SUNTRUST BANKS INC, 10-K filed on 2/24/2015
Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Feb. 18, 2015
Jun. 30, 2014
Entity Registrant Name
SUNTRUST BANKS INC 
 
 
Entity Central Index Key
0000750556 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2014 
 
 
Entity Public Float
 
 
$ 21,361 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
522,938,524 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Consolidated Statements of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Statement [Abstract]
 
 
 
Gains (Losses) on Sales of Other Real Estate
$ (4)
$ 4 
$ 140 
Gains (Losses) on Extinguishment of Debt
16 
Interest Income
 
 
 
Interest and fees on loans
4,617 
4,633 
5,035 
Interest and fees on loans held for sale
78 
107 
112 
Interest and Dividend Income, Securities, Available-for-sale
613 
579 
655 
Trading account interest and other
76 
69 
65 
Total interest income
5,384 
5,388 
5,867 
Interest Expense
 
 
 
Interest on deposits
235 
291 
429 
Interest Expense, Long-term Debt
270 
210 
299 
Interest on other borrowings
39 
34 
37 
Total interest expense
544 
535 
765 
Net, interest income
4,840 
4,853 
5,102 
Provision for Loan, Lease, and Other Losses
342 1
553 1
1,395 
Interest Income (Expense), after Provision for Loan Loss
4,498 
4,300 
3,707 
Noninterest Income
 
 
 
Service charges on deposit accounts
645 
657 
676 
Fees and Commissions, Other
368 
369 
402 
Fees and Commissions, Credit and Debit Cards
320 
310 
316 
Fees and Commissions, Fiduciary and Trust Activities
423 
518 
512 
Investment Advisory, Management and Administrative Fees
297 
267 
241 
Investment Banking Revenue
404 
356 
342 
Trading Gain (Loss)
182 
182 
211 
Servicing Fees, Net
196 
87 
260 
Fees and Commissions, Mortgage Banking
201 
314 
343 
Gain (Loss) on Disposition of Business
105 
Gain (Loss) on Sale of Securities, Net
(15)
1,974 
Noninterest Income, Other Operating Income
197 
152 
96 
Total noninterest income
3,323 
3,214 
5,373 
Noninterest Expense
 
 
 
Employee compensation
2,576 
2,488 
2,603 
Other Labor-related Expenses
386 
413 
474 
Outside processing and software
741 
746 
710 
Net occupancy expense
340 
348 
359 
Equipment Expense
169 
181 
188 
Federal Deposit Insurance Corporation Premium Expense
142 
181 
233 
Marketing and Advertising Expense
134 
135 
184 
Professional Fees
72 
73 
165 
Credit and collection services
91 
264 
239 
Operating losses
441 
503 
277 
Amortization of Intangible Assets and Impairment of Goodwill
25 
23 
46 
Other Noninterest Expense
(430)2
(472)2
(650)2
Noninterest Expense
5,543 
5,831 
6,284 
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest
2,278 
1,683 
2,796 
Income Tax Expense (Benefit)
493 2
322 2
812 2
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
1,785 
1,361 
1,984 
Net Income (Loss) Attributable to Noncontrolling Interest
11 
17 
26 
Net Income (Loss) Attributable to Parent
1,774 
1,344 
1,958 
Net Income (Loss) Available to Common Stockholders, Basic
$ 1,722 
$ 1,297 
$ 1,931 
Earnings Per Share, Diluted
$ 3.23 
$ 2.41 
$ 3.59 
Earnings Per Share, Basic
$ 3.26 
$ 2.43 
$ 3.62 
Common Stock, Dividends, Per Share, Declared
$ 0.70 
$ 0.35 
$ 0.20 
Weighted Average Number of Shares Outstanding, Diluted
533,391 
539,093 
538,061 
Weighted Average Number of Shares Outstanding, Basic
527,500 
534,283 
534,149 
Consolidated Statements of Comprehensive Income Consolidated Statement of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Net Income (Loss) Attributable to Parent
$ 1,774 
$ 1,344 
$ 1,958 
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
375 
(597)
(1,343)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax
(182)
(253)
(37)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
(26)
252 
(60)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
167 
(598)
(1,440)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
$ 1,941 
$ 746 
$ 518 
Consolidated Statements of Comprehensive Income Consolidated Statement of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax
$ 218 
$ (349)
$ (738)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax
(106)
(148)
(25)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax
$ (15)
$ 147 
$ (35)
Consolidated Balance Sheets (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Assets
 
 
Cash and Due from Banks
$ 7,047 
$ 4,258 
Federal Funds Sold and Securities Purchased under Agreements to Resell
1,160 
983 
Interest-bearing Deposits in Banks and Other Financial Institutions
22 
22 
Cash and cash equivalents
8,229 
5,263 
Trading assets
6,202 1
5,040 1
Available-for-sale Securities
26,770 2
22,542 2
Loans Held for Sale
3,232 3 4
1,699 3
Loans held for investment
133,112 5
127,877 5
Loans and Leases Receivable, Allowance
(1,937)
(2,044)
Net loans
131,175 
125,833 
Premises and equipment
1,508 
1,565 
Goodwill
6,337 
6,369 
Intangible Assets, Net (Excluding Goodwill)
1,219 
1,334 
Other Assets
5,656 
5,690 
Total assets
190,328 
175,335 
Liabilities and Shareholders' Equity
 
 
Noninterest-bearing consumer and commercial deposits
41,096 
38,800 
Interest-bearing Deposit Liabilities
99,471 
90,959 
Total deposits
140,567 
129,759 
Funds purchased
1,276 
1,192 
Securities Sold under Agreements to Repurchase
2,276 6
1,759 6
Other Short-term Borrowings
5,634 
5,788 
Long-term Debt
13,022 7
10,700 7
Trading liabilities
1,227 
1,181 
Other Liabilities
3,321 
3,534 
Total liabilities
167,323 
153,913 
Preferred Stock, Value, Outstanding
1,225 
725 
Common Stock, Value, Outstanding
550 
550 
Additional paid in capital
9,089 
9,115 
Retained earnings
13,295 
11,936 
Treasury stock, at cost, and other
(1,032)5
(615)5
Accumulated Other Comprehensive Income (Loss), Net of Tax
(122)
(289)
Total shareholders' equity
23,005 
21,422 
Total liabilities and shareholders' equity
190,328 
175,335 
Common Stock, Shares, Outstanding
524,540,000 7
536,097,000 7
Common shares authorized
750,000,000 
750,000,000 
Preferred Stock, Shares Outstanding
12,000 
7,000 
Preferred Stock, Shares Authorized
50,000,000 
50,000,000 
Treasury shares of common stock
25,381,000 
13,824,000 
Treasury Stock and Other
 
 
Liabilities and Shareholders' Equity
 
 
Treasury stock, at cost, and other
1,119 
684 
Total shareholders' equity
(1,032)8
(615)8
Stockholders' Equity Attributable to Noncontrolling Interest
108 
119 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Assets
 
 
Loans Held for Sale
261 
Loans held for investment
288 
327 
Liabilities and Shareholders' Equity
 
 
Long-term Debt
302 
597 
Restricted Stock [Member]
 
 
Liabilities and Shareholders' Equity
 
 
Common Stock, Shares, Outstanding
2,930,000 
3,984,000 
Trading Securities [Member]
 
 
Liabilities and Shareholders' Equity
 
 
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value
1,316 
815 
Available-for-sale Securities [Member]
 
 
Liabilities and Shareholders' Equity
 
 
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value
$ 369 
$ 0 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Loans Held-for-sale, Fair Value Disclosure
$ 1,892 
$ 1,378 
Loans Receivable, Fair Value Disclosure
272 
302 
Servicing Asset at Fair Value, Amount
1,206 
1,300 
Deposits, Fair Value Disclosure
764 
Long-term Debt, Fair Value
1,283 
1,556 
Common stock, par value
$ 1.00 
$ 1.00 
Loans Receivable Held-for-sale, Net
3,232 1 2
1,699 1
Loans held for investment
133,112 3
127,877 3
Long-term Debt
13,022 4
10,700 4
Common Stock, Shares, Outstanding
524,540 4
536,097 4
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Long-term Debt, Fair Value
256 
Loans Receivable Held-for-sale, Net
261 
Loans held for investment
288 
327 
Long-term Debt
302 
597 
Treasury Stock and Other
 
 
Stockholders' Equity Attributable to Noncontrolling Interest
108 
119 
Residential Portfolio Segment [Member]
 
 
Loans Receivable, Fair Value Disclosure
272 
302 
Loans held for investment
38,775 
43,190 
Restricted Stock [Member]
 
 
Common Stock, Shares, Outstanding
2,930 
3,984 
Trading Securities [Member]
 
 
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value
1,316 
815 
Available-for-sale Securities [Member]
 
 
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value
$ 369 
$ 0 
Consolidated Statements of Shareholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
USD ($)
Preferred Stock [Member]
USD ($)
Common Stock [Member]
USD ($)
Additional Paid-in Capital [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Treasury Stock and Other
USD ($)
Accumulated Other Comprehensive Income (Loss) [Member]
USD ($)
Series F Preferred Stock [Member]
Preferred Stock [Member]
USD ($)
Series F Preferred Stock [Member]
Additional Paid-in Capital [Member]
USD ($)
Common Stock [Member]
Series B Preferred Stock [Member]
USD ($)
Series B Preferred Stock [Member]
Preferred Stock [Member]
USD ($)
Series B Preferred Stock [Member]
Additional Paid-in Capital [Member]
USD ($)
Ridgeworth Capital Management [Member]
USD ($)
Ridgeworth Capital Management [Member]
Additional Paid-in Capital [Member]
USD ($)
Ridgeworth Capital Management [Member]
Treasury Stock and Other
USD ($)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, beginning of period at Dec. 31, 2011
$ 20,066 
$ 275 
$ 550 
$ 9,306 
$ 8,978 
$ (792)1
$ 1,749 2
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, beginning of period at Dec. 31, 2011
 
 
537,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
1,958 
 
 
 
1,958 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(1,440)
 
 
 
 
 
(1,440)2
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Period Increase (Decrease)
 
 
 
 
1
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock, Cash
(107)
 
 
 
(107)
 
 
 
 
 
 
 
 
 
 
 
Dividends, Preferred Stock, Cash3
(12)
 
 
 
(12)
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
 
 
 
 
 
 
 
438 
450 
(12)
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
21 
 
 
(44)
 
65 1
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
 
 
(63)
 
69 1
 
 
 
 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
30 
 
 
 
 
30 1
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Employee Benefit Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Employee Benefit Plan
18 
 
 
(13)
 
31 1
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Dec. 31, 2012
20,985 
725 
550 
9,174 
10,817 
(590)1
309 2
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, end of period at Dec. 31, 2012
 
 
539,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
1,344 
 
 
 
1,344 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(598)
 
 
 
 
 
(598)2
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Period Increase (Decrease)
 
 
 
 
1
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock, Cash
(188)
 
 
 
(188)
 
 
 
 
 
 
 
 
 
 
 
Dividends, Preferred Stock, Cash3
(37)
 
 
 
(37)
 
 
 
 
 
 
 
 
 
 
 
Treasury Stock, Shares, Acquired
 
 
 
 
 
 
 
 
 
(5,000,000)
 
 
 
 
 
 
Treasury Stock, Value, Acquired, Cost Method
(150)
 
 
 
 
(150)1
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
16 
 
 
(27)
 
43 1
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
 
 
(35)
 
39 1
 
 
 
 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
32 
 
 
 
 
32 1
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Employee Benefit Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Employee Benefit Plan
 
 
 
1
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Dec. 31, 2013
21,422 
725 
550 
9,115 
11,936 
(615)1
(289)2
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, end of period at Dec. 31, 2013
536,097,000 4
 
536,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
1,774 
 
 
 
1,774 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
167 
 
 
 
 
 
167 2
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Period Increase (Decrease)
 
 
 
 
1
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock, Cash
(371)
 
 
 
(371)
 
 
 
 
 
 
 
 
 
 
 
Dividends, Preferred Stock, Cash3
(42)
 
 
 
(42)
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
 
 
 
 
500 
(4)
 
 
 
 
 
 
 
Treasury Stock, Shares, Acquired
 
 
 
 
 
 
 
 
 
(12,000,000)
 
 
 
 
 
 
Treasury Stock, Value, Acquired, Cost Method
(458)
 
 
 
 
(458)1
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
 
 
(16)
 
20 1
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
17 
 
 
18 
(2)
1
 
 
 
 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
27 
 
 
 
 
27 1
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Employee Benefit Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Employee Benefit Plan
 
 
(1)
 
1
 
 
 
 
 
 
 
(39)
(23)
(16)1
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Dec. 31, 2014
$ 23,005 
$ 1,225 
$ 550 
$ 9,089 
$ 13,295 
$ (1,032)1
$ (122)2
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, end of period at Dec. 31, 2014
524,540,000 4
 
525,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Treasury Stock, Value
$ 1,032 1
$ 615 1
 
Common stock dividends, per share
$ 0.70 
$ 0.35 
$ 0.20 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
298 
(77)
520 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax
97 
279 
532 
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax
(517)
(491)
(743)
Treasury Stock and Other
 
 
 
Treasury Stock, Value
(1,119)
(684)
 
Stockholders' Equity Attributable to Parent
 
 
(656)
Deferred Compensation Equity
21 
50 
(48)
Stockholders' Equity Attributable to Noncontrolling Interest
$ 108 
$ 119 
$ 114 
Series A Preferred Stock [Member]
 
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 4,056 
$ 4,056 
$ 4,052 
Series B Preferred Stock [Member]
 
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 4,056 
$ 4,056 
$ 4,052 
Series E Preferred Stock [Member]
 
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 5,875 
$ 5,793 
$ 0 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Proceeds from Issuance of Preferred Stock and Preference Stock
$ 496 
$ 0 
$ 438 
Cash Flows from Operating Activities:
 
 
 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
1,785 
1,361 
1,984 
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
 
 
 
Gain (Loss) on Disposition of Business
(105)
Depreciation, Amortization and Accretion, Net
693 
708 
757 
Goodwill, Impairment Loss
Origination of Mortgage Servicing Rights (MSRs)
(178)
(352)
(336)
Provisions for credit losses and foreclosed property
364 
605 
1,535 
Mortgage repurchase provision
12 
114 
713 
Deferred Income Tax Expense (Benefit)
99 
495 
194 
Stock Option Compensation And Amortization Of Restricted Stock Compensation
54 
53 
62 
Gain (Loss) on Sale of Securities, Net
15 
(2)
(1,974)
Net gain on sale of assets
(343)
(267)
(1,063)
Net decrease/(increase) in loans held for sale
(1,567)
2,104 
194 
Increase (Decrease) in Trading Securities
(1,529)
770 
170 
Net (increase)/decrease in other assets
(51)
(533)
807 
Increase (Decrease) in Other Operating Liabilities
(431)
(846)
(1,053)
Net Cash Provided by (Used in) Operating Activities
(1,182)
4,210 
2,013 
Cash Flows from Investing Activities:
 
 
 
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities
4,707 
5,522 
7,371 
Proceeds from sales of securities available for sale
2,470 
2,063 
4,300 
Purchases of securities available for sale
(11,039)
(9,215)
(5,814)
Proceeds from sales of trading securities
59 
Proceeds from (payments for) Originations and Purchases of Loans Held-for-investment
(9,843)
(8,409)
(6,400)
Proceeds from sales of loans
4,090 
819 
4,916 
Servicing Assets at Fair Value, Purchased
(130)
Capital expenditures
(147)
(200)
(206)
Payments related to acquisitions, including contingent consideration
(11)
(3)
(12)
Proceeds from Divestiture of Businesses
193 
Proceeds from Sale of Other Real Estate
378 
472 
585 
Net cash (used in)/provided by investing activities
(9,273)
(8,943)
4,740 
Cash Flows from Financing Activities:
 
 
 
Net (decrease)/increase in total deposits
10,808 
(2,557)
4,394 
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
447 
3,245 
(5,972)
Proceeds from Issuance of Long-term Debt
2,574 
1,564 
4,000 
Repayment of long-term debt
(53)
(155)
(5,772)
Payments for Repurchase of Common Stock
(458)
(150)
Common and preferred dividends paid
(409)
(225)
(119)
Stock option activity
16 
17 
26 
Net cash provided by/(used in) financing activities
13,421 
1,739 
(3,005)
Net (decrease)/increase in cash and cash equivalents
2,966 
(2,994)
3,748 
Cash and cash equivalents at beginning of period
5,263 
8,257 
4,509 
Cash and cash equivalents at end of period
8,229 
5,263 
8,257 
Supplemental Disclosures:
 
 
 
Transfer of Loans Held-for-sale to Portfolio Loans
44 
43 
71 
Loans transferred from loans to loans held for sale
3,280 
280 
3,695 
Transfer to Other Real Estate
148 
255 
399 
non-cash impact of deconsolidated assets
282 
Amortization Of Deferred Gain On Sale Lease Back Of Premises
53 
58 
67 
Gains (Losses) on Extinguishment of Debt
16 
Interest Paid
534 
533 
774 
Income Taxes Paid
380 
168 
607 
Proceeds from Income Tax Refunds
$ (219)
$ (99)
$ (1)
Acquisitions/Dispositions Acquisitions/Dispositions (Notes)
Mergers, Acquisitions and Dispositions Disclosures [Text Block]
NOTE 2 - ACQUISITIONS/DISPOSITIONS
During the years ended December 31, 2014, 2013, and 2012, the Company had the following notable disposition:
(Dollars in millions)
 
 
 
 
 
 
 
 
 
2014
Date
 
Cash
Received/(Paid)
 
Goodwill
 
Other
Intangibles
 
Pre-tax Gain
Sale of RidgeWorth
5/30/2014
 

$193

 

($40
)
 

($9
)
 

$105

On May 30, 2014, the Company completed the sale of RidgeWorth, its asset management subsidiary with approximately $49.1 billion in assets under management, to an investor group led by a private equity fund managed by Lightyear Capital LLC. The Company received cash proceeds of $193 million, removed $96 million in net assets and $23 million in noncontrolling interests, and recognized a pre-tax gain of $105 million in connection with the sale, net of transaction-related expenses.
The Company’s results for the year ended December 31, 2014, included income before provision for income taxes related to RidgeWorth, excluding the gain on sale, of $22 million, comprised of $81 million of revenue and $59 million of expense. For the year ended December 31, 2013, the Company’s income before provision for income taxes included $64 million related to RidgeWorth, comprised of $194 million of revenue and $130 million of expense. For the year ended December 31, 2012, the Company’s income before provision for income taxes included $67 million related to RidgeWorth, comprised of $202 million of revenue and $135 million of expense.
The financial results of RidgeWorth, including the gain on sale, are reflected in the Corporate Other segment. There were no other material acquisitions or dispositions during the three years ended December 31, 2014.
Significant Accounting Policies
Significant Accounting Policies [Text Block]
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
General
SunTrust, one of the nation's largest commercial banking organizations, is a financial services holding company with its headquarters in Atlanta, Georgia. Through its principal subsidiary, SunTrust Bank, the Company offers a full line of financial services for consumers and businesses, including deposit, credit, mortgage banking, and trust and investment services. Additional subsidiaries provide asset and wealth management, securities brokerage and capital market services. SunTrust operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. In certain businesses, SunTrust also operates in select markets nationally. SunTrust provides clients with a selection of technology-based banking channels, including the internet, mobile, ATMs, and telebanking. SunTrust’s client base encompasses a broad range of individuals and families, businesses, institutions, and governmental agencies. SunTrust operated under the following business segments during 2014: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking, with functional activities included in Corporate Other. For additional information on the Company’s business segments, see Note 20, “Business Segment Reporting.”

Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of the Company and its subsidiaries after elimination of significant intercompany accounts and transactions.
The Company holds VIs, which are contractual ownership or other interests that change with changes in the fair value of a VIE's net assets. The Company consolidates a VIE if it is the primary beneficiary, which is the party that has both the power to direct the activities that most significantly impact the financial performance of the VIE and the obligation to absorb losses or rights to receive benefits through its VIs that could potentially be significant to the VIE. To determine whether or not a VI held by the Company could potentially be significant to the VIE, both qualitative and quantitative factors regarding the nature, size, and form of the Company's involvement with the VIE are considered. The assessment of whether or not the Company is the primary beneficiary of a VIE is performed on an ongoing basis. The Company consolidates VOEs, which are entities that are not VIEs and are controlled through the Company's equity interests or by other means.
Investments in companies which are not VIEs, or where the Company is not the primary beneficiary of a VIE, that the Company has the ability to exercise significant influence over operating and financing decisions, are accounted for using the equity method of accounting. These investments are included in other assets in the Consolidated Balance Sheets at cost, adjusted to reflect the Company's portion of income, loss, or dividends of the investee. Equity investments that do not meet the criteria to be accounted for under the equity method and that do not result in consolidation of the investee are accounted for under the cost method. Cost method investments are included in other assets in the Consolidated Balance Sheets and dividends received or receivable from these investments are included as a component of other noninterest income in the Consolidated Statements of Income.
Results of operations of acquired entities are included from the date of acquisition. Results of operations associated with entities or net assets sold are included through the date of disposition. The Company reports any noncontrolling interests in its subsidiaries in the equity section of the Consolidated Balance Sheets and separately presents the income or loss attributable to the noncontrolling interest of a consolidated subsidiary in its Consolidated Statements of Income. Assets and liabilities of an acquired entity are initially recorded at their estimated fair values at the date of acquisition.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
The Company evaluated subsequent events through the date its financial statements were issued.

Cash and Cash Equivalents
Cash and cash equivalents include cash and due from banks, interest-bearing deposits at other banks, Fed funds sold, and securities borrowed and purchased under agreements to resell. Cash and cash equivalents have maturities of three months or less, and accordingly, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value.

Securities and Trading Activities
Debt securities and marketable equity securities are classified at trade date as trading or securities AFS. Trading assets and liabilities are carried at fair value with changes in fair value recognized within noninterest income. Securities AFS are used as part of the overall asset and liability management process to optimize income and market performance over an entire interest rate cycle. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts on debt securities are amortized as an adjustment to yield over the estimated life of the security. Securities AFS are carried at fair value with unrealized gains and losses, net of any tax effect, included in AOCI as a component of shareholders’ equity. Realized gains and losses, including OTTI, are determined using the specific identification method and are recognized as a component of noninterest income in the Consolidated Statements of Income.
On a quarterly basis, securities AFS are reviewed for OTTI. In determining whether OTTI exists for securities in an unrealized loss position, the Company assesses whether it has the intent to sell the security or, for debt securities, the Company assesses the likelihood of selling the security prior to the recovery of its amortized cost basis. If the Company intends to sell the debt security or it is more-likely-than-not that the Company will be required to sell the debt security prior to the recovery of its amortized cost basis, the debt security is written down to fair value, and the full amount of any impairment charge is recognized as a component of noninterest income in the Consolidated Statements of Income. If the Company does not intend to sell the debt security and it is more-likely-than-not that the Company will not be required to sell the debt security prior to recovery of its amortized cost basis, only the credit component of any impairment of a debt security is recognized as a component of noninterest income in the Consolidated Statements of Income, with the remaining impairment recorded in OCI.
The OTTI review for marketable equity securities includes an analysis of the facts and circumstances of each individual investment and focuses on the severity of loss, the length of time the fair value has been below cost, the expectation for that security's performance, the financial condition and near-term prospects of the issuer, and management's intent and ability to hold the security to recovery. A decline in value of an equity security that is considered to be other-than-temporary is recognized as a component of noninterest income in the Consolidated Statements of Income.
Nonmarketable equity securities are accounted for under the cost or equity method and are included in other assets in the Consolidated Balance Sheets. The Company reviews nonmarketable securities accounted for under the cost method on a quarterly basis, and reduces the asset value when declines in value are considered to be other-than-temporary. Equity method investments are recorded at cost, adjusted to reflect the Company’s portion of income, loss, or dividends of the investee. Realized income, realized losses, and estimated other-than-temporary unrealized losses on cost and equity method investments are recognized in noninterest income in the Consolidated Statements of Income.
For additional information on the Company’s securities activities, see Note 4, “Trading Assets and Liabilities and Derivatives,” and Note 5, “Securities Available for Sale.”

Loans Held for Sale
The Company’s LHFS generally includes certain residential mortgage loans, commercial loans, consumer indirect loans and student loans. Loans are initially classified as LHFS when they are identified as being available for immediate sale and a formal plan exists to sell them. LHFS are recorded at either fair value, if elected, or the lower of cost or fair value on an individual loan basis. Origination fees and costs for LHFS recorded at LOCOM are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for LHFS that are elected to be measured at fair value. Fair value is derived from observable current market prices, when available, and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models, in which the Company uses its best estimates of assumptions it believes would be used by market participants in estimating fair value. Adjustments to reflect unrealized gains and losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as noninterest income in the Consolidated Statements of Income.
The Company may transfer certain residential mortgage loans, commercial loans, student loans, and consumer indirect loans to a held for sale classification at LOCOM. At the time of transfer, any credit losses subject to charge-off in accordance with the Company's policy are recorded as a reduction in the ALLL. Any further or subsequent losses, including those related to interest rate or liquidity related valuation adjustments, are recorded as a component of noninterest income in the Consolidated Statements of Income. The Company may also transfer loans from held for sale to held for investment. At the time of transfer, any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield using the effective yield method, unless the loan was elected upon origination to be accounted for at fair value. If a held for sale loan for which fair value accounting was elected is transferred to held for investment, it will continue to be accounted for at fair value in the held for investment portfolio. For additional information on the Company’s LHFS activities, see Note 6, “Loans.”

Loans
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are considered LHFI. The Company’s loan balance is comprised of loans held in portfolio, including commercial loans, consumer loans, and residential loans. Interest income on all types of loans, except those classified as nonaccrual, is accrued based upon the outstanding principal amounts using the effective yield method.
Commercial loans (C&I, CRE, and commercial construction) are considered to be past due when payment is not received from the borrower by the contractually specified due date. The Company typically classifies commercial loans as nonaccrual when one of the following events occurs: (i) interest or principal has been past due 90 days or more, unless the loan is both well secured and in the process of collection; (ii) collection of recorded interest or principal is not anticipated; or (iii) income for the loan is recognized on a cash basis due to the deterioration in the financial condition of the debtor. When a loan is placed on nonaccrual, accrued interest is reversed against interest income. Interest income on nonaccrual loans, if recognized, is recognized after the principal has been reduced to zero. If and when commercial borrowers demonstrate the ability to repay a loan classified as nonaccrual in accordance with its contractual terms, the loan may be returned to accrual status upon meeting all regulatory, accounting, and internal policy requirements.
Consumer loans (guaranteed and private student loans, other direct, indirect, and credit card) are considered to be past due when payment is not received from the borrower by the contractually specified due date. Guaranteed student loans continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. Other direct and indirect loans are typically placed on nonaccrual when payments have been past due for 90 days or more except when the borrower has declared bankruptcy, in which case, they are moved to nonaccrual status once they become 60 days past due. When a loan is placed on nonaccrual, accrued interest is reversed against interest income. Interest income on nonaccrual loans, if recognized, is recognized on a cash basis. Nonaccrual consumer loans are typically returned to accrual status once they are no longer past due.
Residential loans (guaranteed and nonguaranteed residential mortgages, home equity products, and residential construction) are considered to be past due when a monthly payment is due and unpaid for one month. Guaranteed residential mortgages continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. Nonguaranteed residential mortgages and residential construction loans are generally placed on nonaccrual when three payments are past due. Home equity products are generally placed on nonaccrual when payments are 90 days past due. The exceptions for nonguaranteed residential mortgages, residential construction loans, and home equity products are: (i) when the borrower has declared bankruptcy, in which case, they are moved to nonaccrual status once they become 60 days past due; (ii) loans discharged in Chapter 7 bankruptcy that have not been reaffirmed by the borrower, in which case, they are moved to nonaccrual status immediately; and (iii) second lien loans which are classified as nonaccrual when the first lien loan is classified as nonaccrual even if the second lien loan is performing. When a loan is placed on nonaccrual, accrued interest is reversed against interest income. Interest income on nonaccrual loans, if recognized, is recognized on a cash basis. Nonaccrual residential loans are typically returned to accrual status once they no longer meet the delinquency threshold that resulted in them initially being moved to nonaccrual status, with the exception of the aforementioned Chapter 7 bankruptcy loans, which remain on nonaccrual until there is six months of payment performance following discharge by the bankruptcy court.
TDRs are loans in which the borrower is experiencing financial difficulty at the time of restructure and the borrower received an economic concession either from the Company or as the product of a bankruptcy court order. To date, the Company’s TDRs have been predominantly first and second lien residential mortgages and home equity lines of credit. Prior to granting a modification of a borrower’s loan terms, the Company performs an evaluation of the borrower’s financial condition and ability to service under the potential modified loan terms. The types of concessions generally granted are extensions of the loan maturity date and/or reductions in the original contractual interest rate. Typically, if a loan is accruing interest at the time of modification, the loan remains on accrual status and is subject to the Company’s charge-off and nonaccrual policies. See the “Allowance for Credit Losses” section below for further information regarding these policies. If a loan is on nonaccrual before it is determined to be a TDR then the loan remains on nonaccrual. Typically, TDRs may be returned to accrual status if there has been at least a six month sustained period of repayment performance by the borrower. Generally, once a loan becomes a TDR, the Company expects that the loan will continue to be reported as a TDR for its remaining life, even after returning to accruing status, unless the modified rates and terms at the time of modification were available to the borrower in the market or the loan is subsequently restructured with no concession to the borrower and the borrower is no longer in financial difficulty. Interest income recognition on impaired loans is dependent upon nonaccrual status, TDR designation, and loan type as discussed above.
For loans accounted for at amortized cost, fees and incremental direct costs associated with the loan origination and pricing process, as well as premiums and discounts, are deferred and amortized as level yield adjustments over the respective loan terms. Fees received for providing loan commitments that result in funded loans are recognized over the term of the loan as an adjustment of the yield. If a loan is never funded, the commitment fee is recognized into noninterest income at the expiration of the commitment period. Origination fees and costs are recognized in noninterest income and expense at the time of origination for newly-originated loans that are accounted for at fair value. For additional information on the Company's loans activities, see Note 6, “Loans.”

Allowance for Credit Losses
The allowance for credit losses is composed of the ALLL and the reserve for unfunded commitments. The Company’s ALLL is the amount considered adequate to absorb probable current inherent losses within the LHFI portfolio based on management’s evaluation of the size and current risk characteristics of the loan portfolio. In addition to the review of credit quality through ongoing credit review processes, the Company employs a variety of modeling and estimation techniques to measure credit risk and construct an appropriate and adequate ALLL. Numerous asset quality measures, both quantitative and qualitative, are considered in estimating the ALLL. Such evaluation considers numerous factors for each of the loan portfolio segments, including, but not limited to, net charge-off trends, internal risk ratings, changes in internal risk ratings, loss forecasts, collateral values, geographic location, delinquency rates, nonperforming and restructured loan status, origination channel, product mix, underwriting practices, industry conditions, and economic trends. Additionally, refreshed FICO scores are considered for consumer and residential loans and single name borrower concentration is considered for commercial loans. These credit quality factors are incorporated into various loss estimation models and analytical tools utilized in the ALLL process and/or are qualitatively considered in evaluating the overall reasonableness of the ALLL.
Large commercial (all loan classes) nonaccrual loans and certain consumer (other direct, indirect, and credit card), residential (nonguaranteed residential mortgages, home equity products, and residential construction), and commercial (all classes) loans whose terms have been modified in a TDR are individually evaluated for impairment. A loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the agreement. If necessary, a specific allowance is established for individually evaluated impaired loans. The specific allowance established for these loans is based on a thorough analysis of the most probable source of repayment, including the present value of the loan’s expected future cash flows, the loan’s estimated market value, or the estimated fair value of the underlying collateral. Any change in the present value attributable to the passage of time is recognized through the provision for credit losses.
General allowances are established for loans and leases grouped into pools based on similar characteristics. In this process, general allowance factors are based on an analysis of historical charge-off experience, expected PD and LGD factors derived from the Company's internal risk rating process, portfolio trends, and regional and national economic conditions. Other adjustments may be made to the ALLL after an assessment of internal and external influences on credit quality that are not fully reflected in the historical loss or other risk rating data. These influences may include elements such as changes in credit underwriting, concentration risk, macroeconomic conditions, and/or recent observable asset quality trends.
The Company’s charge-off policy meets regulatory minimums. Commercial loans are charged off when they are considered uncollectible. Losses on unsecured consumer loans are generally recognized at 120 days past due, except for losses on guaranteed student loans which are recognized at 270 days past due. However, if the borrower is in bankruptcy, the loan is charged-off in the month the loan becomes 60 days past due. Losses, as appropriate, on secured consumer loans, including residential real estate, are typically recognized at 120 or 180 days past due, depending on the loan and collateral type, in compliance with the FFIEC guidelines. However, if the borrower is in bankruptcy, the secured asset is evaluated once the loan becomes 60 days past due. The loan value in excess of the secured asset value is written down or charged-off after the valuation occurs. Additionally, if a residential loan is discharged in Chapter 7 bankruptcy and not reaffirmed by the borrower, the Company's policy is to immediately charge-off the excess of the carrying amount over the fair value of the collateral.
The Company uses numerous sources of information when evaluating a property’s value. Estimated collateral valuations are based on appraisals, broker price opinions, recent sales of foreclosed properties, automated valuation models, other property-specific information, and relevant market information, supplemented by the Company’s internal property valuation analysis. The value estimate is based on an orderly disposition inclusive of marketing costs. In limited instances, the Company adjusts externally provided appraisals for justifiable and well-supported reasons, such as an appraiser not being aware of certain property-specific factors or recent sales information. Appraisals generally represent the “as is” value of the property but may be adjusted based on the intended disposition strategy of the property.
For commercial and CRE loans secured by property, an acceptable third party appraisal or other form of evaluation, as permitted by regulation, is obtained prior to the origination of the loan and upon a subsequent transaction involving a material change in terms. In addition, updated valuations may be obtained during the life of a transaction, as appropriate, such as when a loan's performance materially deteriorates. In situations where an updated appraisal has not been received or a formal evaluation performed, the Company monitors factors that can positively or negatively impact property value, such as the date of the last valuation, the volatility of property values in specific markets, changes in the value of similar properties, and changes in the characteristics of individual properties. Changes in collateral value affect the ALLL through the risk rating or impaired loan evaluation process. Charge-offs are recognized when the amount of the loss is quantifiable and timing is known. The charge-off is measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated realizable value of the loan, net of estimated selling costs. When valuing a property for the purpose of determining a charge-off, a third party appraisal or an independently derived internal evaluation is generally employed.
For mortgage loans secured by residential property where the Company is proceeding with a foreclosure action, a new valuation is obtained prior to the loan becoming 180 days past due and, if required, the loan is written down to its realizable value, net of estimated selling costs. In the event the Company decides not to proceed with a foreclosure action, the full balance of the loan is charged-off. If a loan remains in the foreclosure process for 12 months past the original charge-off, the Company obtains a new valuation annually. Any additional loss based on the new valuation is charged-off. At foreclosure, a new valuation is obtained and the loan is transferred to OREO at the new valuation less estimated selling costs; any loan balance in excess of the transfer value is charged-off. Estimated declines in value of the residential collateral between these formal evaluation events are captured in the ALLL based on changes in the house price index in the applicable MSA or other market information.
In addition to the ALLL, the Company also estimates probable losses related to unfunded lending commitments, such as letters of credit and binding unfunded loan commitments. Unfunded lending commitments are analyzed and segregated by risk similar to funded loans based on the Company’s internal risk rating scale. These risk classifications, in combination with probability of commitment usage, existing economic conditions, and any other pertinent information, result in the estimation of the reserve for unfunded lending commitments. The reserve for unfunded lending commitments is reported on the Consolidated Balance Sheets in other liabilities and the provision associated with changes in the unfunded lending commitment reserve is reported in the Consolidated Statements of Income in provision for credit losses. For additional information on the Company's allowance for credit loss activities, see Note 7, “Allowance for Credit Losses.”

Premises and Equipment
Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated predominantly using the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of the improvements' estimated useful lives or the lease term. Construction and software in process includes costs related to in-process branch expansion, branch renovation, and software development projects. Upon completion, branch and office related projects are maintained in premises and equipment while completed software projects are reclassified to other assets in the Consolidated Balance Sheets. Maintenance and repairs are charged to expense, and improvements that extend the useful life of an asset are capitalized and depreciated over the remaining useful life. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. For additional information on the Company’s premises and equipment activities, see Note 8, “Premises and Equipment.”

Goodwill and Other Intangible Assets
Goodwill represents the excess purchase price over the fair value of identifiable net assets of acquired companies. Goodwill is assigned to reporting units, which are operating segments or one level below an operating segment, as of the acquisition date. Goodwill is assigned to the Company’s reporting units that are expected to benefit from the synergies of the business combination.
Goodwill is tested at the reporting unit level for impairment, at least annually, or as events and circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. If, after considering all relevant events and circumstances, the Company determines it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then performing an impairment test is not necessary. If the Company elects to bypass the qualitative analysis, or concludes via qualitative analysis that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, a two-step goodwill impairment test is performed. In the first step, the fair value of each reporting unit is compared with its carrying value. If the fair value is greater than the carrying value, then the reporting unit's goodwill is considered not to be impaired. If the fair value is less than the carrying value, then the second step is performed, which measures the amount of impairment by comparing the carrying amount of goodwill to its implied fair value. If the implied fair value of the goodwill exceeds the carrying amount, there is no impairment. If the carrying amount exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess.
Identified intangible assets that have a finite life are amortized over their useful lives and are evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. For additional information on the Company’s activities related to goodwill and other intangibles, see Note 9, “Goodwill and Other Intangible Assets.”

MSRs
The Company recognizes as assets the rights to service mortgage loans based on the estimated fair value of the MSRs either when loans are sold and the associated servicing rights are retained or when servicing rights are purchased from a third party. The Company has elected to measure all MSRs at fair value. Fair value is determined by projecting net servicing cash flows, which are then discounted to estimate the fair value. The Company actively hedges its MSR’s change in fair value. The fair values of MSRs are impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs and underlying portfolio characteristics. The underlying assumptions and estimated values are corroborated by values received from independent third parties and comparisons to market transactions. The carrying value of MSRs is reported on the Consolidated Balance Sheets in other intangible assets. Servicing fees are recognized as they are received and changes in fair value are also reported in mortgage servicing related income in the Consolidated Statements of Income. For additional information on the Company’s servicing rights, see Note 9, “Goodwill and Other Intangible Assets.”

Other Real Estate Owned
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of the loan’s cost basis or the asset’s fair value at the date of foreclosure, less estimated selling costs. To the extent fair value, less cost to sell, is less than the loan’s cost basis, the difference is charged to the ALLL at the date of transfer into OREO. The Company estimates market values primarily based on appraisals and other market information. Any subsequent changes in value as well as gains or losses from the disposition on these assets are reported in noninterest expense in the Consolidated Statements of Income. For additional information on the Company's activities related to OREO, see Note 18, “Fair Value Election and Measurement.”

Loan Sales and Securitizations
The Company sells and at times may securitize loans and other financial assets. When the Company securitizes assets, it may hold a portion of the securities issued, including senior interests, subordinated and other residual interests, interest-only strips, and principal-only strips, all of which are considered retained interests in the transferred assets. Retained securitized interests are recognized and initially measured at fair value. The interests in securitized assets held by the Company are typically classified as either securities AFS or trading assets and measured at fair value, which is based on independent, third party market prices, market prices for similar assets, or discounted cash flow analyses. If market prices are not available, fair value is calculated using management’s best estimates of key assumptions, including credit losses, loan repayment speeds and discount rates commensurate with the risks involved. For additional information on the Company’s securitization activities, see Note 10, “Certain Transfers of Financial Assets and Variable Interest Entities.”

Income Taxes
The provision for income taxes is based on income and expense reported for financial statement purposes after adjustment for permanent differences such as interest income from lending to tax-exempt entities and tax credits from community reinvestment activities. The deferral method of accounting is used on investments that generate investment tax credits, such that the investment tax credits are recognized as a reduction to the related asset. Deferred income tax assets and liabilities result from differences between the timing of the recognition of assets and liabilities for financial reporting purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that are currently in effect. Subsequent changes in the tax laws require adjustment to these assets and liabilities with the cumulative effect included in the provision for income taxes for the period in which the change is enacted. A valuation allowance is recognized for a DTA if, based on the weight of available evidence, it is more-likely-than-not that some portion or all of the DTA will not be realized. In computing the income tax provision, the Company evaluates the technical merits of its income tax positions based on current legislative, judicial and regulatory guidance. Interest and penalties related to the Company’s tax positions are recognized as a component of the income tax provision. For additional information on the Company’s activities related to income taxes, see Note 14, “Income Taxes.”

Earnings Per Share
Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, plus common share equivalents calculated for stock options, warrants, and restricted stock outstanding using the treasury stock method.
The Company has issued certain restricted stock awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These restricted shares are considered participating securities. Accordingly, the Company calculated net income available to common shareholders pursuant to the two-class method, whereby net income is allocated between common shareholders and participating securities.
Net income available to common shareholders represents net income after preferred stock dividends, gains or losses from any repurchases of preferred stock, and dividends and allocation of undistributed earnings to the participating securities. For additional information on the Company’s EPS, see Note 12, “Net Income Per Common Share.”

Securities Sold Under Agreements to Repurchase and Securities Borrowed or Purchased Under Agreements to Resell
Securities sold under agreements to repurchase and securities borrowed or purchased under agreements to resell are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold or acquired, plus accrued interest. The fair value of collateral pledged or received is continually monitored and additional collateral is obtained or requested to be returned to the Company as deemed appropriate. For additional information on the collateral pledged to secure repurchase agreements, see Note 3, "Federal Funds Sold and Securities Financing Activities," Note 4, "Trading Assets and Liabilities and Derivatives," and Note 5, "Securities Available for Sale."

Guarantees
The Company recognizes a liability at the inception of a guarantee at an amount equal to the estimated fair value of the obligation. A guarantee is defined as a contract that contingently requires a company to make payment to a guaranteed party based upon changes in an underlying asset, liability, or equity security of the guaranteed party, or upon failure of a third party to perform under a specified agreement. The Company considers the following arrangements to be guarantees: certain asset purchase/sale agreements, standby letters of credit and financial guarantees, certain indemnification agreements included within third party contractual arrangements, and certain derivative contracts. For additional information on the Company’s guarantor obligations, see Note 16, “Guarantees.”
Derivative Financial Instruments and Hedging Activities
The Company records all contracts that satisfy the definition of a derivative at fair value in the Consolidated Balance Sheets. Accounting for changes in the fair value of a derivative is dependent upon whether or not it has been designated in a formal, qualifying hedging relationship. The Company offsets all outstanding derivative transactions with a single counterparty as well as any cash collateral paid to and received from that counterparty for derivative contracts that are subject to ISDA or other legally enforceable netting arrangements and meet accounting guidance for offsetting treatment. 
Changes in the fair value of derivatives not designated in a hedging relationship are recorded in noninterest income. This includes derivatives that the Company enters into in a dealer capacity to facilitate client transactions and as a risk management tool to economically hedge certain identified market risks, along with certain IRLCs on residential mortgage loans that are a normal part of the Company’s operations. The Company also evaluates contracts, such as brokered deposits and short-term debt, to determine whether any embedded derivatives are required to be bifurcated and separately accounted for as freestanding derivatives.
Certain derivatives used as risk management tools are also designated as accounting hedges of the Company’s exposure to changes in interest rates or other identified market risks. The Company prepares written hedge documentation for all derivatives which are designated as hedges of (1) changes in the fair value of a recognized asset or liability (fair value hedge) attributable to a specified risk or (2) a forecasted transaction, such as the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management’s assertion that the hedge will be highly effective. Methodologies related to hedge effectiveness and ineffectiveness are consistent between similar types of hedge transactions and include (i) statistical regression analysis of changes in the cash flows of the actual derivative and a perfectly effective hypothetical derivative, and (ii) statistical regression analysis of changes in the fair values of the actual derivative and the hedged item.
For designated hedging relationships, the Company performs retrospective and prospective effectiveness testing using quantitative methods and does not assume perfect effectiveness through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. Changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a fair value hedge are recorded in current period earnings, along with the changes in the fair value of the hedged item that are attributable to the hedged risk. The effective portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge are initially recorded in AOCI and reclassified to earnings in the same period that the hedged item impacts earnings; any ineffective portion is recorded in current period earnings.
Hedge accounting ceases on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. For discontinued fair value hedges where the hedged item remains outstanding, the hedged item would cease to be remeasured at fair value attributable to changes in the hedged risk and any existing basis adjustment would be recognized as an adjustment to earnings over the remaining life of the hedged item. For discontinued cash flow hedges, the unrealized gains and losses recorded in AOCI would be reclassified to earnings in the period when the previously designated hedged cash flows occur unless it was determined that transaction was probable to not occur, whereby any unrealized gains and losses in AOCI would be immediately reclassified to earnings. For additional information on the Company’s derivative activities, see Note 17, “Derivative Financial Instruments,” and Note 18, “Fair Value Election and Measurement.”

Stock-Based Compensation
The Company sponsors stock plans under which incentive and nonqualified stock options and restricted stock may be granted periodically to certain employees. The Company measures the grant date fair value of stock-based compensation awards, which is expensed over the award's vesting period. Additionally, the Company estimates the number of awards for which it is probable that service will be rendered and adjusts compensation cost accordingly. Estimated forfeitures are subsequently adjusted to reflect actual forfeitures. For additional information on the Company’s stock-based employee compensation plans, see Note 15, “Employee Benefit Plans.”

Employee Benefits
Employee benefits expense includes the net periodic benefit costs associated with the pension, supplemental retirement, and other postretirement benefit plans, as well as contributions under the defined contribution plan, the amortization of restricted stock, stock option awards, and costs of other employee benefits. For additional information on the Company's employee benefit plans, see Note 15, “Employee Benefit Plans.”

Foreign Currency Transactions
Foreign denominated assets and liabilities resulting from foreign currency transactions are valued using period end foreign exchange rates and the associated interest income or expense is determined using weighted average exchange rates for the period. The Company may elect to enter into foreign currency derivatives to mitigate its exposure to changes in foreign exchange rates. The derivative contracts are accounted for at fair value. Gains and losses resulting from such valuations are included in noninterest income in the Consolidated Statements of Income.
Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value. The Company prioritizes inputs used in valuation techniques based on the following fair value hierarchy:
Level 1 – Assets or liabilities valued using unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date, such as publicly-traded instruments or futures contracts.
Level 2 – Assets and liabilities valued based on observable market data for similar instruments.
Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market; instruments valued based on the best available data, some of which may be internally developed, and considers risk premiums that a market participant would require.
When measuring assets and liabilities at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Assets and liabilities that are required to be measured at fair value on a recurring basis include trading securities, securities AFS, and derivative financial instruments. Assets and liabilities that the Company has elected to measure at fair value on a recurring basis include MSRs and certain LHFS, LHFI, trading loans, brokered time deposits, and issuances of fixed rate debt. Other assets and liabilities are measured at fair value on a non-recurring basis, such as when assets are evaluated for impairment, the basis of accounting is LOCOM, or for disclosure purposes. Examples of these non-recurring uses of fair value include certain LHFS and LHFI, OREO, certain cost or equity method investments, and long-lived assets. For additional information on the Company’s valuation of its assets and liabilities held at fair value, see Note 18, “Fair Value Election and Measurement.”
Accounting Standards Recently Adopted and Pending Accounting Pronouncements
The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company's financial statements:
Standard
Description
Date of adoption
Effect on the financial statements or other significant matters
Standards adopted in 2014
ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects
The ASU allows the use of the proportional amortization method for investments in qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the income statement as a component of income tax expense. The ASU provides for a practical expedient, which allows for amortization of the investment in proportion to only the tax credits if it produces a measurement that is substantially similar to the measurement that would result from using both tax credits and other tax benefits.
January 1, 2014
The standard is required to be applied retrospectively; therefore amounts included in noninterest expense in periods prior to adoption have been reclassified. For the years ended December 31, 2013 and 2012, $49 million and $39 million, respectively, of investment amortization expense was reclassified from other noninterest expense to provision for income taxes in the Consolidated Statements of Income. For additional information on the impact of adoption see Note 10, "Certain Transfers of Financial Assets and Variable Interest Entities."
Standards not yet adopted
ASU 2014-09, Revenue from Contracts with Customers
The ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
January 1, 2017
The Company is continuing to evaluate the impact of the ASU.

Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]
NOTE 3 - FEDERAL FUNDS SOLD AND SECURITIES FINANCING ACTIVITIES
Fed funds sold and securities borrowed or purchased under agreements to resell were as follows:
(Dollars in millions)
December 31, 2014
 
December 31, 2013
Fed funds sold

$38

 

$75

Securities borrowed or purchased
290

 
184

Resell agreements
832

 
724

Total fed funds sold and securities borrowed or purchased under agreements to resell

$1,160

 

$983

Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which securities will be subsequently resold. Securities borrowed are primarily collateralized by corporate securities. The Company takes possession of all securities purchased under agreements to resell and securities borrowed and performs a margin evaluation on the acquisition date based on market volatility, as necessary. It is the Company's policy to obtain possession of collateral with a fair value between 95% to 110% of the principal amount loaned under resell and securities borrowing agreements. At December 31, 2014 and 2013, the total market value of collateral held was $1.1 billion and $913 million, of which $222 million and $234 million was repledged, respectively.
Securities sold under agreements to repurchase are accounted for as secured borrowings. The following table presents the Company’s related activity, by collateral type and remaining contractual maturity, at December 31, 2014.
 
Remaining Contractual Maturity of the Agreements
(Dollars in millions)
Overnight and Continuous
 
Up to 30 days
 
Total
U.S. Treasury securities

$376

 

$—

 

$376

Federal agency securities
231

 

 
231

MBS - agency
1,059

 
45

 
1,104

CP
238

 

 
238

Corporate and other debt securities
327

 

 
327

Total securities sold under agreements to repurchase

$2,231

 

$45

 

$2,276


For these securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. This risk is managed by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions.
Netting of Securities - Repurchase and Resell Agreements
The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar agreements are discussed in Note 17, "Derivative Financial Instruments." Securities borrowed or purchased under agreements to resell and securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received/pledged.

The following table presents the Company's eligible securities borrowed or purchased under agreements to resell and securities sold under agreements to repurchase at December 31, 2014 and 2013:
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged Financial Instruments
 
Net
Amount
December 31, 2014
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,122

 

$—

 

$1,122

1,2 

$1,112

 

$10

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
2,276

 

 
2,276

1 
2,276

 

 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$908

 

$—

 

$908

1,2 

$899

 

$9

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,759

 

 
1,759

1 
1,759

 


1 None of the Company's repurchase or resell transactions met the right of setoff criteria for net balance sheet presentation at December 31, 2014 and 2013.
2 Excludes $38 million and $75 million of Fed funds sold which are not subject to a master netting agreement at December 31, 2014 and 2013, respectively.

Securities Available for Sale
Securities Available for Sale
NOTE 5 – SECURITIES AVAILABLE FOR SALE
Securities Portfolio Composition
 
December 31, 2014
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$1,913

 

$9

 

$1

 

$1,921

Federal agency securities
471

 
15

 
2

 
484

U.S. states and political subdivisions
200

 
9

 

 
209

MBS - agency
22,573

 
558

 
83

 
23,048

MBS - private
122

 
2

 
1

 
123

ABS
19

 
2

 

 
21

Corporate and other debt securities
38

 
3

 

 
41

Other equity securities 1
921

 
2

 

 
923

Total securities AFS

$26,257

 

$600

 

$87

 

$26,770

 
 
 
 
 
 
 
 
 
December 31, 2013
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$1,334

 

$6

 

$47

 

$1,293

Federal agency securities
1,028

 
13

 
57

 
984

U.S. states and political subdivisions
232

 
7

 
2

 
237

MBS - agency
18,915

 
421

 
425

 
18,911

MBS - private
155

 
1

 
2

 
154

ABS
78

 
2

 
1

 
79

Corporate and other debt securities
39

 
3

 

 
42

Other equity securities 1
841

 
1

 

 
842

Total securities AFS

$22,622

 

$454

 

$534

 

$22,542

1 At December 31, 2014, other equity securities was comprised of the following: $376 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank of Atlanta stock, $138 million in mutual fund investments, and $7 million of other. At December 31, 2013, other equity securities was comprised of the following: $336 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank of Atlanta stock, $103 million in mutual fund investments, and $1 million of other.
The following table presents interest and dividends on securities AFS:
 
Year Ended December 31
(Dollars in millions)
2014
 
2013
 
2012
Taxable interest

$565

 

$537

 

$579

Tax-exempt interest
10

 
10

 
15

Dividends
38

 
32

 
61

Total interest and dividends

$613

 

$579

 

$655



Securities AFS pledged to secure public deposits, repurchase agreements, trusts, and other funds had a fair value of $2.6 billion and $11.0 billion at December 31, 2014 and 2013, respectively.
During the year ended December 31, 2012, the Company accelerated the termination of the Agreements that hedged the Company's investment in The Coca-Cola Company common stock, and the Company sold, in the market or to The Coca-Cola Company Counterparty, 59 million of its 60 million shares of The Coca-Cola Company and contributed the remaining 1 million shares of The Coca-Cola Company to the SunTrust Foundation for a net gain of $1.9 billion. The $38 million contribution to the SunTrust Foundation was recognized in noninterest expense. Details of the transactions are discussed in Note 17, "Derivative Financial Instruments."

The amortized cost and fair value of investments in debt securities at December 31, 2014, by estimated average life, are shown below. Receipt of cash flows may differ from estimated average lives and contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.
 
Distribution of Maturities
(Dollars in millions)
1 Year
or Less
 
1-5
Years
 
5-10
Years
 
After 10
Years
 
Total
Amortized Cost:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$200

 

$1,217

 

$496

 

$—

 

$1,913

Federal agency securities
64

 
234

 
36

 
137

 
471

U.S. states and political subdivisions
43

 
34

 
101

 
22

 
200

MBS - agency
2,550

 
8,992

 
7,106

 
3,925

 
22,573

MBS - private

 
122

 

 

 
122

ABS
14

 
3

 
2

 

 
19

Corporate and other debt securities
5

 
33

 

 

 
38

Total debt securities

$2,876

 

$10,635

 

$7,741

 

$4,084

 

$25,336

Fair Value:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$203

 

$1,221

 

$497

 

$—

 

$1,921

Federal agency securities
64

 
244

 
38

 
138

 
484

U.S. states and political subdivisions
43

 
36

 
106

 
24

 
209

MBS - agency
2,704

 
9,202

 
7,219

 
3,923

 
23,048

MBS - private

 
123

 

 

 
123

ABS
14

 
5

 
2

 

 
21

Corporate and other debt securities
5

 
36

 

 

 
41

Total debt securities

$3,033

 

$10,867

 

$7,862

 

$4,085

 

$25,847

 Weighted average yield 1
2.34
%
 
2.40
%
 
2.78
%
 
2.90
%
 
2.59
%
1Average yields are based on amortized cost and presented on a FTE basis.

Securities in an Unrealized Loss Position
The Company held certain investment securities where amortized cost exceeded fair market value, resulting in unrealized loss positions. Market changes in interest rates and credit spreads may result in temporary unrealized losses as the market price of securities fluctuates. At December 31, 2014, the Company did not intend to sell these securities nor was it more-likely-than-not that the Company would be required to sell these securities before their anticipated recovery or maturity. The Company has reviewed its portfolio for OTTI in accordance with the accounting policies in Note 1, "Significant Accounting Policies."
 
December 31, 2014
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
Unrealized
Losses
2
 
Fair
Value
 
Unrealized
Losses
2
 
Fair
Value
 
Unrealized
Losses
2
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$150

 

$1

 

$—

 

$—

 

$150

 

$1

Federal agency securities
20

 

 
132

 
2

 
152

 
2