outstanding - diluted 464,961 486,954 503,466 Average common shares outstanding - basic 460,922 481,339 498,638 1 Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities AFS to Other assets on the Consolidated Balance Sheets and began presenting income associated with certain of these equity securities in Trading account interest and other. For periods prior to January 1, 2018, this income was previously presented in Interest on securities available for sale and has been reclassified to Trading account interest and other for comparability. 2 Beginning July 1, 2018, the Company began presenting bridge commitment fee income related to capital market transactions in Investment banking income on the Consolidated Statements of Income. For periods prior to July 1, 2018, this income was previously presented in Other charges and fees and has been reclassified to Investment banking income for comparability. 3 Beginning with this Form 10-K, the Company began presenting Mortgage production related income and Mortgage servicing related income as a single line item on the Consolidated Statements of Income titled Mortgage related income. Prior periods have been conformed to this updated presentation for comparability. See accompanying Notes to Consolidated Financial Statements.