STI 2018 Annual Report

83 SunTrust Banks, Inc. Consolidated Statements of Cash Flows Year Ended December 31 (Dollars in millions) 2018 2017 2016 Cash Flows from Operating Activities: Net income including income attributable to noncontrolling interest $2,784 $2,282 $1,887 Adjustments to reconcile net income to net cash provided by/(used in) operating activities: Depreciation, amortization, and accretion 716 727 725 Origination of servicing rights (352) (411) (312) Provisions for credit losses and foreclosed property 218 418 449 Deferred income tax (benefit)/expense (87) 344 111 Stock-based compensation 140 160 126 Net securities (gains)/losses (1) 108 (4) Net gains on sale of loans held for sale, loans, and other assets (97) (269) (428) Gain on sale of subsidiary — (107) — Net decrease/(increase) in loans held for sale 886 2,099 (1,819) Net (increase)/decrease in trading assets and derivative instruments (501) 834 (342) Net (increase)/decrease in other assets 1 (340) 348 (627) Net decrease in other liabilities (797) (911) (284) Net cash provided by/(used in) operating activities 2,569 5,622 (518) Cash Flows from Investing Activities: Proceeds from maturities, calls, and paydowns of securities available for sale 3,690 4,186 5,108 Proceeds from sales of securities available for sale 2,096 2,854 197 Purchases of securities available for sale (6,389) (8,299) (8,610) Net increase in loans, including purchases of loans (9,406) (2,425) (9,032) Proceeds from sales of loans and leases 281 720 1,612 Net cash paid for servicing rights (78) (7) (171) Payments for bank-owned life insurance policy premiums 1 (202) (127) (202) Proceeds from the settlement of bank-owned life insurance 1 14 3 17 Proceeds from beneficial interest 1 2 11 12 Capital expenditures (345) (410) (283) Payments related to acquisitions, net of cash acquired 1 — — (188) Consideration received from sale of subsidiary — 261 — Proceeds from the sale of other real estate owned and other assets 186 235 233 Net cash used in investing activities (10,151) (2,998) (11,307) Cash Flows from Financing Activities: Net increase in total deposits 1,809 382 10,568 Net increase in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings 3,991 17 37 Proceeds from issuance of long-term debt 6,944 2,844 6,705 Repayments of long-term debt (1,274) (4,562) (3,231) Payments of contingent consideration 1 — — (13) Proceeds from issuance of preferred stock — 1,239 — Repurchase of preferred stock (450) — — Repurchase of common stock (1,910) (1,314) (806) Repurchase of common stock warrants — — (24) Common and preferred stock dividends paid (936) (723) (564) Taxes paid related to net share settlement of equity awards (45) (39) (48) Proceeds from exercise of stock options 36 21 25 Net cash provided by/(used in) financing activities 8,165 (2,135) 12,649 Net increase in cash and cash equivalents 583 489 824 Cash and cash equivalents at beginning of period 6,912 6,423 5,599 Cash and cash equivalents at end of period $7,495 $6,912 $6,423 Supplemental Disclosures: Interest paid $1,151 $730 $559 Income taxes paid 130 415 813 Income taxes refunded (219) (3) (2) Loans transferred from loans held for sale to loans held for investment 28 19 30 Loans transferred from loans held for investment to loans held for sale 532 288 360 Loans transferred from loans held for investment and loans held for sale to other real estate owned 62 57 59 Amortization of deferred gain on sale leaseback of premises 6 17 43 Non-cash impact of debt assumed by purchaser in lease sale 373 184 74 1 Certain prior period amounts have been revised to reflect the impact of the Company’s adoption of ASU 2016-15. See Note 1, “Significant Accounting Policies,” for additional information. See accompanying Notes to Consolidated Financial Statements.