Capital

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 15 – CAPITAL

During 2018, pursuant to the Federal Reserve’s non-objection to the Company’s capital plan in conjunction with the 2018 CCAR, the Company increased its quarterly common stock dividend from $0.40 to $0.50 per share beginning in the third quarter of 2018, maintained dividend payments on its preferred stock, and repurchased $1.25 billion of its outstanding common stock at market value (approximately 18.9 million shares) under the 2018 capital plan. During the first half of 2018, the Company repurchased $660 million of its outstanding common stock, which completed its authorized repurchase of common equity under the 2017 CCAR capital plan, which effectively expired on June 30, 2018. At December 31, 2018, the Company had remaining capacity under its 2018 capital plan to repurchase an additional $750 million of its outstanding common stock through June 30, 2019.

Dividends declared on the Company’s common and preferred stock were as follows:

	Year Ended December 31
(Dollars in millions, except per share data)	2018		2017		2016
Common stock:
Dividends declared		$826		$634		$498
Dividends declared per share	1.80		1.32		1.00
Preferred stock:
Dividends declared		$107		$94		$66
Dividends declared per share:
Series A	4,056		4,056		4,067
Series B	4,056		4,056		4,067
Series E 1	1,469		5,875		5,875
Series F	5,625		5,625		5,625
Series G	5,050		3,128		—
Series H	5,566		669		—

¹ All 4,500 shares of outstanding Series E Preferred Stock were redeemed in the first quarter of 2018.

Substantially all of the Company’s retained earnings are undistributed earnings of the Bank, which are restricted by various regulations administered by federal and state bank regulatory authorities. At December 31, 2018 and 2017, retained earnings of the Bank available for payment of cash dividends to the Parent Company under these regulations totaled approximately $2.2 billion and $2.5 billion, respectively. Additionally, the FRB requires the Company to maintain cash or deposit reserves with the Federal Reserve Bank. For the years ended December 31, 2018 and 2017, the

average required reserve balance was $1.3 billion and $1.2 billion, respectively, which was fulfilled with a combination of cash on hand and deposits at the Federal Reserve.

Regulatory Capital

The Company is subject to the following minimum capital requirements: CET1 ratio of 4.5%; Tier 1 capital ratio of 6%; Total capital ratio of 8%; and Leverage ratio of 4%. The following table presents regulatory capital metrics for SunTrust and the Bank at December 31:

	2018				2017
(Dollars in millions)	Amount		Ratio		Amount		Ratio
SunTrust Banks, Inc.
CET1		$17,258	9.21	%		$17,141	9.74	%
Tier 1 capital	19,306		10.30		19,622		11.15
Total capital	22,517		12.02		23,028		13.09
Leverage			9.26				9.80
SunTrust Bank
CET1		$20,137	11.01	%		$19,474	11.29	%
Tier 1 capital	20,160		11.02		19,496		11.31
Total capital	22,564		12.33		22,132		12.83
Leverage			9.95				9.97

The Company is also subject to a 2.5% capital conservation buffer that became applicable on January 1, 2016 and was phased-in through December 31, 2018. The capital conservation buffer is an amount above the minimum levels designed to ensure that banks remain well-capitalized, even in adverse economic scenarios.

Preferred Stock

Preferred stock at December 31 consisted of the following:

(Dollars in millions)	2018		2017		2016
Series A		$172		$172		$172
Series B	103		103		103
Series E 1	—		450		450
Series F	500		500		500
Series G	750		750		—
Series H	500		500		—
Total preferred stock		$2,025		$2,475		$1,225

¹ All 4,500 shares of outstanding Series E Preferred Stock were redeemed in the first quarter of 2018.

The following table presents information related to the Company’s preferred stock outstanding at December 31, 2018:

Preferred 1  Stock	Issue Date	Number of Shares Authorized	Number of Shares Issued	Number of Shares Outstanding	Dividend Dates	Annual Per 2 Share Dividend Rate	Optional Redemption Date	Redemption Price Per Share
Series A	9/12/2006	5,000	5,000	1,725	Quarterly beginning on December 15, 2006	Greater of 3-month LIBOR plus 0.53% per annum or 4.00%	9/15/2011	$100,000
Series B	12/15/2011	5,010	1,025	1,025	Quarterly beginning on March 15, 2012	Greater of 3-month LIBOR plus 0.645% per annum or 4.00%	12/15/2011	100,000
Series F	11/7/2014	5,000	5,000	5,000	Semi-annually beginning on June 15, 2015 until December 15, 2019	5.625% until December 15, 2019	12/15/2019 3	100,000
					Quarterly beginning on March 15, 2020	3-month LIBOR plus 3.86% per annum beginning on March 15, 2020
Series G	5/2/2017	7,500	7,500	7,500	Semi-annually beginning on December 15, 2017 until June 15, 2022	5.05% until June 15, 2022	6/15/2022 3	100,000
					Quarterly beginning on September 15, 2022	3-month LIBOR plus 3.102% per annum beginning on September 15, 2022
Series H	11/14/2017	5,000	5,000	5,000	Semi-annually beginning on June 15, 2018 until December 15, 2027	5.125% until December 15, 2027	12/15/2027 3	100,000
					Quarterly beginning on March 15, 2028	3-month LIBOR plus 2.786% per annum beginning on March 15, 2028

¹ All series of preferred stock have no par value, $100,000 liquidation preference per share, and no voting rights.

² Dividends on the shares are noncumulative.

³ Redeemable at the option of the Company on or after the date stated or any time within 90 days following a regulatory capital event.

In 2008, the Company issued to the U.S. Treasury as part of the CPP, 35,000 and 13,500 shares of Series C and D Fixed Rate Cumulative Perpetual Preferred Stock, respectively, and Series A and B warrants to purchase a total of 17.9 million shares of the Company's common stock. The Series A warrants entitled the holder to purchase 6 million shares of the Company's common stock at an exercise price of $33.70 per share, while the Series B warrants entitled the holder to purchase 11.9 million shares of the Company's common stock at an exercise price of $44.15 per share.

In March 2011, the Company repurchased its Series C and D Preferred Stock from the U.S. Treasury, and in September 2011, the U.S. Treasury held a public auction to sell the Series A and B common stock purchase warrants. In conjunction with

the U.S. Treasury’s auction, the Company acquired 4 million of the common stock purchase warrants, Series A, for $11 million, which were then retired. In January and February of 2016, the Company acquired an additional 1.1 million of Series A common stock warrants and 5.4 million of Series B common stock warrants as part of its 2015 CCAR capital plan for a total of $24 million.

During 2018, 3 million shares of common stock were issued upon exercise of Series A and B warrants. At December 31, 2018, a total of 7,445 Series A and B warrants to purchase the Company’s common stock were not exercised prior to their expiration dates of December 31, 2018 and November 14, 2018, respectively.