Table of Contents 1 220

STI 2018 Annual Report

Annual Report 1
Letter to Shareowners 4-5
Financial Highlights 14-15
Our Purpose and 2018 Accomplishments 20-21
FORM 10-K 36
TABLE OF CONTENTS 37
GLOSSARY OF DEFINED TERMS 38
Important Cautionary Statement About Forward-Looking Statements 40
PART I 42
Item 1. Business 42
Item 1A. Risk Factors 50
Item 1B. Unresolved Staff Comments 63
Item 2. Properties 63
Item 3. Legal Proceedings 63
Item 4. Mine Safety Disclosures 63
PART II 64
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 64
Item 6. Selected Financial Data 66
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation 68
Introduction 68
Executive Overview 68
Business Segments Highlights 70
Consolidated Daily Average Balances, Income/Expense, and Average Yields Earned/Rates Paid 72
Analysis of Changes in Net Interest Income 73
Net Interest Income/Margin (FTE) 74
Noninterest Income 75
Noninterest Expense 76
Provision for Income Taxes 77
Loans 77
Allowance for Credit Losses 82
Nonperforming Assets 84
Trading Assets and Liabilities and Derivative Instruments 86
Investment Securities 86
Deposits 88
Borrowings 89
Capital Resources 90
Critical Accounting Policies 92
Enterprise Risk Management 95
Credit Risk Management 97
Operational Risk Management 97
Market Risk Management 98
Market Risk from Non-Trading Activities 98
Market Risk from Trading Activities 99
Liquidity Risk Management 101
Other Market Risk 105
Off-Balance Sheet Arrangements 105
Business Segment Results 107
Fourth Quarter Results 109
Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures 112
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 116
Item 8. Financial Statements and Supplementary Data 116
Reports of Independent Registered Public Accounting Firm 116
Consolidated Statements of Income 118
Consolidated Statements of Comprehensive Income 119
Consolidated Balance Sheets 120
Consolidated Statements of Shareholders Equity 121
Consolidated Statements of Cash Flows 122
Notes to Consolidated Financial Statements 123
Note 1 - Significant Accounting Policies 123
Note 2 - Revenue Recognition 135
Note 3 - Acquisitions/Dispositions 139
Note 4 - Federal Funds Sold and Securities Financing Activities 139
Note 5 - Trading Assets and Liabilities and Derivative Instruments 141
Note 6 - Investment Securities 142
Note 7 - Loans 146
Note 8 - Allowance for Credit Losses 154
Note 9 - Premises, Property, and Equipment 156
Note 10 - Goodwill and Other Intangible Assets 157
Note 11 - Other Assets 160
Note 12 - Certain Transfers of Financial Assets and Variable Interest Entities 161
Note 13 - Borrowings and Contractual Commitments 164
Note 14 - Net Income Per Common Share 166
Note 15 - Capital 167
Note 16 - Income Taxes 169
Note 17 - Employee Benefit Plans 171
Note 18 - Guarantees 177
Note 19 - Derivative Financial Instruments 180
Note 20 - Fair Value Election and Measurement 188
Note 21 - Contingencies 202
Note 22 - Business Segment Reporting 204
Note 23 - Accumulated Other Comprehensive Loss 208
Note 24 - Parent Company Financial Information 209
Statements of Income - Parent Company Only 209
Balance Sheets - Parent Company Only 210
Statements of Cash Flows - Parent Company Only 211
Note 25 - Subsequent Event 212
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 213
Item 9A. Controls and Procedures 213
Item 9B. Other Information 213
PART III 214
Item 10. Directors, Executive Officers and Corporate Governance 214
Item 11. Executive Compensation 214
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 214
Item 13. Certain Relationships and Related Transactions, and Director Independence 214
Item 14. Principal Accountant Fees and Services 214
PART IV 215
Item 15. Exhibits, Financial Statement Schedules 215
Item 16. Form 10-K Summary 218
SIGNATURES 218

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