STI 2018 Annual Report

33 Consolidated Daily Average Balances, Income/Expense, and Average Yields Earned/Rates Paid Table 1 2018 2017 2016 (Dollars in millions) Average Balances Income/ Expense Yields/ Rates Average Balances Income/ Expense Yields/ Rates Average Balances Income/ Expense Yields/ Rates ASSETS LHFI: 1 C&I $67,648 $2,575 3.81% $68,423 $2,286 3.34% $68,406 $2,148 3.14% CRE 6,100 252 4.13 5,158 177 3.43 5,808 169 2.92 Commercial construction 3,391 158 4.65 4,011 148 3.70 2,898 94 3.25 Residential mortgages - guaranteed 550 17 3.08 539 16 2.92 575 20 3.45 Residential mortgages - nonguaranteed 27,439 1,058 3.86 26,392 1,003 3.80 25,554 964 3.77 Residential home equity products 9,801 478 4.87 10,969 470 4.28 12,297 484 3.94 Residential construction 212 10 4.49 346 15 4.26 377 17 4.39 Consumer student - guaranteed 6,862 342 4.98 6,464 286 4.42 5,551 224 4.03 Consumer other direct 9,521 515 5.41 8,239 406 4.93 6,871 313 4.56 Consumer indirect 11,917 454 3.81 11,492 401 3.49 10,712 365 3.40 Consumer credit cards 1,562 180 11.55 1,429 145 10.12 1,188 120 10.10 Nonaccrual 2 711 19 2.67 754 32 4.28 881 21 2.43 Total LHFI 145,714 6,058 4.16 144,216 5,385 3.73 141,118 4,939 3.50 Securities AFS: 3 Taxable 30,984 830 2.68 30,106 743 2.47 27,629 630 2.28 Tax-exempt 625 19 2.99 433 13 2.99 189 6 3.37 Total securities AFS 31,609 849 2.69 30,539 756 2.47 27,818 636 2.29 Fed funds sold and securities borrowed or purchased under agreements to resell 1,437 25 1.68 1,215 9 0.69 1,241 1 0.10 LHFS 2,050 101 4.91 2,483 99 4.00 2,570 92 3.60 Interest-bearing deposits in other banks 25 — 2.36 25 — 1.20 24 — 0.40 Interest earning trading assets 4,775 152 3.18 5,152 120 2.33 5,467 95 1.73 Other earning assets 3 544 20 3.68 582 18 3.12 587 15 2.51 Total earning assets 186,154 7,205 3.87 184,212 6,387 3.47 178,825 5,778 3.23 ALLL (1,676) (1,735) (1,746) Cash and due from banks 4,845 5,123 4,999 Other assets 17,999 16,376 14,880 Noninterest earning trading assets and derivative instruments 644 903 1,388 Unrealized (losses)/gains on securities available for sale, net (689) 52 658 Total assets $207,277 $204,931 $199,004 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits: NOW accounts $46,170 $241 0.52% $45,009 $131 0.29% $40,949 $55 0.13% Money market accounts 50,042 268 0.54 53,592 157 0.29 53,795 107 0.20 Savings 6,647 1 0.02 6,519 1 0.02 6,285 2 0.03 Consumer time 6,332 64 1.00 5,626 42 0.75 5,852 43 0.73 Other time 7,986 120 1.50 5,148 57 1.10 3,908 39 1.00 Total interest-bearing consumer and commercial deposits 117,177 694 0.59 115,894 388 0.34 110,789 246 0.22 Brokered time deposits 1,031 15 1.47 941 12 1.29 926 12 1.33 Foreign deposits 94 2 1.88 421 4 0.86 123 1 0.42 Total interest-bearing deposits 118,302 711 0.60 117,256 404 0.34 111,838 259 0.23 Funds purchased 1,377 27 1.93 1,217 13 1.02 1,055 4 0.37 Securities sold under agreements to repurchase 1,688 31 1.77 1,558 15 0.92 1,734 7 0.42 Interest-bearing trading liabilities 1,270 40 3.16 968 26 2.70 1,025 24 2.29 Other short-term borrowings 2,214 34 1.53 1,591 8 0.50 1,452 3 0.23 Long-term debt 12,458 375 3.01 11,065 288 2.60 10,767 260 2.42 Total interest-bearing liabilities 137,309 1,218 0.89 133,655 754 0.56 127,871 557 0.44 Noninterest-bearing deposits 42,591 43,655 43,400 Other liabilities 2,492 2,936 3,252 Noninterest-bearing trading liabilities and derivative 675 384 413 Shareholders’ equity 24,210 24,301 24,068 Total liabilities and shareholders’ equity $207,277 $204,931 $199,004 Interest rate spread 2.98% 2.91% 2.79% Net interest income 4 $5,987 $5,633 $5,221 Net interest income-FTE 4, 5 $6,075 $5,778 $5,359 Net interest margin 6 3.22% 3.06% 2.92% Net interest margin-FTE 5, 6 3.26 3.14 3.00 1 Interest income includes loan fees of $166 million, $177 million, and $165 million for the years ended December 31, 2018, 2017, and 2016, respectively. 2 Income on consumer and residential nonaccrual loans, if recognized, is recognized on a cash basis. 3 Beginning January 1, 2018, we began presenting equity securities previously presented in securities AFS (taxable) as other earning assets. Prior periods have been revised to conform to the current presentation for comparability. 4 Derivative instruments employed to manage our interest rate sensitivity decreased net interest income $72 million for the year ended December 31, 2018 and increased net interest income $104 million and $261 million for the years ended December 31, 2017 and 2016, respectively. 5 See Table 29, “Selected Financial Data and Reconcilement of Non-U.S. GAAPMeasures,” in this MD&A for additional information and reconciliations of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for each of the years ended December 31, 2018, 2017, and 2016 was attributed to C&I loans. 6 Net interest margin is calculated by dividing annualized net interest income by average total earning assets.