SUNTRUST BANKS INC, 10-Q filed on 11/4/2011
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2011
Oct. 31, 2011
Document Type
10-Q 
 
Amendment Flag
FALSE 
 
Document Period End Date
Sep. 30, 2011 
 
Document Fiscal Year Focus
2011 
 
Document Fiscal Period Focus
Q3 
 
Entity Registrant Name
SUNTRUST BANKS INC 
 
Entity Central Index Key
0000750556 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
536,997,314 
Consolidated Statements of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Interest Income
 
 
 
 
Interest and fees on loans
$ 1,296 
$ 1,330 
$ 3,910 
$ 3,964 
Interest and fees on loans held for sale
21 
36 
71 
102 
Interest and dividends on securities available for sale:
 
 
 
 
Taxable interest
175 
189 
517 
532 
Tax-exempt interest
5 
7 
16 
25 
Dividends
20 1
19 1
61 1
57 1
Trading account interest
21 
23 
63 
67 
Total interest income
1,538 
1,604 
4,638 
4,747 
Interest Expense
 
 
 
 
Interest on deposits
154 
214 
485 
672 
Interest on long-term debt
110 
138 
347 
451 
Interest on trading liabilities
7 
9 
22 
23 
Interest on repurchase agreements
1 
2 
4 
4 
Interest on other short-term borrowings
3 
3 
9 
10 
Total interest expense
275 
366 
867 
1,160 
Net interest income
1,263 
1,238 
3,771 
3,587 
Provision for credit losses
347 
615 
1,186 
2,138 
Net interest income after provision for credit losses
916 
623 
2,585 
1,449 
Noninterest Income
 
 
 
 
Service charges on deposit accounts
176 
184 
509 
588 
Other charges and fees
130 
137 
386 
399 
Card fees
104 
96 
309 
277 
Trust and investment management income
134 
124 
404 
373 
Retail investment services
58 
52 
175 
147 
Mortgage production related income
54 
133 
56 
86 
Mortgage servicing related income
58 
132 
202 
290 
Investment banking income
68 
96 
231 
210 
Trading account profits/(losses) and commissions
66 
(22)
171 
80 
Net securities gains
2 2
69 2
98 2
128 2
Other noninterest income
53 
46 
157 
119 
Total noninterest income
903 
1,047 
2,698 
2,697 
Noninterest Expense
 
 
 
 
Employee compensation
642 
597 
1,898 
1,729 
Employee benefits
108 
112 
354 
354 
Outside processing and software
164 
157 
484 
463 
Net occupancy expense
90 
92 
268 
273 
Regulatory assessments
80 
67 
232 
197 
Other real estate expense
62 
78 
195 
210 
Credit and collection services
71 
69 
182 
208 
Equipment expense
44 
45 
132 
128 
Marketing and customer development
41 
43 
125 
121 
Operating losses
72 
27 
161 
57 
Amortization of intangible assets
11 
13 
34 
39 
Net (gain)/loss on extinguishment of debt
(1)
12 
(3)
67 
Other noninterest expense
176 
187 
505 
516 
Total noninterest expense
1,560 
1,499 
4,567 
4,362 
Income/(loss) before provision/(benefit) for income taxes
259 
171 
716 
(216)
Provision/(benefit) for income taxes
45 
14 
136 
(230)
Net income/(loss) including income attributable to noncontrolling interest
214 
157 
580 
14 
Net (loss)/income attributable to noncontrolling interest
(1)
4 
7 
9 
Net income
215 
153 
573 
5 
Net income/(loss) available to common shareholders
$ 211 
$ 84 
$ 424 
$ (201)
Net income/(loss) per average common share
 
 
 
 
Diluted
$ 0.39 3
$ 0.17 3
$ 0.81 3
$ (0.41)4
Basic
$ 0.40 
$ 0.17 
$ 0.81 
$ (0.41)
Dividends declared per common share
$ 0.05 
$ 0.01 
$ 0.07 
$ 0.03 
Average common shares - diluted
535,395 
498,802 
524,888 
498,515 
Average common shares - basic
531,928 
495,501 
521,248 
495,243 
Consolidated Statements of Income (Parenthetical) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Dividends on common stock of The Coca-Cola Company
$ 14 
$ 13 
$ 42 
$ 40 
Net impairment losses recognized in earnings
$ 0 
$ 0 
$ 2 
$ 2 
Consolidated Balance Sheets (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Assets
 
 
Cash and due from banks
$ 4,637 
$ 4,296 
Interest-bearing deposits in other banks
21 
24 
Funds sold and securities purchased under agreements to resell
842 
1,058 
Cash and cash equivalents
5,500 
5,378 
Trading assets
6,288 
6,175 
Securities available for sale
27,502 
26,895 
Loans held for sale (loans at fair value: $1,675 as of September 30, 2011 and $3,168 as of December 31, 2010)
2,243 1
3,501 1
Loans (loans at fair value: $452 as of September 30, 2011 and $492 as of December 31, 2010)
117,475 
115,975 
Allowance for loan and lease losses
(2,600)
(2,974)
Net loans
114,875 
113,001 
Premises and equipment
1,559 
1,620 
Goodwill
6,344 
6,323 
Other intangible assets (MSRs at fair value: $1,033 as of September 30, 2011 and $1,439 as of December 31, 2010)
1,138 
1,571 
Other real estate owned
509 
596 
Other assets
6,595 
7,814 
Total assets
172,553 
172,874 
Liabilities and Shareholders' Equity
 
 
Noninterest-bearing consumer and commercial deposits
32,447 
27,290 
Interest-bearing consumer and commercial deposits
91,486 
92,735 
Total consumer and commercial deposits
123,933 
120,025 
Brokered deposits (CDs at fair value: $1,056 as of September 30, 2011 and $1,213 of December 31, 2010)
2,283 
2,365 
Foreign deposits
35 
654 
Total deposits
126,251 
123,044 
Funds purchased
998 
951 
Securities sold under agreements to repurchase
2,016 
2,180 
Other short-term borrowings
3,218 
2,690 
Long-term debt(debt at fair value: $2,016 as of September 30, 2011 and $2,837 as of December 31, 2010)
13,544 2
13,648 2
Trading liabilities
1,735 
2,678 
Other liabilities
4,591 
4,553 
Total liabilities
152,353 
149,744 
Preferred stock, no par value
172 
4,942 
Common stock, $1.00 par value
550 
515 
Additional paid in capital
9,314 
8,403 
Retained earnings
8,933 
8,542 
Treasury stock, at cost, and other
(795)
(888)
Accumulated other comprehensive income, net of tax
2,026 
1,616 
Total shareholders' equity
20,200 
23,130 
Total liabilities and shareholders' equity
$ 172,553 
$ 172,874 
Common shares outstanding
537,001 
500,436 
Common shares authorized
750,000 
750,000 
Preferred shares outstanding
2 
50 
Preferred shares authorized
50,000 
50,000 
Treasury shares of common stock
12,919 
14,231 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data
Sep. 30, 2011
Dec. 31, 2010
Loans held for sale
$ 1,675 1
$ 3,168 1
Loans held for sale (loans at fair value: $1,675 as of September 30, 2011 and $3,168 as of December 31, 2010)
2,243 2
3,501 2
Loans carried at fair value
452 
492 
Loans (loans at fair value: $452 as of September 30, 2011 and $492 as of December 31, 2010)
117,475 
115,975 
Other intangible assets, MSRs at fair value
1,033 
1,439 
Debt issued
13,544 3
13,648 3
Brokered deposits
1,056 
1,213 
Long-term debt, fair value
2,016 
2,837 
Common stock, par value
$ 1 
$ 1 
Variable Interest Entity, Primary Beneficiary
 
 
Loans held for sale (loans at fair value: $1,675 as of September 30, 2011 and $3,168 as of December 31, 2010)
311 
316 
Loans (loans at fair value: $452 as of September 30, 2011 and $492 as of December 31, 2010)
3,161 
2,869 
Debt issued
728 3
764 3
Long-term debt, fair value
$ 285 
$ 290 
Consolidated Statements of Shareholders' Equity (USD $)
In Millions
Total
Preferred Stock
Common Stock
Additional Paid in Capital
Retained Earnings
Treasury Stock and Other
Accumulated Other Comprehensive Income
Beginning Balance at Dec. 31, 2009
$ 22,531 
$ 4,917 
$ 515 
$ 8,521 
$ 8,563 
$ (1,055)1
$ 1,070 
Beginning Balance (in shares) at Dec. 31, 2009
 
 
499 
 
 
 
 
Net income (loss)
5 
 
 
 
5 
 
 
Other comprehensive income:
 
 
 
 
 
 
 
Change in unrealized gains (losses) on securities, net of taxes
472 
 
 
 
 
 
472 
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax
438 
 
 
 
 
 
 
Change in unrealized gains (losses) on derivatives, net of taxes
438 
 
 
 
 
 
438 
Change related to employee benefit plans
85 
 
 
 
 
 
85 
Total comprehensive income
1,000 
 
 
 
 
 
 
Change in noncontrolling interest
(2)
 
 
 
 
(2)1
 
Common stock dividends, $0.07 in 2011 and $.03 in 2010 per share
(15)
 
 
 
(15)
 
 
Series A preferred dividends, $3,044 in 2011 and 2010 per share
(6)
 
 
 
(6)
 
 
U.S. Treasury preferred stock dividends, $1,236 in 2011 and $3,750 in 2010 per share
(182)
 
 
 
(182)
 
 
Accretion of discount for preferred stock issued to U.S. Treasury
 
18 
 
 
(18)
 
 
Purchase of outstanding warrants
0 
 
 
 
 
 
 
Stock compensation expense
18 
 
 
18 
 
 
 
Restricted stock activity (in shares)
 
 
1 
 
 
 
 
Restricted stock activity
(30)
 
 
(73)
 
43 1
 
Amortization of restricted stock compensation
31 
 
 
 
 
31 1
 
Issuance of stock for employee benefit plans and other
11 
 
 
(23)
3 
31 1
 
Fair value election of MSRs
89 
 
 
 
89 
 
 
Adoption of VIE consolidation guidance
(7)
 
 
 
(7)
 
 
Ending Balance at Sep. 30, 2010
23,438 
4,935 
515 
8,443 
8,432 
(952)1
2,065 
Ending Balance (in shares) at Sep. 30, 2010
 
 
500 
 
 
 
 
Beginning Balance at Dec. 31, 2010
23,130 
4,942 
515 
8,403 
8,542 
(888)1
1,616 
Beginning Balance (in shares) at Dec. 31, 2010
 
 
500 
 
 
 
 
Net income (loss)
573 
 
 
 
573 
 
 
Other comprehensive income:
 
 
 
 
 
 
 
Change in unrealized gains (losses) on securities, net of taxes
294 
 
 
 
 
 
294 
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax
129 
 
 
 
 
 
129 
Change in unrealized gains (losses) on derivatives, net of taxes
129 
 
 
 
 
 
 
Change related to employee benefit plans
(13)
 
 
 
 
 
(13)
Total comprehensive income
983 
 
 
 
 
 
 
Change in noncontrolling interest
(8)
 
 
 
 
(8)1
 
Common stock dividends, $0.07 in 2011 and $.03 in 2010 per share
(37)
 
 
 
(37)
 
 
Series A preferred dividends, $3,044 in 2011 and 2010 per share
(5)
 
 
 
(5)
 
 
U.S. Treasury preferred stock dividends, $1,236 in 2011 and $3,750 in 2010 per share
(60)
 
 
 
(60)
 
 
Accretion of discount for preferred stock issued to U.S. Treasury
 
6 
 
 
(6)
 
 
Repurchase of preferred stock issued to U.S. Treasury
(4,850)
(4,776)
 
 
(74)
 
 
Purchase of outstanding warrants
(11)
 
 
(11)
 
 
 
Issuance of common stock (in shares)
 
 
35 
 
 
 
 
Issuance of common stock
1,017 
 
35 
982 
 
 
 
Stock compensation expense
9 
 
 
9 
 
 
 
Restricted stock activity (in shares)
 
 
2 
 
 
 
 
Restricted stock activity
(8)
 
 
(57)
 
49 1
 
Amortization of restricted stock compensation
25 
 
 
 
 
25 1
 
Issuance of stock for employee benefit plans and other
15 
 
 
(12)
 
27 1
 
Ending Balance at Sep. 30, 2011
$ 20,200 
$ 172 
$ 550 
$ 9,314 
$ 8,933 
$ (795)1
$ 2,026 
Ending Balance (in shares) at Sep. 30, 2011
 
 
537 
 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data
9 Months Ended
Sep. 30,
2011
2010
Common stock dividends, per share
$ 0.07 
$ 0.03 
Series A preferred stock dividends, per share
$ 3,044 
$ 3,044 
U.S. Treasury preferred stock dividends, per share
$ 1,236 
$ 3,750 
Treasury Stock and Other
 
 
Ending Balance, treasury stock
$ (858)
$ (1,014)
Ending Balance, compensation element of restricted stock
(58)
(44)
Ending Balance, noncontrolling interest
$ 121 
$ 106 
Consolidated Statements of Cash Flows (USD $)
In Millions
9 Months Ended
Sep. 30,
2011
2010
Cash Flows from Operating Activities:
 
 
Net income including income attributable to noncontrolling interest
$ 580 
$ 14 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation, amortization, and accretion
563 
600 
Origination of mortgage servicing rights
(183)
(198)
Provisions for credit losses and foreclosed property
1,309 
2,277 
Amortization of restricted stock compensation
25 
31 
Net (gain)/loss on extinguishment of debt
(3)
67 
Net securities gains
(98)1
(128)1
Net gain on sale of assets
(309)
(440)
Net decrease in loans held for sale
2,146 
1,296 
Net increase in other assets
(556)
(185)
Net increase in other liabilities
265 
513 
Net cash provided by operating activities
3,739 
3,847 
Cash Flows from Investing Activities:
 
 
Proceeds from maturities, calls, and paydowns of securities available for sale
3,903 
4,040 
Proceeds from sales of securities available for sale
11,585 
14,102 
Purchases of securities available for sale
(15,664)
(19,779)
Proceeds from maturities, calls, and paydowns of trading securities
132 
88 
Proceeds from sales of trading securities
102 
93 
Net increase in loans including purchases of loans
(5,018)
(2,662)
Proceeds from sales of loans
499 
696 
Capital expenditures
(78)
(156)
Contingent consideration and other payments related to acquisitions
(20)
(4)
Proceeds from the sale of other assets
481 
568 
Net cash used by investing activities
(4,078)
(3,014)
Cash Flows from Financing Activities:
 
 
Net increase/(decrease) in total deposits
3,207 
(1,518)
Net increase in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
1,416 
1,011 
Proceeds from the issuance of long-term debt
1,039 
500 
Repayment of long-term debt
(1,255)
(3,466)
Proceeds from the issuance of common stock
1,017 
0 
Repurchase of preferred stock
(4,850)
0 
Purchase of outstanding warrants
(11)
0 
Common and preferred dividends paid
(102)
(202)
Net cash provided by/(used in) financing activities
461 
(3,675)
Net increase/(decrease) in cash and cash equivalents
122 
(2,842)
Cash and cash equivalents at beginning of period
5,378 
6,997 
Cash and cash equivalents at end of period
5,500 
4,155 
Supplemental Disclosures:
 
 
Loans transferred from loans held for sale to loans
53 
111 
Loans transferred from loans to loans held for sale
657 
296 
Loans transferred from loans to other real estate owned
570 
870 
Accretion of discount for preferred stock issued to the U.S. Treasury
80 
18 
Total assets of newly consolidated VIEs at January 1, 2010
$ 0 
$ 2,541 
Significant Accounting Policies
Significant Accounting Policies
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. 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.
These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. Except for accounting policies that have been modified or recently adopted as described below, there have been no significant changes to the Company’s accounting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.
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 (commercial & industrial, commercial real estate, 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, unpaid 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 in accordance with the contractual terms of a loan classified as nonaccrual, the loan may be returned to accrual status, upon meeting all regulatory, accounting, and internal policy requirements.
Consumer loans (guaranteed 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. 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. Credit card loans are never placed on nonaccrual status but rather are charged off once they are 180 days past due. Guaranteed student loans continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. When a loan is placed on nonaccrual, unpaid interest is reversed against interest income. Interest income on nonaccrual loans, if recognized, is recognized after the principal has been reduced to zero. Nonaccrual consumer loans are typically returned to accrual status once they are no longer past due.
Residential loans (guaranteed residential mortgages, 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. Nonguaranteed residential mortgages and residential construction loans are generally placed on nonaccrual when payments are 120 days past due. Home equity products are generally placed on nonaccrual when payments are 90 days past due. The exception for nonguaranteed residential mortgages, residential construction loans, and home equity products is when the borrower has declared bankruptcy, in which case, they are moved to nonaccrual status once they become 60 days past due. Guaranteed residential mortgages continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. When a loan is placed on nonaccrual, unpaid 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.

TDRs are loans in which the borrower is experiencing financial difficulty and the Company has granted an economic concession to the borrower. To date, the Company’s TDRs have been predominantly first and second lien residential mortgages and home equity lines of credit. Prior to modifying 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 granted are generally interest rate reductions and/or term extensions. If a loan is accruing 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 within this Note 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. TDRs may be returned to accrual status if there has been at least a six month sustained period of repayment performance by the borrower. Consistent with regulatory guidance, upon sustained performance and classification as a TDR through the Company’s year end, the loan will be removed from TDR status as long as the modified terms were market-based at the time of modification. Generally, once a residential loan becomes a TDR, we expect that the loan will likely continue to be reported as a TDR for its remaining life even after returning to accruing status as the modified rates and terms at the time of modification were typically more favorable than those generally available in the market. 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. Premiums for purchased credit cards are amortized on a straight-line basis over one year. 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. See Note 3, “Loans,” for additional information.
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 losses within the 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. In addition to these factors, 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), 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 identified for evaluation of 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 depending on the most likely source of repayment. 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, portfolio trends, regional and national economic conditions, and expected loss given default derived from the Company’s internal risk rating process. 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. Losses on unsecured consumer loans are recognized at 90 days past due compared to the regulatory loss criteria of 120 days past due. Losses, as appropriate, on secured consumer loans, including residential real estate, are typically recognized between 120 and 180 days past due, depending on the collateral type, in compliance with the FFIEC guidelines. Loans that have been partially charged-off remain on nonperforming status, regardless of collateral value, until specific borrower performance criteria are met.
The Company uses numerous sources of information in order to make an appropriate evaluation of 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 professionals. The value estimate is based on an orderly disposition and marketing period of the property. 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 real estate 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 net realizable value of the loan, net of estimated selling costs. When assessing property value 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 net 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, typically at 180 days past due, the Company obtains a new valuation and, if required, writes the loan down to the new valuation, less estimated selling costs. 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 metropolitan statistical area 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 an analysis of historical loss experience, 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 through the third quarter of 2009, the provision associated with changes in the unfunded lending commitment reserve was reported in the Consolidated Statements of Income in noninterest expense. Beginning in the fourth quarter of 2009, the Company began recording changes in the unfunded lending commitment reserve in the provision for credit losses. See Note 4, “Allowance for Credit Losses,” for additional information.
Accounting Policies Recently Adopted and Pending Accounting Pronouncements
In January 2010, the FASB issued ASU 2010-06, an update to ASC 820-10, “Fair Value Measurements.” This ASU requires the disclosure of transfers in and out of level 1 and 2 of the fair value hierarchy, along with the reasons for the transfers and a gross presentation of purchases and sales of level 3 instruments. Additionally, the ASU requires fair value measurement disclosures for each class of assets and liabilities and enhanced disclosures around level 2 valuation techniques and inputs. The Company adopted the disclosure requirements for level 1 and 2 transfers and the expanded fair value measurement and valuation disclosures effective January 1, 2010. The disclosure requirements for level 3 activities were effective for the interim reporting period ending March 31, 2011. The required disclosures are included in Note 12, “Fair Value Election and Measurement.” The adoption of these disclosure requirements had no impact on the Company’s financial position, results of operations, or EPS.
In July 2010, the FASB issued ASU 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.” The ASU requires more disclosures about the credit quality of financing receivables, which include loans, lease receivables, and other long-term receivables, and the credit allowances held against them. The disclosure requirements that were effective as of December 31, 2010 are included in Note 3, “Loans,” and Note 4, “Allowance for Credit Losses.” Disclosures about activity that occurs during a reporting period were effective for the interim reporting period ending March 31, 2011 are also included in Note 3, “Loans,” and Note 4, “Allowance for Credit Losses.” The adoption of the ASU did not have an impact on the Company’s financial position, results of operations, or EPS.

In December 2010, the FASB issued ASU 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts.” The update requires companies to perform step 2 of the goodwill impairment analysis if the carrying value of a reporting unit is zero or negative and it is more likely than not that goodwill for that reporting unit is impaired. The adoption of the ASU as of January 1, 2011 did not have an impact on the Company’s financial position, results of operations, or EPS.
In April 2011, the FASB issued ASU 2011-02, “Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring.” The ASU provides additional guidance to assist creditors in determining whether a modification of a receivable meets the criteria to be considered a TDR, both for purposes of recognizing loan losses and additional disclosures regarding TDRs. A modification of a credit arrangement constitutes a TDR if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. The clarifications for classification apply to all restructurings occurring on or after January 1, 2011. The measurement of impairment for those newly identified TDRs was applied prospectively beginning on July 1, 2011. The related disclosures, which were previously deferred by ASU 2011-01, were required for the interim reporting period ending September 30, 2011 and subsequent reporting periods. The required disclosures and impact as a result of adoption are included in Note 3, “Loans.” The adoption of the ASU did not have a significant impact on the Company’s financial position, results of operations, or EPS.
In April 2011, the FASB issued ASU 2011-03, “Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements.” A repurchase agreement is a transaction in which a company sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date. The determination of whether the transaction is accounted for as a sale or a collateralized financing is determined by assessing whether the seller retains effective control of the financial instrument. The ASU changes the assessment of effective control by removing the criterion that requires the seller to have the ability to repurchase or redeem financial assets with substantially the same terms, even in the event of default by the buyer and the collateral maintenance implementation guidance related to that criterion. The Company will apply the new guidance to repurchase agreements entered into or amended after January 1, 2012. The Company does not expect the ASU to have a significant impact on the Company’s financial position, results of operations, or EPS.
In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” The primary purpose of the ASU is to conform the language in the fair value measurements guidance in U.S. GAAP and IFRS. The ASU also clarifies how to apply existing fair value measurement and disclosure requirements. Further, the ASU requires additional disclosures about transfers between level 1 and 2 of the fair value hierarchy, quantitative information for level 3 inputs, and the level of the fair value measurement hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed. The ASU is effective for the interim reporting period ending March 31, 2012. The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company’s financial position, results of operations, or EPS.
In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income.” The ASU requires presentation of the components of comprehensive income in either a continuous statement of comprehensive income or two separate but consecutive statements. The update does not change the items presented in OCI and does not affect the calculation or reporting of EPS. The guidance is effective on January 1, 2012 and must be applied retrospectively for all periods presented. The Company is in the process of evaluating the presentation options; however, adoption of the ASU will not have an impact on the Company’s financial position, results of operations, or EPS.
In September 2011, the FASB issued ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment.” The ASU amends interim and annual goodwill impairment testing requirements. Under the ASU, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The more likely than not threshold is defined as having a likelihood of more than 50 percent. The guidance is effective for annual and interim goodwill impairment tests beginning January 1, 2012 with early adoption permitted. The Company has not elected to early adopt the amendments; however, adoption of the ASU will not have an impact on the Company's financial position, results of operations, or EPS.


Securities Available for Sale
Securities Available for Sale
NOTE 2 – SECURITIES AVAILABLE FOR SALE
Securities Portfolio Composition

 
September 30, 2011
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$374

 

$12

 

$—

 

$386

Federal agency securities
2,527

 
118

 
—

 
2,645

U.S. states and political subdivisions
471

 
21

 
2

 
490

MBS - agency
19,302

 
728

 
—

 
20,030

MBS - private
319

 
1

 
33

 
287

CDO/CLO securities
337

 
—

 
5

 
332

ABS
534

 
13

 
7

 
540

Corporate and other debt securities
53

 
2

 
1

 
54

Coke common stock
—

 
2,027

 
—

 
2,027

Other equity securities1
710

 
1

 
—

 
711

Total securities AFS

$24,627

 

$2,923

 

$48

 

$27,502

 
 
 
 
 
 
 
 
 
December 31, 2010
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$5,446

 

$115

 

$45

 

$5,516

Federal agency securities
1,883

 
19

 
7

 
1,895

U.S. states and political subdivisions
565

 
17

 
3

 
579

MBS - agency
14,014

 
372

 
28

 
14,358

MBS - private
378

 
3

 
34

 
347

CDO/CLO securities
50

 
—

 
—

 
50

ABS
798

 
15

 
5

 
808

Corporate and other debt securities
464

 
19

 
1

 
482

Coke common stock
—

 
1,973

 
—

 
1,973

Other equity securities1
886

 
1

 
—

 
887

Total securities AFS

$24,484

 

$2,534

 

$123

 

$26,895

1At September 30, 2011, other equity securities included the following securities at cost: $171 million in FHLB of Atlanta stock, $391 million in Federal Reserve Bank stock, and $148 million in mutual fund investments. At December 31, 2010, other equity securities included the following securities at cost: $298 million in FHLB of Atlanta stock, $391 million in Federal Reserve Bank stock, and $197 million in mutual fund investments.
Securities AFS that were pledged to secure public deposits, repurchase agreements, trusts, and other funds had a fair value of $7.9 billion and $6.9 billion as of September 30, 2011 and December 31, 2010, respectively. Further, under The Agreements, the Company pledged its shares of Coke common stock, which is hedged with derivative instruments, as discussed in Note 11, “Derivative Financial Instruments.” The Company has also pledged $1.1 billion and $823 million of certain trading assets and cash equivalents to secure $1.0 billion and $793 million of repurchase agreements as of September 30, 2011 and December 31, 2010, respectively.
The amortized cost and fair value of investments in debt securities at September 30, 2011 by estimated average life are shown below. Actual 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 call or prepayment penalties.
 
(Dollars in millions)
1 Year
or Less      
 
1-5
Years      
 
5-10
Years      
 
After 10      
Years
 
Total        
Distribution of Maturities:
 
 
 
 
 
 
 
 
 
Amortized Cost
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$9

 

$213

 

$152

 

$—

 

$374

Federal agency securities
73

 
2,209

 
189

 
56

 
2,527

U.S. states and political subdivisions
136

 
245

 
26

 
64

 
471

MBS - agency
1,101

 
11,236

 
4,050

 
2,915

 
19,302

MBS - private
31

 
141

 
130

 
17

 
319

CDO/CLO securities
—

 
237

 
100

 
—

 
337

ABS
328

 
204

 
2

 
—

 
534

Corporate and other debt securities
7

 
4

 
17

 
25

 
53

Total debt securities

$1,685

 

$14,489

 

$4,666

 

$3,077

 

$23,917


Fair Value
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$9

 

$224

 

$153

 

$—

 

$386

Federal agency securities
74

 
2,309

 
204

 
58

 
2,645

U.S. states and political subdivisions
139

 
260

 
27

 
64

 
490

MBS - agency
1,138

 
11,644

 
4,246

 
3,002

 
20,030

MBS - private
28

 
129

 
114

 
16

 
287

CDO/CLO securities
—

 
234

 
98

 
—

 
332

ABS
335

 
203

 
2

 
—

 
540

Corporate and other debt securities
7

 
4

 
18

 
25

 
54

Total debt securities

$1,730

 

$15,007

 

$4,862

 

$3,165

 

$24,764



Securities in an Unrealized Loss Position
The Company held certain investment securities having unrealized loss positions. Market changes in interest rates and credit spreads will result in temporary unrealized losses as the market price of securities fluctuates. As of September 30, 2011, 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 outlined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.
 
September 30, 2011
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized  
Losses
Temporarily impaired securities
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$34

 

$—

 

$—

 

$—

 

$34

 

$—

U.S. states and political subdivisions
2

 
—

 
32

 
2

 
34

 
2

MBS - agency
52

 
—

 
—

 
—

 
52

 
—

MBS - private
9

 
—

 
22

 
3

 
31

 
3

CDO/CLO securities
333

 
5

 
—

 
—

 
333

 
5

ABS
—

 
—

 
11

 
5

 
11

 
5

Corporate and other debt securities
—

 
—

 
2

 
1

 
2

 
1

Total temporarily impaired securities

430

 
5

 
67

 
11

 
497

 
16

Other-than-temporarily impaired securities1
 
 
 
 
 
 
 
 
 
 
 
MBS - private
18

 
1

 
220

 
29

 
238

 
30

ABS
3

 
1

 
2

 
1

 
5

 
2

Total other-than-temporarily impaired securities
21

 
2

 
222

 
30

 
243

 
32

Total impaired securities

$451

 

$7

 

$289

 

$41

 

$740

 

$48

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2010
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
   Value   
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Temporarily impaired securities
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$2,010

 

$45

 

$—

 

$—

 

$2,010

 

$45

Federal agency securities
1,426

 
7

 
—

 
—

 
1,426

 
7

U.S. states and political subdivisions
45

 
1

 
35

 
2

 
80

 
3

MBS - agency
3,497

 
28

 
—

 
—

 
3,497

 
28

MBS - private
18

 
—

 
17

 
3

 
35

 
3

ABS
—

 
—

 
14

 
4

 
14

 
4

Corporate and other debt securities
—

 
—

 
3

 
1

 
3

 
1

Total temporarily impaired securities
6,996

 
81

 
69

 
10

 
7,065

 
91


Other-than-temporarily impaired securities1
 
 
 
 
 
 
 
 
 
 
 
MBS - private
—

 
—

 
286

 
31

 
286

 
31

ABS
4

 
1

 
—

 
—

 
4

 
1

Total other-than-temporarily impaired securities
4

 
1

 
286

 
31

 
290

 
32

Total impaired securities

$7,000

 

$82

 

$355

 

$41

 

$7,355

 

$123

1Includes OTTI securities for which credit losses have been recorded in earnings in current or prior periods.
Unrealized losses on securities that have been other-than-temporarily impaired are the result of factors other than credit, and therefore, are recorded in OCI. Losses related to credit impairment on these securities is determined through estimated cash flow analyses and have been recorded in earnings in current or prior periods. The unrealized OTTI loss relating to private MBS as of September 30, 2011, includes purchased and retained interests from 2007 vintage securitizations. The unrealized OTTI loss relating to ABS is related to four securities within the portfolio that are 2003 and 2004 vintage home equity issuances. The expectation of cash flows for the previously impaired ABS securities has improved such that the amount of expected credit losses was reduced, and the expected increase in cash flows will be accreted into earnings as a yield adjustment over the remaining life of the securities.



Realized Gains and Losses and Other than Temporarily Impaired

 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Gross realized gains

$4

 

$69

 

$180

 

$147

Gross realized losses
(2
)
 
—

 
(80
)
 
(17
)
OTTI
—

 
—

 
(2
)
 
(2
)
Net securities gains

$2

 

$69

 

$98

 

$128



The securities that gave rise to the credit impairment recognized during the nine months ended September 30, 2011 consisted of private MBS with a fair value of $176 million at September 30, 2011. The securities impacted by credit impairment during the nine months ended September 30, 2010, consisted of private MBS with a fair value of $1 million as of September 30, 2010. Credit impairment that is determined through the use of cash flow models is estimated using cash flows on security specific collateral and the transaction structure. Future expected credit losses are determined by using various assumptions, the most significant of which include current default rates, prepayment rates, and loss severities. For the majority of the securities that the Company has reviewed for credit-related OTTI, credit information is available and modeled at the loan level underlying each security, and the Company also considers information such as loan to collateral values, FICO scores, and geographic considerations such as home price appreciation/depreciation. These inputs are updated on a regular basis to ensure the most current credit and other assumptions are utilized in the analysis. If, based on this analysis, the Company does not expect to recover the entire amortized cost basis of the security, the expected cash flows are then discounted at the security’s initial effective interest rate to arrive at a present value amount. OTTI credit losses reflect the difference between the present value of cash flows expected to be collected and the amortized cost basis of these securities. During the nine months ended September 30, 2011 and 2010, all OTTI recognized in earnings on private MBS have underlying collateral of residential mortgage loans securitized in 2007. The majority of the OTTI was taken on private MBS which were originated by the Company and, therefore, have geographic concentrations in the Company’s primary footprint. Additionally, the Company has not purchased new private MBS during the nine months ended September 30, 2011, and continues to reduce existing exposure primarily through paydowns. 

 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2011
 
2010
 
2011
 
2010
(Dollars in millions)
 
 
 
 
MBS - Private    
 
MBS - Private    
OTTI1

$—

 

$—

 

$3

 

$2

Portion of losses recognized in OCI (before taxes)
—

 
—

 
(1
)
 
—

Net impairment losses recognized in earnings

$—

 

$—

 

$2

 

$2

1 The initial OTTI amount represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent impairments of the same security, amount represents additional declines in the fair value subsequent to the previously recorded OTTI, if applicable, until such time the security is no longer in an unrealized loss position.
The following is a rollforward of credit losses recognized in earnings for the nine months ended September 30, 2011 and 2010, related to securities for which some portion of the OTTI loss remains in AOCI: 
(Dollars in millions)
 
Balance, as of January 1, 2011

$20

Additions:
 
OTTI credit losses on previously impaired securities
2

Reductions:
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
Balance, as of September 30, 2011

$21

 
 
Balance, as of January 1, 2010

$22

Additions/Reductions:1
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
Balance, as of September 30, 2010

$21

1 During the nine months ended September 30, 2010, the Company recognized $2 million of OTTI through earnings on debt securities in which no portion of the OTTI loss was included in OCI at any time during the period. OTTI related to these securities are excluded from this amount.

The following table presents a summary of the significant inputs used in determining the measurement of credit losses recognized in earnings for private MBS for the nine months ended September 30, 2011 and September 30, 2010:
 
 
September 30, 2011
 
September 30, 2010
Current default rate
4 - 8%
 
2 - 7%
Prepayment rate
12 - 22%
 
14 - 22%
Loss severity
39 - 44%
 
37 - 46%


Loans
Loans
NOTE 3 - LOANS
Composition of Loan Portfolio  
(Dollars in millions)
September 30,
2011
 
December 31,
2010
Commercial loans:
 
 
 
 Commercial & industrial1

$47,985

 

$44,753

Commercial real estate
5,330

 
6,167

Commercial construction
1,390

 
2,568

Total commercial loans
54,705

 
53,488

Residential loans:
 
 
 
Residential mortgages - guaranteed
4,449

 
4,520

 Residential mortgages - nonguaranteed2
23,517

 
23,959

Home equity products
15,980

 
16,751

Residential construction
1,046

 
1,291

Total residential loans
44,992

 
46,521

Consumer loans:
 
 
 
Guaranteed student loans
5,333

 
4,260

Other direct
1,945

 
1,722

Indirect
10,003

 
9,499

Credit cards
497

 
485

Total consumer loans
17,778

 
15,966

LHFI

$117,475

 

$115,975

LHFS

$2,243

 

$3,501

1Includes $3 million and $4 million of loans carried at fair value at September 30, 2011 and December 31, 2010, respectively.
2Includes $449 million and $488 million of loans carried at fair value at September 30, 2011 and December 31, 2010, respectively.

During the nine months ended September 30, 2011, the Company transferred $657 million in LHFI to LHFS. Additionally, during the nine months ended September 30, 2011, the Company sold $479 million in loans and leases that had been held for investment at December 31, 2010 for a gain of $20 million. There were no other material sales of LHFI during the period.
Credit Quality Evaluation
The Company evaluates the credit quality of its loan portfolio based on internal credit risk ratings using numerous factors, including consumer credit risk scores, rating agency information, LTV ratios, collateral, collection experience, and other internal metrics. For the commercial portfolio, the Company believes that the most appropriate credit quality indicator is the individual loan’s risk assessment expressed according to regulatory agency classification, pass or criticized. Loans are rated pass or criticized based on the borrower’s willingness and ability to contractually perform along with the estimated net losses the Company would incur in the event of default. Criticized loans have a higher probability of default. As a result, criticized loans are further categorized into accruing and nonaccruing, representing management’s assessment of the collectibility of principal and interest. Ratings for loans are updated at least annually or more frequently if there is a material change in creditworthiness.
For consumer and residential loans, the Company believes that consumer credit risk, as assessed by the FICO scoring method, is a relevant credit quality indicator. FICO scores are obtained at origination as part of the Company’s formal underwriting process, and refreshed FICO scores are obtained by the Company at least quarterly. However, for student loans which are guaranteed by a federal agency, the Company does not utilize FICO scores as the Company does not originate government guaranteed student loans. For guaranteed student loans, the Company monitors the credit quality based primarily on delinquency status, which it believes is the most appropriate indicator of credit quality. As of September 30, 2011 and December 31, 2010, 80% and 77%, respectively, of the guaranteed student loan portfolio was current with respect to payments; however, the loss exposure to the Company was mitigated by the government guarantee.

LHFI by credit quality indicator are shown in the tables below:
 
Commercial & industrial
 
Commercial real estate
 
Commercial construction
(Dollars in millions)
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
Credit rating:
 
 
 
 
 
 
 
 
 
 
 
Pass

$45,823

 

$42,140

 

$3,763

 

$4,316

 

$600

 

$836

Criticized accruing
1,682

 
2,029

 
1,227

 
1,509

 
405

 
771

Criticized nonaccruing
480

 
584

 
340

 
342

 
385

 
961

Total

$47,985

 

$44,753

 

$5,330

 

$6,167

 

$1,390

 

$2,568

 
 
Residential mortgages  -
   nonguaranteed 2
 
Home equity products
 
Residential construction
(Dollars in millions)
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
700 and above

$16,205

 

$15,920

 

$11,348

 

$11,673

 

$695

 

$828

620 - 699
4,184

 
4,457

 
2,857

 
2,897

 
215

 
258

  Below 6201
3,128

 
3,582

 
1,775

 
2,181

 
136

 
205

Total

$23,517

 

$23,959

 

$15,980

 

$16,751

 

$1,046

 

$1,291

 
 
Consumer  - other direct3
 
Consumer - indirect
 
Consumer - credit cards
(Dollars in millions)
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
700 and above

$1,187

 

$973

 

$7,530

 

$6,780

 

$278

 

$258

620 - 699
231

 
231

 
1,764

 
1,799

 
148

 
149

  Below 6201
86

 
105

 
709

 
920

 
71

 
78

Total

$1,504

 

$1,309

 

$10,003

 

$9,499

 

$497

 

$485

1For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.
2Excludes $4.4 billion and $4.5 billion at September 30, 2011 and December 31, 2010, respectively, of federally guaranteed residential loans. At both September 30, 2011 and December 31, 2010, the majority of these loans had FICO scores of 700 and above.
3Excludes $441 million and $413 million as of September 30, 2011 and December 31, 2010, respectively, of private-label student loans with third party insurance. At both September 30, 2011 and December 31, 2010, the majority of these loans had FICO scores of 700 and above.

The payment status for the LHFI portfolio is shown in the tables below:
 
As of September 30, 2011
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
  Nonaccruing3   
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
   Commercial & industrial1

$47,366

 

$74

 

$66

 

$479

 

$47,985

Commercial real estate
4,979

 
9

 
1

 
341

 
5,330

Commercial construction
1,004

 
1

 
—

 
385

 
1,390

Total commercial loans
53,349

 
84

 
67

 
1,205

 
54,705

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
3,237

 
179

 
1,033

 
—

 
4,449

   Residential mortgages - nonguaranteed2
21,728

 
342

 
30

 
1,417

 
23,517

Home equity products
15,417

 
223

 
—

 
340

 
15,980

Residential construction
771

 
22

 
3

 
250

 
1,046

Total residential loans
41,153

 
766

 
1,066

 
2,007

 
44,992

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
4,245

 
413

 
675

 
—

 
5,333

Other direct
1,918

 
15

 
5

 
7

 
1,945

Indirect
9,919

 
60

 
4

 
20

 
10,003

Credit cards
482

 
8

 
7

 
—

 
497

Total consumer loans
16,564

 
496

 
691

 
27

 
17,778

Total LHFI

$111,066

 

$1,346

 

$1,824

 

$3,239

 

$117,475

1Includes $3 million of loans carried at fair value.
2Includes $449 million of loans carried at fair value.
3Total nonaccruing loans past due 90 days or more totaled $2.5 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.
 
 
As of December 31, 2010
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
  Nonaccruing3   
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
   Commercial & industrial1

$44,046

 

$111

 

$12

 

$584

 

$44,753

Commercial real estate
5,794

 
27

 
4

 
342

 
6,167

Commercial construction
1,595

 
11

 
1

 
961

 
2,568

Total commercial loans
51,435

 
149

 
17

 
1,887

 
53,488

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
3,469

 
167

 
884

 
—

 
4,520

   Residential mortgages - nonguaranteed2
21,916

 
456

 
44

 
1,543

 
23,959

Home equity products
16,162

 
234

 
—

 
355

 
16,751

Residential construction
953

 
42

 
6

 
290

 
1,291

Total residential loans
42,500

 
899

 
934

 
2,188

 
46,521

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
3,281

 
383

 
596

 
—

 
4,260

Other direct
1,692

 
15

 
5

 
10

 
1,722

Indirect
9,400

 
74

 
—

 
25

 
9,499

Credit cards
460

 
12

 
13

 
—

 
485

Total consumer loans
14,833

 
484

 
614

 
35

 
15,966

Total LHFI

$108,768

 

$1,532

 

$1,565

 

$4,110

 

$115,975

1Includes $4 million of loans carried at fair value.
2Includes $488 million of loans carried at fair value.
3Total nonaccruing loans past due 90 days or more totaled $3.3 billion. Nonaccruing loans past due fewer than 90 days include TDRs.


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. Commercial nonaccrual loans greater than $4 million and certain consumer, residential, and commercial loans whose terms have been modified in a TDR are individually evaluated for impairment. Smaller-balance homogeneous loans that are collectively evaluated for impairment are not included in the following tables. Additionally, the tables below exclude student loans and residential mortgages that were guaranteed by government agencies, for which there was nominal risk of principal loss.
 
As of September 30, 2011
 
For the Three Months Ended
September 30, 2011
 
For the Nine Months Ended
September 30, 2011
(Dollars in millions)
Unpaid
Principal  
Balance
 
Amortized  
Cost1
 
Related
Allowance  
 
Average
Amortized  
Cost
 
Interest
Income
Recognized2  
 
Average
Amortized  
Cost
 
Interest
Income
Recognized2  
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial

$97

 

$96

 

$—

 

$96

 

$1

 

$101

 

$1

Commercial real estate
89

 
85

 
—

 
81

 
1

 
69

 
2

Commercial construction
93

 
91

 
—

 
74

 
—

 
92

 
—

Total commercial loans
279

 
272

 
—

 
251

 
2

 
262

 
3

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
123

 
118

 
21

 
109

 
1

 
123

 
1

Commercial real estate
129

 
123

 
27

 
120

 
—

 
131

 
1

Commercial construction
237

 
198

 
31

 
192

 
1

 
301

 
2

Total commercial loans
489

 
439

 
79

 
421

 
2

 
555

 
4

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,848

 
2,462

 
278

 
2,471

 
22

 
2,462

 
66

Home equity products
544

 
508

 
95

 
496

 
7

 
464

 
17

Residential construction
253

 
213

 
25

 
196

 
2

 
196

 
5

Total residential loans
3,645

 
3,183

 
398

 
3,163

 
31

 
3,122

 
88

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Other direct
12

 
12

 
2

 
12

 
—

 
12

 
—

Total impaired loans

$4,425

 

$3,906

 

$479

 

$3,847

 

$35

 

$3,951

 

$95

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce the net book balance.
2Of the interest income recognized for the three and nine months ended September 30, 2011, cash basis interest income was $6 million and $19 million, respectively.
 
 
As of December 31, 2010
(Dollars in millions)
Unpaid
Principal    
Balance
 
Amortized    
Cost1
 
Related
Allowance    
Impaired loans with no related allowance recorded:
 
 
 
 
 
Commercial loans:
 
 
 
 
 
Commercial & industrial

$86

 

$67

 

$—

Commercial real estate
110

 
86

 
—

Commercial construction
67

 
52

 
—

Total commercial loans
263

 
205

 
—

Impaired loans with an allowance recorded:
 
 
 
 
 
Commercial loans:
 
 
 
 
 
Commercial & industrial
123

 
96

 
18

Commercial real estate
103

 
81

 
19

Commercial construction
673

 
524

 
138

Total commercial loans
899

 
701

 
175

Residential loans:
 
 
 
 
 
Residential mortgages - nonguaranteed
2,785

 
2,467

 
309

Home equity products
503

 
503

 
93

Residential construction
226

 
196

 
26

Total residential loans
3,514

 
3,166

 
428

Consumer loans:
 
 
 
 
 
Other direct
11

 
11

 
2

Total impaired loans

$4,687

 

$4,083

 

$605

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce net book balance.

Included in the impaired loan balances above were $2.6 billion and $2.5 billion of accruing TDRs at September 30, 2011 and December 31, 2010, respectively, of which 93% and 85% were current, respectively. See Note 1, “Significant Accounting Policies,” to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 for further information regarding the Company’s loan impairment policy.
At September 30, 2011 and December 31, 2010, the Company had $12 million and $15 million, respectively, in commitments to lend additional funds to debtors owing receivables whose terms have been modified in a TDR.


Nonperforming assets are shown in the following table: 
(Dollars in millions)
September 30, 2011
 
December 31,
2010
Nonaccrual/NPLs:
 
 
 
Commercial loans:
 
 
 
Commercial & industrial1

$479

 

$584

Commercial real estate
341

 
342

Commercial construction
385

 
961

Residential loans:
 
 
 
Residential mortgages - nonguaranteed2
1,417

 
1,543

Home equity products
340

 
355

Residential construction
250

 
290

Consumer loans:
 
 
 
Other direct
7

 
10

Indirect
20

 
25

Total nonaccrual/NPLs
3,239

 
4,110

OREO3
509

 
596

Other repossessed assets
15

 
52

Total nonperforming assets

$3,763

 

$4,758

1Includes $3 million and $4 million of loans carried at fair value at September 30, 2011 and December 31, 2010, respectively.
2Includes $23 million and $24 million of loans carried at fair value at September 30, 2011 and December 31, 2010 respectively.
3Does not include foreclosed real estate related to loans insured by the FHA or the VA. Proceeds due from the FHA and the VA are recorded as a receivable in other assets until the funds are received and the property is conveyed. The receivable amount related to proceeds due from the FHA or the VA totaled $134 million and $195 million at September 30, 2011 and December 31, 2010, respectively.
Restructured Loans

TDRs are loans in which the borrower is experiencing financial difficulty and the Company has granted an economic concession to the borrower that it would not otherwise consider. When loans are modified under the terms of a TDR, the Company typically offers the borrower an extension of the loan maturity date and/or a reduction in the original contractual interest rate. In certain limited situations, the Company may offer to restructure a commercial loan in a manner that ultimately results in the forgiveness of contractually specified principal balances.

As a result of adopting newly issued accounting guidance that clarifies a creditor's determination of whether a restructuring is a TDR, the Company reassessed all loan restructurings that occurred on or after January 1, 2011 for identification as TDRs. The reassessment resulted in the identification of $93 million of additional TDRs. During the three months ended September 30, 2011, these loans were evaluated for impairment and an incremental allowance of $4 million was recognized, as a result of the new accounting guidance.

The number and amortized cost of loans modified under the terms of a TDR during the three and nine months ended September 30, 2011, by type of modification, are shown in the following tables:
 
Three Months Ended September 30, 2011
 
 
 
 
 
Principal Forgiveness
 
 
 
Number of
 
Rate Modification
 
and
 
 
(Dollars in millions)
Loans Modified
 
and/or Term Extension1
 
Other Concessions2
 
Total
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
208
 

$51

 

$—

 

$51

Commercial real estate
9
 
14
 
2

 
16
Commercial construction
11
 
56
 
9

 
65
Residential loans:
 
 
 
 
 
 
 
Residential mortgages
304
 
61
 
—

 
61
Home equity products
569
 
42
 
—

 
42
Residential construction
266
 
35
 
—

 
35
Consumer loans:
 
 
 
 
 
 
 
Other direct
7
 
—

 
—

 
—

Credit cards
716
 
4
 
—

 
4
Total TDRs
2,090
 

$263

 

$11

 

$274

1For these loans, borrowers received either a modification of the loan's contractual interest rate, an extension of the loan's contractual maturity date, or both. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three months ended September 30, 2011.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness for the Commercial segment during the three months ended September 30, 2011 was $3 million, substantially all of which related to Commercial construction. There was no principal forgiveness for Residential or Consumer loans during the three months ended September 30, 2011.

 
Nine Months Ended September 30, 2011
 
 
 
 
 
Principal Forgiveness
 
 
 
Number of
 
Rate Modification
 
and
 
 
(Dollars in millions)
Loans Modified
 
and/or Term Extension1
 
Other Concessions2
 
Total
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
382
 

$80

 

$26

 

$106

Commercial real estate
34
 
43
 
18

 
61
Commercial construction
57
 
80

 
22

 
102
Residential loans:
 
 
 
 
 
 
 
Residential mortgages
851
 
215
 
2

 
217
Home equity products
1,308
 
104
 
—

 
104
Residential construction
317
 
45
 
—

 
45
Consumer loans:
 
 
 
 
 
 
 
Other direct
61
 
3

 
—

 
3

Credit cards
1,937
 
11
 
—

 
11
Total TDRs
4,947
 

$581

 

$68

 

$649

1For these loans, borrowers received either a modification of the loan's contractual interest rate, an extension of the loan's contractual maturity date, or both. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the nine months ended September 30, 2011.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness for the Commercial segment during the nine months ended September 30, 2011 was $6 million, substantially all of which related to Commercial construction. There was no principal forgiveness for Residential or Consumer loans during the nine months ended September 30, 2011.

The following table presents loans modified under the terms of a TDR that became 90 days or more delinquent during the three and nine months ended September 30, 2011, respectively, that were initially restructured within one year prior to the three and nine months ended September 30, 2011, respectively. The preceding two tables represent loans modified under the terms of a TDR during the three and nine months ended September 30, 2011, respectively, whereas the following table relates to loans modified over longer time periods, which are described in footnotes 1 and 2 to the table. 
 
Three Months Ended September 30, 20111
 
Nine Months Ended September 30, 20112
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
23
 

$6

 
31
 

$8

Commercial real estate
5
 
21

 
8
 
21

Commercial construction
1
 
—

 
7
 
11

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
60
 
19

 
230
 
66

Home equity products
60
 
6

 
108
 
10

Residential construction
6
 
1

 
24
 
3

Consumer loans:
 
 
 
 
 
 
 
Other direct
2
 
—

 
2
 
—

Credit cards
166
 
1

 
321
 
2

Total TDRs
323
 

$54

 
731
 

$121

1For the three months ended September 30, 2011, this represents defaults on loans that were first modified between the periods July 1, 2010 and September 30, 2011.
2For the nine months ended September 30, 2011, this represents defaults on loans that were first modified between the periods January 1, 2010 and September 30, 2011.

The majority of loans that were modified and subsequently became 90 days or more delinquent have remained on nonaccrual status since the time of modification.
Concentrations of Credit Risk
The Company does not have a significant concentration of risk to any individual client except for the U.S. government and its agencies. However, a geographic concentration arises because the Company operates primarily in the Southeastern and Mid-Atlantic regions of the U.S. SunTrust engages in limited international banking activities. The Company’s total cross-border outstanding loans were $418 million and $446 million at September 30, 2011 and December 31, 2010, respectively.
The major concentrations of credit risk for the Company arise by collateral type in relation to loans and credit commitments. The only significant concentration that exists is in loans secured by residential real estate. At September 30, 2011, the Company owned $45.0 billion in residential loans, representing 38% of total LHFI, and had $13.0 billion in commitments to extend credit on home equity lines and $7.2 billion in mortgage loan commitments. Of the residential loans owned at September 30, 2011, 10% were guaranteed by a federal agency or a GSE. At December 31, 2010, the Company owned $46.5 billion in residential real estate loans, representing 40% of total LHFI, and had $13.6 billion in commitments to extend credit on home equity lines and $9.2 billion in mortgage loan commitments. Of the residential loans owned at December 31, 2010, 10% were guaranteed by a federal agency or a GSE.
Included in the residential mortgage portfolio were $16.4 billion and $17.6 billion of mortgage loans at September 30, 2011 and December 31, 2010, respectively, that were not covered by mortgage insurance and whose terms, such as an interest only feature, a high LTV ratio, or a junior lien position, may increase the Company’s exposure to credit risk and result in a concentration of credit risk. Of these mortgage loans, $11.7 billion and $13.2 billion were interest only loans at origination, primarily with a ten year interest only period, including $1.8 billion and $2.0 billion, respectively, of loans that have since been modified into fully amortizing products.


Allowance for Credit Losses
Allowance for Credit Losses
NOTE 4 - ALLOWANCE FOR CREDIT LOSSES
The allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. Activity in the allowance for credit losses is summarized in the table below:
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Balance at beginning of period

$2,795

 

$3,216

 

$3,032

 

$3,235

Provision for loan losses
348

 
620

 
1,194

 
2,199

Benefit for unfunded commitments
(1
)
 
(5
)
 
(8
)
 
(60
)
Loan charge-offs
(536
)
 
(725
)
 
(1,714
)
 
(2,355
)
Loan recoveries
44

 
35

 
146

 
122

Balance at end of period

$2,650

 

$3,141

 

$2,650

 

$3,141

Components:
 
 
 
 
 
 
 
ALLL

$2,600

 

$3,086

 
 
 
 
  Unfunded commitments reserve1
50

 
55

 
 
 
 
Allowance for credit losses

$2,650

 

$3,141

 
 
 
 
1The unfunded commitments reserve is separately recorded in other liabilities in the Consolidated Balance Sheets.

Activity in the ALLL by segment is presented in the tables below:
 
Three Months Ended September 30, 2011
(Dollars in millions)
Commercial  
 
Residential  
 
Consumer  
 
Total  
Balance at beginning of period

$1,200

 

$1,395

 

$149

 

$2,744

Provision for loan losses
86

 
236

 
26

 
348

Loan charge-offs
(214
)
 
(282
)
 
(40
)
 
(536
)
Loan recoveries
29

 
3

 
12

 
44

Balance at end of period

$1,101

 

$1,352

 

$147

 

$2,600

 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Commercial  
 
Residential  
 
Consumer  
 
Total  
Balance at beginning of period

$1,447

 

$1,538

 

$171

 

$3,156

Provision for loan losses
186

 
392

 
42

 
620

Loan charge-offs
(251
)
 
(433
)
 
(41
)
 
(725
)
Loan recoveries
20

 
5

 
10

 
35

Balance at end of period

$1,402

 

$1,502

 

$182

 

$3,086


 
Nine Months Ended September 30, 2011
(Dollars in millions)
Commercial    
 
Residential    
 
Consumer    
 
Total        
Balance at beginning of period

$1,303

 

$1,498

 

$173

 

$2,974

Provision for loan losses
318

 
810

 
66

 
1,194

Loan charge-offs
(619
)
 
(970
)
 
(125
)
 
(1,714
)
Loan recoveries
99

 
14

 
33

 
146

Balance at end of period

$1,101

 

$1,352

 

$147

 

$2,600

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total        
Balance at beginning of period

$1,353

 

$1,592

 

$175

 

$3,120

Provision for loan losses
671

 
1,406

 
122

 
2,199

Loan charge-offs
(694
)
 
(1,511
)
 
(150
)
 
(2,355
)
Loan recoveries
72

 
15

 
35

 
122

Balance at end of period

$1,402

 

$1,502

 

$182

 

$3,086



As further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, the ALLL is composed of specific allowances for certain nonaccrual loans and TDRs and general allowances grouped into loan pools based on similar characteristics. No allowance is required for loans carried at fair value. Additionally, the Company does not record an allowance for loan products that are guaranteed by government agencies, as there is nominal risk of principal loss. The Company’s LHFI portfolio and related ALLL at September 30, 2011 and December 31, 2010, respectively, is shown in the tables below:
 
 
As of September 30, 2011
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value         
 
Associated
ALLL         
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
Individually evaluated

$711

 

$79

 

$3,183

 

$398

 

$12

 

$2

 

$3,906

 

$479

Collectively evaluated
53,991

 
1,022

 
41,360

 
954

 
17,766

 
145

 
113,117

 
2,121

Total evaluated
54,702

 
1,101

 
44,543

 
1,352

 
17,778

 
147

 
117,023

 
2,600

LHFI at fair value
3

 
—

 
449

 
—

 
—

 
—

 
452

 
—

Total LHFI

$54,705

 

$1,101

 

$44,992

 

$1,352

 

$17,778

 

$147

 

$117,475

 

$2,600

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2010
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value         
 
Associated
ALLL         
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
Individually evaluated

$906

 

$175

 

$3,166

 

$428

 

$11

 

$2

 

$4,083

 

$605

Collectively evaluated
52,578

 
1,128

 
42,867

 
1,070

 
15,955

 
171

 
111,400

 
2,369

Total evaluated
53,484

 
1,303

 
46,033

 
1,498

 
15,966

 
173

 
115,483

 
2,974

LHFI at fair value
4

 
—

 
488

 
—

 
—

 
—

 
492

 
—

Total LHFI

$53,488

 

$1,303

 

$46,521

 

$1,498

 

$15,966

 

$173

 

$115,975

 

$2,974



Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Goodwill is required to be tested for impairment on an annual basis or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount or indicate that it is more likely than not that a goodwill impairment exists when the carrying amount of a reporting unit is zero or negative. As of September 30, 2011 and December 31, 2010, the Company's reporting units with goodwill balances were Branch Banking, Diversified Commercial Banking, CIB, and W&IM. Based on our annual impairment analysis of goodwill as of September 30, 2011, we determined there is no goodwill impairment as the fair value for all reporting units is in excess of the respective reporting unit's carrying value by the following percentages:
Branch Banking            12%        
Diversified Commercial Banking    27%
CIB                36%
W&IM                150%
The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30 are as follows:

(Dollars in millions)
Retail &
Commercial
 
Retail
Banking
 
Diversified
Commercial
Banking
 
CIB
 
W&IM
 
Total
Balance, January 1, 2011

$—

 

$4,854

 

$928

 

$180

 

$361

 

$6,323

Contingent consideration
—

 
—

 
—

 
—

 
1

 
1

Purchase of the assets of an asset management business
—

 
—

 
—

 
—

 
20

 
20

Balance, September 30, 2011

$—

 

$4,854

 

$928

 

$180

 

$382

 

$6,344

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2010

$5,739

 

$—

 

$—

 

$223

 

$357

 

$6,319

Intersegment transfers
(5,739
)
 
4,854

 
928

 
(43
)
 
—

 
—

Contingent consideration
—

 
—

 
—

 
—

 
4

 
4

Balance, September 30, 2010

$—

 

$4,854

 

$928

 

$180

 

$361

 

$6,323


Other Intangible Assets
Changes in the carrying amounts of other intangible assets for the nine months ended September 30 are as follows:
 
(Dollars in millions)
Core Deposit  
Intangibles
 
MSRs -
LOCOM
 
MSRs -
Fair Value
 
Other
 
Total
Balance, January 1, 2011

$67

 

$—

 

$1,439

 

$65

 

$1,571

Amortization
(23
)
 
—

 
—

 
(11
)
 
(34
)
MSRs originated
—

 
—

 
183

 
—

 
183

Sale of MSRs
—

 
—

 
(7
)
 
—

 
(7
)
Changes in fair value:
 
 
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
—

 
(443
)
 
—

 
(443
)
Other changes in fair value 2
—

 
—

 
(139
)
 
—

 
(139
)
Other
—

 
—

 
—

 
7

 
7

Balance, September 30, 2011

$44

 

$—

 

$1,033

 

$61

 

$1,138

 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2010

$104

 

$604

 

$936

 

$67

 

$1,711

Designated at fair value (transfers from amortized cost)
—

 
(604
)
 
604

 
—

 
—

Amortization
(29
)
 
—

 
—

 
(10
)
 
(39
)
MSRs originated
—

 
—

 
198

 
—

 
198

Changes in fair value:
 
 
 
 
 
 
 
 
 
Due to fair value election
—

 
—

 
145

 
—

 
145

Due to changes in inputs and assumptions 1
—

 
—

 
(643
)
 
—

 
(643
)
Other changes in fair value 2
—

 
—

 
(168
)
 
—

 
(168
)
Balance, September 30, 2010

$75

 

$—

 

$1,072

 

$57

 

$1,204

1 Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.
2 Represents changes due to the collection of expected cash flows, net of accretion, due to the passage of time.

Mortgage Servicing Rights
The Company retains MSRs from certain of its sales or securitizations of residential mortgage loans. MSRs on residential mortgage loans are the only servicing assets capitalized by the Company and are classified within intangible assets on the Company’s Consolidated Balance Sheets.
Income earned by the Company on its MSRs is derived primarily from contractually specified mortgage servicing fees and late fees, net of curtailment costs. Such income earned for the three months ended September 30, 2011 and 2010, was $91 million, and $99 million, respectively, and $277 million and $298 million for the nine months ended September 30, 2011 and 2010, respectively. These amounts are reported in mortgage servicing related income in the Consolidated Statements of Income.
As of September 30, 2011 and December 31, 2010, the total unpaid principal balance of mortgage loans serviced was $161.0 billion and $167.2 billion, respectively. Included in these amounts were $129.4 billion and $134.1 billion as of September 30, 2011 and December 31, 2010, respectively, of loans serviced for third parties. During the nine months ended September 30, 2011, the Company sold MSRs on residential loans with an unpaid principal balance of $1.7 billion. Because MSRs are reported at fair value, the sale did not have a material impact on mortgage servicing related income.
A summary of the key characteristics, inputs, and economic assumptions used to estimate the fair value of the Company’s MSRs as of September 30, 2011 and December 31, 2010, and the sensitivity of the fair values to immediate 10% and 20% adverse changes in those assumptions are shown in the table below.
 

(Dollars in millions)
September 30, 2011
 
December 31, 2010
Fair value of retained MSRs

$1,033

 

$1,439

Prepayment rate assumption (annual)
18
%
 
12
%
Decline in fair value from 10% adverse change

$70

 

$50

Decline in fair value from 20% adverse change
134

 
95

Discount rate (annual)
11
%
 
12
%
Decline in fair value from 10% adverse change

$36

 

$68

Decline in fair value from 20% adverse change
70

 
130

Weighted-average life (in years)
4.4

 
6.2

Weighted-average coupon
5.2
%
 
5.4
%


The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. Additionally, the sensitivities above do not include the effect of hedging activity undertaken by the Company to offset changes in the fair value of MSRs. See Note 11, “Derivative Financial Instruments,” for further information regarding these hedging transactions.

Certain Transfers of Financial Assets and Variable Interest Entities
Accounting for Certain Loans and Debt Securities Acquired in Transfer Disclosure [Text Block]
NOTE 6 - CERTAIN TRANSFERS OF FINANCIAL ASSETS AND VARIABLE INTEREST ENTITIES
Certain Transfers of Financial Assets and related Variable Interest Entities
The Company has transferred residential and commercial mortgage loans, student loans, commercial and corporate loans, and CDO securities in sale or securitization transactions in which the Company has, or had, continuing involvement. All such transfers have been accounted for as sales by the Company. The Company’s continuing involvement in such transfers includes owning certain beneficial interests, including senior and subordinate debt instruments as well as equity interests, servicing or collateral manager responsibilities, and guarantee or recourse arrangements. Except as specifically noted herein, the Company is not required to provide additional financial support to any of the entities to which the Company has transferred financial assets, nor has the Company provided any support it was not otherwise obligated to provide. In accordance with the accounting guidance related to transfers of financial assets that became effective on January 1, 2010, upon completion of transfers of assets that satisfy the conditions to be reported as a sale, the Company derecognizes the transferred assets and recognizes at fair value any beneficial interests in the transferred financial assets such as trading assets or securities AFS as well as servicing rights retained and guarantee liabilities incurred. See Note 12, “Fair Value Election and Measurement,” for further discussion of the Company’s fair value methodologies.
When evaluating transfers and other transactions with VIEs for consolidation, the Company first determines if it has a VI in the VIE. A VI is typically in the form of securities representing retained interests in the transferred assets and, at times, servicing rights and collateral manager fees. If the Company has a VI in the entity, it then evaluates whether or not it has both (1) the power to direct the activities that most significantly impact the economic performance of the VIE, and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE to determine if the Company should consolidate the VIE.
Below is a summary of transfers of financial assets to VIEs for which the Company has retained some level of continuing involvement.
Residential Mortgage Loans
The Company typically transfers first lien residential mortgage loans in conjunction with Ginnie Mae, Fannie Mae, and Freddie Mac securitization transactions whereby the loans are exchanged for cash or securities that are readily redeemed for cash proceeds and servicing rights. The securities issued through these transactions are guaranteed by the issuer and, as such, under seller/servicer agreements the Company is required to service the loans in accordance with the issuers’ servicing guidelines and standards. The Company sold residential mortgage loans to these entities, which resulted in pre-tax gains of $167 million and $220 million, including servicing rights, for the three months ended September 30, 2011 and 2010, respectively, and $285 million and $443 million for the nine months ended September 30, 2011 and 2010, respectively. These gains are included within mortgage production related income in the Consolidated Statements of Income. These gains include the change in value of the loans as a result of changes in interest rates from the time the related IRLCs were issued to the borrowers but do not include the results of hedging activities initiated by the Company to mitigate this market risk. See Note 11, “Derivative Financial Instruments,” for further discussion of the Company’s hedging activities. As seller, the Company has made certain representations and warranties with respect to the originally transferred loans, including those transferred under Ginnie Mae, Fannie Mae, and Freddie Mac programs, which are discussed in Note 13, “Reinsurance Arrangements and Guarantees.”
In a limited number of securitizations, the Company has transferred loans to trusts, which previously qualified as QSPEs, sponsored by the Company. These trusts issue securities which are ultimately supported by the loans in the underlying trusts. In these transactions, the Company has received securities representing retained interests in the transferred loans in addition to cash and servicing rights in exchange for the transferred loans. The received securities are carried at fair value as either trading assets or securities AFS. As of September 30, 2011 and December 31, 2010, the fair value of securities received totaled $160 million and $193 million, respectively. At September 30, 2011, securities with a fair value of $143 million were valued using a third party pricing service. The remaining $17 million in securities consist of subordinate interests from a 2003 securitization of prime fixed and floating rate loans and were valued using a discounted cash flow model that uses historically derived prepayment rates and credit loss assumptions along with estimates of current market discount rates. The Company did not significantly modify the assumptions used to value these retained interests at September 30, 2011 from the assumptions used to value the interests at December 31, 2010. For both periods, analyses of the impact on the fair values of two adverse changes from the key assumptions were performed and the resulting amounts were insignificant for each key assumption and in the aggregate.
The Company evaluated these securitization transactions for consolidation under the VIE consolidation guidance. As servicer of the underlying loans, the Company is generally deemed to have power over the securitization. However, if a single party, such as the issuer or the master servicer, effectively controls the servicing activities or has the unilateral ability to terminate the Company as servicer without cause, then that party is deemed to have power. In almost all of its securitization transactions, the Company does not have power over the VIE as a result of these rights held by the master servicer. In certain transactions, the Company does have power as the servicer; however, the Company does not also have an obligation to absorb losses or the right to receive benefits that could potentially be significant to the securitization. The absorption of losses and the receipt of benefits would generally manifest itself through the retention of senior or subordinated interests. As of December 31, 2010, the Company determined that it was not the primary beneficiary of, and thus did not consolidate, any of these securitization entities. No events occurred during the nine months ended September 30, 2011 that would change the Company’s previous conclusion that it is not the primary beneficiary of any of these securitization entities. Total assets as of September 30, 2011 and December 31, 2010 of the unconsolidated trusts in which the Company has a VI are $554 million and $651 million, respectively.
The Company’s maximum exposure to loss related to the unconsolidated VIEs in which it holds a VI is comprised of the loss of value of any interests it retains and any repurchase obligations it incurs as a result of a breach of its representations and warranties.

Commercial and Corporate Loans
In 2007, the Company completed a $1.9 billion structured sale of corporate loans to multi-seller CP conduits, which are VIEs administered by unrelated third parties, from which it retained a 3% residual interest in the pool of loans transferred, which does not constitute a VI in the third party conduits as it relates to the unparticipated portion of the loans. In conjunction with the transfer of the loans, the Company also provided commitments in the form of liquidity facilities to these conduits. In January 2010, the administrator of the conduits drew on these commitments in full, resulting in a funded loan to the conduits that was recorded on the Company’s Consolidated Balance Sheets. During the first quarter of 2011, the Company exercised its clean up call rights on the structured participation and repurchased the remaining corporate loans. In conjunction with the clean up call, the outstanding amount of the liquidity facilities and the residual interest were paid off. The exercise of the clean up call was not material to the Company’s financial condition, results of operations, or cash flows.
The Company has involvement with CLO entities that own commercial leveraged loans and bonds, certain of which were transferred by the Company to the CLOs. In addition to retaining certain securities issued by the CLOs, the Company also acts as collateral manager for these CLOs. The securities retained by the Company and the fees received as collateral manager represent a VI in the CLOs, which are considered to be VIEs.
The Company determined that it was the primary beneficiary of, and thus, would consolidate one of these CLOs as it has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits from the entity that could potentially be significant to the CLO. In addition to fees received as collateral manager, including eligibility for performance incentive fees, and owning certain preference shares, the Company’s multi-seller conduit, Three Pillars, owns a senior interest in the CLO, resulting in economics that could potentially be significant to the VIE. On January 1, 2010, the Company consolidated $307 million in total assets and $279 million in net liabilities of the CLO entity. The Company elected to consolidate the CLO at fair value and to carry the financial assets and financial liabilities of the CLO at fair value subsequent to adoption. The initial consolidation of the CLO had a negligible impact on the Company’s Consolidated Statements of Shareholders’ Equity. Substantially all of the assets and liabilities of the CLO are loans and issued debt, respectively. The loans are classified within LHFS at fair value and the debt is included within long-term debt at fair value on the Company’s Consolidated Balance Sheets (see Note 12, “Fair Value Election and Measurement,” for a discussion of the Company’s methodologies for estimating the fair values of these financial instruments). At September 30, 2011, the Company’s Consolidated Balance Sheets reflected $311 million of loans held by the CLO and $285 million of debt issued by the CLO. The Company is not obligated, contractually or otherwise, to provide financial support to this VIE nor has it previously provided support to this VIE. Further, creditors of the VIE have no recourse to the general credit of the Company, as the liabilities of the CLO are paid only to the extent of available cash flows from the CLO’s assets.
For the remaining CLOs, which are also considered to be VIEs, the Company has determined that it is not the primary beneficiary as it does not have an obligation to absorb losses or the right to receive benefits from the entities that could potentially be significant to the VIE. The Company was able to liquidate a number of its positions in these CLO preference shares during 2010. Its remaining preference share exposure was valued at $2 million as of September 30, 2011 and December 31, 2010. Upon liquidation of the preference shares, the Company’s only remaining involvement with these VIEs was through its collateral manager role. The Company receives fees for managing the assets of these vehicles; these fees are considered adequate compensation and are commensurate with the level of effort required to provide such services. The fees received by the Company from these entities are recorded as trust and investment management income in the Consolidated Statements of Income. Senior fees earned by the Company are generally not considered at risk; however, subordinate fees earned by the Company are subject to the availability of cash flows and to the priority of payments. The estimated assets and liabilities of these entities that were not included on the Company’s Consolidated Balance Sheets were $2.0 billion and $1.9 billion, respectively, at September 30, 2011, and $2.1 billion and $2.0 billion, respectively, at December 31, 2010. The Company is not obligated to provide any support to these entities, nor has it previously provided support to these entities. No events occurred during the nine months ended September 30, 2011 that would change the Company’s previous conclusion that it is not the primary beneficiary of any of these securitization entities.
Student Loans
In 2006, the Company completed a securitization of government-guaranteed student loans through a transfer of loans to a securitization SPE, which previously qualified as a QSPE, and retained the related residual interest in the SPE. The Company, as master servicer of the loans in the SPE, has agreed to service each loan consistent with the guidelines determined by the applicable government agencies in order to maintain the government guarantee. The Company and the SPE have entered into an agreement to have the loans subserviced by an unrelated third party.
During the year ended December 31, 2010, the Company determined that this securitization of government-guaranteed student loans (the “Student Loan entity”) should be consolidated. Accordingly, the Company consolidated the Student Loan entity at its unpaid principal amount as of September 30, 2010, resulting in incremental total assets and total liabilities of approximately $490 million and an immaterial impact on shareholders’ equity. The consolidation of the Student Loan entity had no impact on the Company’s earnings or cash flows that results from its involvement with this VIE. The primary balance sheet impacts from consolidating the Student Loan entity were increases in LHFI, the related ALLL, and long-term debt. Additionally, the Company’s ownership of the residual interest in the SPE, previously classified in trading assets, was eliminated upon consolidation and the assets and liabilities of the Student Loan entity are recorded on a cost basis. At September 30, 2011 and December 31, 2010, the Company’s Consolidated Balance Sheets reflected $448 million and $479 million, respectively, of assets held by the Student Loan entity and $443 million and $474 million, respectively, of debt issued by the Student Loan entity.
Payments from the assets in the SPE must first be used to settle the obligations of the SPE, with any remaining payments remitted to the Company as the owner of the residual interest. To the extent that losses occur on the SPE’s assets, the SPE has recourse to the federal government as the guarantor up to a maximum guarantee amount of 97%. Losses in excess of the government guarantee reduce the amount of available cash payable to Company as the owner of the residual interest. To the extent that losses result from a breach of the master servicer’s servicing responsibilities, the SPE has recourse to the Company; the SPE may require the Company to repurchase the loan from the SPE at par value. If the breach was caused by the subservicer, the Company has recourse to seek reimbursement from the subservicer up to the guaranteed amount. The Company’s maximum exposure to loss related to the SPE is represented by the potential losses resulting from a breach of servicing responsibilities. To date, all loss claims filed with the guarantor that have been denied due to servicing errors have either been cured or reimbursement has been provided to the Company by the subservicer. The Company is not obligated to provide any noncontractual support to this entity, and it has not provided any such support.
CDO Securities
The Company has transferred bank trust preferred securities in securitization transactions. The majority of these transfers occurred between 2002 and 2005 with one transaction completed in 2007. The Company retained equity interests in certain of these entities and also holds certain senior interests that were acquired during 2008 in conjunction with its acquisition of assets from the ARS transactions discussed in Note 14, “Contingencies.” The assumptions and inputs considered by the Company in valuing this retained interest include prepayment speeds, credit losses, and the discount rate. While all the underlying collateral is currently eligible for repayment by the obligor, given the nature of the collateral and the current repricing environment, the Company assumed no prepayment would occur before the final maturity, which is approximately 23 years on a weighted average basis. Due to the seniority of the interests in the structure, current estimates of credit losses in the underlying collateral could withstand a 20% adverse change in the default assumption without the securities incurring a valuation loss assuming all other assumptions remain constant. Therefore, the key assumption in valuing these securities was the assumed discount rate, which was estimated to range from 8% to 14% over LIBOR at September 30, 2011 compared to 14% to 16% over LIBOR at December 31, 2010. This significant change in the discount rate was supported by a return to liquidity in the market for similar interests. At September 30, 2011 and December 31, 2010, a 20% adverse change in the assumed discount rate results in declines of approximately $9 million and $5 million, respectively, in the fair value of these securities. Although the impact of each assumption change in isolation is minimal, the underlying collateral of the VIEs is highly concentrated and as a result, the default or deferral of certain large exposures may have a more dramatic effect on the discount rate than the 20% discussed above. Due to this, we estimate that each of the retained positions could experience a single deferral or default of an underlying collateral obligation that would result in a decline in valuation of the retained ARS ranging from $10 million to $20 million.
The Company is not obligated to provide any support to these entities and its maximum exposure to loss at September 30, 2011 and December 31, 2010 includes current senior interests held in trading securities, which had a fair value of $42 million as of September 30, 2011 and $29 million as of December 31, 2010. During the second quarter of 2011, the Company settled an ARS claim by purchasing additional ARS of the VIEs in July 2011. The total assets of the trust preferred CDO entities in which the Company has remaining exposure to loss was $1.2 billion at September 30, 2011 and $1.3 billion at December 31, 2010. The Company determined that it was not the primary beneficiary of any of these VIEs as the Company lacks the power to direct the significant activities of any of the VIEs. No events occurred during the nine months ended September 30, 2011 that changed either the Company’s sale accounting or the Company’s conclusions that it is not the primary beneficiary of these VIEs.
The following tables present certain information related to the Company’s asset transfers in which it has continuing economic involvement for the three and nine months ended September 30:
 
 
Three Months Ended September 30, 2011
(Dollars in millions)
Residential  
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student  
Loans
 
CDO
  Securities  
 
Total  
Cash flows on interests held

$11

 

$—

 

$—

 

$—

 

$11

Servicing or management fees
1

 
2

 
—

 
—

 
3

 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Residential
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student
Loans
 
CDO
Securities
 
Total 
Cash flows on interests held

$14

 

$1

 

$5

 

$1

 

$21

Servicing or management fees
1

 
3

 
—

 
—

 
4

 
 
Nine Months Ended September 30, 2011
(Dollars in millions)
Residential
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student
Loans
 
CDO
Securities
 
Total 
Cash flows on interests held

$39

 

$1

 

$—

 

$1

 

$41

Servicing or management fees
3

 
8

 
—

 
—

 
11

 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Residential
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student
Loans
 
CDO
Securities
 
Total 
Cash flows on interests held

$42

 

$3

 

$8

 

$1

 

$54

Servicing or management fees
3

 
10

 
—

 
—

 
13



Portfolio balances and delinquency balances based on accruing loans 90 days or more past due and all nonaccrual loans as of September 30, 2011 and December 31, 2010, and net charge-offs related to managed portfolio loans (both those that are owned or consolidated by the Company and those that have been transferred) for three and nine months ended September 30, 2011 and 2010 are as follows:
 
 
(Dollars in millions)
Principal Balance
 
Past Due
 
Net Charge-offs
 
September 30, 2011
 
December 31, 2010
 
September 30, 2011
 
December 31, 2010
 
For the Three Months Ended
September 30
 
For the Nine Months Ended
September 30
 
 
2011
 
2010
2011
 
2010
 
Type of loan:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial

$54,705

 

$53,488

 

$1,272

 

$1,904

 

$185

 

$231

 

$520

 

$622

 
Residential
44,992

 
46,521

 
3,073

 
3,122

 
279

 
428

 
956

 
1,496

 
Consumer
17,778

 
15,966

 
718

 
649

 
28

 
31

 
92

 
115

 
Total loan portfolio
117,475

 
115,975

 
5,063

 
5,675

 
492

 
690

 
1,568

 
2,233

 
Managed securitized loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
2,001

 
2,244

 
55

 
44

 
—

 
—

 
—

 
22

 
Residential
119,255

 
120,429

 
3,735

1 
3,497

1 
12

 
12

 
39

 
34

 
Total managed loans

$238,731

 

$238,648

 

$8,853

 

$9,216

 

$504

 

$702

 

$1,607

 

$2,289

1Excludes loans that have completed the foreclosure or short sale process (i.e., involuntary prepayments).

Servicing fees received by the Company were $87 million and $94 million during the three months ended September 30, 2011 and 2010, respectively, and $263 million and $280 million during the nine months ended September 30, 2011 and 2010, respectively.


Other Variable Interest Entities
In addition to the Company’s involvement with certain VIEs related to transfers of financial assets, which is discussed above, the Company also has involvement with VIEs from other business activities.
Three Pillars Funding, LLC
SunTrust assists in providing liquidity to select corporate clients by directing them to a multi-seller CP conduit, Three Pillars. Three Pillars provides financing for direct purchases of financial assets originated and serviced by SunTrust’s corporate clients by issuing CP.
The Company has determined that Three Pillars is a VIE as Three Pillars has not issued sufficient equity at risk. In accordance with the VIE consolidation guidance, the Company has determined that it is the primary beneficiary of Three Pillars as certain subsidiaries have both the power to direct its significant activities and own potentially significant VIs, as discussed further herein. The assets and liabilities of Three Pillars were consolidated by the Company at their unpaid principal amounts at January 1, 2010; upon consolidation, the Company recorded an allowance for loan losses on $1.7 billion of secured loans that were consolidated at that time, resulting in an immaterial transition adjustment, which was recorded in the Company’s Consolidated Statements of Shareholders’ Equity.
The Company’s involvement with Three Pillars includes the following activities: services related to the administration of Three Pillars’ activities and client referrals to Three Pillars; the issuing of letters of credit, which provide partial credit protection to the CP holders; and providing liquidity arrangements that would provide funding to Three Pillars in the event it can no longer issue CP or in certain other circumstances. The Company’s activities with Three Pillars generated total revenue for the Company, net of direct salary and administrative costs, of $18 million and $20 million for the three months ended September 30, 2011 and 2010, respectively, and $50 million for the nine months ended September 30, 2011 and 2010.
At September 30, 2011 and December 31, 2010, the Company’s Consolidated Balance Sheets reflected approximately $2.7 billion and $2.4 billion, respectively, of secured loans held by Three Pillars, which are included within commercial loans, and $58 million and $99 million, respectively, of CP issued by Three Pillars, excluding intercompany liabilities, which is included within other short-term borrowings; other assets and liabilities were de minimis to the Company’s Consolidated Balance Sheets. No losses on any of Three Pillars’ assets were incurred during the three and nine months ended September 30, 2011 and 2010.
Funding commitments extended by Three Pillars to its customers totaled $4.1 billion with outstanding receivables totaling $2.7 billion at September 30, 2011; the majority of which generally carry initial terms of one to three years and may be repaid or refinanced at any time. At December 31, 2010, Three Pillars had funding commitments and outstanding receivables totaling $4.1 billion and $2.4 billion, respectively. The majority of the commitments are backed by trade receivables and commercial loans that have been originated by companies operating across a number of industries. Trade receivables and commercial loans collateralize 40% and 21%, respectively, of the outstanding commitments, as of September 30, 2011, compared to 48% and 14%, respectively, as of December 31, 2010. Total assets supporting outstanding commitments have a weighted average life of 3.0 years and 2.3 years at September 30, 2011 and December 31, 2010, respectively.
Each transaction added to Three Pillars is typically structured to a minimum implied A/A2 rating according to established credit and underwriting policies as approved by credit risk management and monitored on a regular basis to ensure compliance with each transaction’s terms and conditions. Typically, transactions contain dynamic credit enhancement features that provide increased credit protection in the event asset performance deteriorates. If asset performance deteriorates beyond predetermined covenant levels, the transaction could become ineligible for continued funding by Three Pillars. This could result in the transaction being amended with the approval of credit risk management, or Three Pillars could terminate the transaction and enforce any rights or remedies available, including amortization of the transaction or liquidation of the collateral. Three Pillars also has the option to fund under the liquidity facility provided by the Bank in connection with the transaction and may be required to fund under the liquidity facility if the transaction remains in breach. In addition, each commitment renewal requires credit risk management approval. The Company is not aware of unfavorable trends related to Three Pillars’ assets for which the Company expects to suffer material losses.
At September 30, 2011, Three Pillars’ outstanding CP used to fund its assets had remaining weighted average lives of 2 days and maturities through November 10, 2011. The assets of Three Pillars generally provide the sources of cash flows for the CP. However, the Company has issued commitments in the form of liquidity facilities and other credit enhancements to support the operations of Three Pillars. Due to the Company’s consolidation of Three Pillars as of January 1, 2010, these commitments are eliminated in consolidation for U.S. GAAP purposes. The liquidity commitments are revolving facilities that are sized based on the current commitments provided by Three Pillars to its customers. The liquidity facilities may generally be used if new CP cannot be issued by Three Pillars to repay maturing CP. However, the liquidity facilities are available in all circumstances, except certain bankruptcy-related events with respect to Three Pillars. Draws on the facilities are subject to the purchase price (or borrowing base) formula that, in many cases, excludes defaulted assets to the extent that they exceed available over-collateralization in the form of non-defaulted assets, and may also provide the liquidity banks with loss protection equal to a portion of the loss protection provided for in the related securitization agreement. Additionally, there are transaction specific covenants and triggers that are tied to the performance of the assets of the relevant seller/servicer that may result in a transaction termination event, which, if continuing, would require funding through the related liquidity facility. Finally, in a termination event of Three Pillars, such as if its tangible net worth falls below $5,000 for a period in excess of 15 days, Three Pillars would be unable to issue CP, which would likely result in funding through the liquidity facilities. Draws under the credit enhancement are also available in all circumstances, but are generally used to the extent required to make payment on any maturing CP if there are insufficient funds from collections of receivables or the use of liquidity facilities. The required amount of credit enhancement at Three Pillars will vary from time to time as new receivable pools are purchased or removed from its asset portfolio, but is generally equal to 10% of the aggregate commitments of Three Pillars.
Due to the consolidation of Three Pillars, the Company’s maximum exposure to potential loss was $4.2 billion as of September 30, 2011 and December 31, 2010, which represents the Company’s exposure to the lines of credit that Three Pillars had extended to its clients. The Company did not recognize any liability on its Consolidated Balance Sheets related to the liquidity facilities and other credit enhancements provided to Three Pillars as of September 30, 2011 or December 31, 2010, as no amounts had been drawn, nor were any draws probable to occur, such that a loss should have been accrued.
Total Return Swaps
The Company recommenced involvement with various VIEs related to its TRS business during 2010. Under the matched book TRS business model, the VIEs purchase assets (typically loans) from the market, which are identified by third party clients, that serve as the underlying reference assets for a TRS between the VIE and the Company and a mirror TRS between the Company and its third party clients. The TRS contracts between the VIEs and the Company hedge the Company’s exposure to the TRS contracts with its third party clients. These third parties are not related parties to the Company, nor are they and the Company de facto agents of each other. In order for the VIEs to purchase the reference assets, the Company provides senior financing, in the form of demand notes, to these VIEs. The TRS contracts pass through interest and other cash flows on the assets owned by the VIEs to the third parties, along with exposing the third parties to depreciation on the assets and providing them with the rights to appreciation on the assets. The terms of the TRS contracts require the third parties to post initial collateral, in addition to ongoing margin as the fair values of the underlying assets change. Although the Company has always caused the VIEs to purchase a reference asset in response to the addition of a reference asset by its third party clients, there is no legal obligation between the Company and its third party clients for the Company to purchase the reference assets or for the Company to cause the VIEs to purchase the assets.
The Company considered the VIE consolidation guidance, which requires an evaluation of the substantive contractual and non-contractual aspects of transactions involving VIEs established subsequent to January 1, 2010. The Company and its third party clients are the only VI holders. As such, the Company evaluated the nature of all VIs and other interests and involvement with the VIEs, in addition to the purpose and design of the VIEs, relative to the risks they were designed to create. The purpose and design of a VIE are key components of a consolidation analysis and any power should be analyzed based on the substance of that power relative to the purpose and design of the VIE. The VIEs were designed for the benefit of the third parties and would not exist if the Company did not enter into the TRS contracts with the third parties. The activities of the VIEs are restricted to buying and selling reference assets with respect to the TRS contracts entered into between the Company and its third party clients and the risks/benefits of any such assets owned by the VIEs are passed to the third party clients via the TRS contracts. The TRS contracts between the Company and its third party clients have a substantive effect on the design of the overall transaction and the VIEs. Based on its evaluation, the Company has determined that it is not the primary beneficiary of the VIEs, as the design of the TRS business results in the Company having no substantive power to direct the significant activities of the VIEs.
At September 30, 2011 and December 31, 2010, the Company had $1.4 billion and $972 million, respectively, in senior financing outstanding to VIEs, which were classified within trading assets on the Consolidated Balance Sheets and carried at fair value. These VIEs had entered into TRS contracts with the Company with outstanding notional amounts of $1.4 billion and $969 million at September 30, 2011 and December 31, 2010, respectively, and the Company had entered into mirror TRS contracts with its third parties with the same outstanding notional amounts. At September 30, 2011, the fair values of these TRS assets and liabilities were $47 million and $44 million, respectively, and at December 31, 2010, the fair values of these TRS assets and liabilities were $34 million and $32 million, respectively, reflecting the pass-through nature of these structures. The notional amounts of the TRS contracts with the VIEs represent the Company’s maximum exposure to loss, although such exposure to loss has been mitigated via the TRS contracts with the third parties. The Company has not provided any support to the VIE that it was not contractually obligated to for the nine months ended September 30, 2011 or during the year ended December 31, 2010. For additional information on the Company’s TRS with these VIEs, see Note 11, “Derivative Financial Instruments.”
Community Development Investments
As part of its community reinvestment initiatives, the Company invests almost exclusively within its footprint in multi-family affordable housing developments and other community development entities as a limited and/or general partner and/or a debt provider. The Company receives tax credits for various investments. The Company has determined that the related partnerships are VIEs. During 2011 and 2010, the Company did not provide any financial or other support to its consolidated or unconsolidated investments that it was not previously contractually required to provide.
For partnerships where the Company operates strictly as the general partner, the Company consolidates these partnerships on its Consolidated Balance Sheets. As the general partner, the Company typically guarantees the tax credits due to the limited partner and is responsible for funding construction and operating deficits. As of September 30, 2011 and December 31, 2010, total assets, which consist primarily of fixed assets and cash attributable to the consolidated partnerships, were $8 million, and total liabilities, excluding intercompany liabilities, were $1 million. Security deposits from the tenants are recorded as liabilities on the Company’s Consolidated Balance Sheets. The Company maintains separate cash accounts to fund these liabilities and these assets are considered restricted. The tenant liabilities and corresponding restricted cash assets were de minimis as of September 30, 2011 and December 31, 2010. While the obligations of the general partner are generally non-recourse to the Company, as the general partner, the Company may from time to time step in when needed to fund deficits. During 2011 and 2010, the Company did not provide any significant amount of funding as the general partner or to cover any deficits the partnerships may have generated.
For other partnerships, the Company acts only in a limited partnership capacity. The Company has determined that it is not the primary beneficiary of these partnerships and accounts for its limited partner interests in accordance with the accounting guidance for investments in affordable housing projects. The general partner or an affiliate of the general partner provides guarantees to the limited partner, which protects the Company from losses attributable to operating deficits, construction deficits and tax credit allocation deficits. Partnership assets of $1.2 billion and $1.1 billion in these partnerships were not included in the Consolidated Balance Sheets at September 30, 2011 and December 31, 2010. These limited partner interests had carrying values of $199 million and $202 million at September 30, 2011 and December 31, 2010, respectively, and are recorded in other assets on the Company’s Consolidated Balance Sheets. The Company’s maximum exposure to loss for these limited partner investments totaled $446 million and $458 million at September 30, 2011 and December 31, 2010, respectively. The Company’s maximum exposure to loss would be borne by the loss of the limited partnership equity investments along with $225 million and $222 million of loans issued by the Company to the limited partnerships at September 30, 2011 and December 31, 2010, respectively. The difference between the maximum exposure to loss and the investment and loan balances is primarily attributable to the unfunded equity commitments. Unfunded equity commitments are amounts that the Company has committed to the partnerships upon the partnerships meeting certain conditions. When these conditions are met, the Company will invest these additional amounts in the partnerships.
When the Company owns both the limited partner and general partner interests or acts as the indemnifying party, the Company consolidates the partnerships. As of September 30, 2011 and December 31, 2010, total assets, which consist primarily of fixed assets and cash, attributable to the consolidated, non-VIE partnerships were $379 million and $394 million, respectively, and total liabilities, excluding intercompany liabilities, primarily representing third party borrowings, were $110 million and $123 million, respectively. See Note 12, “Fair Value Election and Measurement,” for further discussion on the impact of impairment charges on affordable housing partnership investments.
Registered and Unregistered Funds Advised by RidgeWorth
RidgeWorth, a registered investment advisor and majority owned subsidiary of the Company, serves as the investment advisor for various private placement, common and collective funds, and registered mutual funds (collectively the “Funds”). The Company evaluates these Funds to determine if the Funds are VIEs. In February 2010, the FASB issued guidance that defers the application of the existing VIE consolidation guidance for investment funds meeting certain criteria. All of the registered and unregistered Funds advised by RidgeWorth meet the scope exception criteria and thus are not evaluated for consolidation under the guidance. Accordingly, the Company continues to apply the consolidation guidance in effect prior to the issuance of the existing guidance to interests in funds that qualify for the deferral.

The Company has concluded that some of the Funds are VIEs. However, the Company has concluded that it is not the primary beneficiary of these funds as the Company does not absorb a majority of the expected losses nor expected returns of the funds. The Company’s exposure to loss is limited to the investment advisor and other administrative fees it earns and if applicable, any equity investments. The total unconsolidated assets of these funds as of September 30, 2011 and December 31, 2010 were $1.1 billion and $1.9 billion, respectively.
The Company does not have any contractual obligation to provide monetary support to any of the Funds. The Company did not provide any significant support, contractual or otherwise, to the Funds during the nine months ended September 30, 2011 or during the year ended December 31, 2010.

Net Income/(Loss) Per Common Share
Net Income/(Loss) Per Share
NOTE 7 – NET INCOME/(LOSS) PER COMMON SHARE
Equivalent shares of 27 million and 32 million related to common stock options and common stock warrants outstanding as of September 30, 2011 and 2010, respectively, were excluded from the computations of diluted income/(loss) per average common share because they would have been anti-dilutive. Further, for EPS calculation purposes, during the nine months ended September 30, 2010, the impact of dilutive securities was excluded from the diluted share count because the Company recognized a net loss available to common shareholders and the impact would have been anti-dilutive.
A reconciliation of the difference between average basic common shares outstanding and average diluted common shares outstanding for the three and nine months ended September 30, 2011 and 2010 is included below. Additionally, included below is a reconciliation of net income to net income/(loss) available to common shareholders. 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(In millions, except per share data)
2011
 
2010
 
2011
 
2010
Net income

$215

 

$153

 

$573

 

$5

Series A preferred dividends
(2
)
 
(2
)
 
(5
)
 
(6
)
Dividends and accretion of discount on U.S. Treasury preferred stock
—

 
(67
)
 
(66
)
 
(200
)
Accelerated accretion for repurchase of U.S. Treasury preferred stock
—

 
—

 
(74
)
 
—

Dividends and undistributed earnings allocated to unvested shares
(2
)
 
—

 
(4
)
 
—

Net income/(loss) available to common shareholders

$211

 

$84

 

$424

 

($201
)
Average basic common shares
532

 
496

 
521

 
495

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options
1

 
1

 
2

 
1

Restricted stock
2

 
2

 
2

 
2

Average diluted common shares
535

 
499

 
525

 
498

Net income/(loss) per average common share - diluted

$0.39

 

$0.17

 

$0.81

 

($0.41
)
Net income/(loss) per average common share - basic

$0.40

 

$0.17

 

$0.81

 

($0.41
)
Long-Term Debt and Capital
Long-Term Debt and Capital
NOTE 8 – LONG-TERM DEBT AND CAPITAL
In March 2011, the Federal Reserve completed its review of the Company’s capital plan in connection with the CCAR. Upon completion of the review, the Federal Reserve did not object to the Company’s capital plan as originally submitted in January 2011. As a result, during the first quarter of 2011, the Company completed a $1.0 billion common stock offering and a $1.0 billion senior debt offering, which pays 3.60% interest and is due in 2016. On March 30, 2011, the Company used the proceeds from these offerings as well as from other available funds to repurchase $3.5 billion of Fixed Rate Cumulative Preferred Stock, Series C, and $1.4 billion of Fixed Rate Cumulative Preferred Stock, Series D, that was issued to the U.S. Treasury under the TARP’s CPP. As a result of the repurchase of Series C and D Preferred Stock, the Company, incurred a one-time non-cash charge to net income available to common shareholders of $74 million, related to accelerating the outstanding discount accretion on the Series C and D Preferred Stock. In September 2011, the U.S. Treasury auctioned a total of 17.9 million of the Company's warrants to purchase 11.9 million shares of SunTrust common stock at an exercise price of $44.15 per share (Series B warrants) and 6 million shares of SunTrust common stock at an exercise price of $33.70 per share (Series A warrants). The warrants were issued by SunTrust to the U.S. Treasury in connection with its investment in SunTrust Banks, Inc. under the CPP and have expiration dates of November 2018 (Series B) and December 2018 (Series A). In conjunction with the U.S. Treasury's auction, the Company acquired 4 million of the Series A warrants for $11 million.
The Company’s long-term debt decreased from $13.6 billion at December 31, 2010 to $13.5 billion at September 30, 2011. The change was primarily as a result of the $1 billion senior debt offering described above, offset by $852 million subordinated debt that matured in the second quarter of 2011 and the repurchase of $320 million of fixed rate senior and junior subordinated notes that were due in 2011 and 2036.
The Company’s common equity increased by $1.8 billion, primarily as a result of net income, the common stock offering, and an increase in AOCI due to higher unrealized gains primarily related to securities and derivatives. Conversely, Consolidated Shareholders’ Equity decreased by $2.9 billion from December 31, 2010 primarily as a result of the repurchase of the Series C and D Preferred Stock, partially offset by the new common share issuance. The Company’s capital ratios as of September 30, 2011 and December 31, 2010 are noted below.
 
 
September 30, 2011
 
December 31, 2010
(Dollars in millions)
Amount      
 
Ratio      
 
Amount      
 
Ratio      
SunTrust Banks, Inc.
 
 
 
 
 
 
 
Tier 1 common

$12,188

 
9.31
%
 
$10,737
 
8.08
%
Tier 1 capital
14,531

 
11.10

 
18,156

 
13.67

Total capital
18,211

 
13.91

 
21,967

 
16.54

Tier 1 leverage
 
 
8.90

 
 
 
10.94


SunTrust Bank
 
 
 
 
 
 
 
Tier 1 capital

$13,873

 
10.75
%
 
$13,120
 
10.05
%
Total capital
17,048

 
13.21

 
16,424

 
12.58

Tier 1 leverage
 
 
8.74

 
 
 
8.33



Income Taxes
Income Taxes
NOTE 9 - INCOME TAXES
The provision for income taxes was $45 million and $14 million for the three months ended September 30, 2011 and 2010, respectively, representing effective tax rates of 17.3% and 8.3%, respectively, during those periods. The provision for income taxes was $136 million and a benefit of $230 million for the nine months ended September 30, 2011 and 2010, respectively, representing effective tax rates of 19.2% and (102.1)%, respectively, during those periods. The Company calculated income taxes for the three and nine months ended September 30, 2011 and 2010 based on actual year-to-date results.
As of September 30, 2011, the Company’s gross cumulative income tax on UTBs amounted to $99 million, of which $67 million (net of federal tax benefit) would affect the Company’s effective tax rate, if recognized. As of December 31, 2010, the Company’s gross cumulative income tax on UTBs amounted to $102 million. Additionally, the Company had a gross liability of $21 million for interest related to its UTBs as of September 30, 2011 and December 31, 2010. Interest recognized related to UTBs was an expense of approximately $1 million for both the three and nine months ended September 30, 2011, compared to an expense of approximately $2 million and income of less than $1 million for the three and nine months ended September 30, 2010, respectively. The Company continually evaluates the UTBs associated with its uncertain tax positions. It is reasonably possible that the total amount of income tax on UTBs could decrease during the next 12 months by up to $10 million due to completion of tax authority examinations and the expiration of statutes of limitations.
The Company files consolidated and separate income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. As of September 30, 2011, the Company’s federal returns through 2006 have been examined by the IRS and all issues have been resolved. The Company’s 2007 through 2009 federal income tax returns are currently under examination by the IRS. Generally, the state jurisdictions in which the Company files income tax returns are subject to examination for a period from three to seven years after returns are filed.

Employee Benefit Plans
Employee Benefit Plans
NOTE 10 - EMPLOYEE BENEFIT PLANS
The Company sponsors various short-term incentive and LTI plans for eligible employees. The Company delivers LTIs through various incentive programs, including stock options, restricted stock, LTI cash, and salary shares. Compensation expense related to LTI cash was $9 million and $8 million for the three months ended September 30, 2011 and 2010, respectively, and $27 million and $22 million for the nine months ended September 30, 2011 and 2010, respectively.

TARP prohibited the payment of any bonus, incentive compensation or stock option award to our five NEOs and certain other highly compensated executives. As a result, until TARP repayment, SunTrust continued the use of salary shares in 2011 as defined in the U.S. Treasury’s Interim Final Rule on TARP Standards for Compensation and Corporate Governance. Specifically, the Company paid additional base salary amounts in the form of stock (salary shares) to the senior executive officers and some of the other employees who were among the next 20 most highly-compensated employees. The Company did this each pay period in the form of stock units under the SunTrust Banks, Inc. 2009 Stock Plan. The stock units did not include any rights to receive dividends or dividend equivalents. As required by The Emergency Economic Stabilization Act of 2008, each salary share was non-forfeitable upon grant but may not be sold or transferred until the expiration of a holding period (except as necessary to satisfy applicable withholding taxes). As a result, these individuals are at risk for the value of our stock price until the stock unit is settled. The stock units are settled in cash; for the 2010 salary shares, one half was settled on March 31, 2011 and one half will be settled on March 31, 2012, unless settled earlier due to the executive’s death. The 2011 salary shares were settled on the date of TARP repayment on March 30, 2011. The amount to be paid on settlement of the stock units will be equal to the value of a share of SunTrust common stock on the settlement date. Benefit plan determinations and limits were established to ensure that the salary shares were accounted for equitably within relevant benefit plans. As of September 30, 2011, the accrual related to salary shares was $3 million.
Following the repayment by SunTrust of the U.S. Treasury’s TARP investment in the Company, the Compensation Committee of the Board approved a revised compensation structure for the Company’s NEOs. Effective April 1, 2011, the compensation structure includes an annual incentive opportunity under the Company’s existing Management Incentive Plan. A new LTI arrangement was also implemented. The design of the LTI plan delivers 50% restricted stock units with vesting tied to the Company’s total shareholder return relative to a peer group consisting of the banks which comprise the KBW Bank Sector Index. The remaining 50% of the LTI plan will consist of approximately half restricted stock units, the vesting of which is tied to the achievement of a Tier 1 capital ratio target, and the other half in stock options.
Stock-Based Compensation
The Company granted 813,265 shares of stock options, 1,375,406 shares of restricted stock and 344,590 restricted stock units during the first nine months of 2011. The weighted average prices of these grants were $29.70, $31.44 and $37.57, respectively. The fair value of options granted during the first nine months of 2011 and 2010 were $10.51 and $12.78 per share, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:
 
 
Nine Months Ended September 30
 
2011
 
2010
Dividend yield
0.75
%
 
0.17
%
Expected stock price volatility
34.87

 
56.09

Risk-free interest rate (weighted average)
2.48

 
2.80

Expected life of options
6 years    

 
6 years    



Stock-based compensation expense recognized in noninterest expense was as follows:
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Stock-based compensation expense:
 
 
 
 
 
 
 
Stock options

$4

 

$4

 

$11

 

$11

Restricted stock
8

 
9

 
25

 
31

Restricted stock units
1

 
—

 
9

 
—

Total stock-based compensation expense

$13

 

$13

 

$45

 

$42



The recognized stock-based compensation tax benefit amounted to $5 million for both of the three months ended September 30, 2011 and 2010. For the nine months ended September 30, 2011 and 2010, the recognized stock-based compensation tax benefit was $17 million and $16 million, respectively.

Retirement Plans
SunTrust did not contribute to either of its noncontributory qualified retirement plans ("Retirement Benefits Plans") in the first nine months of 2011. The expected long-term rate of return on plan assets for the Retirement Benefit Plans is 7.75% for 2011.
Anticipated employer contributions/benefit payments for 2011 are $8 million for the SERP. For the three and nine months ended September 30, 2011, the actual contributions/benefit payments were $1 million and $6 million, respectively.
SunTrust contributed less than $1 million to the Postretirement Welfare Plan in the third quarter of 2011. Additionally, SunTrust expects to receive a Medicare Part D Subsidy reimbursement for 2011 in the amount of $3 million. The expected pre-tax long-term rate of return on plan assets for the Postretirement Welfare Plan is 6.75% for 2011.
 
 
Three Months Ended September 30
 
2011
 
2010
(Dollars in millions)
Retirement
Benefits Plans
 
Other
  Postretirement  
Benefits
 
  Retirement  
Benefits Plans
 
Other
  Postretirement  
Benefits
Service cost

$18

 

$—

 

$17

 

$—

Interest cost
32

 
3

 
33

 
3

Expected return on plan assets
(47
)
 
(2
)
 
(46
)
 
(2
)
Amortization of prior service cost
(5
)
 
—

 
(3
)
 
—

Recognized net actuarial loss
11

 
—

 
16

 
—

Net periodic benefit cost

$9

 

$1

 

$17

 

$1

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30
 
2011
 
2010
(Dollars in millions)
Retirement
Benefits Plans
 
Other
  Postretirement  
Benefits
 
 Retirement  
Benefits Plans
 
Other
  Postretirement  
Benefits
Service cost

$53

 

$—

 

$52

 

$—

Interest cost
97

 
7

 
97

 
7

Expected return on plan assets
(142
)
 
(6
)
 
(137
)
 
(6
)
Amortization of prior service cost
(14
)
 
—

 
(9
)
 
—

Recognized net actuarial loss
32

 
1

 
46

 
1

Net periodic benefit cost

$26

 

$2

 

$49

 

$2



Derivative Financial Instruments
Derivative Financial Instruments
NOTE 11 - DERIVATIVE FINANCIAL INSTRUMENTS
The Company enters into various derivative financial instruments, both in a dealer capacity to facilitate client transactions and as an end user as a risk management tool. When derivatives have been entered into with clients, the Company generally manages the risk associated with these derivatives within the framework of its VAR approach that monitors total exposure daily and seeks to manage the exposure on an overall basis. Derivatives are used as a risk management tool to hedge the Company’s balance sheet exposure to changes in identified cash flow and fair value risks, either economically or in accordance with hedge accounting provisions. The Company’s Corporate Treasury function is responsible for employing the various hedge accounting strategies to manage these objectives and all derivative activities are monitored by ALCO. The Company may also enter into derivatives, on a limited basis, in consideration of trading opportunities in the market. Additionally, as a normal part of its operations, the Company enters into IRLCs on mortgage loans that are accounted for as freestanding derivatives and has certain contracts containing embedded derivatives that are carried, in their entirety, at fair value. All freestanding derivatives and any embedded derivatives that the Company bifurcates from the host contracts are carried at fair value in the Consolidated Balance Sheets in trading assets, other assets, trading liabilities, or other liabilities. The associated gains and losses are either recognized in AOCI, net of tax, or within the Consolidated Statements of Income depending upon the use and designation of the derivatives.
Credit and Market Risk Associated with Derivatives
Derivatives expose the Company to credit risk. The Company minimizes the credit risk of derivatives by entering into transactions with high credit-quality counterparties with defined exposure limits that are reviewed periodically by the Company’s Credit Risk Management division. The Company’s derivatives may also be governed by an ISDA and depending on the nature of the derivative, bilateral collateral agreements are typically in place as well. When the Company has more than one outstanding derivative transaction with a single counterparty and there exists a legally enforceable master netting agreement with that counterparty, the Company considers its exposure to the counterparty to be the net market value of all positions with that counterparty, if such net value is an asset to the Company, and zero, if such net value is a liability to the Company. As of September 30, 2011, net derivative asset positions to which the Company was exposed to risk of its counterparties were $2.5 billion, representing the net of $3.9 billion in net derivative gains, offset by counterparty where formal netting arrangements exist, adjusted for collateral of $1.4 billion that the Company holds in relation to these gain positions. As of December 31, 2010, net derivative asset positions to which the Company was exposed to risk of its counterparties were $1.6 billion, representing the net of $2.8 billion in net derivative gains by counterparty, offset by counterparty where formal netting arrangements exist, adjusted for collateral of $1.2 billion that the Company holds in relation to these gain positions.
Derivatives also expose the Company to market risk. Market risk is the adverse effect that a change in market factors, such as interest rates, currency rates, equity prices, or implied volatility, has on the value of a derivative. The Company manages the market risk associated with its derivatives by establishing and monitoring limits on the types and degree of risk that may be undertaken. The Company continually measures this risk using a VAR methodology.
Derivative instruments are primarily transacted in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point, with appropriate valuation adjustments for liquidity and credit risk. For purposes of valuation adjustments to its derivative positions, the Company has evaluated liquidity premiums that may be demanded by market participants, as well as, the credit risk of its counterparties and its own credit. The Company has considered factors such as the likelihood of default by itself and its counterparties, its net exposures, and remaining maturities in determining the appropriate fair value adjustments to recognize. Generally, the expected loss of each counterparty is estimated using the Company’s proprietary internal risk rating system. The risk rating system utilizes counterparty-specific probabilities of default and loss given default estimates to derive the expected loss. For counterparties that are rated by national rating agencies, those ratings are also considered in estimating the credit risk. Additionally, counterparty exposure is evaluated by offsetting positions that are subject to master netting arrangements, as well as, considering the amount of marketable collateral securing the position. All counterparties are explicitly approved, as are defined exposure limits. Counterparties are regularly reviewed and appropriate business action is taken to adjust the exposure to certain counterparties, as necessary. This approach is also used by the Company to estimate its own credit risk on derivative liability positions. The Company adjusted the net fair value of its derivative contracts for estimates of net counterparty credit risk by approximately $46 million and $33 million as of September 30, 2011 and December 31, 2010 respectively.
The majority of the Company’s derivatives contain contingencies that relate to the creditworthiness of the Bank. These contingencies, which are contained in industry standard master trading agreements, may be considered events of default. Should the Bank be in default under any of these provisions, the Bank’s counterparties would be permitted under such master agreements to close-out net at amounts that would approximate the then-fair values of the derivatives and the offsetting of the amounts would produce a single sum due by one party to the other. The counterparties would have the right to apply any collateral posted by the Bank against any net amount owed by the Bank. Additionally, certain of the Company’s derivative liability positions, totaling $1.2 billion and $1.1 billion in fair value at September 30, 2011 and December 31, 2010, respectively, contain provisions conditioned on downgrades of the Bank’s credit rating. These provisions, if triggered, would either give rise to an ATE that permits the counterparties to close-out net and apply collateral or, where a CSA is present, require the Bank to post additional collateral. Collateral posting requirements generally result from differences in the fair value of the net derivative liability compared to specified collateral thresholds at different ratings levels of the Bank, both of which are negotiated provisions within each CSA. At September 30, 2011, the Bank carried senior long-term debt ratings of A3/BBB+ from three of the major ratings agencies. At the current rating level, ATEs have been triggered for approximately $17 million in fair value liabilities as of September 30, 2011. For illustrative purposes, if the Bank were further downgraded to Baa3/BBB-, ATEs would be triggered in derivative liability contracts that had a total fair value of $5 million at September 30, 2011, against which the Bank had posted collateral of $3 million; ATEs do not exist at lower ratings levels. At September 30, 2011, $1.1 billion in fair value of derivative liabilities were subject to CSAs, against which the Bank has posted $1.1 billion in collateral, primarily in the form of cash. If requested by the counterparty pursuant to the terms of the CSA, the Bank would be required to post estimated additional collateral against these contracts at September 30, 2011 of $16 million if the Bank were downgraded to Baa3/BBB-, and any further downgrades to Ba1/BB+ or below would require the posting of an additional $10 million. Such collateral posting amounts may be more or less than the Bank’s estimates based on the specified terms of each CSA as to the timing of a collateral calculation and whether the Bank and its counterparties differ on their estimates of the fair values of the derivatives or collateral.

Notional and Fair Value of Derivative Positions
The following tables present the Company’s derivative positions at September 30, 2011 and December 31, 2010. The notional amounts in the tables are presented on a gross basis and have been classified within Asset Derivatives or Liability Derivatives based on the estimated fair value of the individual contract at September 30, 2011 and December 31, 2010. Gross positive and gross negative fair value amounts associated with respective notional amounts are presented without consideration of any netting agreements. For contracts constituting a combination of options that contain a written option and a purchased option (such as a collar), the notional amount of each option is presented separately, with the purchased notional amount generally being presented as an Asset Derivative and the written notional amount being presented as a Liability Derivative. The fair value of a combination of options is generally presented as a single value with the purchased notional amount if the combined fair value is positive, and with the written notional amount, if the combined fair value is negative.


 
As of September 30, 20118
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet    
Classification
 
Notional
Amounts    
 
Fair
Value    
 
Balance Sheet    
Classification
 
Notional
Amounts    
 
Fair
Value    
 
Derivatives designated in cash flow hedging relationships 1
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$146

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
15,850

  
1,133

 
Trading liabilities
 
—

  
—

  
Total
 
 
17,397

  
1,133

 
 
 
1,547

  
146

  
Derivatives designated in fair value hedging relationships 2
Interest rate contracts hedging:
Fixed rate debt
Trading assets
 
1,000

  
59

 
Trading liabilities
 
—

  
—

  
Total
 
 
1,000

  
59

 
 
 
—

  
—

  
Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
437

  
21

 
Trading liabilities
 
60

  
10

  
MSRs
Other assets
 
11,633

  
476

 
Other liabilities
 
9,860

  
46

  
LHFS, IRLCs, LHFI-FV
Other assets
 
2,856

4 
17

 
Other liabilities
 
5,354

4 
43

  
Trading activity
Trading assets
 
118,738

5 
6,259

 
Trading liabilities
 
98,866

  
5,831

  
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans
Trading assets
 
1,088

  
19

 
Trading liabilities
 
496

  
125

  
Trading activity
Trading assets
 
4,297

  
239

 
Trading liabilities
 
4,184

  
229

  
Credit contracts covering:
Loans
Trading assets
 
50

  
1

 
Trading liabilities
 
192

  
2

  
Trading activity
Trading assets
 
1,775

6 
59

 
Trading liabilities
 
1,538

6 
50

  
Equity contracts - Trading activity
Trading assets
 
7,924

5 
853

 
Trading liabilities
 
9,504

  
876

  
Other contracts:
IRLCs and other
Other assets
 
4,993

  
79

 
Other liabilities
 
279

7 
16

7 
Trading activity
Trading assets
 
196

  
22

 
Trading liabilities
 
190

  
22

  
Total
 
 
153,987

  
8,045

 
 
 
130,523

  
7,250

  

Total derivatives
 
 

$172,384

  

$9,237

 
 
 

$132,070

  

$7,396

  

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Fair Value Hedges” in this Note for further discussion.
3 See “Economic Hedging and Trading Activities” in this Note for further discussion.
4 Amounts include $365 million and $665 million of notional amounts related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
5 Amounts include $19.3 billion and $428 million of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
6 Asset and liability amounts include $1 million and $6 million, respectively, of notional from purchased and written credit risk participation agreements, respectively, which notional is calculated as the notional of the derivative participated adjusted by the relevant risk weighted assets conversion factor.
7 Includes a $16 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Visa Class B common stock to Visa Class A common stock, and the Visa Class A common stock price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Visa Class B shares in the second quarter of 2009 as discussed in Note 18, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial Statements in the Company’s 2010 Annual Report on Form 10-K.
8As of July 1, 2011, the Company began offsetting cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to ISDA master netting arrangements and meet the derivatives accounting requirements of ASC 815-10, "Derivatives and Hedging." The effects of offsetting on the Company's Consolidated Balance Sheets as of September 30, 2011 are presented in Note 12, "Fair Value Election and Measurement."

 
As of December 31, 2010
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet
Classification    
 
Notional
Amounts    
 
Fair
Value    
 
Balance Sheet
Classification
 
Notional
Amounts    
 
Fair
Value    
 
Derivatives designated in cash flow hedging relationships 1
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$145

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
15,350

  
947

 
Trading liabilities
 
500

  
10

  
Total
 
 
16,897

 
947

 
 
 
2,047

 
155

  
Derivatives not designated as hedging instruments 2
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
1,273

  
41

 
Trading liabilities
 
60

  
4

  
Corporate bonds and loans
 
 
—

  
—

 
Trading liabilities
 
5

  
—

  
MSRs
Other assets
 
20,474

  
152

 
Other liabilities
 
6,480

  
73

  
LHFS, IRLCs, LHFI-FV
Other assets
 
7,269

3  
92

 
Other liabilities
 
2,383

  
20

  
Trading activity
Trading assets
 
132,286

4 
4,211

 
Trading liabilities
 
105,926

  
3,884

  
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans
Trading assets
 
1,083

   
17

 
Trading liabilities
 
495

  
128

  
Trading activity
Trading assets
 
2,691

   
92

 
Trading liabilities
 
2,818

  
91

  
Credit contracts covering:
Loans
Trading assets
 
15

   
—

 
Trading liabilities
 
227

  
2

  
Trading activity
Trading assets
 
1,094

5 
39

 
Trading liabilities
 
1,039

5 
34

  
Equity contracts - Trading activity
Trading assets
 
5,010

4 
583

 
Trading liabilities
 
8,012

   
730

  
Other contracts:
IRLCs and other
Other assets
 
2,169

  
18

 
Other liabilities
 
2,196

6 
42

6 
Trading activity
Trading assets
 
111

  
11

 
Trading liabilities
 
111

   
11

  
Total
 
 
173,475

 
5,256

 
 
 
129,752

 
5,019

  
Total derivatives
 
 

$190,372

 

$6,203

 
 
 

$131,799

 

$5,174

  

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Economic Hedging and Trading Activities” in this Note for further discussion.
3 Amount includes $1.4 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
4 Amounts include $25.0 billion and $0.5 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
5 Asset and liability amounts include $1 million and $8 million, respectively, of notional from purchased and written interest rate swap risk participation agreements, respectively, which notional is calculated as the notional of the interest rate swap participated adjusted by the relevant risk weighted assets conversion factor.
6 Includes a $23 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Visa Class B common stock to Visa Class A common stock, and the Visa Class A common stock price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Visa Class B shares in the second quarter of 2009 as discussed in Note 18, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial Statements in the Company’s 2010 Annual Report on Form 10-K.

Impact of Derivatives on the Consolidated Statements of Income and Shareholders’ Equity
The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2011 and 2010 are presented below. The impacts are segregated between those derivatives that are designated in hedging relationships and those that are used for economic hedging or trading purposes, with further identification of the underlying risks in the derivatives and the hedged items, where appropriate. The tables do not disclose the financial impact of the activities that these derivative instruments are intended to hedge, for both economic hedges and those instruments designated in formal, qualifying hedging relationships.
 
 
Three Months Ended September 30, 2011
(Dollars in millions)
Amount of pre-tax gain
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

$8

 
 
 

$—

Interest rate contracts hedging Floating rate loans
438

 
Interest and fees on loans
 
103

Total

$446

 
 
 

$103

 
 
Nine Months Ended September 30, 2011
(Dollars in millions)
Amount of pre-tax gain/(loss)    
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

($2
)
 
 
 

$—

Interest rate contracts hedging Floating rate loans
673

 
Interest and fees on loans
 
321

Total

$671

 
 
 

$321


1 During the three and nine months ended September 30, 2011, the Company reclassified $56 million and $146 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated.

  
Three Months Ended September 30, 2011
(Dollars in millions)
Amount of gain
on Derivatives
recognized in Income
 
Amount of loss
on related Hedged Items
recognized in Income
 
Amount of gain/(loss)
recognized in Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships
Interest rate contracts hedging Fixed rate debt ¹

$35

 

($35
)
 

$—

 
 
Nine Months Ended September 30, 2011
(Dollars in millions)
Amount of gain
on Derivatives
recognized in Income
 
Amount of loss
on related Hedged Items
recognized in Income
 
Amount of loss
recognized in Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships
Interest rate contracts hedging Fixed rate debt ¹

$49

 

($50
)
 

($1
)

1 Amounts are recognized in trading account profits/(losses) and commissions in the Consolidated Statements of Income. 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2011
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended
September 30, 2011
Derivatives not designated as hedging instruments
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading account profits/(losses) and commissions
 

($5
)
 

($4
)
MSRs
Mortgage servicing related income
 
397

 
488

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(130
)
 
(233
)
Trading activity
Trading account profits/(losses) and commissions
 
41

 
78

Foreign exchange rate contracts covering:
 
 
 
 
 
Foreign-denominated debt and commercial loans
Trading account profits/(losses) and commissions
 
(96
)
 
15

Trading activity
Trading account profits/(losses) and commissions
 
20

 
13

Credit contracts covering:
 
 
 
 
 
Loans
Trading account profits/(losses) and commissions
 
—

 
(1
)
Other
Trading account profits/(losses) and commissions
 
6

 
14

Equity contracts - trading activity
Trading account profits/(losses) and commissions
 
(9
)
 
(1
)
Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related income
 
145

 
229

Total
 
 

$369

 

$598


The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2010 are presented below.
 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

($125
)
 
 
 

$—

Interest rate contracts hedging Floating rate loans
380

 
Interest and fees on loans
 
119

Total

$255

 
 
 

$119

 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Amount of pre-tax gain
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

$42

 
 
 

$—

Interest rate contracts hedging Floating rate loans
1,115

 
Interest and fees on loans
 
370

Total

$1,157

 
 
 

$370


1 During the three and nine months ended September 30, 2010, the Company reclassified $35 million and $88 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated.
 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2010
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended
September 30, 2010
Derivatives not designated as hedging instruments
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading account profits/(losses) and commissions
 

($194
)
 

($68
)
Corporate bonds and loans
Trading account profits/(losses) and commissions
 
—

 
(1
)
MSRs
Mortgage servicing related income
 
315

 
783

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(82
)
 
(292
)
Trading activity
Trading account profits/(losses) and commissions
 
256

 
285

Foreign exchange rate contracts covering:
 
 
 
 
 
Foreign-denominated debt and commercial loans
Trading account profits/(losses) and commissions
 
133

 
(69
)
Trading activity
Trading account profits/(losses) and commissions
 
(20
)
 
5

Credit contracts covering:
 
 
 
 
 
Loans
Trading account profits/(losses) and commissions
 
(1
)
 
—

Trading activity
Trading account profits/(losses) and commissions
 
2

 
6

Equity contracts - trading activity
Trading account profits/(losses) and commissions
 
(62
)
 
(56
)
Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related income
 
164

 
375

Total
 
 

$511

 

$968


Credit Derivatives
As part of its trading businesses, the Company enters into contracts that are, in form or substance, written guarantees: specifically, CDS, swap participations, and TRS. The Company accounts for these contracts as derivatives and, accordingly, recognizes these contracts at fair value, with changes in fair value recognized in trading account profits/(losses) and commissions in the Consolidated Statements of Income.
The Company writes CDS, which are agreements under which the Company receives premium payments from its counterparty for protection against an event of default of a reference asset. In the event of default under the CDS, the Company would either net cash settle or make a cash payment to its counterparty and take delivery of the defaulted reference asset, from which the Company may recover all, a portion, or none of the credit loss, depending on the performance of the reference asset. Events of default, as defined in the CDS agreements, are generally triggered upon the failure to pay and similar events related to the issuer(s) of the reference asset. As of September 30, 2011, all written CDS contracts reference single name corporate credits or corporate credit indices. When the Company has written CDS, it has generally entered into offsetting CDS for the underlying reference asset, under which the Company paid a premium to its counterparty for protection against an event of default on the reference asset. The counterparties to these purchased CDS are generally of high creditworthiness and typically have ISDA master agreements in place that subject the CDS to master netting provisions, thereby mitigating the risk of non-payment to the Company. As such, at September 30, 2011, the Company did not have any significant risk of making a non-recoverable payment on any written CDS. During 2011 and 2010, the only instances of default on written CDS were driven by credit indices with constituent credit default. In all cases where the Company made resulting cash payments to settle, the Company collected like amounts from the counterparties to the offsetting purchased CDS. At September 30, 2011, the written CDS had remaining terms ranging from one year to ten years. The maximum guarantees outstanding at September 30, 2011 and December 31, 2010, as measured by the gross notional amounts of written CDS, were $177 million and $99 million, respectively. At September 30, 2011 and December 31, 2010, the gross notional amounts of purchased CDS contracts, which represent benefits to, rather than obligations of, the Company, were $372 million and $87 million, respectively. The fair values of written CDS were $3 million at both September 30, 2011 and December 31, 2010, and the fair values of purchased CDS were $9 million and less than $1 million at September 30, 2011 and December 31, 2010.
The Company writes risk participations, which are credit derivatives, whereby the Company has guaranteed payment to a dealer counterparty in the event that the counterparty experiences a loss on a derivative, such as an interest rate swap, due to a failure to pay by the counterparty’s customer (the “obligor”) on that derivative. The Company monitors its payment risk on its risk participations by monitoring the creditworthiness of the obligors, which is based on the normal credit review process the Company would have performed had it entered into the derivatives directly with the obligors. The obligors are all corporations or partnerships. However, the Company continues to monitor the creditworthiness of its obligors and the likelihood of payment could change at any time due to unforeseen circumstances. To date, no material losses have been incurred related to the Company’s written risk participations. At September 30, 2011, the remaining terms on these risk participations generally ranged from one month to seven years, with a weighted average on the maximum estimated exposure of 3.4 years. The Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on interest rate curve simulations and assuming 100% default by all obligors on the maximum values, was approximately $67 million and $74 million at September 30, 2011 and December 31, 2010, respectively. The fair values of the written risk participations were de minimis at September 30, 2011 and December 31, 2010. As part of its trading activities, the Company may enter into purchased risk participations, but such activity is not matched, as discussed herein related to CDS or TRS.
The Company has also entered into TRS contracts on loans. The Company’s TRS business consists of matched trades, such that when the Company pays depreciation on one TRS, it receives the same amount on the matched TRS. As such, the Company does not have any long or short exposure, other than credit risk of its counterparty which is mitigated through collateralization. The Company typically receives initial cash collateral from the counterparty upon entering into the TRS and is entitled to additional collateral if the fair value of the underlying reference assets deteriorate. At September 30, 2011 and December 31, 2010, there were $1.4 billion and $969 million of outstanding and offsetting TRS notional balances, respectively. The fair values of the TRS derivative assets and liabilities at September 30, 2011 were $47 million and $44 million, respectively, and related collateral held at September 30, 2011 was $318 million. The fair values of the TRS derivative assets and liabilities at December 31, 2010 were $34 million and $32 million, respectively, and related collateral held at December 31, 2010 was $268 million.

Cash Flow Hedges
The Company utilizes a comprehensive risk management strategy to monitor sensitivity of earnings to movements in interest rates. Specific types of funding and principal amounts hedged are determined based on prevailing market conditions and the shape of the yield curve. In conjunction with this strategy, the Company may employ various interest rate derivatives as risk management tools to hedge interest rate risk from recognized assets and liabilities or from forecasted transactions. The terms and notional amounts of derivatives are determined based on management’s assessment of future interest rates, as well as other factors. At September 30, 2011, the Company’s outstanding interest rate hedging relationships include interest rate swaps that have been designated as cash flow hedges of probable forecasted transactions related to recognized floating rate loans.
Interest rate swaps have been designated as hedging the exposure to the benchmark interest rate risk associated with floating rate loans. At September 30, 2011, the maximum range of hedge maturities for hedges of floating rate loans is two to six years, with the weighted average being 3.6 years. Ineffectiveness on these hedges was de minimis during the nine months ended September 30, 2011 and 2010. As of September 30, 2011, $337 million, net of tax, of the deferred net gains on derivatives that are recognized in AOCI are expected to be reclassified to net interest income over the next twelve months in connection with the recognition of interest income on these hedged items.
During the third quarter of 2008, the Company executed The Agreements on 30 million common shares of Coke. A consolidated subsidiary of SunTrust owns 22.9 million Coke common shares and a consolidated subsidiary of the Bank owns 7.1 million Coke common shares. These two subsidiaries entered into separate derivative contracts on their respective holdings of Coke common shares with a large, unaffiliated financial institution (the “Counterparty”). Execution of The Agreements (including the pledges of the Coke common shares pursuant to the terms of The Agreements) did not constitute a sale of the Coke common shares under U.S. GAAP for several reasons, including that ownership of the common shares was not legally transferred to the Counterparty. The Agreements were zero-cost equity collars at inception, which caused the Agreements to be derivatives in their entirety. The Company has designated The Agreements as cash flow hedges of the Company’s probable forecasted sales of its Coke common shares, which are expected to occur between 6.5 years and 7 years from The Agreements’ effective date, for overall price volatility below the strike prices on the floor (purchased put) and above the strike prices on the ceiling (written call). Although the Company is not required to deliver its Coke common shares under The Agreements, the Company has asserted that it is probable that it will sell all of its Coke common shares at or around the settlement date of The Agreements. The Federal Reserve’s approval for Tier 1 capital treatment was significantly based on this expected disposition of the Coke common shares under The Agreements or in another market transaction. Both the sale and the timing of such sale remain probable to occur as designated. At least quarterly, the Company assesses hedge effectiveness and measures hedge ineffectiveness with the effective portion of the changes in fair value of The Agreements recognized in AOCI and any ineffective portions recognized in trading account profits/(losses) and commissions. None of the components of The Agreements’ fair values are excluded from the Company’s assessments of hedge effectiveness. Potential sources of ineffectiveness include changes in market dividends and certain early termination provisions. The Company recognized ineffectiveness gains of $1 million and $9 million during the nine months ended September 30, 2011 and 2010, respectively. Ineffectiveness gains were recognized in trading account profits/(losses) and commissions. Other than potential measured hedge ineffectiveness, no amounts are expected to be reclassified from AOCI over the next twelve months and any remaining amounts recognized in AOCI will be reclassified to earnings when the probable forecasted sales of the Coke common shares occur.

Fair Value Hedges
During the second quarter of 2011, the Company entered into interest rate swap agreements to convert Company issued fixed rate senior long-term debt to a floating rate, as part of the Company’s risk management objectives for hedging its exposure to changes in fair value due to changes in interest rates. Consistent with this objective, the Company reflects the accrued contractual interest on the long-term debt and the related swaps as part of current period interest expense. There were no components of derivative gains or losses excluded in the Company’s assessment of hedge effectiveness.

Economic Hedging and Trading Activities
In addition to designated hedging relationships, the Company also enters into derivatives as an end user as a risk management tool to economically hedge risks associated with certain non-derivative and derivative instruments, along with entering into derivatives in a trading capacity with its clients.
The primary risks that the Company economically hedges are interest rate risk, foreign exchange risk, and credit risk. Economic hedging objectives are accomplished by entering into offsetting derivatives either on an individual basis, or collectively on a macro basis, and generally accomplish the Company’s goal of mitigating the targeted risk. To the extent that specific derivatives are associated with specific hedged items, the notional amounts, fair values, and gains/(losses) on the derivatives are illustrated in the tables in this footnote.
•
The Company utilizes interest rate derivatives to mitigate exposures from various instruments.
◦
The Company is subject to interest rate risk on its fixed rate debt. As market interest rates move, the fair value of the Company’s debt is affected. To protect against this risk on certain debt issuances that the Company has elected to carry at fair value, the Company has entered into pay variable-receive fixed interest rate swaps that decrease in value in a rising rate environment and increase in value in a declining rate environment.
◦
The Company is exposed to risk on the returns of certain of its brokered deposits that are carried at fair value. To hedge against this risk, the Company has entered into interest rate derivatives that mirror the risk profile of the returns on these instruments.
◦
The Company is exposed to interest rate risk associated with MSRs, which the Company hedges with a combination of mortgage and interest rate derivatives, including forward and option contracts, futures, and forward rate agreements.
◦
The Company enters into mortgage and interest rate derivatives, including forward contracts, futures, and option contracts to mitigate interest rate risk associated with IRLCs, mortgage LHFS, and mortgage LHFI reported at fair value.
•
The Company is exposed to foreign exchange rate risk associated with certain senior notes denominated in euros and pound sterling. This risk is economically hedged with cross currency swaps, which receive either euros or pound sterling and pay U.S. dollars. Interest expense on the Consolidated Statements of Income reflects only the contractual interest rate on the debt based on the average spot exchange rate during the applicable period, while fair value changes on the derivatives and valuation adjustments on the debt are both recognized within trading account profits/(losses) and commissions.
•
The Company enters into CDS to hedge credit risk associated with certain loans held within its CIB line of business.
•
Trading activity, as illustrated in the tables within this footnote, primarily includes interest rate swaps, equity derivatives, CDS, futures, options and foreign currency contracts. These derivatives are entered into in a dealer capacity to facilitate client transactions or are utilized as a risk management tool by the Company as an end user in certain macro-hedging strategies. The macro-hedging strategies are focused on managing the Company’s overall interest rate risk exposure that is not otherwise hedged by derivatives or in connection with specific hedges and, therefore, the Company does not specifically associate individual derivatives with specific assets or liabilities.

Fair Value Election and Measurement
Fair Value Election and Measurement
NOTE 12 - FAIR VALUE ELECTION AND MEASUREMENT
The Company carries certain assets and liabilities at fair value on a recurring basis and appropriately classifies them as level 1, 2, or 3 within the fair value hierarchy. The Company’s recurring fair value measurements are based on a requirement to carry such assets and liabilities at fair value or the Company’s election to carry certain financial assets and financial liabilities at fair value. Assets and liabilities that are required to be carried 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 carry at fair value on a recurring basis include certain LHFI and LHFS, MSRs, certain brokered deposits, and certain issuances of fixed rate debt.
In certain circumstances, fair value enables a company to more accurately align its financial performance with the economic value of actively traded or hedged assets or liabilities. Fair value also enables a company to mitigate the non-economic earnings volatility caused from financial assets and financial liabilities being carried at different bases of accounting, as well as to more accurately portray the active and dynamic management of a company’s balance sheet.
The classification of an instrument as level 3 versus 2 involves judgment and is based on a variety of subjective factors in order to assess whether a market is inactive, resulting in the application of significant unobservable assumptions to value a financial instrument. A market is considered inactive if significant decreases in the volume and level of activity for the asset or liability have been observed. In determining whether a market is inactive, the Company evaluates such factors as the number of recent transactions in either the primary or secondary markets, whether price quotations are current, the nature of the market participants, the variability of price quotations, the significance of bid/ask spreads, declines in (or the absence of) new issuances and the availability of public information. Inactive markets necessitate the use of additional judgment when valuing financial instruments, such as pricing matrices, cash flow modeling, and the selection of an appropriate discount rate. The assumptions used to estimate the value of an instrument where the market was inactive are based on the Company’s assessment of the assumptions a market participant would use to value the instrument in an orderly transaction and include considerations of illiquidity in the current market environment.
Recurring Fair Value Measurements
The following tables present certain information regarding assets and liabilities measured at fair value on a recurring basis and the changes in fair value for those specific financial instruments in which fair value has been elected.
 
 
 
Fair Value Measurements at
September 30, 2011
Using
(Dollars in millions)
Assets/Liabilities    
 
Quoted Prices In Active
Markets for
Identical
Assets/Liabilities    
(Level 1)
 
Significant
Other
Observable    
Inputs
(Level 2)
 
Significant
Unobservable    
Inputs
(Level 3)
Assets

 

 

 

Trading assets

 

 

 

U.S. Treasury securities

$209

 

$209

 

$—

 

$—

Federal agency securities
612

 
—

 
612

 
—

U.S. states and political subdivisions
77

 
—

 
77

 
—

MBS - agency
509

 
—

 
509

 
—

MBS - private
1

 
—

 
—

 
1

CDO/CLO securities
44

 
—

 
2

 
42

ABS
37

 
—

 
32

 
5

Corporate and other debt securities
445

 
—

 
445

 
—

CP
78

 
—

 
78

 
—

Equity securities
85

 
—

 
78

 
7

Derivative contracts
3,693

 
279

 
3,414

 
—

Trading loans
1,686

 
—

 
1,686

 
—

Gross trading assets
7,476

 
488

 
6,933

 
55

Offsetting collateral 1
(1,188
)
 
 
 
 
 
 
Total trading assets
6,288

 
 
 
 
 
 
Securities AFS

 

 

 

U.S. Treasury securities
386

 
386

 
—

 
—

Federal agency securities
2,645

 
—

 
2,645

 
—

U.S. states and political subdivisions
490

 
—

 
428

 
62

MBS - agency
20,030

 
—

 
20,030

 
—

MBS - private
287

 
—

 
—

 
287

CDO/CLO securities
332

 
—

 
332

 
—

ABS
540

 
—

 
524

 
16

Corporate and other debt securities
54

 
—

 
49

 
5

Coke common stock
2,027

 
2,027

 
—

 
—

   Other equity securities 2
711

 
—

 
148

 
563

Total securities AFS
27,502

 
2,413

 
24,156

 
933

LHFS

 

 

 

Residential loans
1,364

 
—

 
1,362

 
2

Corporate and other loans
311

 
—

 
311

 
—

Total LHFS
1,675

 
—

 
1,673

 
2

LHFI
452

 
—

 
—

 
452

MSRs
1,033

 
—

 
—

 
1,033

Other assets 3
550

 
4

 
467

 
79

Liabilities

 

 

 

Trading liabilities

 

 

 

U.S. Treasury securities
326

 
326

 
—

 
—

MBS - agency
1

 
—

 
1

 
—

Corporate and other debt securities
211

 
—

 
211

 
—

Equity securities
14

 
14

 
—

 
—

Derivative contracts
2,319

 
206

 
1,967

 
146

Gross trading liabilities
2,871

 
546

 
2,179

 
146

Offsetting collateral 1
(1,136
)
 
 
 
 
 
 
Total trading liabilities
1,735

 
 
 
 
 
 
Brokered deposits
1,056

 
—

 
1,056

 
—

Long-term debt
2,016

 
—

 
2,016

 
—

Other liabilities 3
84

 
—

 
68

 
16


1 Amount represents the cash collateral received from or deposited with derivative counterparties. Amount is offset with derivatives in the Consolidated Balance Sheets as of September 30, 2011.
2Includes at cost, $171 million of FHLB of Atlanta stock, $391 million of Federal Reserve Bank stock, and $148 million in mutual fund investments.
3These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk along with a derivative associated with the Company’s sale of Visa shares during the year ended December 31, 2009.

 
 
 
Fair Value Measurements at
December 31, 2010
Using
 
(Dollars in millions)
Assets/Liabilities
 
Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
U.S. Treasury securities

$187

 

$187

 

$—

 

$—

Federal agency securities
361

 
—

 
361

 
—

U.S. states and political subdivisions
123

 
—

 
123

 
—

MBS - agency
301

 
—

 
301

 
—

MBS - private
15

 
—

 
9

 
6

CDO/CLO securities
55

 
—

 
2

 
53

ABS
59

 
—

 
32

 
27

Corporate and other debt securities
743

 
—

 
743

 
—

CP
14

 
—

 
14

 
—

Equity securities
221

 
—

 
98

 
123

Derivative contracts
2,743

 
166

 
2,577

 
—

Trading loans
1,353

 
—

 
1,353

 
—

Total trading assets
6,175

 
353

 
5,613

 
209

Securities AFS
 
 
 
 
 
 
 
U.S. Treasury securities
5,516

 
5,516

 
—

 
—

Federal agency securities
1,895

 
—

 
1,895

 
—

U.S. states and political subdivisions
579

 
—

 
505

 
74

MBS - agency
14,358

 
—

 
14,358

 
—

MBS - private
347

 
—

 
—

 
347

CDO/CLO securities
50

 
—

 
50

 
—

ABS
808

 
—

 
788

 
20

Corporate and other debt securities
482

 
—

 
477

 
5

Coke common stock
1,973

 
1,973

 
—

 
—

      Other equity securities 1
887

 
—

 
197

 
690

Total securities AFS
26,895

 
7,489

 
18,270

 
1,136

LHFS
 
 
 
 
 
 
 
Residential loans
2,847

 
—

 
2,845

 
2

Corporate and other loans
321

 
—

 
316

 
5

Total LHFS
3,168

 
—

 
3,161

 
7

LHFI
492

 
—

 
—

 
492

MSRs
1,439

 
—

 
—

 
1,439

Other assets 2
241

 
—

 
223

 
18

Liabilities
 
 
 
 
 
 
 
Trading liabilities
 
 
 
 
 
 
 
U.S. Treasury securities
439

 
439

 
—

 
—

Corporate and other debt securities
398

 
—

 
398

 
—

Derivative contracts
1,841

 
120

 
1,576

 
145

Total trading liabilities
2,678

 
559

 
1,974

 
145

Brokered deposits
1,213

 
—

 
1,213

 
—

Long-term debt
2,837

 
—

 
2,837

 
—

Other liabilities 2
114

 
—

 
72

 
42


1 Includes at cost, $298 million of FHLB of Atlanta stock, $391 million of Federal Reserve Bank stock, and $197 million in mutual fund investments.
2 These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk along with a derivative associated with the Company’s sale of Visa shares during the year ended December 31, 2009.


The following tables present the difference between the aggregate fair value and the aggregate unpaid principal balance of trading assets, LHFI, LHFS, brokered deposits, and long-term debt instruments for which the FVO has been elected. For LHFI and LHFS for which the FVO has been elected, the tables also include the difference between aggregate fair value and the aggregate unpaid principal balance of loans that are 90 days or more past due, as well as loans in nonaccrual status.
 
(Dollars in millions)
Aggregate
Fair Value
September 30, 2011    
 
Aggregate
Unpaid Principal
Balance under FVO     
September 30, 2011
 
Fair Value
Over/(Under)
    Unpaid Principal    
Trading loans

$1,686

 

$1,665

 

$21

LHFS
1,671

 
1,630

 
41

Past due loans of 90 days or more
3

 
3

 
—

Nonaccrual loans
1

 
9

 
(8
)
LHFI
424

 
455

 
(31
)
Past due loans of 90 days or more
2

 
4

 
(2
)
Nonaccrual loans
26

 
49

 
(23
)
Brokered deposits
1,056

 
1,045

 
11

Long-term debt
2,016

 
1,901

 
115

(Dollars in millions)
Aggregate
Fair Value
    December 31, 2010    
 
Aggregate
Unpaid Principal
Balance under FVO
 December 31, 2010    
 
Fair Value
Over/(Under)
    Unpaid Principal    
Trading loans

$1,353

 

$1,320

 

$33

LHFS
3,160

 
3,155

 
5

Past due loans of 90 days or more
2

 
2

 
—

Nonaccrual loans
6

 
25

 
(19
)
LHFI
462

 
517

 
(55
)
Past due loans of 90 days or more
2

 
4

 
(2
)
Nonaccrual loans
28

 
54

 
(26
)
Brokered deposits
1,213

 
1,188

 
25

Long-term debt
2,837

 
2,753

 
84



The following tables present the change in fair value during the three and nine months ended September 30, 2011 and 2010 of financial instruments for which the FVO has been elected, as well as MSRs that are accounted for at fair value in accordance with applicable fair value accounting guidance. The tables do not reflect the change in fair value attributable to the related economic hedges the Company used to mitigate the market-related risks associated with the financial instruments. The changes in the fair value of economic hedges are also recognized in trading account profits and commissions, mortgage production related income, or mortgage servicing related income, as appropriate, and are designed to partially offset the change in fair value of the financial instruments referenced in the tables below. The Company’s economic hedging activities are deployed at both the instrument and portfolio level.
 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2011, for Items Measured at Fair Value  Pursuant to Election of the FVO
 
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2011, for Items Measured at Fair Value  Pursuant to Election of the FVO
(Dollars in millions)
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
Income 2
 
Mortgage  
Servicing
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 1
 
 
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
Income 2
 
Mortgage  
Servicing
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 1
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets

$3

 

$—

 

$—

 

$3

 
 

$15

 

$—

 

$—

 

$15

LHFS
(11
)
 
181

 
—

 
170

 
 
(14
)
 
330

 
—

 
316

LHFI
(1
)
 
17

 
—

 
16

 
 
3

 
13

 
—

 
16

MSRs
—

 
1

 
(437
)
 
(436
)
 
 
—

 
5

 
(582
)
 
(577
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered deposits
27

 
—

 
—

 
27

 
 
24

 
—

 
—

 
24

Long-term debt
7

 
—

 
—

 
7

 
 
(31
)
 
—

 
—

 
(31
)

1Changes in fair value for the three and nine months ended September 30, 2011, exclude accrued interest for the periods then ended. Interest income or interest expense on trading assets, LHFS, LHFI, brokered deposits and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income based on their contractual coupons. Certain trading assets do not have a contractually stated coupon and, for these securities, the Company records interest income based on the effective yield calculated upon acquisition of the securities.
2For the three and nine months ended September 30, 2011, income related to LHFS includes $46 million and $178 million, respectively, related to MSRs recognized upon the sale of loans reported at fair value. For the three and nine months ended September 30, 2011, income related to MSRs includes $1 million and $5 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM. These MSRs are included in the table since the Company elected to report MSRs recognized in 2009 using the fair value method. Previously, MSRs were reported under the amortized cost method.
 
 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2010, for Items Measured at Fair Value Pursuant
to Election of the FVO
 
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2010, for Items Measured at Fair Value Pursuant
to Election of the FVO
(Dollars in millions)
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
Income 2  
 
Mortgage  
Servicing
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 1
 
 
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
  Income 2  
 
Mortgage
Servicing  
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 1
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets

$1

 

$—

 

$—

 

$1

 
 

($3
)
 

$—

 

$—

 

($3
)
LHFS
7

 
206

 
—

 
213

 
 
14

 
498

 
—

 
512

LHFI
1

 
6

 
—

 
7

 
 
(1
)
 
13

 
—

 
12

MSRs
—

 
8

 
(290
)
 
(282
)
 
 
—

 
14

 
(810
)
 
(796
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered deposits
(59
)
 
—

 
—

 
(59
)
 
 
(67
)
 
—

 
—

 
(67
)
Long-term debt
(97
)
 
—

 
—

 
(97
)
 
 
(222
)
 
—

 
—

 
(222
)
1Changes in fair value for the three and nine months ended September 30, 2010, exclude accrued interest for the periods then ended. Interest income or interest expense on trading assets, LHFS, LHFI, brokered deposits and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income based on their contractual coupons. Certain trading assets do not have a contractually stated coupon and, for these securities, the Company records interest income based on the effective yield calculated upon acquisition of the securities.
2For the three and nine months ended September 30, 2010, income related to LHFS, includes $57 million and $184 million, respectively, related to MSRs recognized upon the sale of loans reported at fair value. For the three and nine months ended September 30, 2010, income related to MSRs includes $7 million and $14 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM. These MSRs are included in the table since the Company elected to report MSRs recognized in 2009 using the fair value method. Previously, MSRs were reported under the amortized cost method.
The following is a discussion of the valuation techniques and inputs used in developing fair value measurements for assets and liabilities classified as level 2 or 3 that are measured at fair value on a recurring basis, based on the class as determined by the nature and risks of the instrument.
Trading Assets and Securities Available for Sale
Unless otherwise indicated, trading assets are priced by the trading desk and independently validated against pricing received from third party pricing sources; securities AFS are valued by an independent third party pricing service that is widely used by market participants. The Company classifies instruments as level 2 in the fair value hierarchy when it is able to determine that external pricing sources are using similar instruments trading in the markets as the basis for estimating fair value.

Federal agency securities
The Company includes in this classification securities issued by federal agencies and GSEs. For SBA instruments, the Company estimated fair value based on pricing from observable trading activity for similar securities or obtained fair values from a third party pricing service; accordingly, the Company has classified these instruments as level 2.
U.S. states and political subdivisions
The Company’s investments in U.S. states and political subdivisions (collectively “municipals”) include obligations of county and municipal authorities and agency bonds, which are general obligations of the municipality or are supported by a specified revenue source. Holdings were geographically dispersed, with no significant concentrations in any one state or municipality. Additionally, all but an immaterial amount of AFS municipal obligations classified as level 2 are highly rated or are otherwise collateralized by securities backed by the full faith and credit of the federal government.
Level 3 municipal securities includes ARS purchased since the auction rate market began failing in February 2008 and have been considered level 3 securities due to the significant decrease in the volume and level of activity in these markets, which has necessitated the use of significant unobservable inputs into the Company’s valuations. Municipal ARS are classified as securities AFS. These securities were valued using comparisons to similar ARS for which auctions are currently successful and/or to longer term, non-ARS issued by similar municipalities. The Company also looked at the relative strength of the municipality and made appropriate downward adjustments in price based on the credit rating of the municipality as well as the relative financial strength of the insurer on those bonds. Although auctions for several municipal ARS have been operating successfully, ARS owned by the Company at September 30, 2011 continued to be classified as level 3 as they are those ARS for which the auctions continued to fail; accordingly, due to the uncertainty around the success rates for auctions and the absence of any successful auctions for these identical securities, the Company continued to price the ARS below par.
Level 3 AFS municipal bond securities also include bonds that are only redeemable with the issuer at par and cannot be traded in the market. As such, no significant observable market data for these instruments is available. In order to estimate pricing on these securities, the Company utilized a third party municipal bond yield curve for the lowest investment grade bonds (BBB rated) and priced each bond based on the yield associated with that maturity.
MBS – agency
MBS – agency includes pass-through securities and collateralized mortgage obligations issued by GSEs and U.S. government agencies, such as Fannie Mae, Freddie Mac and Ginnie Mae. Each security contains a guarantee by the issuing GSE or agency. For agency MBS, the Company estimated fair value based on pricing from observable trading activity for similar securities or obtained fair values from a third party pricing service; accordingly, the Company has classified these as level 2.
MBS – private
Private-label MBS includes purchased interests in third party securitizations as well as retained interests in Company-sponsored securitizations of residential mortgages. Generally, the Company attempts to obtain pricing for its securities from an independent pricing service or third party brokers who have experience in valuing certain investments. This pricing may be used as either direct support for the Company’s valuations or used to validate outputs from its own proprietary models. The Company evaluates third party pricing to determine the reasonableness of the information relative to changes in market data, such as any recent trades, market information received from outside market participants and analysts, and/or changes in the underlying collateral performance. When actual trades are not available to corroborate pricing information received, the Company uses industry-standard or proprietary models to estimate fair value and considers assumptions that are generally not observable in the current markets or that are not specific to the securities that the Company owns, such as relevant market indices that correlate to the underlying collateral, prepayment speeds, default rates, loss severity rates and discount rates. As liquidity returns to these markets, we have seen more pricing information from third parties and a reduction in the need to use internal pricing models to estimate fair value. Even though limited third party pricing has been available, the Company continued to classify private-label MBS as level 3, as the Company believes that this third party pricing relied on a significant amount of unobservable assumptions, as evidenced by a persistently wide bid-ask price range, particularly for the vintage and exposures held by the Company.
Securities that are classified as AFS and are in an unrealized loss position are included as part of our quarterly OTTI evaluation process. See Note 2, “Securities Available for Sale,” for details regarding assumptions used to assess impairment and impairment amounts recognized through earnings on private-label MBS during the nine months ended September 30, 2011 and 2010.


CDO/CLO Securities
Level 2 securities AFS consists of senior interests in third party CLOs for which independent broker pricing based on market trades and/or from new issuance of similar assets is readily available. At September 30, 2011, the Company’s investments in level 3 trading CDOs consisted of senior ARS interests in Company-sponsored securitizations of trust preferred collateral. In the first quarter of 2011, the Company sold the remaining securities within trading assets that were received upon the liquidation of one of the Company’s SIV investments, which included $21 million of CDO securities. Additionally, the Company’s $20 million retained interest in a structured participation of commercial loans was liquidated through the exercise of the Company’s clean up call. For the ARS CDOs classified as level 3 trading assets, increases in the value of these interests during the nine months ended September 30, 2011 were due primarily to a steady recovery in the broader CDO market during the first six months of 2011; offset by a deterioration in the collateral of certain interests during the three months ended September 30, 2011. Although market conditions have improved, the auctions continue to fail and the Company continues to make significant adjustments to valuation assumptions available from observable secondary market trading of similar term securities; therefore, the Company continued to classify these as level 3 investments.
Asset-backed securities
Level 2 ABS classified as securities AFS are primarily interests collateralized by third party securitizations of 2009 through 2011 vintage auto loans. These ABS are either publicly traded or are 144A privately placed bonds. The Company utilizes an independent pricing service to obtain fair values for publicly traded securities and similar securities for estimating the fair value of the privately placed bonds. No significant unobservable assumptions were used in pricing the auto loan ABS; therefore, the Company classified these bonds as level 2. Additionally, the Company classified $32 million of trading ARS and $74 million of AFS ARS collateralized by government guaranteed student loans as level 2 due to observable market trades and bids for similar senior securities. Student loan ABS held by the Company are generally collateralized by Federal Family Education Loan Program student loans, the majority of which benefit from a 97% (or higher) government guarantee of principal and interest. For subordinate securities in the same structure, the Company adjusts valuations on the senior securities based on the likelihood that the issuer will refinance in the near term, a security’s level of subordination in the structure, and/or the perceived risk of the issuer as determined by credit ratings or total leverage of the trust. These adjustments may be significant; therefore, the subordinate student loan ARS held as trading assets continue to be classified as level 3.
During the first quarter of 2011, the Company sold the remaining ABS related to the assets acquired in 2007, including those received in the SIV liquidation that occurred in December 2010. This included $31 million of level 3 trading ABS collateralized by auto loans and home equity lines of credit.
Corporate and other debt securities
Corporate debt securities are predominantly comprised of senior and subordinate debt obligations of domestic corporations. Other debt securities in level 3 include bonds that are redeemable with the issuer at par and cannot be traded in the market; as such, no significant observable market data for these instruments is available.
Commercial paper
From time to time, the Company trades third party CP that is generally short-term in nature (less than 30 days) and highly rated. The Company estimates the fair value of the CP that it trades based on observable pricing from executed trades of similar instruments.
Equity securities
Level 2 equity securities, both trading and AFS, consist primarily of money market mutual funds that trade at a $1 net asset value, which is considered the fair market value of those fund shares.
Level 3 equity securities classified as trading include nonmarketable preferred shares in municipal funds issued as ARS that the Company has purchased since the auction rate market began failing in February 2008. The fair value of ARS recorded in trading equity securities declined to $7 million as of September 30, 2011 compared to $123 million as of December 31, 2010 due to issuer redemptions. During the three and nine months ended September 30, 2011, the Company recognized gains of $1 million and $13 million, respectively, from redemptions of these ARS at par. At September 30, 2011, the issuer had called the remaining equity ARS and all have been subsequently redeemed.

Level 3 equity securities classified as securities AFS include, as of September 30, 2011, $562 million of FHLB stock and Federal Reserve Bank stock, which are redeemable with the issuer at par and cannot be traded in the market. As such, no significant observable market data for these instruments is available. The Company accounts for the stock based on the industry guidance that requires these investments be carried at cost and evaluated for impairment based on the ultimate recovery of par value. During the nine months ended September 30, 2011, the FHLB of Atlanta repurchased $127 million of its stock, which accounts for the decline in level 3 AFS equity securities during the period.

Derivative contracts (trading assets or trading liabilities)
With the exception of one derivative contract discussed herein and certain instruments discussed under ‘other assets/liabilities, net’ that qualify as derivative instruments, the Company’s derivative instruments are level 1 or level 2 instruments. Level 1 derivative contracts generally include exchange-traded futures or option contracts for which pricing is readily available. See Note 11, “Derivative Financial Instruments,” for additional information on the Company’s derivative contracts.
The Company’s level 2 instruments are predominantly standard OTC swaps, options, and forwards, with underlying market variables of interest rates, foreign exchange, equity, and credit. Because fair values for OTC contracts are not readily available, the Company estimates fair values using internal, but standard, valuation models that incorporate market-observable inputs. The valuation model is driven by the type of contract: for option-based products, the Company uses an appropriate option pricing model, such as Black-Scholes; for forward-based products, the Company’s valuation methodology is generally a discounted cash flow approach. The primary drivers of the fair values of derivative instruments are the underlying variables, such as interest rates, exchange rates, equity, or credit. As such, the Company uses market-based assumptions for all of it significant inputs, such as interest rate yield curves, quoted exchange rates and spot prices, market implied volatilities and credit curves.
The Agreements the Company entered into related to its Coke common stock are level 3 instruments, due to the unobservability of a significant assumption used to value these instruments. Because the value is primarily driven by the embedded equity collars on the Coke shares, a Black-Scholes model is the appropriate valuation model. Most of the assumptions are directly observable from the market, such as the per share market price of Coke common stock, interest rates, and the dividend rate on the Coke common stock. Volatility is a significant assumption and is impacted both by the unusually large size of the trade and the long tenor until settlement. Because the derivatives carry scheduled terms of 6.5 years and 7 years from the effective date and are on a significant number of Coke shares, the observable and active options market on Coke does not provide for any identical or similar instruments. As such, the Company receives estimated market values from a market participant who is knowledgeable about Coke equity derivatives and is active in the market. Based on inquiries of the market participant as to their procedures, as well as the Company’s own valuation assessment procedures, the Company has satisfied itself that the market participant is using methodologies and assumptions that other market participants would use in estimating the fair value of The Agreements. At September 30, 2011 and December 31, 2010, The Agreements’ combined fair value was a liability of $146 million and $145 million, respectively.
Trading loans
The Company engages in certain businesses whereby the election to carry loans at fair value for financial reporting aligns with the underlying business purposes. Specifically, the loans that are included within this classification are: (i) loans made in connection with the Company’s TRS business (see Note 11, “Derivative Financial Instruments,” for further discussion of this business), (ii) loans backed by the SBA and (iii) the loan sales and trading business within the Company’s CIB line of business. All of these loans have been classified as level 2, due to the market data that the Company uses in its estimates of fair value.
The loans made in connection with the Company’s TRS business are short-term, demand loans, whereby the repayment is senior in priority and whose value is collateralized. While these loans do not trade in the market, the Company believes that the par amount of the loans approximates fair value and no unobservable assumptions are made by the Company to arrive at this conclusion. At September 30, 2011 and December 31, 2010, the Company had outstanding $1.4 billion and $972 million, respectively, of such short-term loans carried at fair value.
SBA loans are similar to SBA securities discussed herein under “Federal agency securities,” except for their legal form. In both cases, the Company trades instruments that are fully guaranteed by the U.S. government as to contractual principal and interest and has sufficient observable trading activity upon which to base its estimates of fair value.
The loans from the Company’s sales and trading business are commercial and corporate leveraged loans that are either traded in the market or for which similar loans trade. The Company elected to carry these loans at fair value in order to reflect the active management of these positions. The Company is able to obtain fair value estimates for substantially all of these loans using a third party valuation service that is broadly used by market participants. While most of the loans are traded in the markets, the Company does not believe that trading activity qualifies the loans as level 1 instruments, as the volume and level of trading activity is subject to variability and the loans are not exchange-traded, such that the Company believes that level 2 is a more appropriate presentation of the underlying market activity for the loans. At September 30, 2011 and December 31, 2010, $256 million and $381 million, respectively, of loans related to the Company’s trading business were held in inventory.


Loans and Loans Held for Sale
Residential LHFS
The Company recognized at fair value certain newly-originated mortgage LHFS based upon defined product criteria. The Company chooses to fair value these mortgage LHFS in order to eliminate the complexities and inherent difficulties of achieving hedge accounting and to better align reported results with the underlying economic changes in value of the loans and related hedge instruments. This election impacts the timing and recognition of origination fees and costs, as well as servicing value. Specifically, origination fees and costs are recognized in earnings when earned or incurred. The servicing value, which had been recorded as MSRs at the time the loan was sold, is included in the fair value of the loan and initially recognized at the time the Company enters into IRLCs with borrowers. The Company uses derivatives to economically hedge changes in servicing value as a result of including the servicing value in the fair value of the loan. The mark to market adjustments related to LHFS and the associated economic hedges are captured in mortgage production income.
Level 2 LHFS are primarily agency loans which trade in active secondary markets and are priced using current market pricing for similar securities adjusted for servicing and risk. Level 3 loans are primarily non-agency residential mortgages for which there is little to no observable trading activity of similar instruments in either the new issuance or secondary loan markets as either whole loans or as securities. Prior to the non-agency residential loan market disruption, which began during the third quarter of 2007 and continues, the Company was able to obtain certain observable pricing from either the new issuance or secondary loan market. However, as the markets deteriorated and certain loans were not actively trading as either whole loans or as securities, the Company began employing the same alternative valuation methodologies used to value level 3 residential MBS to fair value the loans.
As disclosed in the tabular level 3 rollforwards, transfers of certain mortgage LHFS into level 3 during 2011 were largely due to borrower defaults or the identification of other loan defects impacting the marketability of the loans.
For residential loans that the Company has elected to carry at fair value, the Company has considered the component of the fair value changes due to instrument-specific credit risk, which is intended to be an approximation of the fair value change attributable to changes in borrower-specific credit risk. For the three and nine months ended September 30, 2011, the Company recognized losses in the Consolidated Statements of Income of $4 million and $14 million, respectively, due to changes in fair value attributable to borrower-specific credit risk. For the three and nine months ended September 30, 2010, the Company recognized losses in the Consolidated Statements of Income of $4 million and $16 million, respectively, due to changes in fair value attributable to borrower-specific credit risk. In addition to borrower-specific credit risk, there are other, more significant, variables that drive changes in the fair values of the loans, including interest rates and general conditions in the principal markets for the loans.
Corporate and other LHFS
As discussed in Note 6, “Certain Transfers of Financial Assets and Variable Interest Entities,” the Company has determined that it is the primary beneficiary of a CLO vehicle, which resulted in the Company consolidating the loans of that vehicle. Because the CLO trades its loans from time to time and in order to fairly present the economics of the CLO, the Company elected to carry the loans of the CLO at fair value. The Company is able to obtain fair value estimates for substantially all of these loans using a third party valuation service that is broadly used by market participants. While most of the loans are traded in the markets, the Company does not believe the loans qualify as level 1 instruments, as the volume and level of trading activity is subject to variability and the loans are not exchange-traded, such that the Company believes that level 2 is more representative of the general market activity for the loans.
LHFI
Level 3 loans include $3 million of fair value loans that were acquired through the acquisition of GB&T. The loans the Company elected to account for at fair value are primarily nonperforming commercial real estate loans, which do not trade in an active secondary market. As these loans are classified as nonperforming, cash proceeds from the sale of the underlying collateral is the expected source of repayment for a majority of these loans. Accordingly, the fair value of these loans is derived from internal estimates, incorporating market data when available, of the value of the underlying collateral. Additionally, level 3 LHFI primarily include $449 million of mortgage loans that have been deemed not marketable, largely due to borrower defaults or the identification of other loan defects. The Company values these loans using a discounted cash flow approach based on assumptions that are generally not observable in the current markets, such as prepayment speeds, default rates, loss severity rates, and discount rates.

Other Intangible Assets
Other intangible assets that the Company records at fair value are the Company’s MSR assets. The fair values of MSRs are determined by projecting cash flows, which are then discounted to estimate an expected 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 based on their review of the servicing portfolio. Because these inputs are not transparent in market trades, MSRs are considered to be level 3 assets.

Other Assets/Liabilities, net
The Company’s other assets/liabilities that are carried at fair value on a recurring basis include IRLCs that satisfy the criteria to be treated as derivative financial instruments, derivative financial instruments that are used by the Company to economically hedge certain loans and MSRs, and the derivative that the Company obtained as a result of its sale of Visa Class B shares.
The fair value of IRLCs on residential mortgage LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. These “pull-through” rates are based on the Company’s historical data and reflect the Company’s best estimate of the likelihood that a commitment will ultimately result in a closed loan. Servicing value is included in the fair value of IRLCs, and the fair value of servicing value is determined by projecting cash flows which are then discounted to estimate an expected fair value. The fair value of servicing value is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs, and underlying portfolio characteristics. Because these inputs are not transparent in market trades, IRLCs are considered to be level 3 assets.
During the three and nine months ended September 30, 2011, the Company transferred $95 million and $149 million, respectively, of IRLCs out of level 3 as the associated loans were closed, compared to $137 million and $267 million, during the same periods in 2010, respectively.
The Company is exposed to interest rate risk associated with MSRs, IRLCs, mortgage LHFS, and mortgage LHFI reported at fair value. The Company hedges these exposures with a combination of derivatives, including MBS forward and option contracts, interest rate swap and swaption contracts, futures contracts, and eurodollar options. The Company estimates the fair values of such derivative instruments consistent with the methodologies discussed herein under “Derivative contracts” and accordingly these derivatives are considered to be level 2 instruments.
During the second quarter of 2009, in connection with its sale of Visa Class B shares, the Company entered into a derivative contract whereby the ultimate cash payments received or paid, if any, under the contract are based on the ultimate resolution of litigation involving Visa. The value of the derivative was estimated based on the Company’s expectations regarding the ultimate resolution of that litigation, which involved a high degree of judgment and subjectivity. Accordingly, the value of the derivative liability was classified as a level 3 instrument.

Liabilities
Trading liabilities
Trading liabilities are primarily comprised of derivative contracts, but also include various contracts involving U.S. Treasury securities, Federal agency securities, and corporate debt securities that the Company uses in certain of its trading businesses. The Company employs the same valuation methodologies for these derivative contracts and securities as are discussed within the corresponding sections herein under “Trading Assets and Securities Available for Sale.”
Brokered deposits
The Company has elected to measure certain CDs at fair value. These debt instruments include embedded derivatives that are generally based on underlying equity securities or equity indices, but may be based on other underlyings that may or may not be clearly and closely related to the host debt instrument. The Company elected to carry these instruments at fair value in order to remove the mixed attribute accounting model for the single debt instrument or to better align the economics of the CDs with the Company’s risk management strategies. The Company evaluated, on an instrument by instrument basis, whether a new issuance would be carried at fair value.

The Company has classified these CDs as level 2 instruments due to the Company’s ability to reasonably measure all significant inputs based on observable market variables. The Company employs a discounted cash flow approach to the host debt component of the CD, based on observable market interest rates for the term of the CD and an estimate of the Bank’s credit risk. For the embedded derivative features, the Company uses the same valuation methodologies as if the derivative were a standalone derivative, as discussed herein under “Derivative contracts.”
For brokered deposits carried at fair value, the Company estimated credit spreads above LIBOR, based on credit spreads from actual or estimated trading levels of the debt or other relevant market data. The Company recognized gains of $13 million and $1 million for the three and nine months ended September 30, 2011, respectively, and losses of $47 million and $40 million for the three and nine months ended September 30, 2010, respectively, due to changes in its own credit spread on its brokered deposits carried at fair value.
Long-term debt
The Company has elected to carry at fair value certain fixed rate debt issuances of public debt which are valued by obtaining quotes from a third party pricing service and utilizing broker quotes to corroborate the reasonableness of those marks. Additionally, information from market data of recent observable trades and indications from buy side investors, if available, are taken into consideration as additional support for the value. Due to the availability of this information, the Company determined that the appropriate classification for the debt was level 2. The election to fair value the debt was made in order to align the accounting for the debt with the accounting for the derivatives without having to account for the debt under hedge accounting, thus avoiding the complex and time consuming fair value hedge accounting requirements.
The Company’s public debt carried at fair value impacts earnings mainly through changes in the Company’s credit spreads as the Company has entered into derivative financial instruments that economically convert the interest rate on the debt from fixed to floating. The estimated earnings impact from changes in credit spreads above U.S. Treasury rates were gains of $57 million and $43 million for the three and nine months ended September 30, 2011, respectively, and losses of $69 million and $86 million for the three and nine months ended September 30, 2010, respectively.
The Company also carries approximately $285 million of issued securities contained in a consolidated CLO at fair value in order to recognize the nonrecourse nature of these liabilities to the Company. Specifically, the holders of the liabilities are only paid interest and principal to the extent of the cash flows from the assets of the vehicle and the Company has no current or future obligations to fund any of the CLO vehicle’s liabilities. The Company has classified these securities as level 2, as the primary driver of their fair values are the loans owned by the CLO, which the Company has also elected to carry at fair value, as discussed herein under “Loans and Loans Held for Sale – Corporate and other LHFS”.

The following tables show a reconciliation of the beginning and ending balances for fair valued assets and liabilities measured on a recurring basis using significant unobservable inputs (other than MSRs which are disclosed in Note 5, “Goodwill and Other Intangible Assets”). Transfers into and out of the fair value hierarchy levels are assumed to be as of the end of the quarter in which the transfer occurred. None of the transfers into or out of level 3 have been the result of using alternative valuation approaches to estimate fair values.

 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
July 1, 2011    
 
Included in earnings (sold or settled)   
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers
into Level 3    
 
Transfers
out of
Level 3    
 
Fair value
September  30,
2011
 
Included in earnings (held at September 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$2

 

$—

  

$—

  

$—

 

$—

 

($1
)
 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
42

 
(6
)
2  
—

  
6

 
—

 
—

 
—

 
—

 
—

 
42

 
(6
)
  
ABS
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Equity securities
13

 
1

  
—

  
—

 
—

 
(7
)
 
—

 
—

 
—

 
7

 
1

  
Total trading assets
62

 
(5
)
3  
—

  
6

 
—

 
(8
)
 
—

 
—

 
—

 
55

 
(5
)
3  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
68

 
1

  
—

  
—

 
(4
)
 
(3
)
 
—

 
—

 
—

 
62

 
—

  
MBS - private
311

 
—

  
(9
)
  
—

 
—

 
(15
)
 
—

 
—

 
—

 
287

 
—

  
ABS
19

 
—

  
(2
)
  
—

 
—

 
(1
)
 
—

 
—

 
—

 
16

 
—

  
Corporate and other debt securities
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
597

 
—

  
—

  
—

 
—

 
(34
)
 
—

 
—

 
—

 
563

 
—

  
Total securities AFS
1,000

 
1

4  
(11
)
  
—

 
(4
)
 
(53
)
 
—

 
—

 
—

 
933

 
—

4  
LHFS
3

 
—

 
—

  
—

 
(1
)
 
—

 
(3
)
 
3

 
—

 
2

 
—

  
LHFI
449

 
16

 
—

  
—

 
—

 
(12
)
 
(1
)
 
—

 
—

 
452

 
14

7  
Other assets/(liabilities), net
12

 
145

  
—

  
—

 
—

 
1

 
(95
)
 
—

 
—

 
63

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(154
)
 
—

  
8

8  
—

 
—

 
—

 
—

 
—

 
—

 
(146
)
 
—

  
(Dollars in millions)
Beginning
balance
January 1,
2011    
 
Included in earnings (sold or settled)   
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers
into
Level 3    
 
Transfers
out of
Level 3    
 
Fair value
September  30,
2011    
 
Included in earnings (held at September 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$6

 

$2

  

$—

  

$—

 

($5
)
 

($2
)
 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
53

 
25

2 
—

  
6

 
(21
)
 
(1
)
 
(20
)
 
—

 
—

 
42

 
11

  
ABS
27

 
9

  
—

  
—

 
(31
)
 
—

 
—

 
—

 
—

 
5

 
2

  
Equity securities
123

 
13

  
—

  
—

 
—

 
(129
)
 
—

 
—

 
—

 
7

 
1

  
Total trading assets
209

 
49

3  
—

  
6

 
(57
)
 
(132
)
 
(20
)
 
—

 
—

 
55

 
14

3  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
74

 
2

  
1

  
—

 
(4
)
 
(11
)
 
—

 
—

 
—

 
62

 
—

  
MBS - private
347

 
(3
)
  
—

  
—

 
—

 
(57
)
 
—

 
—

 
—

 
287

 
(3
)
  
ABS
20

 
—

  
(1
)
  
—

 
—

 
(3
)
 
—

 
—

 
—

 
16

 
—

  
Corporate and other debt securities
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
690

 
—

  
—

  
—

 
—

 
(127
)
 
—

 
—

 
—

 
563

 
—

  
Total securities AFS
1,136

 
(1
)
4  
—

  
—

 
(4
)
 
(198
)
 
—

 
—

 
—

 
933

 
(3
)
4  
LHFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
2

 
(1
)
5  
—

  
—

 
(15
)
 
(1
)
 
—

 
19

 
(2
)
 
2

 
—

  
Corporate and other loans
5

 
(1
)
6  
—

  
—

 
—

 
—

 
(4
)
 
—

 
—

 
—

 
—

  
LHFI
492

 
16

  
—

  
—

 
—

 
(46
)
 
(10
)
 
—

 
—

 
452

 
13

7  
Other assets/(liabilities), net
(24
)
 
229

  
—

  
—

 
—

 
7

 
(149
)
 
—

 
—

 
63

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(145
)
 
1

  
(2
)
8  
—

 
—

 
—

 
—

 
—

 
—

 
(146
)
 
1

  

1 Change in unrealized gains/(losses) included in earnings during the period related to financial assets still held at September 30, 2011.
2 Amounts included in earnings do not include losses accrued as a result of the ARS settlements discussed in Note 14, "Contingencies."
3 Amounts included in earnings are recorded in trading account profits and commissions.
4 Amounts included in earnings are recorded in net securities gains.
5 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
6 Amounts included in earnings are recorded in other noninterest income.
7 Amounts are generally included in mortgage production related income, however, the mark on certain fair value loans is included in trading account profits and commissions.
8 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke common stock as discussed in Note 11, “Derivative Financial Instruments.”


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
Beginning    
balance
July 1,
2010

 
Included in earnings (sold or settled)
 
OCI
 
Purchases, sales,
issuances,
settlements,
maturities,
paydowns, net    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers    
into
Level 3
 
Transfers    
out of
Level 3
 
Fair value
September 30,
2010

 
Included in earnings (held at September 30, 2010) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions

$9

 

$—

  

$—

  

$—

 

$—

 

$—

 

$—

 

$9

 

$—

  
MBS - private
3

 
1

  
—

  
(1
)
 
—

 
—

 
—

 
3

 
—

  
CDO/CLO securities
117

 
13

  
—

  
(7
)
 
—

 
—

 
—

 
123

 
12

  
ABS
48

 
(1
)
  
—

  
8

 
(14
)
 
—

 
—

 
41

 
(1
)
  
Equity securities
120

 
—

  
—

  
—

 
—

 
—

 
—

 
120

 
—

  
Derivative contracts
128

 
2

  
(125
)
2  
—

 
—

 
—

 
—

 
5

 
—

   
Total trading assets
425

 
15

3  
(125
)
  
—

 
(14
)
 
—

 
—

 
301

 
11

3  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
125

 
1

  
1

  
(6
)
 
—

 
—

 
—

 
121

 
—

   
MBS - private
365

 
—

  
19

  
(20
)
 
—

 
—

 
—

 
364

 
—

   
ABS
108

 
—

  
2

  
18

 
—

 
—

 
—

 
128

 
—

   
Corporate and other debt securities
5

 
—

  
—

  
—

 
—

 
—

 
—

 
5

 
—

   
Other equity securities
705

 
—

  
—

  
(24
)
 
—

 
—

 
—

 
681

 
—

   
Total securities AFS
1,308

 
1

5  
22

  
(32
)
 
—

 
—

 
—

 
1,299

 
—

 
LHFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
104

 
(4
)
6  
—

  
(10
)
 
(71
)
 
42

 
(2
)
 
59

 
(5
)
6  
Corporate and other loans
5

 
—

 
—

  
—

 
—

 
—

 
—

 
5

 
—

 
LHFI
411

 
5

8  
—

  
(10
)
 
68

 
—

 
(2
)
 
472

 
3

8  
Other assets/(liabilities), net
53

 
164

6  
—

  
—

 
(137
)
 
—

 
—

 
80

 
—

   

(Dollars in millions)
Beginning
balance
January 1,    
2010

 
Included in earnings (sold or settled)
 
OCI
 
Purchases,
sales,
issuances,
settlements,
maturities,
paydowns,
net    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers    
into
Level 3
 
Transfers    
out of
Level 3
 
Fair value
September 30,
2010

 
Included in earnings (held at September 30, 2010) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions

$7

 

$—

  

$—

  

$2

 

$—

 

$—

 

$—

 

$9

 

($1
)
  
MBS - private
6

 
—

  
—

  
(3
)
 
—

 
—

 
—

 
3

 
(1
)
  
CDO/CLO securities
175

 
30

  
—

  
(82
)
 
—

 
—

 
—

 
123

 
24

  
ABS
51

 
2

  
—

  
2

 
(14
)
 
—

 
—

 
41

 
(1
)
  
Equity securities
151

 
4

  
—

  
(35
)
 
—

 
—

 
—

 
120

 
—

  
Derivative contracts
—

 
9

   
(4
)
2  
—

 
—

 
—

 
—

 
5

 
—

  
Total trading assets
390

 
45

3  
(4
)
  
(116
)
 
(14
)
 
—

 
—

 
301

 
21

1  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
132

 
1

   
(1
)
  
(11
)
 
—

 
—

 
—

 
121

 
—

  
MBS - private
378

 
(2
)
   
53

  
(65
)
 
—

 
—

 
—

 
364

 
(2
)
  
ABS
102

 
1

4  
(5
)
  
30

 
—

 
—

 
—

 
128

 
—

  
Corporate and other debt securities
5

 
—

   
—

  
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
705

 
—

   
—

  
(24
)
 
—

 
—

 
—

 
681

 
—

  
Total securities AFS
1,322

 
—

 5  
47

  
(70
)
 
—

 
—

 
—

 
1,299

 
(2
)
5  
LHFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
142

 
1

 6  
—

  
(80
)
 
(67
)
 
66

 
(3
)
 
59

 
(10
)
6  
Corporate and other loans
9

 
(2
)
 7  
—

  
(2
)
 
—

 
—

 
—

 
5

 
(2
)
7  
LHFI
449

 
10

 8  
—

  
(35
)
 
51

 
—

 
(3
)
 
472

 
9

8  
Other assets/(liabilities), net
(35
)
 
376

 6  
—

  
6

 
(267
)
 
—

 
—

 
80

 
—

  
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(46
)
 
—

  
46

2  
—

 
—

 
—

 
—

 
—

 
—

  

1 Change in unrealized gains/(losses) included in earnings for the period related to financial assets still held at September 30, 2010.
2 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke stock as discussed in Note 11, “Derivative Financial Instruments.”
3 Amounts included in earnings are recorded in trading account profits/(losses) and commissions.
4 Amounts included in earnings do not include losses accrued as a result of the ARS settlements discussed in Note 14, "Contingencies."
5 Amounts included in earnings are recorded in net securities gains.
6 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
7 Amounts included in earnings are recorded in other noninterest income.
8 Amounts are generally included in mortgage production related income, however, the mark on certain fair value loans is included in trading account profits and commissions.
Non-recurring Fair Value Measurements
The following tables present the change in carrying value of those assets measured at fair value on a non-recurring basis, for which impairment was recognized. The table does not reflect the change in fair value attributable to any related economic hedges the Company may have used to mitigate the interest rate risk associated with LHFS. The Company’s economic hedging activities for LHFS are deployed at the portfolio level.
 
 
 
 
Fair Value Measurement at
September 30, 2011,
Using
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)        
 
Significant
Other
Observable
Inputs
(Level 2)        
 
Significant
Unobservable
Inputs
(Level 3)         
 
Valuation
Allowance
LHFS

$567

 

$—

 

$501

 

$66

 

$1

LHFI
144

 
—

 
—

 
144

 
16

OREO
509

 
—

 
358

 
151

 
(126
)
Other Assets
43

 
—

 
28

 
15

 
(14
)
 
 
 
Fair Value Measurement at
December 31, 2010,
Using
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)        
 
Significant
Other
Observable
Inputs
(Level 2)        
 
Significant
Unobservable
Inputs
(Level 3)         
 
Valuation
    Allowance    
LHFS

$333

 

$—

 

$142

 

$191

 

$—

LHFI
85

 
—

 
—

 
85

 
(15
)
OREO
596

 
—

 
553

 
43

 
(116
)
Affordable Housing
357

 
—

 
—

 
357

 
—

Other Assets
130

 
—

 
90

 
40

 
(20
)


The following is a discussion of the valuation techniques and inputs used in developing fair value measurements for assets classified as level 2 or 3 that are measured at fair value on a non-recurring basis, based on the class as determined by the nature and risks of the instrument.
Loans Held for Sale
Level 2 LHFS consist primarily of conforming, residential mortgage loans and corporate loans that are accounted for at LOCOM. Level 3 LHFS consist of non-agency residential mortgage LHFS for which there is little or no secondary market activity and leases held for sale. These loans are valued consistent with the methodology discussed in the Recurring Fair Value Measurement section of this footnote. Leases held for sale are valued using internal estimates which incorporate market data when available. Due to the lack of current market data for comparable leases, these assets are considered level 3.
During the nine months ended September 30, 2011, the Company transferred $47 million in NPLs, net of a $10 million incremental charge-off, that were previously designated as LHFI to LHFS in conjunction with the Company’s election to actively market these loans for sale. These loans were predominantly reported at amortized cost prior to transferring to LHFS; however, a portion of the NPLs was carried at fair value. Of these transferred loans, $34 million were sold at approximately their carrying value during the nine months ended September 30, 2011; the remaining $13 million were returned to LHFI as they were no longer deemed marketable for sale. The Company executed a similar transfer of $160 million in NPLs during the nine months ended September 30, 2010; these loans were subsequently sold at prices approximating fair value.
Loans Held for Investment
LHFI consist primarily of nonperforming commercial real estate loans for which specific reserves have been recorded. As these loans have been classified as nonperforming, cash proceeds from the sale of the underlying collateral is the expected source of repayment for a majority of these loans. Accordingly, the fair value of these loans is derived from internal estimates of the underlying collateral incorporating market data when available. Due to the lack of market data for similar assets, these loans are considered level 3.
OREO
OREO is measured at the lower of cost or its fair value less costs to sell. Level 2 OREO consists primarily of residential homes, commercial properties, and vacant lots and land for which current property-specific appraisals, broker pricing opinions, or other market information is available. Level 3 OREO consists of lots and land for which initial valuations are based on property-specific appraisals or internal valuations. Due to the lower dollar value per property and geographic dispersion of the portfolio, these properties are re-evaluated at least annually using a pooled approach, which applies geographic factors to adjust carrying values for estimated further declines in value.
Affordable Housing
The Company evaluates its consolidated affordable housing partnership investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment is recorded when the carrying amount of the partnership exceeds its fair value. Fair value measurements for affordable housing investments are derived from internal models using market assumptions when available. Significant assumptions utilized in these models include cash flows, market capitalization rates, and tax credit market pricing. Due to the lack of comparable sales in the marketplace, these valuations are considered level 3. During the three and nine months ended September 30, 2011, there were no impairments recognized. For the three and nine months ended September 30, 2010, the Company recorded no impairment charges and $5 million in impairment charges, respectively, on its consolidated affordable housing partnership investments.
Other Assets
Other assets consist of private equity investments, structured leasing products, other repossessed assets, and assets under operating leases where the Company is the lessor.
Investments in private equity partnerships are valued based on the estimated expected remaining cash flows to be received from these assets discounted at a market rate that is commensurate with their risk profile. Based on the valuation methodology and the lack of observable inputs, these investments are considered level 3. During the three and nine months ended September 30, 2011, the Company recorded $1 million and $5 million in impairment charges, respectively, on its private equity partnership investments. During the three and nine months ended September 30, 2010, the Company recorded $1 million and $3 million, respectively, in impairment charges on its private equity partnership investments.
Structured leasing consists of assets held for sale under third party operating leases. These assets consist primarily of commercial buildings and are recognized at fair value less cost to sell. These assets are valued based on internal estimates which incorporate current market data for similar assets when available. Due to the lack of current market data for comparable assets, these assets are considered level 3. During the three and nine months ended September 30, 2011, there were no impairments recognized. During the three and nine months ended September 30, 2010, the Company recorded no impairment charges and $2 million in impairment charges, respectively, on these assets.
Other repossessed assets consist of repossessed personal property that is measured at fair value less cost to sell. These assets are considered level 2 as their fair value is determined based on market comparables and broker opinions. During the three and nine months ended September 30, 2011, the Company recorded no impairment charges and $1 million in impairment charges, respectively, on these assets. During the three and nine months ended September 30, 2010, the Company recorded $1 million and $8 million, respectively, in impairment charges, on these assets.
The Company monitors the fair value of assets under operating leases, where the Company is the lessor, and records impairment to the extent the carrying value is not recoverable and the fair value is less than its carrying value. Fair value is determined using collateral specific pricing digests, external appraisals, and recent sales data from industry equipment dealers. As market data for similar assets is available and used in the valuation, these assets are considered level 2. During the three and nine months ended September 30, 2011, the Company recorded $2 million and $3 million in impairment charges, respectively, attributable to the fair value of various personal property under operating leases. During the three and nine months ended September 30, 2010, the Company recorded no impairment charges and $11 million in impairment charges, respectively, attributable to the fair value of various personal property under operating leases.

Fair Value of Financial Instruments
The carrying amounts and fair values of the Company’s financial instruments at September 30, 2011 and December 31, 2010 were as follows:
 
 
September 30, 2011
 
 
December 31, 2010
 
(Dollars in millions)
Carrying
Amount    
 
Fair
Value     
 
 
Carrying
Amount    
 
Fair
Value     
 
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$5,500

 

$5,500

 (a) 
 

$5,378

 

$5,378

(a) 
Trading assets
6,288

 
6,288

 (b) 
 
6,175

 
6,175

(b) 
Securities AFS
27,502

 
27,502

 (b) 
 
26,895

 
26,895

(b) 
LHFS
2,243

 
2,247

 (c) 
 
3,501

 
3,501

(c) 
LHFI
117,475

 
117,475

  
 
115,975

 
115,975

  
Interest/credit adjustment on LHFI
(2,600
)
 
(2,745
)
  
 
(2,974
)
 
(3,823
)
  
LHFI, as adjusted for interest/credit risk
114,875

 
114,730

 (d) 
 
113,001

 
112,152

(d) 
Market risk/liquidity adjustment on LHFI
—

 
(5,401
)
  
 
—

 
(3,962
)
  
LHFI, fully adjusted

$114,875

 

$109,329

 (d) 
 

$113,001

 

$108,190

(d) 
Financial liabilities
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits

$123,933

 

$124,323

 (e) 
 

$120,025

 

$120,368

(e) 
Brokered deposits
2,283

 
2,301

 (f) 
 
2,365

 
2,381

(f) 
Foreign deposits
35

 
35

 (f) 
 
654

 
654

(f) 
Short-term borrowings
6,232

 
6,224

 (f) 
 
5,821

 
5,815

(f) 
Long-term debt
13,544

 
13,207

 (f) 
 
13,648

 
13,191

(f) 
Trading liabilities
1,735

 
1,735

 (b) 
 
2,678

 
2,678

(b) 

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:
(a)
Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
(b)
Securities AFS, trading assets, and trading liabilities that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.
(c)
LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. In instances when significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data in order to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value.
(d)
LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values.
The Company estimated fair value based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 100% and 99% on the loan portfolio’s net carrying value as of September 30, 2011 and December 31, 2010, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value as of September 30, 2011 and December 31, 2010, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
(e)
Deposit liabilities with no defined maturity such as demand deposits, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow calculation that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values.
(f)
Fair values for foreign deposits, certain brokered deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote.

Reinsurance Arrangements and Guarantees
Reinsurance Arrangements and Guarantees
NOTE 13 – REINSURANCE ARRANGEMENTS AND GUARANTEES
Reinsurance
The Company provides mortgage reinsurance on certain mortgage loans through contracts with several primary mortgage insurance companies. Under these contracts, the Company provides aggregate excess loss coverage in a mezzanine layer in exchange for a portion of the pool’s mortgage insurance premium. As of September 30, 2011, approximately $8.3 billion of mortgage loans were covered by such mortgage reinsurance contracts. The reinsurance contracts are intended to place limits on the Company’s maximum exposure to losses by defining the loss amounts ceded to the Company as well as by establishing trust accounts for each contract. The trust accounts, which are comprised of funds contributed by the Company plus premiums earned under the reinsurance contracts, are maintained to fund claims made under the reinsurance contracts. If claims exceed funds held in the trust accounts, the Company does not intend to make additional contributions beyond future premiums earned under the existing contracts.
At September 30, 2011, the total loss exposure ceded to the Company was approximately $320 million; however, the maximum amount of loss exposure based on funds held in each separate trust account, including net premiums due to the trust accounts, was limited to $50 million. Of this amount, $41 million of losses have been reserved for as of September 30, 2011, reducing the Company’s net remaining loss exposure to $9 million. The reinsurance reserve was $148 million as of December 31, 2010. The decrease in the reserve balance was due to claim payments made to the primary mortgage insurance companies since December 31, 2010, as well as the relinquishment of one trust during the second quarter of 2011. The Company’s evaluation of the required reserve amount includes an estimate of claims to be paid by the trust in relation to loans in default and an assessment of the sufficiency of future revenues, including premiums and investment income on funds held in the trusts, to cover future claims. Future reported losses may exceed $9 million, since future premium income will increase the amount of funds held in the trust; however, future cash losses, net of premium income, are not expected to exceed $9 million. The amount of future premium income is limited to the population of loans currently outstanding since additional loans are not being added to the reinsurance contracts; future premium income could be further curtailed to the extent the Company agrees to relinquish control of other individual trusts to the mortgage insurance companies. Premium income, which totaled $6 million and $20 million for the three and nine months ended September 30, 2011, respectively, and $10 million and $30 million for the three and nine months ended September 30, 2010, respectively, is reported as part of noninterest income. The related provision for losses, which totaled $5 million and $18 million for the three and nine months ended September 30, 2011, respectively and $7 million and $25 million for the three and nine months ended September 30, 2010, respectively, is reported as part of other noninterest expense.

Guarantees
The Company has undertaken certain guarantee obligations in the ordinary course of business. The issuance of a guarantee imposes an obligation for the Company to stand ready to perform and should certain triggering events occur, it also imposes an obligation to make future payments. Payments may be in the form of cash, financial instruments, other assets, shares of stock, or provisions of the Company’s services. The following discussion appends and updates certain guarantees disclosed in Note 18, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. Additionally, the Company has entered into certain contracts that are similar to guarantees, but that are accounted for as derivatives (see Note 11, “Derivative Financial Instruments”).

Letters of Credit
Letters of credit are conditional commitments issued by the Company generally to guarantee the performance of a client to a third party in borrowing arrangements, such as CP, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients and may be reduced by selling participations to third parties. The Company issues letters of credit that are classified as financial standby, performance standby, or commercial letters of credit.

As of September 30, 2011 and December 31, 2010, the maximum potential amount of the Company’s obligation was $5.5 billion and $6.4 billion, respectively, for financial and performance standby letters of credit. The Company has recorded $106 million and $109 million in other liabilities for unearned fees related to these letters of credit as of September 30, 2011 and December 31, 2010, respectively. The Company’s outstanding letters of credit generally have a term of less than one year but may extend longer. If a letter of credit is drawn upon, the Company may seek recourse through the client’s underlying obligation. If the client’s line of credit is also in default, the Company may take possession of the collateral securing the line of credit, where applicable. The Company monitors its credit exposure under standby letters of credit in the same manner as it monitors other extensions of credit in accordance with credit policies. Some standby letters of credit are designed to be drawn upon and others are drawn upon only under circumstances of dispute or default in the underlying transaction to which the Company is not a party. In all cases, the Company holds the right to reimbursement from the applicant and may or may not also hold collateral to secure that right. An internal assessment of the probability of default and loss severity in the event of default is assessed consistent with the methodologies used for all commercial borrowers. The management of credit risk regarding letters of credit leverages the risk rating process to focus higher visibility on the higher risk and higher dollar letters of credit. The associated reserve is a component of the unfunded commitment reserve recorded in other liabilities included in the allowance for credit losses as disclosed in Note 4, “Allowance for Credit Losses.”
Loan Sales
STM, a consolidated subsidiary of SunTrust, originates and purchases residential mortgage loans, a portion of which are sold to outside investors in the normal course of business, through a combination of whole loan sales to GSEs, Ginnie Mae, and non-agency investors, as well as a limited amount of Company sponsored securitizations. When mortgage loans are sold, representations and warranties regarding certain attributes of the loans sold are made to these third party purchasers. Subsequent to the sale, if a material underwriting deficiency or documentation defect is discovered, STM may be obligated to repurchase the mortgage loan or to reimburse the investor for losses incurred (make whole requests) if such deficiency or defect cannot be cured by STM within the specified period following discovery. These representations and warranties may extend through the life of the mortgage loan; however, most demands occur within the first years of origination. STM’s risk of loss under its representations and warranties is largely driven by borrower payment performance since investors will perform extensive reviews of delinquent loans as a means of mitigating losses.
Loan repurchase requests generally arise from loans sold during the period from January 1, 2005 to September 30, 2011, which totaled $239.8 billion at the time of sale, consisting of $184.5 billion and $30.3 billion of agency and non-agency loans, respectively, as well as $25.0 billion of loans sold to Ginnie Mae. The composition of the remaining outstanding balance by vintage and type of buyer as of September 30, 2011 is shown in the following table:
 
 
Remaining Outstanding Balance by Year of Sale
(Dollars in billions)
2005
 
2006
 
2007
 
2008
 
2009
 
2010
 
2011
 
Total    
GSE1

$4.8

 

$5.7

 

$11.0

 

$12.1

 

$27.3

 

$15.4

 

$11.5

 

$87.8

Ginnie Mae1
0.7

 
0.5

 
0.5

 
2.5

 
5.8

 
4.2

 
2.3

 
16.5

Non-agency
4.1

 
6.0

 
4.8

 
—

 
—

 
—

 
—

 
14.9

Total

$9.6

 

$12.2

 

$16.3

 

$14.6

 

$33.1

 

$19.6

 

$13.8

 

$119.2


1 Balances based on loans serviced by the Company.
Non-agency loan sales include whole loans and loans sold in private securitization transactions. While representation and warranties have been made related to these sales, they differ in many cases from those made in connection with loans sold to the GSEs in that non-agency loans may not be required to meet the same underwriting standards and, in addition to identifying a representation or warranty breach, non-agency investors are generally required to demonstrate that the breach was material and directly related to the cause of default. Loans sold to Ginnie Mae are insured by either the FHA or VA. As servicer, we may elect to repurchase delinquent loans in accordance with Ginnie Mae guidelines; however, the loans continue to be insured. Although we indemnify the FHA and VA for losses related to loans not originated in accordance with their guidelines, such occurrences are limited and no repurchase liability has been recorded for loans sold to Ginnie Mae.
Although the timing and volume has varied, repurchase and make whole requests have increased over the past several years and more recently during the current quarter. Repurchase request volume was $1.1 billion during the nine months ended September 30, 2011 and $1.1 billion, $1.1 billion, and $557 million during the years ended 2010, 2009, and 2008, respectively, and on a cumulative basis since 2005 has been $4.6 billion. The majority of these requests are from GSEs, with a limited number of requests having been received related to non-agency investors; repurchase requests from non-agency investors were $47 million during the nine months ended September 30, 2011 and $55 million, $99 million, and $148 million during the years ended 2010, 2009, and 2008, respectively. Additionally, repurchase requests related to loans originated in 2006 and 2007 have consistently comprised the vast majority of total repurchase requests during the past three years. The repurchase and make whole requests received have been primarily due to material breaches of representations related to compliance with the applicable underwriting standards, including borrower misrepresentation and appraisal issues. STM performs a loan by loan review of all requests, and demands have been contested to the extent they are not considered valid. At September 30, 2011, the unpaid principal balance of loans related to unresolved requests previously received from investors was $490 million, comprised of $462 million from the GSEs and $28 million from non-agency investors. Comparable amounts at December 31, 2010, were $293 million, comprised of $264 million from the GSEs and $29 million from non-agency investors.
As of September 30, 2011 and December 31, 2010, the liability for contingent losses related to loans sold totaled $282 million and $265 million, respectively. The liability is recorded in other liabilities in the Consolidated Balance Sheets, and the related repurchase provision is recognized in mortgage production related income in the Consolidated Statements of Income. STM does not maintain any legal reserves with respect to mortgage repurchase activity because there is currently no litigation outstanding. The following table summarizes the changes in the Company’s reserve for mortgage loan repurchase losses:
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Balance at beginning of period

$299

 

$256

 

$265

 

$200

Repurchase provision
117

 
95

 
287

 
371

Charge-offs
(134
)
 
(81
)
 
(270
)
 
(301
)
Balance at end of period

$282

 

$270

 

$282

 

$270



During the nine months ended September 30, 2011 and 2010, the Company repurchased or otherwise settled mortgages with unpaid principal balances of $488 million and $512 million, respectively, related to investor demands. As of September 30, 2011 and December 31, 2010, the carrying value of outstanding repurchased mortgage loans, net of any allowance for loan losses, totaled $199 million and $153 million, respectively, of which $100 million and $86 million, respectively, were nonperforming.
As of September 30, 2011, the Company maintained a reserve for costs associated with foreclosure delays of loans serviced for GSEs. STM also maintains a liability for contingent losses related to MSR sales, which totaled $7 million and $6 million as of September 30, 2011 and December 31, 2010, respectively.
Contingent Consideration
The Company has contingent payment obligations related to certain business combination transactions. Payments are calculated using certain post-acquisition performance criteria. Arrangements entered into prior to January 1, 2009 are not recorded as liabilities until the contingency is resolved; whereas, arrangements entered into subsequent to that date are recorded as liabilities at the fair value of the contingent payment. The potential obligation associated with these arrangements was $11 million and $5 million as of September 30, 2011 and December 31, 2010, respectively, of which $10 million and $3 million were recorded as a liability representing the fair value of the contingent payments as of September 30, 2011 and December 31, 2010, respectively. If required, these contingent payments will be payable at various times over the next three years.
Visa
The Company issues and acquires credit and debit card transactions through Visa. The Company is a defendant, along with Visa U.S.A. Inc. and MasterCard International (the “Card Associations”), as well as several other banks, in one of several antitrust lawsuits challenging the practices of the Card Associations (the “Litigation”). The Company has entered into judgment and loss sharing agreements with Visa and certain other banks in order to apportion financial responsibilities arising from any potential adverse judgment or negotiated settlements related to the Litigation. Additionally, in connection with Visa’s restructuring in 2007, a provision of the original Visa By-Laws, Section 2.05j, was restated in Visa’s certificate of incorporation. Section 2.05j contains a general indemnification provision between a Visa member and Visa, and explicitly provides that after the closing of the restructuring, each member’s indemnification obligation is limited to losses arising from its own conduct and the specifically defined Litigation. The maximum potential amount of future payments that the Company could be required to make under this indemnification provision cannot be determined as there is no limitation provided under the By-Laws and the amount of exposure is dependent on the outcome of the Litigation. As of September 30, 2011, Visa had funded $6.5 billion into an escrow account, established for the purpose of funding judgments in, or settlements of, the Litigation. Agreements associated with Visa’s IPO have provisions that Visa will first use the funds in the escrow account to pay for future settlements of, or judgments in the Litigation. If the escrow account is insufficient to cover the Litigation losses, then Visa will issue additional Class A shares (“loss shares”). The proceeds from the sale of the loss shares would then be deposited in the escrow account. The issuance of the loss shares will cause a dilution of Visa’s Class B common stock as a result of an adjustment to lower the conversion factor of the Class B common stock to Class A common stock. Visa USA’s members are responsible for any portion of the settlement or loss on the Litigation after the escrow account is depleted and the value of the Class B shares is fully-diluted. In May 2009, the Company sold its 3.2 million shares of Class B Visa Inc. common stock to another financial institution (“the Counterparty”) and entered into a derivative with the Counterparty. The Company received $112 million and recognized a gain of $112 million in connection with these transactions. Under the derivative, the Counterparty will be compensated by the Company for any decline in the conversion factor as a result of the outcome of the Litigation. Conversely, the Company will be compensated by the Counterparty for any increase in the conversion factor. The amount of compensation is a function of the 3.2 million shares sold to the Counterparty, the change in conversion rate, and Visa’s share price. The Counterparty, as a result of its ownership of the Class B common stock, will be impacted by dilutive adjustments to the conversion factor of the Class B common stock caused by the Litigation losses. The conversion factor at the inception of the derivative in May 2009 was 0.6296 and as of September 30, 2011 the conversion factor had decreased to 0.4881 due to Visa’s funding of the litigation escrow account. The decreases in the conversion factor triggered payments by the Company to the Counterparty of $7 million, $17 million, and $10 million during 2011, 2010, and 2009, respectively. A high degree of subjectivity was used in estimating the fair value of the derivative liability, and the ultimate impact to the Company could be significantly higher or lower than the $16 million and $23 million recorded as of September 30, 2011 and December 31, 2010, respectively.
Other
In the normal course of business, the Company enters into indemnification agreements and provides standard representations and warranties in connection with numerous transactions. These transactions include those arising from securitization activities, underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, payment processing sponsorship agreements, and various other business transactions or arrangements. The extent of the Company’s obligations under these indemnification agreements depends upon the occurrence of future events; therefore, the Company’s potential future liability under these arrangements is not determinable.

Contingencies
Contingencies
NOTE 14 – CONTINGENCIES
Litigation and Regulatory Matters
In the ordinary course of business, the Company and its subsidiaries are subject to regulatory examinations, investigations, and requests for information, and are also parties to numerous civil claims and lawsuits. Some of these matters involve claims for substantial amounts. The Company’s experience has shown that the damages alleged by plaintiffs or claimants are often overstated, based on novel or unsubstantiated legal theories, unsupported by the facts, and/or bear no relation to the ultimate award that a court might grant. Additionally, the outcome of litigation and regulatory matters and the timing of ultimate resolution are inherently difficult to predict. Because of these factors, the Company typically cannot provide a meaningful estimate of the range of reasonably possible outcomes of claims in the aggregate or by individual claim. On a case-by-case basis, however, reserves are established for those legal claims in which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. In no cases are those accrual amounts material to the financial condition of the Company. The actual costs of resolving these claims may be substantially higher or lower than the amounts reserved.
For a limited number of legal matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses. For other matters for which a loss is probable or reasonably possible, such an estimate is not possible. For those matters where an estimate is reasonably possible, management currently estimates the aggregate range of reasonably possible losses as $160 million to $260 million in excess of the accrued liability, if any, related to those matters. This estimated range of reasonably possible losses represents the estimated possible losses over the life of such legal matters, which may span a currently indeterminable number of years, and is based on information currently available as of September 30, 2011. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from this estimate. Those matters for which an estimate is not possible are not included within this estimated range; therefore, this estimated range does not represent the Company’s maximum loss exposure. Based on current knowledge, it is the opinion of management that liabilities arising from legal claims in excess of the amounts currently accrued, if any, will not have a material impact to the Company’s financial condition, results of operations, or cash flows. However, in light of the significant uncertainties involved in these matters, and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results or cash flows for any given reporting period.
The following appends and updates certain litigation and regulatory matters disclosed in Note 21, “Contingencies,” to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

Auction Rate Securities Investigations and Claims
FINRA Auction Rate Securities Investigation
In September 2008, STRH and STIS entered into an “agreement in principle” with FINRA related to the sales and brokering of ARS by STRH and STIS. This agreement was non-binding and subject to the negotiation of a final settlement. The parties were unable to finalize this agreement and FINRA continued its investigation. Beginning in late 2008, the Company moved forward with ARS purchases from essentially the same categories of investors who would have been covered by the original agreement with FINRA as well as certain other investors not addressed by the agreement. In 2010, FINRA notified the Company that it had completed its investigation and that it intended to recommend that charges be filed against both STRH and STIS. Both STRH and STIS subsequently have entered into settlement agreements with FINRA under which each firm will be assessed a fine and be required to provide certain other relief, but neither firm will be required to repurchase any additional ARS. These agreements have been approved by FINRA and are final and related fines totaling $5 million have been paid. Since 2008, the Company has purchased ARS with par amounts totaling $617 million as a result of the FINRA investigation and recognized cumulative losses through September 30, 2011 of $112 million. During the first quarter of 2011, the Company completed these ARS purchases. The fair value of the remaining ARS purchased pursuant to the settlement, net of sales, redemptions and calls, is approximately $43 million and $147 million in trading securities and $104 million and $128 million in securities AFS, at September 30, 2011 and December 31, 2010, respectively. The losses related to the FINRA agreement were accrued in 2008; however, during the three months ended September 30, 2011 and 2010, the Company recognized a loss of $1 million and a gain of $2 million relating to these ARS, respectively, and gains of $34 million and $10 million during the nine months ended September 30, 2011 and 2010, respectively. Gain and loss amounts are comprised of net trading gains and net securities gains resulting primarily from sales, calls, and redemptions of both trading securities and securities AFS that were purchased from investors, as well as, net mark to market gains on positions that continue to be held by the Company. Due to the pass-through nature of these security purchases, gains and losses are included in the Corporate Other and Treasury segment.

In re LandAmerica Financial Group, Inc. et al.
Two putative class action lawsuits have been filed against the Company by former customers of LandAmerica 1031 Exchange Services, Inc, (“LES”), a subsidiary of LandAmerica Financial Group, Inc. (“LFG”). The first of these actions, Arthur et al. v. SunTrust Banks, Inc. et al., was filed on January 14, 2009 in the U.S. District Court for the Southern District of California. The second of these cases, Terry et al. v. SunTrust Banks, Inc. et al., was filed on February 2, 2009 in the Court of Common Pleas, Tenth Judicial Circuit, County of Anderson, South Carolina, and subsequently removed to the U.S. District Court for the District of South Carolina. On June 12, 2009, the Multi-District Litigation (“MDL”) Panel issued a transfer order designating the U.S. District Court for the District of South Carolina, Anderson Division, as MDL Court for IRS Section 1031 Tax Deferred Exchange Litigation (MDL 2054). Plaintiffs’ allegations in these cases are that LES and certain of its officers caused them to suffer damages in connection with potential 1031 exchange transactions that were pending at the time that LES filed for bankruptcy. Essentially, Plaintiffs’ core allegation is that their damages are the result of breaches of fiduciary and other duties owed to them by LES and others, fraud, and other improper acts committed by LES and certain of its officers, and that the Company is partially or entirely responsible for such damages because it knew or should have known about the alleged wrongdoing and failed to take appropriate steps to stop the same. The Company believes that the allegations and claims made against it in these actions are both factually and legally unsupported and has filed a motion to dismiss all claims. The Court granted this motion to dismiss with prejudice on June 15, 2011. Plaintiffs have appealed this decision to the Fourth Circuit Court of Appeals.
Additionally, the Company was threatened with litigation by the bankruptcy trustee representing the estates of LFG and LES related to the purchase of ARS by LES through STRH. The total par amount of ARS bought through STRH and held by LES at the time of the collapse of the auction rate market in February 2008 was approximately $152 million. The parties settled this dispute for $14 million, which has been paid to the claimant.

Other ARS Claims
Since April 2008, several arbitrations and individual lawsuits have been filed against STRH and STIS by parties who purchased ARS through these entities. Broadly stated, these complaints allege that STRH and STIS made misrepresentations about the nature of these securities and engaged in conduct designed to mask some of the liquidity risk associated with them. They also allege that STRH and STIS were aware of the risks and problems associated with these securities and took steps in advance of the wave of auction failures to remove these securities from their own holdings. The claimants in these actions are seeking to recover the par value of the ARS in question as well as compensatory and punitive damages in unspecified amounts. The majority of these claims were settled during the nine months ended September 30, 2011. The Company reserved $7 million and $24 million as of September 30, 2011 and December 31, 2010, respectively, for estimated probable losses related to remaining other ARS claims. Losses related to the other ARS claims have been recognized in trading account profits/(losses) and commissions in the Consolidated Statements of Income.

Overdraft Fee Cases
The Company has been named as a defendant in two putative class actions relating to the imposition of overdraft fees on customer accounts. The first such case, Buffington et al. v. SunTrust Banks, Inc. et al. was filed in Fulton County Superior Court on May 6, 2009. This action was removed to the U.S. District Court for the Northern District of Georgia, Atlanta Division on June 10, 2009, and was transferred to the U.S. District Court for the Southern District of Florida for inclusion in Multi-District Litigation Case No. 2036 on December 1, 2009. Plaintiffs assert claims for breach of contract, conversion, unconscionability, and unjust enrichment for alleged injuries they suffered as a result of the method of posting order used by the Company, which allegedly resulted in overdraft fees being assessed to their joint checking account, and purport to bring their action on behalf of a putative class of “all SunTrust Bank account holders who incurred an overdraft charge despite their account having a sufficient balance of actual funds to cover all debits that have been submitted to the bank for payment, “as well as” all SunTrust account holders who incurred one or more overdraft charges based on SunTrust Bank’s reordering of charges.” Plaintiffs seek restitution, damages, expenses of litigation, attorneys’ fees, and other relief deemed equitable by the Court. The Company filed a Motion to Dismiss and Motion to Compel Arbitration and both motions were denied. The denial of the motion to compel arbitration was appealed to the Eleventh Circuit Court of Appeals. The Eleventh Circuit remanded this matter back to the District Court with instructions to the District Court to review its prior ruling in light of the Supreme Court’s decision in AT&T Mobility LLC v. Concepcion. The District Court has since denied SunTrust's motion to compel arbitration for different reasons and SunTrust is in the process of appealing this decision to the Eleventh Circuit.
The second of these cases, Bickerstaff v. SunTrust Bank, was filed in the Fulton County State Court on July 12, 2010 and an amended complaint was filed on August 9, 2010. Plaintiff asserts that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. Plaintiff has brought claims for violations of civil and criminal usury laws, conversion, and money had and received, and purports to bring the action on behalf of all Georgia citizens who have incurred such overdraft fees within the last four years where the overdraft fee resulted in an interest rate being charged in excess of the usury rate. SunTrust has filed a motion to compel arbitration and that motion is pending.

SunTrust Mortgage, Inc. v United Guaranty Residential Insurance Company of North Carolina
STM filed a suit in the Eastern District of Virginia in July of 2009 against United Guaranty Residential Insurance Company of North Carolina (“UGRIC”) seeking payment involving denied mortgage insurance claims regarding second lien mortgages. STM’s claims are in two counts. Count One involves a common reason for denial of claims by UGRIC for a group of loans. Count Two involves a group of loans with individualized reasons for the claim denials asserted by UGRIC. The two counts filed by STM have been bifurcated for trial purposes. UGRIC has counterclaimed for declaratory relief involving interpretation of the insurance policy involving certain caps on the amount of claims covered, whether ongoing premium obligations exist after any caps are met, and the potential to accelerate any premiums that may be owed if UGRIC prevails on its counterclaim. UGRIC later disclaimed its argument for acceleration of premiums. The Court granted STM’s motion for summary judgment as to liability on Count One and, after a trial on damages, awarded STM $34 million along with $6 million in prejudgment interest on August 19, 2011. Count Two has been stayed pending final resolution of Count One. On September 13, 2011, the Court added $5 million to the judgment involving STM's claims for fees on certain issues. On UGRIC’s counterclaim, the Court agreed that UGRIC’s interpretation was correct regarding STM’s continued obligations to pay premiums in the future after coverage caps are met. However, on August 19, 2011, the Court found for STM on its affirmative defense that UGRIC can no longer enforce the contract due to its prior breaches, and consequently, denied UGRIC's request for a declaration that it was entitled to continue to collect premiums after caps are met. UGRIC has stated that it intends to appeal the Court's rulings.

Lehman Brothers Holdings, Inc. Litigation
Beginning in October 2008, STRH, along with other underwriters and individuals, were named as defendants in several individual and putative class action complaints filed in the U.S. District Court for the Southern District of New York and state and federal courts in Arkansas, California, Texas and Washington. Plaintiffs allege violations of Sections 11 and 12 of the Securities Act of 1933 for allegedly false and misleading disclosures in connection with various debt and preferred stock offerings of Lehman Brothers Holdings, Inc. and seek unspecified damages. All cases have now been transferred for coordination to the multi-district litigation captioned In re Lehman Brothers Equity/Debt Securities Litigation pending in the U.S. District Court for the Southern District of New York. Defendants filed a motion to dismiss all claims asserted. On July 27, 2011, the District Court granted in part and denied in part the motion to dismiss the claims against STRH and the other underwriter defendants.

Krinsk v. SunTrust Bank
This is a lender liability action in which the borrower claims that the Company has taken actions in violation of her home equity line of credit agreement and in violation of the Truth in Lending Act (“TILA”). Plaintiff filed this action in the U.S. District Court for the Middle District of Florida as a putative class action. The Court dismissed portions of Plaintiff’s first complaint, and she subsequently filed an amended complaint asserting breach of contract, breach of implied covenant of good faith and fair dealing, and violation of TILA. Plaintiff has filed a motion seeking to certify a class of all Florida borrowers. The Company filed its answer to the complaint, has opposed class certification, and has filed a motion to compel arbitration. The Court denied the motion to compel arbitration and this decision was appealed to the Eleventh Circuit Court of Appeals. The Eleventh Circuit reversed the District Court's ruling that SunTrust had waived its right to compel arbitration and remanded the case back to the District Court to decide the merits of SunTrust's motion to compel arbitration.


SunTrust Securities Class Action Litigation
Beginning in May 2009, the Company, STRH, SunTrust Capital IX, officers and directors of the Company, and others were named in three putative class actions arising out of the offer and sale of approximately $690 million of SunTrust Capital IX 7.875% Trust Preferred Securities (“TRUPs”) of SunTrust Banks, Inc. The complaints alleged, among other things, that the relevant registration statement and accompanying prospectus misrepresented or omitted material facts regarding the Company’s allowance for loan and lease loss reserves, the Company’s capital position and its internal risk controls. Plaintiffs seek to recover alleged losses in connection with their investment in the TRUPs or to rescind their purchases of the TRUPs. These cases were consolidated under the caption Belmont Holdings Corp., et al., v. SunTrust Banks, Inc., et al., in the U.S. District Court for the Northern District of Georgia, Atlanta Division, and on November 30, 2009, a consolidated amended complaint was filed. On January 29, 2010, Defendants filed a motion to dismiss the consolidated amended complaint. This motion was granted, with leave to amend, on September 10, 2010. On October 8, 2010, the lead plaintiff filed an amended complaint in an attempt to address the pleading deficiencies identified in the Court’s dismissal decision. The Company filed a motion to dismiss the amended complaint on March 21, 2011. The District Court denied the motion to dismiss as to Plaintiff's claims that the Company misrepresented the adequacy of its loan loss reserves for 2007 but dismissed all other claims against the Company and limited discovery in the initial stages of the case to the question of SunTrust's subjective belief as to the adequacy of those reserves at the time of the offering.

Riverside National Bank of Florida v. The McGraw-Hill Companies, Inc. et al.
On August 6, 2009, Riverside National Bank of Florida (“Riverside”) filed a complaint in the Supreme Court of the State of New York, County of Kings, against STRH, along with several other broker-dealers, portfolio managers, rating agencies and others. On April 22, 2011, the FDIC voluntarily dismissed this case without prejudice.

Colonial BancGroup Securities Litigation
Beginning in July 2009, STRH, certain other underwriters, The Colonial BancGroup, Inc. (“Colonial BancGroup”) and certain officers and directors of Colonial BancGroup were named as defendants in a putative class action filed in the U.S. District Court for the Middle District of Alabama, Northern District entitled In re Colonial BancGroup, Inc. Securities Litigation. The complaint was brought by purchasers of certain debt and equity securities of Colonial BancGroup and seeks unspecified damages. Plaintiffs allege violations of Sections 11 and 12 of the Securities Act of 1933 due to allegedly false and misleading disclosures in the relevant registration statement and prospectus relating to Colonial BancGroup’s goodwill impairment, mortgage underwriting standards and credit quality. On August 28, 2009, The Colonial BancGroup filed for bankruptcy. The Defendants’ motion to dismiss was denied in May 2010, but the Court subsequently has ordered Plaintiffs to file an amended complaint. This amended complaint has been filed and the defendants have filed a motion to dismiss.

U.S. Department of Justice Investigation
Since late 2009, STM has been cooperating with the United States Department of Justice (“USDOJ”) in connection with an investigation relating to alleged violations of the Equal Credit Opportunity Act and the Fair Housing Act. STM recently has been informed by the USDOJ that it intends to file a lawsuit against STM in this matter if the parties are unable to reach a settlement. To the best of STM’s knowledge, the USDOJ’s allegations in this matter relate solely to prior periods and to alleged practices of STM that no longer are in effect. The parties are engaged in settlement discussions, but there may be significant disagreements about the appropriateness and validity of the methodology and analysis upon which USDOJ has based its allegations.

Consent Order with the Federal Reserve
On April 13, 2011 SunTrust Banks, Inc., SunTrust Bank and STM entered into a Consent Order with the Federal Reserve in which SunTrust Banks, Inc., SunTrust Bank and STM agreed to strengthen oversight of and improve risk management, internal audit, and compliance programs concerning the residential mortgage loan servicing, loss mitigation, and foreclosure activities of STM. Under the terms of the Consent Order, SunTrust Bank and STM also agreed to retain an independent consultant to conduct a review of residential foreclosure actions pending at any time during the period from January 1, 2009 through December 31, 2010 for loans serviced by STM, to identify any errors, misrepresentations or deficiencies, determine whether any instances so identified resulted in financial injury, and then make any appropriate remediation, reimbursement or adjustment. Additionally, borrowers who had a residential foreclosure action pending during this two year review period will be solicited through advertising and direct mailings to request a review by the independent consultant of their case if they believe they incurred a financial injury as a result of errors, misrepresentations, or other deficiencies in the foreclosure process. Under the terms of the Consent Order, SunTrust Bank and STM also agreed, among other things, to: (a) strengthen the coordination of communications between borrowers and STM concerning ongoing loss mitigation and foreclosure activities; (b) submit a plan to enhance processes for oversight and management of third party vendors used in connection with residential mortgage servicing, loss mitigation and foreclosure activities; (c) enhance and strengthen the enterprise-wide compliance program with respect to oversight of residential foreclosure loan servicing, loss mitigation and foreclosure activities; (d) ensure appropriate oversight of STM’s activities with respect to Mortgage Electronic Registration System; (e) review and remediate, if necessary, STM’s management information systems for its residential mortgage loan servicing, loss mitigation, and foreclosure activities; (f) improve the training of STM officers and staff concerning applicable law, supervisory guidance and internal procedures concerning residential mortgage loan servicing, loss mitigation and foreclosure activities, including the single point of contact for foreclosure and loss mitigation; (g) retain an independent consultant to conduct a comprehensive assessment of STM's risks, including, but not limited to, operational, compliance, transaction, legal, and reputational risks particularly in the areas of residential mortgage loan servicing, loss mitigation and foreclosure; (h) enhance and strengthen the enterprise-wide risk management program with respect to oversight of residential foreclosure loan servicing, loss mitigation and foreclosure activities; and (i) enhance and strengthen the internal audit program with respect to residential loan servicing, loss mitigation and foreclosure activities. The comprehensive third party risk assessment was completed in August 2011, and we have begun implementation of recommended enhancements. The full text of the Consent Order is available on the Federal Reserve’s website and was filed as Exhibit 10.11 to the Company's Form 10-Q report for the period ended June 30, 2011.
The Company completed an internal review of STM’s residential foreclosure processes, and as a result of the review, steps have been taken and continue to be taken, to improve upon those processes. The Consent Order requires the Company to retain an independent consultant to conduct a review of residential foreclosure actions pending during 2009 and 2010 to identify any errors, misrepresentations or deficiencies, determine whether any instances so identified resulted in financial injury, and then make any appropriate remediation, reimbursement, or adjustment. Additionally, borrowers who had a residential foreclosure action pending during this two-year review period will be solicited through advertising and direct mailings to request a review by the independent consultant of their case if they believe they incurred a financial injury as a result of errors, misrepresentations or other deficiencies in the foreclosure process. Until the results of that review are known, the Company cannot reasonably estimate financial reimbursements or adjustments. As a result of the Federal Reserve’s review of the Company’s residential mortgage loan servicing and foreclosure processing practices that preceded the Consent Order, the Federal Reserve announced that it believed monetary sanctions would be appropriate and it planned to announce monetary sanctions. The Federal Reserve has not made any further announcements nor has it provided the Company with information related to timing or amount of these potential monetary sanctions. Consequently, the amount cannot be reasonably estimated, and therefore, no accrual has been made.

A Financial Guaranty Insurance Company
The Company is engaged in settlement negotiations with a financial guaranty insurance company relating to second lien mortgage loan repurchase claims for a securitization that the financial guaranty insurance company guaranteed under an insurance policy. The financial guaranty insurance company’s allegations in this matter generally are that it has paid claims as a result of defaults in the underlying loans and that some of these losses are the result of breaches of representations and warranties made in the documents governing the transaction in question.

Putative ERISA Class Actions
Company Stock Class Action
Beginning in July 2008, the Company, officers and directors of the Company, and certain other Company employees were named in a putative class action alleging that they breached their fiduciary duties under ERISA by offering the Company's common stock as an investment option in the SunTrust Banks, Inc. 401(k) Plan (the “Plan”). The plaintiffs purport to represent all current and former Plan participants who held the Company stock in their Plan accounts from May 2007 to the present and seek to recover alleged losses these participants supposedly incurred as a result of their investment in Company stock.
The Company Stock Class Action was originally filed in the U.S. District Court for the Southern District of Florida, but was transferred to the United States District Court for the Northern District of Georgia, Atlanta Division, (the “District Court”) in November 2008.
On October 26, 2009, an amended complaint was filed. On December 9, 2009, defendants filed a motion to dismiss the amended complaint. On October 25, 2010, the District Court granted in part and denied in part defendants' motion to dismiss the amended complaint. Defendants and plaintiffs filed separate motions for the District Court to certify its October 25, 2010 order for immediate interlocutory appeal. On January 3, 2011, the District Court granted both motions.
On January 13, 2011, defendants and plaintiffs filed separate petitions seeking permission to pursue interlocutory appeals with the U.S. Court of Appeals for the Eleventh Circuit (“the Circuit Court”). On April 14, 2011, the Circuit Court granted defendants and plaintiffs permission to pursue interlocutory review in separate appeals. On September 6, 2011, briefing in the separate appeals concluded. The Circuit Court has not set a date for oral arguments.

Mutual Funds Class Action
On March 11, 2011, the Company, officers and directors of the Company, and certain other Company employees were named in a putative class action alleging that they breached their fiduciary duties under ERISA by offering certain STI Classic Mutual Funds as investment options in the Plan. The plaintiff purports to represent all current and former Plan participants who held the STI Classic Mutual Funds in their Plan accounts from April 2002 through December 2010 and seeks to recover alleged losses these Plan participants supposedly incurred as a result of their investment in the STI Classic Mutual Funds.
The Affiliated Funds Class Action is pending in the United States District Court for the Northern District of Georgia, Atlanta Division (the “District Court”). On June 6, 2011, plaintiff filed an amended complaint. On June 20, 2011, defendants filed a motion to dismiss the amended complaint. On July 25, 2011, briefing on the motion to dismiss concluded, and the motion remains pending.
Business Segment Reporting
Business Segment Reporting
NOTE 15 - BUSINESS SEGMENT REPORTING
The Company has six business segments used to measure business activities: Retail Banking, Diversified Commercial Banking, CRE, CIB, Mortgage, and W&IM with the remainder in Corporate Other and Treasury. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. For a further discussion concerning SunTrust’s business segments, see Note 22, “Business Segment Reporting”, to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.
Because the business segment results are presented based on management accounting practices, the transition to the consolidated results, which are prepared under U.S. GAAP, creates certain differences which are reflected in Reconciling Items in the tables below.
For business segment reporting purposes, the basis of presentation in the accompanying discussion includes the following:
•
Net interest income – All net interest income is presented on a FTE basis. The revenue gross-up has been applied to tax-exempt loans and investments to make them comparable to other taxable products. The segments have also been matched maturity funds transfer priced, generating credits or charges based on the economic value or cost created by the assets and liabilities of each segment. The mismatch between funds credits and funds charges at the segment level resides in Reconciling Items. The change in the matched maturity funds mismatch is generally attributable to corporate balance sheet management strategies.
•
Provision for credit losses - Represents net charge-offs by segment. The difference between the segment net charge-offs and the consolidated provision for credit losses is reported in Reconciling Items.
•
Provision/(benefit) for income taxes - Calculated using a nominal income tax rate for each segment. This calculation includes the impact of various income adjustments, such as the reversal of the FTE gross up on tax-exempt assets, tax adjustments, and credits that are unique to each business segment. The difference between the calculated provision/(benefit) for income taxes at the segment level and the consolidated provision/(benefit) for income taxes is reported in Reconciling Items.
The segment’s financial performance is comprised of direct financial results as well as various allocations that for internal management reporting purposes provide an enhanced view of analyzing the segment’s financial performance. The internal allocations include the following:
•
Operational Costs – Expenses are charged to the segments based on various statistical volumes multiplied by activity based cost rates. As a result of the activity based costing process, planned residual expenses are also allocated to the segments. The recoveries for the majority of these costs are in the Corporate Other and Treasury segment.
•
Support and Overhead Costs – Expenses not directly attributable to a specific segment are allocated based on various drivers (e.g., number of full-time equivalent employees and volume of loans and deposits). The recoveries for these allocations are in Corporate Other and Treasury.
•
Sales and Referral Credits – Segments may compensate another segment for referring or selling certain products. The majority of the revenue resides in the segment where the product is ultimately managed.
The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is reclassified wherever practicable.

 
Three Months Ended September 30, 2011
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$40,821

 

$25,242

 

$7,557

 

$23,990

 

$33,159

 

$8,370

 

$31,389

 

$1,548

 

$172,076

Average total liabilities
76,820

 
20,541

 
1,535

 
17,857

 
3,705

 
12,812

 
16,235

 
2,571

 
152,076

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
20,000

 
20,000

Net interest income

$640

 

$159

 

$34

 

$126

 

$121

 

$105

 

$132

 

($54
)
 

$1,263

FTE adjustment
—

 
26

 
—

 
1

 
—

 
—

 
1

 
2

 
30

Net interest income - FTE 1
640

 
185

 
34

 
127

 
121

 
105

 
133

 
(52
)
 
1,293

Provision for credit losses 2
181

 
11

 
133

 
(3
)
 
144

 
26

 
—

 
(145
)
 
347

Net interest income/(loss) after provision for credit losses
459

 
174

 
(99
)
 
130

 
(23
)
 
79

 
133

 
93

 
946

Total noninterest income
286

 
67

 
25

 
109

 
115

 
202

 
103

 
(4
)
 
903

Total noninterest expense
654

 
123

 
100

 
139

 
318

 
235

 
(2
)
 
(7
)
 
1,560

Income/(loss) before provision/(benefit) for income taxes
91

 
118

 
(174
)
 
100

 
(226
)
 
46

 
238

 
96

 
289

Provision/(benefit) for income taxes 3
33

 
42

 
(85
)
 
36

 
(88
)
 
19

 
80

 
38

 
75

Net income/(loss) including income attributable to noncontrolling interest
58

 
76

 
(89
)
 
64

 
(138
)
 
27

 
158

 
58

 
214

Net income/(loss) attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
(4
)
 
2

 
1

 
(1
)
Net income/(loss)

$58

 

$76

 

($89
)
 

$64

 

($138
)
 

$31

 

$156

 

$57

 

$215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$39,105

 

$24,633

 

$10,395

 

$20,900

 

$34,556

 

$8,941

 

$33,321

 

$148

 

$171,999

Average total liabilities
74,945

 
19,159

 
1,467

 
16,478

 
4,135

 
11,723

 
18,742

 
2,259

 
148,908

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
23,091

 
23,091

Net interest income

$630

 

$142

 

$38

 

$98

 

$123

 

$97

 

$117

 

($7
)
 

$1,238

FTE adjustment
—

 
26

 
—

 
—

 
—

 
—

 
2

 
—

 
28

Net interest income - FTE 1
630

 
168

 
38

 
98

 
123

 
97

 
119

 
(7
)
 
1,266

Provision for credit losses 2
229

 
23

 
156

 
—

 
265

 
15

 
—

 
(73
)
 
615

Net interest income/(loss) after provision for credit losses
401

 
145

 
(118
)
 
98

 
(142
)
 
82

 
119

 
66

 
651

Total noninterest income
278

 
62

 
21

 
196

 
272

 
196

 
24

 
(2
)
 
1,047

Total noninterest expense
623

 
107

 
120

 
121

 
296

 
233

 
1

 
(2
)
 
1,499

Income/(loss) before provision/(benefit) for income taxes
56

 
100

 
(217
)
 
173

 
(166
)
 
45

 
142

 
66

 
199

Provision/(benefit) for income taxes 3
20

 
37

 
(103
)
 
64

 
(63
)
 
16

 
44

 
27

 
42

Net income/(loss) including income attributable to noncontrolling interest
36

 
63

 
(114
)
 
109

 
(103
)
 
29

 
98

 
39

 
157

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
1

 
2

 
1

 
4

Net income/(loss)

$36

 

$63

 

($114
)
 

$109

 

($103
)
 

$28

 

$96

 

$38

 

$153

1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.

 
Nine Months Ended September 30, 2011
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$40,752

 

$25,113

 

$8,230

 

$22,651

 

$33,681

 

$8,489

 

$31,348

 

$1,622

 

$171,886

Average total liabilities
76,582

 
20,459

 
1,479

 
17,620

 
3,487

 
12,658

 
16,058

 
2,682

 
151,025

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
20,861

 
20,861

Net interest income

$1,897

 

$456

 

$105

 

$360

 

$362

 

$305

 

$379

 

($93
)
 

$3,771

FTE adjustment
—

 
76

 
1

 
2

 
—

 
—

 
5

 
—

 
84

Net interest income - FTE 1
1,897

 
532

 
106

 
362

 
362

 
305

 
384

 
(93
)
 
3,855

Provision for credit losses 2
593

 
49

 
353

 
(1
)
 
520

 
54

 
(1
)
 
(381
)
 
1,186

Net interest income/(loss) after provision for credit losses
1,304

 
483

 
(247
)
 
363

 
(158
)
 
251

 
385

 
288

 
2,669

Total noninterest income
830

 
191

 
73

 
477

 
271

 
624

 
254

 
(22
)
 
2,698

Total noninterest expense
1,936

 
358

 
316

 
433

 
847

 
710

 
(11
)
 
(22
)
 
4,567

Income/(loss) before provision/(benefit) for income taxes
198

 
316

 
(490
)
 
407

 
(734
)
 
165

 
650

 
288

 
800

Provision/(benefit) for income taxes 3
72

 
114

 
(242
)
 
149

 
(283
)
 
61

 
236

 
113

 
220

Net income/(loss) including income attributable to noncontrolling interest
126

 
202

 
(248
)
 
258

 
(451
)
 
104

 
414

 
175

 
580

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
—

 
7

 
—

 
7

Net income/(loss)

$126

 

$202

 

($248
)
 

$258

 

($451
)
 

$104

 

$407

 

$175

 

$573

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$38,856

 

$25,039

 

$11,171

 

$19,597

 

$34,627

 

$8,974

 

$32,557

 

$748

 

$171,569

Average total liabilities
74,411

 
19,864

 
1,667

 
15,272

 
3,581

 
11,449

 
20,040

 
2,702

 
148,986

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
22,583

 
22,583

Net interest income

$1,870

 

$408

 

$124

 

$272

 

$331

 

$280

 

$350

 

($48
)
 

$3,587

FTE adjustment
—

 
80

 
—

 
1

 
—

 
—

 
8

 
—

 
89

Net interest income - FTE 1
1,870

 
488

 
124

 
273

 
331

 
280

 
358

 
(48
)
 
3,676

Provision for credit losses 2
765

 
88

 
344

 
37

 
956

 
44

 
—

 
(96
)
 
2,138

Net interest income/(loss) after provision for credit losses
1,105

 
400

 
(220
)
 
236

 
(625
)
 
236

 
358

 
48

 
1,538

Total noninterest income
857

 
173

 
61

 
449

 
397

 
578

 
193

 
(11
)
 
2,697

Total noninterest expense
1,850

 
335

 
324

 
352

 
812

 
672

 
29

 
(12
)
 
4,362

Income/(loss) before provision/(benefit) for income taxes
112

 
238

 
(483
)
 
333

 
(1,040
)
 
142

 
522

 
49

 
(127
)
Provision/(benefit) for income taxes 3
39

 
87

 
(242
)
 
123

 
(395
)
 
52

 
170

 
25

 
(141
)
Net income/(loss) including income attributable to noncontrolling interest
73

 
151

 
(241
)
 
210

 
(645
)
 
90

 
352

 
24

 
14

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
1

 
1

 
7

 
—

 
9

Net income/(loss)

$73

 

$151

 

($241
)
 

$210

 

($646
)
 

$89

 

$345

 

$24

 

$5

1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income
NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE INCOME
Comprehensive income was calculated as follows:
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Comprehensive income:
 
 
 
 
 
 
 
Net income

$215

 

$153

 

$573

 

$5

OCI:
 
 

 

 
 
Change in unrealized gains on securities, net of taxes
173

 
257

 
294

 
472

Change in unrealized gains on derivatives, net of taxes
182

 
61

 
129

 
438

Change related to employee benefit plans
4

 
2

 
(13
)
 
85

Total comprehensive income

$574

 

$473

 

$983

 

$1,000



The components of AOCI were as follows:
 
(Dollars in millions)
September 30,
2011
 
December 31,
2010
Unrealized net gain on AFS securities

$1,820

 

$1,526

Unrealized net gain on derivative financial instruments
661

 
532

Employee benefit plans
(455
)
 
(442
)
Total AOCI

$2,026

 

$1,616



Significant Accounting Policies (Policies)
Salary shares 
Specifically, the Company paid additional base salary amounts in the form of stock (salary shares) to the senior executive officers and some of the other employees who were among the next 20 most highly-compensated employees.
Basis of Presentation 
Basis of Presentation
The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. 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.
These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. Except for accounting policies that have been modified or recently adopted as described below, there have been no significant changes to the Company’s accounting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.
Loan 
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 (commercial & industrial, commercial real estate, 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, unpaid 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 in accordance with the contractual terms of a loan classified as nonaccrual, the loan may be returned to accrual status, upon meeting all regulatory, accounting, and internal policy requirements.
Consumer loans (guaranteed 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. 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. Credit card loans are never placed on nonaccrual status but rather are charged off once they are 180 days past due. Guaranteed student loans continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. When a loan is placed on nonaccrual, unpaid interest is reversed against interest income. Interest income on nonaccrual loans, if recognized, is recognized after the principal has been reduced to zero. Nonaccrual consumer loans are typically returned to accrual status once they are no longer past due.
Residential loans (guaranteed residential mortgages, 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. Nonguaranteed residential mortgages and residential construction loans are generally placed on nonaccrual when payments are 120 days past due. Home equity products are generally placed on nonaccrual when payments are 90 days past due. The exception for nonguaranteed residential mortgages, residential construction loans, and home equity products is when the borrower has declared bankruptcy, in which case, they are moved to nonaccrual status once they become 60 days past due. Guaranteed residential mortgages continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. When a loan is placed on nonaccrual, unpaid 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.

TDRs are loans in which the borrower is experiencing financial difficulty and the Company has granted an economic concession to the borrower. To date, the Company’s TDRs have been predominantly first and second lien residential mortgages and home equity lines of credit. Prior to modifying 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 granted are generally interest rate reductions and/or term extensions. If a loan is accruing 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 within this Note 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. TDRs may be returned to accrual status if there has been at least a six month sustained period of repayment performance by the borrower. Consistent with regulatory guidance, upon sustained performance and classification as a TDR through the Company’s year end, the loan will be removed from TDR status as long as the modified terms were market-based at the time of modification. Generally, once a residential loan becomes a TDR, we expect that the loan will likely continue to be reported as a TDR for its remaining life even after returning to accruing status as the modified rates and terms at the time of modification were typically more favorable than those generally available in the market. 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. Premiums for purchased credit cards are amortized on a straight-line basis over one year. 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. See Note 3, “Loans,” for additional information.
Allowance for Credit Losses 
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 losses within the 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. In addition to these factors, 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), 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 identified for evaluation of 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 depending on the most likely source of repayment. 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, portfolio trends, regional and national economic conditions, and expected loss given default derived from the Company’s internal risk rating process. 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. Losses on unsecured consumer loans are recognized at 90 days past due compared to the regulatory loss criteria of 120 days past due. Losses, as appropriate, on secured consumer loans, including residential real estate, are typically recognized between 120 and 180 days past due, depending on the collateral type, in compliance with the FFIEC guidelines. Loans that have been partially charged-off remain on nonperforming status, regardless of collateral value, until specific borrower performance criteria are met.
The Company uses numerous sources of information in order to make an appropriate evaluation of 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 professionals. The value estimate is based on an orderly disposition and marketing period of the property. 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 real estate 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 net realizable value of the loan, net of estimated selling costs. When assessing property value 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 net 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, typically at 180 days past due, the Company obtains a new valuation and, if required, writes the loan down to the new valuation, less estimated selling costs. 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 metropolitan statistical area 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 an analysis of historical loss experience, 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 through the third quarter of 2009, the provision associated with changes in the unfunded lending commitment reserve was reported in the Consolidated Statements of Income in noninterest expense. Beginning in the fourth quarter of 2009, the Company began recording changes in the unfunded lending commitment reserve in the provision for credit losses. See Note 4, “Allowance for Credit Losses,” for additional information.
Accounting Policies Recently Adopted and Pending Accounting Pronouncements 
Accounting Policies Recently Adopted and Pending Accounting Pronouncements
In January 2010, the FASB issued ASU 2010-06, an update to ASC 820-10, “Fair Value Measurements.” This ASU requires the disclosure of transfers in and out of level 1 and 2 of the fair value hierarchy, along with the reasons for the transfers and a gross presentation of purchases and sales of level 3 instruments. Additionally, the ASU requires fair value measurement disclosures for each class of assets and liabilities and enhanced disclosures around level 2 valuation techniques and inputs. The Company adopted the disclosure requirements for level 1 and 2 transfers and the expanded fair value measurement and valuation disclosures effective January 1, 2010. The disclosure requirements for level 3 activities were effective for the interim reporting period ending March 31, 2011. The required disclosures are included in Note 12, “Fair Value Election and Measurement.” The adoption of these disclosure requirements had no impact on the Company’s financial position, results of operations, or EPS.
In July 2010, the FASB issued ASU 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.” The ASU requires more disclosures about the credit quality of financing receivables, which include loans, lease receivables, and other long-term receivables, and the credit allowances held against them. The disclosure requirements that were effective as of December 31, 2010 are included in Note 3, “Loans,” and Note 4, “Allowance for Credit Losses.” Disclosures about activity that occurs during a reporting period were effective for the interim reporting period ending March 31, 2011 are also included in Note 3, “Loans,” and Note 4, “Allowance for Credit Losses.” The adoption of the ASU did not have an impact on the Company’s financial position, results of operations, or EPS.

In December 2010, the FASB issued ASU 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts.” The update requires companies to perform step 2 of the goodwill impairment analysis if the carrying value of a reporting unit is zero or negative and it is more likely than not that goodwill for that reporting unit is impaired. The adoption of the ASU as of January 1, 2011 did not have an impact on the Company’s financial position, results of operations, or EPS.
In April 2011, the FASB issued ASU 2011-02, “Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring.” The ASU provides additional guidance to assist creditors in determining whether a modification of a receivable meets the criteria to be considered a TDR, both for purposes of recognizing loan losses and additional disclosures regarding TDRs. A modification of a credit arrangement constitutes a TDR if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. The clarifications for classification apply to all restructurings occurring on or after January 1, 2011. The measurement of impairment for those newly identified TDRs was applied prospectively beginning on July 1, 2011. The related disclosures, which were previously deferred by ASU 2011-01, were required for the interim reporting period ending September 30, 2011 and subsequent reporting periods. The required disclosures and impact as a result of adoption are included in Note 3, “Loans.” The adoption of the ASU did not have a significant impact on the Company’s financial position, results of operations, or EPS.
In April 2011, the FASB issued ASU 2011-03, “Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements.” A repurchase agreement is a transaction in which a company sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date. The determination of whether the transaction is accounted for as a sale or a collateralized financing is determined by assessing whether the seller retains effective control of the financial instrument. The ASU changes the assessment of effective control by removing the criterion that requires the seller to have the ability to repurchase or redeem financial assets with substantially the same terms, even in the event of default by the buyer and the collateral maintenance implementation guidance related to that criterion. The Company will apply the new guidance to repurchase agreements entered into or amended after January 1, 2012. The Company does not expect the ASU to have a significant impact on the Company’s financial position, results of operations, or EPS.
In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” The primary purpose of the ASU is to conform the language in the fair value measurements guidance in U.S. GAAP and IFRS. The ASU also clarifies how to apply existing fair value measurement and disclosure requirements. Further, the ASU requires additional disclosures about transfers between level 1 and 2 of the fair value hierarchy, quantitative information for level 3 inputs, and the level of the fair value measurement hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed. The ASU is effective for the interim reporting period ending March 31, 2012. The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company’s financial position, results of operations, or EPS.
In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income.” The ASU requires presentation of the components of comprehensive income in either a continuous statement of comprehensive income or two separate but consecutive statements. The update does not change the items presented in OCI and does not affect the calculation or reporting of EPS. The guidance is effective on January 1, 2012 and must be applied retrospectively for all periods presented. The Company is in the process of evaluating the presentation options; however, adoption of the ASU will not have an impact on the Company’s financial position, results of operations, or EPS.
In September 2011, the FASB issued ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment.” The ASU amends interim and annual goodwill impairment testing requirements. Under the ASU, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The more likely than not threshold is defined as having a likelihood of more than 50 percent. The guidance is effective for annual and interim goodwill impairment tests beginning January 1, 2012 with early adoption permitted. The Company has not elected to early adopt the amendments; however, adoption of the ASU will not have an impact on the Company's financial position, results of operations, or EPS.
Securities Available for Sale (Tables)
Securities Portfolio Composition 
 
September 30, 2011
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$374

 

$12

 

$—

 

$386

Federal agency securities
2,527

 
118

 
—

 
2,645

U.S. states and political subdivisions
471

 
21

 
2

 
490

MBS - agency
19,302

 
728

 
—

 
20,030

MBS - private
319

 
1

 
33

 
287

CDO/CLO securities
337

 
—

 
5

 
332

ABS
534

 
13

 
7

 
540

Corporate and other debt securities
53

 
2

 
1

 
54

Coke common stock
—

 
2,027

 
—

 
2,027

Other equity securities1
710

 
1

 
—

 
711

Total securities AFS

$24,627

 

$2,923

 

$48

 

$27,502

 
 
 
 
 
 
 
 
 
December 31, 2010
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$5,446

 

$115

 

$45

 

$5,516

Federal agency securities
1,883

 
19

 
7

 
1,895

U.S. states and political subdivisions
565

 
17

 
3

 
579

MBS - agency
14,014

 
372

 
28

 
14,358

MBS - private
378

 
3

 
34

 
347

CDO/CLO securities
50

 
—

 
—

 
50

ABS
798

 
15

 
5

 
808

Corporate and other debt securities
464

 
19

 
1

 
482

Coke common stock
—

 
1,973

 
—

 
1,973

Other equity securities1
886

 
1

 
—

 
887

Total securities AFS

$24,484

 

$2,534

 

$123

 

$26,895

1At September 30, 2011, other equity securities included the following securities at cost: $171 million in FHLB of Atlanta stock, $391 million in Federal Reserve Bank stock, and $148 million in mutual fund investments. At December 31, 2010, other equity securities included the following securities at cost: $298 million in FHLB of Atlanta stock, $391 million in Federal Reserve Bank stock, and $197 million in mutual fund investments.
Amortized Cost and Fair Value of Investments in Debt Securities by Estimated Average Life 
(Dollars in millions)
1 Year
or Less      
 
1-5
Years      
 
5-10
Years      
 
After 10      
Years
 
Total        
Distribution of Maturities:
 
 
 
 
 
 
 
 
 
Amortized Cost
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$9

 

$213

 

$152

 

$—

 

$374

Federal agency securities
73

 
2,209

 
189

 
56

 
2,527

U.S. states and political subdivisions
136

 
245

 
26

 
64

 
471

MBS - agency
1,101

 
11,236

 
4,050

 
2,915

 
19,302

MBS - private
31

 
141

 
130

 
17

 
319

CDO/CLO securities
—

 
237

 
100

 
—

 
337

ABS
328

 
204

 
2

 
—

 
534

Corporate and other debt securities
7

 
4

 
17

 
25

 
53

Total debt securities

$1,685

 

$14,489

 

$4,666

 

$3,077

 

$23,917


Fair Value
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$9

 

$224

 

$153

 

$—

 

$386

Federal agency securities
74

 
2,309

 
204

 
58

 
2,645

U.S. states and political subdivisions
139

 
260

 
27

 
64

 
490

MBS - agency
1,138

 
11,644

 
4,246

 
3,002

 
20,030

MBS - private
28

 
129

 
114

 
16

 
287

CDO/CLO securities
—

 
234

 
98

 
—

 
332

ABS
335

 
203

 
2

 
—

 
540

Corporate and other debt securities
7

 
4

 
18

 
25

 
54

Total debt securities

$1,730

 

$15,007

 

$4,862

 

$3,165

 

$24,764

Securities in a Continuous Unrealized Loss Position 
 
September 30, 2011
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized  
Losses
Temporarily impaired securities
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$34

 

$—

 

$—

 

$—

 

$34

 

$—

U.S. states and political subdivisions
2

 
—

 
32

 
2

 
34

 
2

MBS - agency
52

 
—

 
—

 
—

 
52

 
—

MBS - private
9

 
—

 
22

 
3

 
31

 
3

CDO/CLO securities
333

 
5

 
—

 
—

 
333

 
5

ABS
—

 
—

 
11

 
5

 
11

 
5

Corporate and other debt securities
—

 
—

 
2

 
1

 
2

 
1

Total temporarily impaired securities

430

 
5

 
67

 
11

 
497

 
16

Other-than-temporarily impaired securities1
 
 
 
 
 
 
 
 
 
 
 
MBS - private
18

 
1

 
220

 
29

 
238

 
30

ABS
3

 
1

 
2

 
1

 
5

 
2

Total other-than-temporarily impaired securities
21

 
2

 
222

 
30

 
243

 
32

Total impaired securities

$451

 

$7

 

$289

 

$41

 

$740

 

$48

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2010
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
   Value   
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Temporarily impaired securities
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$2,010

 

$45

 

$—

 

$—

 

$2,010

 

$45

Federal agency securities
1,426

 
7

 
—

 
—

 
1,426

 
7

U.S. states and political subdivisions
45

 
1

 
35

 
2

 
80

 
3

MBS - agency
3,497

 
28

 
—

 
—

 
3,497

 
28

MBS - private
18

 
—

 
17

 
3

 
35

 
3

ABS
—

 
—

 
14

 
4

 
14

 
4

Corporate and other debt securities
—

 
—

 
3

 
1

 
3

 
1

Total temporarily impaired securities
6,996

 
81

 
69

 
10

 
7,065

 
91


Other-than-temporarily impaired securities1
 
 
 
 
 
 
 
 
 
 
 
MBS - private
—

 
—

 
286

 
31

 
286

 
31

ABS
4

 
1

 
—

 
—

 
4

 
1

Total other-than-temporarily impaired securities
4

 
1

 
286

 
31

 
290

 
32

Total impaired securities

$7,000

 

$82

 

$355

 

$41

 

$7,355

 

$123

1Includes OTTI securities for which credit losses have been recorded in earnings in current or prior periods.
Gross Realized Gains and Losses on Sales and OTTI on Securities AFS 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Gross realized gains

$4

 

$69

 

$180

 

$147

Gross realized losses
(2
)
 
—

 
(80
)
 
(17
)
OTTI
—

 
—

 
(2
)
 
(2
)
Net securities gains

$2

 

$69

 

$98

 

$128

Other Than Temporary Impairment Losses On Investment Securities [Table Text Block] 
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2011
 
2010
 
2011
 
2010
(Dollars in millions)
 
 
 
 
MBS - Private    
 
MBS - Private    
OTTI1

$—

 

$—

 

$3

 

$2

Portion of losses recognized in OCI (before taxes)
—

 
—

 
(1
)
 
—

Net impairment losses recognized in earnings

$—

 

$—

 

$2

 

$2

1 The initial OTTI amount represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent impairments of the same security, amount represents additional declines in the fair value subsequent to the previously recorded OTTI, if applicable, until such time the security is no longer in an unrealized loss position.
Rollforward of Credit Losses Recognized in Earnings Related to Securities 
(Dollars in millions)
 
Balance, as of January 1, 2011

$20

Additions:
 
OTTI credit losses on previously impaired securities
2

Reductions:
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
Balance, as of September 30, 2011

$21

 
 
Balance, as of January 1, 2010

$22

Additions/Reductions:1
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
Balance, as of September 30, 2010

$21

1 During the nine months ended September 30, 2010, the Company recognized $2 million of OTTI through earnings on debt securities in which no portion of the OTTI loss was included in OCI at any time during the period. OTTI related to these securities are excluded from this amount.
Measurement Of Investment Credit Losses Assumptions [Table Text Block] 
 
September 30, 2011
 
September 30, 2010
Current default rate
4 - 8%
 
2 - 7%
Prepayment rate
12 - 22%
 
14 - 22%
Loss severity
39 - 44%
 
37 - 46%
Loans (Tables)
Composition of Loan Portfolio 
(Dollars in millions)
September 30,
2011
 
December 31,
2010
Commercial loans:
 
 
 
 Commercial & industrial1

$47,985

 

$44,753

Commercial real estate
5,330

 
6,167

Commercial construction
1,390

 
2,568

Total commercial loans
54,705

 
53,488

Residential loans:
 
 
 
Residential mortgages - guaranteed
4,449

 
4,520

 Residential mortgages - nonguaranteed2
23,517

 
23,959

Home equity products
15,980

 
16,751

Residential construction
1,046

 
1,291

Total residential loans
44,992

 
46,521

Consumer loans:
 
 
 
Guaranteed student loans
5,333

 
4,260

Other direct
1,945

 
1,722

Indirect
10,003

 
9,499

Credit cards
497

 
485

Total consumer loans
17,778

 
15,966

LHFI

$117,475

 

$115,975

LHFS

$2,243

 

$3,501

1Includes $3 million and $4 million of loans carried at fair value at September 30, 2011 and December 31, 2010, respectively.
2Includes $449 million and $488 million of loans carried at fair value at September 30, 2011 and December 31, 2010, respectively.
LHFI by Credit Quality Indicator 
 
Commercial & industrial
 
Commercial real estate
 
Commercial construction
(Dollars in millions)
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
Credit rating:
 
 
 
 
 
 
 
 
 
 
 
Pass

$45,823

 

$42,140

 

$3,763

 

$4,316

 

$600

 

$836

Criticized accruing
1,682

 
2,029

 
1,227

 
1,509

 
405

 
771

Criticized nonaccruing
480

 
584

 
340

 
342

 
385

 
961

Total

$47,985

 

$44,753

 

$5,330

 

$6,167

 

$1,390

 

$2,568

 
 
Residential mortgages  -
   nonguaranteed 2
 
Home equity products
 
Residential construction
(Dollars in millions)
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
700 and above

$16,205

 

$15,920

 

$11,348

 

$11,673

 

$695

 

$828

620 - 699
4,184

 
4,457

 
2,857

 
2,897

 
215

 
258

  Below 6201
3,128

 
3,582

 
1,775

 
2,181

 
136

 
205

Total

$23,517

 

$23,959

 

$15,980

 

$16,751

 

$1,046

 

$1,291

 
 
Consumer  - other direct3
 
Consumer - indirect
 
Consumer - credit cards
(Dollars in millions)
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
 
September 30, 2011
 
December 31,
2010
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
700 and above

$1,187

 

$973

 

$7,530

 

$6,780

 

$278

 

$258

620 - 699
231

 
231

 
1,764

 
1,799

 
148

 
149

  Below 6201
86

 
105

 
709

 
920

 
71

 
78

Total

$1,504

 

$1,309

 

$10,003

 

$9,499

 

$497

 

$485

1For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.
2Excludes $4.4 billion and $4.5 billion at September 30, 2011 and December 31, 2010, respectively, of federally guaranteed residential loans. At both September 30, 2011 and December 31, 2010, the majority of these loans had FICO scores of 700 and above.
3Excludes $441 million and $413 million as of September 30, 2011 and December 31, 2010, respectively, of private-label student loans with third party insurance. At both September 30, 2011 and December 31, 2010, the majority of these loans had FICO scores of 700 and above.

Payment Status for the LHFI Portfolio 
 
As of September 30, 2011
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
  Nonaccruing3   
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
   Commercial & industrial1

$47,366

 

$74

 

$66

 

$479

 

$47,985

Commercial real estate
4,979

 
9

 
1

 
341

 
5,330

Commercial construction
1,004

 
1

 
—

 
385

 
1,390

Total commercial loans
53,349

 
84

 
67

 
1,205

 
54,705

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
3,237

 
179

 
1,033

 
—

 
4,449

   Residential mortgages - nonguaranteed2
21,728

 
342

 
30

 
1,417

 
23,517

Home equity products
15,417

 
223

 
—

 
340

 
15,980

Residential construction
771

 
22

 
3

 
250

 
1,046

Total residential loans
41,153

 
766

 
1,066

 
2,007

 
44,992

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
4,245

 
413

 
675

 
—

 
5,333

Other direct
1,918

 
15

 
5

 
7

 
1,945

Indirect
9,919

 
60

 
4

 
20

 
10,003

Credit cards
482

 
8

 
7

 
—

 
497

Total consumer loans
16,564

 
496

 
691

 
27

 
17,778

Total LHFI

$111,066

 

$1,346

 

$1,824

 

$3,239

 

$117,475

1Includes $3 million of loans carried at fair value.
2Includes $449 million of loans carried at fair value.
3Total nonaccruing loans past due 90 days or more totaled $2.5 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.
 
 
As of December 31, 2010
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
  Nonaccruing3   
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
   Commercial & industrial1

$44,046

 

$111

 

$12

 

$584

 

$44,753

Commercial real estate
5,794

 
27

 
4

 
342

 
6,167

Commercial construction
1,595

 
11

 
1

 
961

 
2,568

Total commercial loans
51,435

 
149

 
17

 
1,887

 
53,488

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
3,469

 
167

 
884

 
—

 
4,520

   Residential mortgages - nonguaranteed2
21,916

 
456

 
44

 
1,543

 
23,959

Home equity products
16,162

 
234

 
—

 
355

 
16,751

Residential construction
953

 
42

 
6

 
290

 
1,291

Total residential loans
42,500

 
899

 
934

 
2,188

 
46,521

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
3,281

 
383

 
596

 
—

 
4,260

Other direct
1,692

 
15

 
5

 
10

 
1,722

Indirect
9,400

 
74

 
—

 
25

 
9,499

Credit cards
460

 
12

 
13

 
—

 
485

Total consumer loans
14,833

 
484

 
614

 
35

 
15,966

Total LHFI

$108,768

 

$1,532

 

$1,565

 

$4,110

 

$115,975

1Includes $4 million of loans carried at fair value.
2Includes $488 million of loans carried at fair value.
3Total nonaccruing loans past due 90 days or more totaled $3.3 billion. Nonaccruing loans past due fewer than 90 days include TDRs.


LHFI Considered Impaired 
 
As of September 30, 2011
 
For the Three Months Ended
September 30, 2011
 
For the Nine Months Ended
September 30, 2011
(Dollars in millions)
Unpaid
Principal  
Balance
 
Amortized  
Cost1
 
Related
Allowance  
 
Average
Amortized  
Cost
 
Interest
Income
Recognized2  
 
Average
Amortized  
Cost
 
Interest
Income
Recognized2  
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial

$97

 

$96

 

$—

 

$96

 

$1

 

$101

 

$1

Commercial real estate
89

 
85

 
—

 
81

 
1

 
69

 
2

Commercial construction
93

 
91

 
—

 
74

 
—

 
92

 
—

Total commercial loans
279

 
272

 
—

 
251

 
2

 
262

 
3

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
123

 
118

 
21

 
109

 
1

 
123

 
1

Commercial real estate
129

 
123

 
27

 
120

 
—

 
131

 
1

Commercial construction
237

 
198

 
31

 
192

 
1

 
301

 
2

Total commercial loans
489

 
439

 
79

 
421

 
2

 
555

 
4

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,848

 
2,462

 
278

 
2,471

 
22

 
2,462

 
66

Home equity products
544

 
508

 
95

 
496

 
7

 
464

 
17

Residential construction
253

 
213

 
25

 
196

 
2

 
196

 
5

Total residential loans
3,645

 
3,183

 
398

 
3,163

 
31

 
3,122

 
88

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Other direct
12

 
12

 
2

 
12

 
—

 
12

 
—

Total impaired loans

$4,425

 

$3,906

 

$479

 

$3,847

 

$35

 

$3,951

 

$95

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce the net book balance.
2Of the interest income recognized for the three and nine months ended September 30, 2011, cash basis interest income was $6 million and $19 million, respectively.
 
 
As of December 31, 2010
(Dollars in millions)
Unpaid
Principal    
Balance
 
Amortized    
Cost1
 
Related
Allowance    
Impaired loans with no related allowance recorded:
 
 
 
 
 
Commercial loans:
 
 
 
 
 
Commercial & industrial

$86

 

$67

 

$—

Commercial real estate
110

 
86

 
—

Commercial construction
67

 
52

 
—

Total commercial loans
263

 
205

 
—

Impaired loans with an allowance recorded:
 
 
 
 
 
Commercial loans:
 
 
 
 
 
Commercial & industrial
123

 
96

 
18

Commercial real estate
103

 
81

 
19

Commercial construction
673

 
524

 
138

Total commercial loans
899

 
701

 
175

Residential loans:
 
 
 
 
 
Residential mortgages - nonguaranteed
2,785

 
2,467

 
309

Home equity products
503

 
503

 
93

Residential construction
226

 
196

 
26

Total residential loans
3,514

 
3,166

 
428

Consumer loans:
 
 
 
 
 
Other direct
11

 
11

 
2

Total impaired loans

$4,687

 

$4,083

 

$605

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce net book balance.

Nonperforming Assets 
(Dollars in millions)
September 30, 2011
 
December 31,
2010
Nonaccrual/NPLs:
 
 
 
Commercial loans:
 
 
 
Commercial & industrial1

$479

 

$584

Commercial real estate
341

 
342

Commercial construction
385

 
961

Residential loans:
 
 
 
Residential mortgages - nonguaranteed2
1,417

 
1,543

Home equity products
340

 
355

Residential construction
250

 
290

Consumer loans:
 
 
 
Other direct
7

 
10

Indirect
20

 
25

Total nonaccrual/NPLs
3,239

 
4,110

OREO3
509

 
596

Other repossessed assets
15

 
52

Total nonperforming assets

$3,763

 

$4,758

1Includes $3 million and $4 million of loans carried at fair value at September 30, 2011 and December 31, 2010, respectively.
2Includes $23 million and $24 million of loans carried at fair value at September 30, 2011 and December 31, 2010 respectively.
3Does not include foreclosed real estate related to loans insured by the FHA or the VA. Proceeds due from the FHA and the VA are recorded as a receivable in other assets until the funds are received and the property is conveyed. The receivable amount related to proceeds due from the FHA or the VA totaled $134 million and $195 million at September 30, 2011 and December 31, 2010, respectively.
Troubled Debt Restructurings on Financing Receivables [Table Text Block] 
 
Three Months Ended September 30, 2011
 
 
 
 
 
Principal Forgiveness
 
 
 
Number of
 
Rate Modification
 
and
 
 
(Dollars in millions)
Loans Modified
 
and/or Term Extension1
 
Other Concessions2
 
Total
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
208
 

$51

 

$—

 

$51

Commercial real estate
9
 
14
 
2

 
16
Commercial construction
11
 
56
 
9

 
65
Residential loans:
 
 
 
 
 
 
 
Residential mortgages
304
 
61
 
—

 
61
Home equity products
569
 
42
 
—

 
42
Residential construction
266
 
35
 
—

 
35
Consumer loans:
 
 
 
 
 
 
 
Other direct
7
 
—

 
—

 
—

Credit cards
716
 
4
 
—

 
4
Total TDRs
2,090
 

$263

 

$11

 

$274

1For these loans, borrowers received either a modification of the loan's contractual interest rate, an extension of the loan's contractual maturity date, or both. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three months ended September 30, 2011.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness for the Commercial segment during the three months ended September 30, 2011 was $3 million, substantially all of which related to Commercial construction. There was no principal forgiveness for Residential or Consumer loans during the three months ended September 30, 2011.

 
Nine Months Ended September 30, 2011
 
 
 
 
 
Principal Forgiveness
 
 
 
Number of
 
Rate Modification
 
and
 
 
(Dollars in millions)
Loans Modified
 
and/or Term Extension1
 
Other Concessions2
 
Total
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
382
 

$80

 

$26

 

$106

Commercial real estate
34
 
43
 
18

 
61
Commercial construction
57
 
80

 
22

 
102
Residential loans:
 
 
 
 
 
 
 
Residential mortgages
851
 
215
 
2

 
217
Home equity products
1,308
 
104
 
—

 
104
Residential construction
317
 
45
 
—

 
45
Consumer loans:
 
 
 
 
 
 
 
Other direct
61
 
3

 
—

 
3

Credit cards
1,937
 
11
 
—

 
11
Total TDRs
4,947
 

$581

 

$68

 

$649

1For these loans, borrowers received either a modification of the loan's contractual interest rate, an extension of the loan's contractual maturity date, or both. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the nine months ended September 30, 2011.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness for the Commercial segment during the nine months ended September 30, 2011 was $6 million, substantially all of which related to Commercial construction. There was no principal forgiveness for Residential or Consumer loans during the nine months ended September 30, 2011.

TroubledDebtRestructuingDefault [Table Text Block] 
 
Three Months Ended September 30, 20111
 
Nine Months Ended September 30, 20112
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
23
 

$6

 
31
 

$8

Commercial real estate
5
 
21

 
8
 
21

Commercial construction
1
 
—

 
7
 
11

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
60
 
19

 
230
 
66

Home equity products
60
 
6

 
108
 
10

Residential construction
6
 
1

 
24
 
3

Consumer loans:
 
 
 
 
 
 
 
Other direct
2
 
—

 
2
 
—

Credit cards
166
 
1

 
321
 
2

Total TDRs
323
 

$54

 
731
 

$121

1For the three months ended September 30, 2011, this represents defaults on loans that were first modified between the periods July 1, 2010 and September 30, 2011.
2For the nine months ended September 30, 2011, this represents defaults on loans that were first modified between the periods January 1, 2010 and September 30, 2011.
Allowance for Credit Losses (Tables)
Activity in the Allowance for Credit Losses 
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Balance at beginning of period

$2,795

 

$3,216

 

$3,032

 

$3,235

Provision for loan losses
348

 
620

 
1,194

 
2,199

Benefit for unfunded commitments
(1
)
 
(5
)
 
(8
)
 
(60
)
Loan charge-offs
(536
)
 
(725
)
 
(1,714
)
 
(2,355
)
Loan recoveries
44

 
35

 
146

 
122

Balance at end of period

$2,650

 

$3,141

 

$2,650

 

$3,141

Components:
 
 
 
 
 
 
 
ALLL

$2,600

 

$3,086

 
 
 
 
  Unfunded commitments reserve1
50

 
55

 
 
 
 
Allowance for credit losses

$2,650

 

$3,141

 
 
 
 
1The unfunded commitments reserve is separately recorded in other liabilities in the Consolidated Balance Sheets.
Activity in the ALLL by Segment 
 
Three Months Ended September 30, 2011
(Dollars in millions)
Commercial  
 
Residential  
 
Consumer  
 
Total  
Balance at beginning of period

$1,200

 

$1,395

 

$149

 

$2,744

Provision for loan losses
86

 
236

 
26

 
348

Loan charge-offs
(214
)
 
(282
)
 
(40
)
 
(536
)
Loan recoveries
29

 
3

 
12

 
44

Balance at end of period

$1,101

 

$1,352

 

$147

 

$2,600

 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Commercial  
 
Residential  
 
Consumer  
 
Total  
Balance at beginning of period

$1,447

 

$1,538

 

$171

 

$3,156

Provision for loan losses
186

 
392

 
42

 
620

Loan charge-offs
(251
)
 
(433
)
 
(41
)
 
(725
)
Loan recoveries
20

 
5

 
10

 
35

Balance at end of period

$1,402

 

$1,502

 

$182

 

$3,086


 
Nine Months Ended September 30, 2011
(Dollars in millions)
Commercial    
 
Residential    
 
Consumer    
 
Total        
Balance at beginning of period

$1,303

 

$1,498

 

$173

 

$2,974

Provision for loan losses
318

 
810

 
66

 
1,194

Loan charge-offs
(619
)
 
(970
)
 
(125
)
 
(1,714
)
Loan recoveries
99

 
14

 
33

 
146

Balance at end of period

$1,101

 

$1,352

 

$147

 

$2,600

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total        
Balance at beginning of period

$1,353

 

$1,592

 

$175

 

$3,120

Provision for loan losses
671

 
1,406

 
122

 
2,199

Loan charge-offs
(694
)
 
(1,511
)
 
(150
)
 
(2,355
)
Loan recoveries
72

 
15

 
35

 
122

Balance at end of period

$1,402

 

$1,502

 

$182

 

$3,086

Loans Held for Investment portfolio and Related Allowance for Loan and Lease Losses 
 
As of September 30, 2011
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value         
 
Associated
ALLL         
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
Individually evaluated

$711

 

$79

 

$3,183

 

$398

 

$12

 

$2

 

$3,906

 

$479

Collectively evaluated
53,991

 
1,022

 
41,360

 
954

 
17,766

 
145

 
113,117

 
2,121

Total evaluated
54,702

 
1,101

 
44,543

 
1,352

 
17,778

 
147

 
117,023

 
2,600

LHFI at fair value
3

 
—

 
449

 
—

 
—

 
—

 
452

 
—

Total LHFI

$54,705

 

$1,101

 

$44,992

 

$1,352

 

$17,778

 

$147

 

$117,475

 

$2,600

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2010
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value         
 
Associated
ALLL         
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
 
Carrying
Value      
 
Associated
ALLL      
Individually evaluated

$906

 

$175

 

$3,166

 

$428

 

$11

 

$2

 

$4,083

 

$605

Collectively evaluated
52,578

 
1,128

 
42,867

 
1,070

 
15,955

 
171

 
111,400

 
2,369

Total evaluated
53,484

 
1,303

 
46,033

 
1,498

 
15,966

 
173

 
115,483

 
2,974

LHFI at fair value
4

 
—

 
488

 
—

 
—

 
—

 
492

 
—

Total LHFI

$53,488

 

$1,303

 

$46,521

 

$1,498

 

$15,966

 

$173

 

$115,975

 

$2,974

Goodwill and Other Intangible Assets (Tables)
Changes in Carrying Amount of Goodwill by Reportable Segment 
(Dollars in millions)
Retail &
Commercial
 
Retail
Banking
 
Diversified
Commercial
Banking
 
CIB
 
W&IM
 
Total
Balance, January 1, 2011

$—

 

$4,854

 

$928

 

$180

 

$361

 

$6,323

Contingent consideration
—

 
—

 
—

 
—

 
1

 
1

Purchase of the assets of an asset management business
—

 
—

 
—

 
—

 
20

 
20

Balance, September 30, 2011

$—

 

$4,854

 

$928

 

$180

 

$382

 

$6,344

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2010

$5,739

 

$—

 

$—

 

$223

 

$357

 

$6,319

Intersegment transfers
(5,739
)
 
4,854

 
928

 
(43
)
 
—

 
—

Contingent consideration
—

 
—

 
—

 
—

 
4

 
4

Balance, September 30, 2010

$—

 

$4,854

 

$928

 

$180

 

$361

 

$6,323

Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] 
(Dollars in millions)
Core Deposit  
Intangibles
 
MSRs -
LOCOM
 
MSRs -
Fair Value
 
Other
 
Total
Balance, January 1, 2011

$67

 

$—

 

$1,439

 

$65

 

$1,571

Amortization
(23
)
 
—

 
—

 
(11
)
 
(34
)
MSRs originated
—

 
—

 
183

 
—

 
183

Sale of MSRs
—

 
—

 
(7
)
 
—

 
(7
)
Changes in fair value:
 
 
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
—

 
(443
)
 
—

 
(443
)
Other changes in fair value 2
—

 
—

 
(139
)
 
—

 
(139
)
Other
—

 
—

 
—

 
7

 
7

Balance, September 30, 2011

$44

 

$—

 

$1,033

 

$61

 

$1,138

 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2010

$104

 

$604

 

$936

 

$67

 

$1,711

Designated at fair value (transfers from amortized cost)
—

 
(604
)
 
604

 
—

 
—

Amortization
(29
)
 
—

 
—

 
(10
)
 
(39
)
MSRs originated
—

 
—

 
198

 
—

 
198

Changes in fair value:
 
 
 
 
 
 
 
 
 
Due to fair value election
—

 
—

 
145

 
—

 
145

Due to changes in inputs and assumptions 1
—

 
—

 
(643
)
 
—

 
(643
)
Other changes in fair value 2
—

 
—

 
(168
)
 
—

 
(168
)
Balance, September 30, 2010

$75

 

$—

 

$1,072

 

$57

 

$1,204

1 Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.
2 Represents changes due to the collection of expected cash flows, net of accretion, due to the passage of time.
Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs 
(Dollars in millions)
September 30, 2011
 
December 31, 2010
Fair value of retained MSRs

$1,033

 

$1,439

Prepayment rate assumption (annual)
18
%
 
12
%
Decline in fair value from 10% adverse change

$70

 

$50

Decline in fair value from 20% adverse change
134

 
95

Discount rate (annual)
11
%
 
12
%
Decline in fair value from 10% adverse change

$36

 

$68

Decline in fair value from 20% adverse change
70

 
130

Weighted-average life (in years)
4.4

 
6.2

Weighted-average coupon
5.2
%
 
5.4
%
Certain Transfers of Financial Assets and Variable Interest Entities (Tables)
Asset Transfers in Which the Company has Continuing Economic Involvement 
 
Three Months Ended September 30, 2011
(Dollars in millions)
Residential  
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student  
Loans
 
CDO
  Securities  
 
Total  
Cash flows on interests held

$11

 

$—

 

$—

 

$—

 

$11

Servicing or management fees
1

 
2

 
—

 
—

 
3

 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Residential
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student
Loans
 
CDO
Securities
 
Total 
Cash flows on interests held

$14

 

$1

 

$5

 

$1

 

$21

Servicing or management fees
1

 
3

 
—

 
—

 
4

 
 
Nine Months Ended September 30, 2011
(Dollars in millions)
Residential
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student
Loans
 
CDO
Securities
 
Total 
Cash flows on interests held

$39

 

$1

 

$—

 

$1

 

$41

Servicing or management fees
3

 
8

 
—

 
—

 
11

 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Residential
Mortgage
Loans
 
Commercial
and Corporate
Loans
 
Student
Loans
 
CDO
Securities
 
Total 
Cash flows on interests held

$42

 

$3

 

$8

 

$1

 

$54

Servicing or management fees
3

 
10

 
—

 
—

 
13

Portfolio Balances and Delinquency Balances Based on 90 Days or More Past Due and Net Charge-offs Related to Managed Portfolio Loans 
 
(Dollars in millions)
Principal Balance
 
Past Due
 
Net Charge-offs
 
September 30, 2011
 
December 31, 2010
 
September 30, 2011
 
December 31, 2010
 
For the Three Months Ended
September 30
 
For the Nine Months Ended
September 30
 
 
2011
 
2010
2011
 
2010
 
Type of loan:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial

$54,705

 

$53,488

 

$1,272

 

$1,904

 

$185

 

$231

 

$520

 

$622

 
Residential
44,992

 
46,521

 
3,073

 
3,122

 
279

 
428

 
956

 
1,496

 
Consumer
17,778

 
15,966

 
718

 
649

 
28

 
31

 
92

 
115

 
Total loan portfolio
117,475

 
115,975

 
5,063

 
5,675

 
492

 
690

 
1,568

 
2,233

 
Managed securitized loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
2,001

 
2,244

 
55

 
44

 
—

 
—

 
—

 
22

 
Residential
119,255

 
120,429

 
3,735

1 
3,497

1 
12

 
12

 
39

 
34

 
Total managed loans

$238,731

 

$238,648

 

$8,853

 

$9,216

 

$504

 

$702

 

$1,607

 

$2,289

1Excludes loans that have completed the foreclosure or short sale process (i.e., involuntary prepayments).

Net Income/(Loss) Per Common Share (Tables)
Reconciliation of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders
 
Three Months Ended September 30
 
Nine Months Ended September 30
(In millions, except per share data)
2011
 
2010
 
2011
 
2010
Net income

$215

 

$153

 

$573

 

$5

Series A preferred dividends
(2
)
 
(2
)
 
(5
)
 
(6
)
Dividends and accretion of discount on U.S. Treasury preferred stock
—

 
(67
)
 
(66
)
 
(200
)
Accelerated accretion for repurchase of U.S. Treasury preferred stock
—

 
—

 
(74
)
 
—

Dividends and undistributed earnings allocated to unvested shares
(2
)
 
—

 
(4
)
 
—

Net income/(loss) available to common shareholders

$211

 

$84

 

$424

 

($201
)
Average basic common shares
532

 
496

 
521

 
495

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options
1

 
1

 
2

 
1

Restricted stock
2

 
2

 
2

 
2

Average diluted common shares
535

 
499

 
525

 
498

Net income/(loss) per average common share - diluted

$0.39

 

$0.17

 

$0.81

 

($0.41
)
Net income/(loss) per average common share - basic

$0.40

 

$0.17

 

$0.81

 

($0.41
)
Long-Term Debt and Capital (Tables)
The Company's Capital Ratios
 
September 30, 2011
 
December 31, 2010
(Dollars in millions)
Amount      
 
Ratio      
 
Amount      
 
Ratio      
SunTrust Banks, Inc.
 
 
 
 
 
 
 
Tier 1 common

$12,188

 
9.31
%
 
$10,737
 
8.08
%
Tier 1 capital
14,531

 
11.10

 
18,156

 
13.67

Total capital
18,211

 
13.91

 
21,967

 
16.54

Tier 1 leverage
 
 
8.90

 
 
 
10.94


SunTrust Bank
 
 
 
 
 
 
 
Tier 1 capital

$13,873

 
10.75
%
 
$13,120
 
10.05
%
Total capital
17,048

 
13.21

 
16,424

 
12.58

Tier 1 leverage
 
 
8.74

 
 
 
8.33

Employee Benefit Plans (Tables)
Assumptions Used in Estimating the Grant Date Fair Value of Options Using the Black-Scholes Option Pricing Model 
 
Nine Months Ended September 30
 
2011
 
2010
Dividend yield
0.75
%
 
0.17
%
Expected stock price volatility
34.87

 
56.09

Risk-free interest rate (weighted average)
2.48

 
2.80

Expected life of options
6 years    

 
6 years    

Stock-Based Compensation Expense Recognized in Noninterest Expense 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Stock-based compensation expense:
 
 
 
 
 
 
 
Stock options

$4

 

$4

 

$11

 

$11

Restricted stock
8

 
9

 
25

 
31

Restricted stock units
1

 
—

 
9

 
—

Total stock-based compensation expense

$13

 

$13

 

$45

 

$42

Net Periodic Benefit Cost 
 
Three Months Ended September 30
 
2011
 
2010
(Dollars in millions)
Retirement
Benefits Plans
 
Other
  Postretirement  
Benefits
 
  Retirement  
Benefits Plans
 
Other
  Postretirement  
Benefits
Service cost

$18

 

$—

 

$17

 

$—

Interest cost
32

 
3

 
33

 
3

Expected return on plan assets
(47
)
 
(2
)
 
(46
)
 
(2
)
Amortization of prior service cost
(5
)
 
—

 
(3
)
 
—

Recognized net actuarial loss
11

 
—

 
16

 
—

Net periodic benefit cost

$9

 

$1

 

$17

 

$1

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30
 
2011
 
2010
(Dollars in millions)
Retirement
Benefits Plans
 
Other
  Postretirement  
Benefits
 
 Retirement  
Benefits Plans
 
Other
  Postretirement  
Benefits
Service cost

$53

 

$—

 

$52

 

$—

Interest cost
97

 
7

 
97

 
7

Expected return on plan assets
(142
)
 
(6
)
 
(137
)
 
(6
)
Amortization of prior service cost
(14
)
 
—

 
(9
)
 
—

Recognized net actuarial loss
32

 
1

 
46

 
1

Net periodic benefit cost

$26

 

$2

 

$49

 

$2

Derivative Financial Instruments (Tables)
Derivative Positions 
 
As of September 30, 20118
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet    
Classification
 
Notional
Amounts    
 
Fair
Value    
 
Balance Sheet    
Classification
 
Notional
Amounts    
 
Fair
Value    
 
Derivatives designated in cash flow hedging relationships 1
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$146

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
15,850

  
1,133

 
Trading liabilities
 
—

  
—

  
Total
 
 
17,397

  
1,133

 
 
 
1,547

  
146

  
Derivatives designated in fair value hedging relationships 2
Interest rate contracts hedging:
Fixed rate debt
Trading assets
 
1,000

  
59

 
Trading liabilities
 
—

  
—

  
Total
 
 
1,000

  
59

 
 
 
—

  
—

  
Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
437

  
21

 
Trading liabilities
 
60

  
10

  
MSRs
Other assets
 
11,633

  
476

 
Other liabilities
 
9,860

  
46

  
LHFS, IRLCs, LHFI-FV
Other assets
 
2,856

4 
17

 
Other liabilities
 
5,354

4 
43

  
Trading activity
Trading assets
 
118,738

5 
6,259

 
Trading liabilities
 
98,866

  
5,831

  
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans
Trading assets
 
1,088

  
19

 
Trading liabilities
 
496

  
125

  
Trading activity
Trading assets
 
4,297

  
239

 
Trading liabilities
 
4,184

  
229

  
Credit contracts covering:
Loans
Trading assets
 
50

  
1

 
Trading liabilities
 
192

  
2

  
Trading activity
Trading assets
 
1,775

6 
59

 
Trading liabilities
 
1,538

6 
50

  
Equity contracts - Trading activity
Trading assets
 
7,924

5 
853

 
Trading liabilities
 
9,504

  
876

  
Other contracts:
IRLCs and other
Other assets
 
4,993

  
79

 
Other liabilities
 
279

7 
16

7 
Trading activity
Trading assets
 
196

  
22

 
Trading liabilities
 
190

  
22

  
Total
 
 
153,987

  
8,045

 
 
 
130,523

  
7,250

  

Total derivatives
 
 

$172,384

  

$9,237

 
 
 

$132,070

  

$7,396

  

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Fair Value Hedges” in this Note for further discussion.
3 See “Economic Hedging and Trading Activities” in this Note for further discussion.
4 Amounts include $365 million and $665 million of notional amounts related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
5 Amounts include $19.3 billion and $428 million of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
6 Asset and liability amounts include $1 million and $6 million, respectively, of notional from purchased and written credit risk participation agreements, respectively, which notional is calculated as the notional of the derivative participated adjusted by the relevant risk weighted assets conversion factor.
7 Includes a $16 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Visa Class B common stock to Visa Class A common stock, and the Visa Class A common stock price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Visa Class B shares in the second quarter of 2009 as discussed in Note 18, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial Statements in the Company’s 2010 Annual Report on Form 10-K.
8As of July 1, 2011, the Company began offsetting cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to ISDA master netting arrangements and meet the derivatives accounting requirements of ASC 815-10, "Derivatives and Hedging." The effects of offsetting on the Company's Consolidated Balance Sheets as of September 30, 2011 are presented in Note 12, "Fair Value Election and Measurement."

 
As of December 31, 2010
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet
Classification    
 
Notional
Amounts    
 
Fair
Value    
 
Balance Sheet
Classification
 
Notional
Amounts    
 
Fair
Value    
 
Derivatives designated in cash flow hedging relationships 1
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$145

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
15,350

  
947

 
Trading liabilities
 
500

  
10

  
Total
 
 
16,897

 
947

 
 
 
2,047

 
155

  
Derivatives not designated as hedging instruments 2
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
1,273

  
41

 
Trading liabilities
 
60

  
4

  
Corporate bonds and loans
 
 
—

  
—

 
Trading liabilities
 
5

  
—

  
MSRs
Other assets
 
20,474

  
152

 
Other liabilities
 
6,480

  
73

  
LHFS, IRLCs, LHFI-FV
Other assets
 
7,269

3  
92

 
Other liabilities
 
2,383

  
20

  
Trading activity
Trading assets
 
132,286

4 
4,211

 
Trading liabilities
 
105,926

  
3,884

  
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans
Trading assets
 
1,083

   
17

 
Trading liabilities
 
495

  
128

  
Trading activity
Trading assets
 
2,691

   
92

 
Trading liabilities
 
2,818

  
91

  
Credit contracts covering:
Loans
Trading assets
 
15

   
—

 
Trading liabilities
 
227

  
2

  
Trading activity
Trading assets
 
1,094

5 
39

 
Trading liabilities
 
1,039

5 
34

  
Equity contracts - Trading activity
Trading assets
 
5,010

4 
583

 
Trading liabilities
 
8,012

   
730

  
Other contracts:
IRLCs and other
Other assets
 
2,169

  
18

 
Other liabilities
 
2,196

6 
42

6 
Trading activity
Trading assets
 
111

  
11

 
Trading liabilities
 
111

   
11

  
Total
 
 
173,475

 
5,256

 
 
 
129,752

 
5,019

  
Total derivatives
 
 

$190,372

 

$6,203

 
 
 

$131,799

 

$5,174

  

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Economic Hedging and Trading Activities” in this Note for further discussion.
3 Amount includes $1.4 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
4 Amounts include $25.0 billion and $0.5 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily and therefore no derivative asset or liability is recognized.
5 Asset and liability amounts include $1 million and $8 million, respectively, of notional from purchased and written interest rate swap risk participation agreements, respectively, which notional is calculated as the notional of the interest rate swap participated adjusted by the relevant risk weighted assets conversion factor.
6 Includes a $23 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Visa Class B common stock to Visa Class A common stock, and the Visa Class A common stock price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Visa Class B shares in the second quarter of 2009 as discussed in Note 18, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial Statements in the Company’s 2010 Annual Report on Form 10-K.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] 
 
Three Months Ended September 30, 2011
(Dollars in millions)
Amount of pre-tax gain
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

$8

 
 
 

$—

Interest rate contracts hedging Floating rate loans
438

 
Interest and fees on loans
 
103

Total

$446

 
 
 

$103

 
 
Nine Months Ended September 30, 2011
(Dollars in millions)
Amount of pre-tax gain/(loss)    
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

($2
)
 
 
 

$—

Interest rate contracts hedging Floating rate loans
673

 
Interest and fees on loans
 
321

Total

$671

 
 
 

$321


1 During the three and nine months ended September 30, 2011, the Company reclassified $56 million and $146 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated.

  
Three Months Ended September 30, 2011
(Dollars in millions)
Amount of gain
on Derivatives
recognized in Income
 
Amount of loss
on related Hedged Items
recognized in Income
 
Amount of gain/(loss)
recognized in Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships
Interest rate contracts hedging Fixed rate debt ¹

$35

 

($35
)
 

$—

 
 
Nine Months Ended September 30, 2011
(Dollars in millions)
Amount of gain
on Derivatives
recognized in Income
 
Amount of loss
on related Hedged Items
recognized in Income
 
Amount of loss
recognized in Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships
Interest rate contracts hedging Fixed rate debt ¹

$49

 

($50
)
 

($1
)

1 Amounts are recognized in trading account profits/(losses) and commissions in the Consolidated Statements of Income. 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2011
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended
September 30, 2011
Derivatives not designated as hedging instruments
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading account profits/(losses) and commissions
 

($5
)
 

($4
)
MSRs
Mortgage servicing related income
 
397

 
488

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(130
)
 
(233
)
Trading activity
Trading account profits/(losses) and commissions
 
41

 
78

Foreign exchange rate contracts covering:
 
 
 
 
 
Foreign-denominated debt and commercial loans
Trading account profits/(losses) and commissions
 
(96
)
 
15

Trading activity
Trading account profits/(losses) and commissions
 
20

 
13

Credit contracts covering:
 
 
 
 
 
Loans
Trading account profits/(losses) and commissions
 
—

 
(1
)
Other
Trading account profits/(losses) and commissions
 
6

 
14

Equity contracts - trading activity
Trading account profits/(losses) and commissions
 
(9
)
 
(1
)
Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related income
 
145

 
229

Total
 
 

$369

 

$598


The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2010 are presented below.
 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

($125
)
 
 
 

$—

Interest rate contracts hedging Floating rate loans
380

 
Interest and fees on loans
 
119

Total

$255

 
 
 

$119

 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Amount of pre-tax gain
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain    
reclassified from
AOCI into Income
(Effective Portion) 1
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

$42

 
 
 

$—

Interest rate contracts hedging Floating rate loans
1,115

 
Interest and fees on loans
 
370

Total

$1,157

 
 
 

$370


1 During the three and nine months ended September 30, 2010, the Company reclassified $35 million and $88 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated.
 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2010
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended
September 30, 2010
Derivatives not designated as hedging instruments
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading account profits/(losses) and commissions
 

($194
)
 

($68
)
Corporate bonds and loans
Trading account profits/(losses) and commissions
 
—

 
(1
)
MSRs
Mortgage servicing related income
 
315

 
783

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(82
)
 
(292
)
Trading activity
Trading account profits/(losses) and commissions
 
256

 
285

Foreign exchange rate contracts covering:
 
 
 
 
 
Foreign-denominated debt and commercial loans
Trading account profits/(losses) and commissions
 
133

 
(69
)
Trading activity
Trading account profits/(losses) and commissions
 
(20
)
 
5

Credit contracts covering:
 
 
 
 
 
Loans
Trading account profits/(losses) and commissions
 
(1
)
 
—

Trading activity
Trading account profits/(losses) and commissions
 
2

 
6

Equity contracts - trading activity
Trading account profits/(losses) and commissions
 
(62
)
 
(56
)
Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related income
 
164

 
375

Total
 
 

$511

 

$968


Fair Value Election and Measurement (Tables)
Assets and Liabilities Measured at Fair Value on a Recurring Basis 
 
 
 
Fair Value Measurements at
September 30, 2011
Using
(Dollars in millions)
Assets/Liabilities    
 
Quoted Prices In Active
Markets for
Identical
Assets/Liabilities    
(Level 1)
 
Significant
Other
Observable    
Inputs
(Level 2)
 
Significant
Unobservable    
Inputs
(Level 3)
Assets

 

 

 

Trading assets

 

 

 

U.S. Treasury securities

$209

 

$209

 

$—

 

$—

Federal agency securities
612

 
—

 
612

 
—

U.S. states and political subdivisions
77

 
—

 
77

 
—

MBS - agency
509

 
—

 
509

 
—

MBS - private
1

 
—

 
—

 
1

CDO/CLO securities
44

 
—

 
2

 
42

ABS
37

 
—

 
32

 
5

Corporate and other debt securities
445

 
—

 
445

 
—

CP
78

 
—

 
78

 
—

Equity securities
85

 
—

 
78

 
7

Derivative contracts
3,693

 
279

 
3,414

 
—

Trading loans
1,686

 
—

 
1,686

 
—

Gross trading assets
7,476

 
488

 
6,933

 
55

Offsetting collateral 1
(1,188
)
 
 
 
 
 
 
Total trading assets
6,288

 
 
 
 
 
 
Securities AFS

 

 

 

U.S. Treasury securities
386

 
386

 
—

 
—

Federal agency securities
2,645

 
—

 
2,645

 
—

U.S. states and political subdivisions
490

 
—

 
428

 
62

MBS - agency
20,030

 
—

 
20,030

 
—

MBS - private
287

 
—

 
—

 
287

CDO/CLO securities
332

 
—

 
332

 
—

ABS
540

 
—

 
524

 
16

Corporate and other debt securities
54

 
—

 
49

 
5

Coke common stock
2,027

 
2,027

 
—

 
—

   Other equity securities 2
711

 
—

 
148

 
563

Total securities AFS
27,502

 
2,413

 
24,156

 
933

LHFS

 

 

 

Residential loans
1,364

 
—

 
1,362

 
2

Corporate and other loans
311

 
—

 
311

 
—

Total LHFS
1,675

 
—

 
1,673

 
2

LHFI
452

 
—

 
—

 
452

MSRs
1,033

 
—

 
—

 
1,033

Other assets 3
550

 
4

 
467

 
79

Liabilities

 

 

 

Trading liabilities

 

 

 

U.S. Treasury securities
326

 
326

 
—

 
—

MBS - agency
1

 
—

 
1

 
—

Corporate and other debt securities
211

 
—

 
211

 
—

Equity securities
14

 
14

 
—

 
—

Derivative contracts
2,319

 
206

 
1,967

 
146

Gross trading liabilities
2,871

 
546

 
2,179

 
146

Offsetting collateral 1
(1,136
)
 
 
 
 
 
 
Total trading liabilities
1,735

 
 
 
 
 
 
Brokered deposits
1,056

 
—

 
1,056

 
—

Long-term debt
2,016

 
—

 
2,016

 
—

Other liabilities 3
84

 
—

 
68

 
16


1 Amount represents the cash collateral received from or deposited with derivative counterparties. Amount is offset with derivatives in the Consolidated Balance Sheets as of September 30, 2011.
2Includes at cost, $171 million of FHLB of Atlanta stock, $391 million of Federal Reserve Bank stock, and $148 million in mutual fund investments.
3These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk along with a derivative associated with the Company’s sale of Visa shares during the year ended December 31, 2009.

 
 
 
Fair Value Measurements at
December 31, 2010
Using
 
(Dollars in millions)
Assets/Liabilities
 
Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
U.S. Treasury securities

$187

 

$187

 

$—

 

$—

Federal agency securities
361

 
—

 
361

 
—

U.S. states and political subdivisions
123

 
—

 
123

 
—

MBS - agency
301

 
—

 
301

 
—

MBS - private
15

 
—

 
9

 
6

CDO/CLO securities
55

 
—

 
2

 
53

ABS
59

 
—

 
32

 
27

Corporate and other debt securities
743

 
—

 
743

 
—

CP
14

 
—

 
14

 
—

Equity securities
221

 
—

 
98

 
123

Derivative contracts
2,743

 
166

 
2,577

 
—

Trading loans
1,353

 
—

 
1,353

 
—

Total trading assets
6,175

 
353

 
5,613

 
209

Securities AFS
 
 
 
 
 
 
 
U.S. Treasury securities
5,516

 
5,516

 
—

 
—

Federal agency securities
1,895

 
—

 
1,895

 
—

U.S. states and political subdivisions
579

 
—

 
505

 
74

MBS - agency
14,358

 
—

 
14,358

 
—

MBS - private
347

 
—

 
—

 
347

CDO/CLO securities
50

 
—

 
50

 
—

ABS
808

 
—

 
788

 
20

Corporate and other debt securities
482

 
—

 
477

 
5

Coke common stock
1,973

 
1,973

 
—

 
—

      Other equity securities 1
887

 
—

 
197

 
690

Total securities AFS
26,895

 
7,489

 
18,270

 
1,136

LHFS
 
 
 
 
 
 
 
Residential loans
2,847

 
—

 
2,845

 
2

Corporate and other loans
321

 
—

 
316

 
5

Total LHFS
3,168

 
—

 
3,161

 
7

LHFI
492

 
—

 
—

 
492

MSRs
1,439

 
—

 
—

 
1,439

Other assets 2
241

 
—

 
223

 
18

Liabilities
 
 
 
 
 
 
 
Trading liabilities
 
 
 
 
 
 
 
U.S. Treasury securities
439

 
439

 
—

 
—

Corporate and other debt securities
398

 
—

 
398

 
—

Derivative contracts
1,841

 
120

 
1,576

 
145

Total trading liabilities
2,678

 
559

 
1,974

 
145

Brokered deposits
1,213

 
—

 
1,213

 
—

Long-term debt
2,837

 
—

 
2,837

 
—

Other liabilities 2
114

 
—

 
72

 
42


1 Includes at cost, $298 million of FHLB of Atlanta stock, $391 million of Federal Reserve Bank stock, and $197 million in mutual fund investments.
2 These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk along with a derivative associated with the Company’s sale of Visa shares during the year ended December 31, 2009.
Fair Value Option Elected, Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance 
(Dollars in millions)
Aggregate
Fair Value
September 30, 2011    
 
Aggregate
Unpaid Principal
Balance under FVO     
September 30, 2011
 
Fair Value
Over/(Under)
    Unpaid Principal    
Trading loans

$1,686

 

$1,665

 

$21

LHFS
1,671

 
1,630

 
41

Past due loans of 90 days or more
3

 
3

 
—

Nonaccrual loans
1

 
9

 
(8
)
LHFI
424

 
455

 
(31
)
Past due loans of 90 days or more
2

 
4

 
(2
)
Nonaccrual loans
26

 
49

 
(23
)
Brokered deposits
1,056

 
1,045

 
11

Long-term debt
2,016

 
1,901

 
115

(Dollars in millions)
Aggregate
Fair Value
    December 31, 2010    
 
Aggregate
Unpaid Principal
Balance under FVO
 December 31, 2010    
 
Fair Value
Over/(Under)
    Unpaid Principal    
Trading loans

$1,353

 

$1,320

 

$33

LHFS
3,160

 
3,155

 
5

Past due loans of 90 days or more
2

 
2

 
—

Nonaccrual loans
6

 
25

 
(19
)
LHFI
462

 
517

 
(55
)
Past due loans of 90 days or more
2

 
4

 
(2
)
Nonaccrual loans
28

 
54

 
(26
)
Brokered deposits
1,213

 
1,188

 
25

Long-term debt
2,837

 
2,753

 
84

Change in Fair Value of Financial Instruments for which the FVO has been Elected 
 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2011, for Items Measured at Fair Value  Pursuant to Election of the FVO
 
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2011, for Items Measured at Fair Value  Pursuant to Election of the FVO
(Dollars in millions)
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
Income 2
 
Mortgage  
Servicing
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 1
 
 
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
Income 2
 
Mortgage  
Servicing
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 1
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets

$3

 

$—

 

$—

 

$3

 
 

$15

 

$—

 

$—

 

$15

LHFS
(11
)
 
181

 
—

 
170

 
 
(14
)
 
330

 
—

 
316

LHFI
(1
)
 
17

 
—

 
16

 
 
3

 
13

 
—

 
16

MSRs
—

 
1

 
(437
)
 
(436
)
 
 
—

 
5

 
(582
)
 
(577
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered deposits
27

 
—

 
—

 
27

 
 
24

 
—

 
—

 
24

Long-term debt
7

 
—

 
—

 
7

 
 
(31
)
 
—

 
—

 
(31
)

1Changes in fair value for the three and nine months ended September 30, 2011, exclude accrued interest for the periods then ended. Interest income or interest expense on trading assets, LHFS, LHFI, brokered deposits and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income based on their contractual coupons. Certain trading assets do not have a contractually stated coupon and, for these securities, the Company records interest income based on the effective yield calculated upon acquisition of the securities.
2For the three and nine months ended September 30, 2011, income related to LHFS includes $46 million and $178 million, respectively, related to MSRs recognized upon the sale of loans reported at fair value. For the three and nine months ended September 30, 2011, income related to MSRs includes $1 million and $5 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM. These MSRs are included in the table since the Company elected to report MSRs recognized in 2009 using the fair value method. Previously, MSRs were reported under the amortized cost method.
 
 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2010, for Items Measured at Fair Value Pursuant
to Election of the FVO
 
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2010, for Items Measured at Fair Value Pursuant
to Election of the FVO
(Dollars in millions)
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
Income 2  
 
Mortgage  
Servicing
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 1
 
 
Trading
Account
Profits/(Losses)  
and
Commissions
 
Mortgage
Production  
Related
  Income 2  
 
Mortgage
Servicing  
Related
Income/(loss)
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 1
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets

$1

 

$—

 

$—

 

$1

 
 

($3
)
 

$—

 

$—

 

($3
)
LHFS
7

 
206

 
—

 
213

 
 
14

 
498

 
—

 
512

LHFI
1

 
6

 
—

 
7

 
 
(1
)
 
13

 
—

 
12

MSRs
—

 
8

 
(290
)
 
(282
)
 
 
—

 
14

 
(810
)
 
(796
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered deposits
(59
)
 
—

 
—

 
(59
)
 
 
(67
)
 
—

 
—

 
(67
)
Long-term debt
(97
)
 
—

 
—

 
(97
)
 
 
(222
)
 
—

 
—

 
(222
)
1Changes in fair value for the three and nine months ended September 30, 2010, exclude accrued interest for the periods then ended. Interest income or interest expense on trading assets, LHFS, LHFI, brokered deposits and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income based on their contractual coupons. Certain trading assets do not have a contractually stated coupon and, for these securities, the Company records interest income based on the effective yield calculated upon acquisition of the securities.
2For the three and nine months ended September 30, 2010, income related to LHFS, includes $57 million and $184 million, respectively, related to MSRs recognized upon the sale of loans reported at fair value. For the three and nine months ended September 30, 2010, income related to MSRs includes $7 million and $14 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM. These MSRs are included in the table since the Company elected to report MSRs recognized in 2009 using the fair value method. Previously, MSRs were reported under the amortized cost method.
Reconciliation of the Beginning and Ending Balances for Fair Valued Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs 
 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
July 1, 2011    
 
Included in earnings (sold or settled)   
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers
into Level 3    
 
Transfers
out of
Level 3    
 
Fair value
September  30,
2011
 
Included in earnings (held at September 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$2

 

$—

  

$—

  

$—

 

$—

 

($1
)
 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
42

 
(6
)
2  
—

  
6

 
—

 
—

 
—

 
—

 
—

 
42

 
(6
)
  
ABS
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Equity securities
13

 
1

  
—

  
—

 
—

 
(7
)
 
—

 
—

 
—

 
7

 
1

  
Total trading assets
62

 
(5
)
3  
—

  
6

 
—

 
(8
)
 
—

 
—

 
—

 
55

 
(5
)
3  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
68

 
1

  
—

  
—

 
(4
)
 
(3
)
 
—

 
—

 
—

 
62

 
—

  
MBS - private
311

 
—

  
(9
)
  
—

 
—

 
(15
)
 
—

 
—

 
—

 
287

 
—

  
ABS
19

 
—

  
(2
)
  
—

 
—

 
(1
)
 
—

 
—

 
—

 
16

 
—

  
Corporate and other debt securities
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
597

 
—

  
—

  
—

 
—

 
(34
)
 
—

 
—

 
—

 
563

 
—

  
Total securities AFS
1,000

 
1

4  
(11
)
  
—

 
(4
)
 
(53
)
 
—

 
—

 
—

 
933

 
—

4  
LHFS
3

 
—

 
—

  
—

 
(1
)
 
—

 
(3
)
 
3

 
—

 
2

 
—

  
LHFI
449

 
16

 
—

  
—

 
—

 
(12
)
 
(1
)
 
—

 
—

 
452

 
14

7  
Other assets/(liabilities), net
12

 
145

  
—

  
—

 
—

 
1

 
(95
)
 
—

 
—

 
63

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(154
)
 
—

  
8

8  
—

 
—

 
—

 
—

 
—

 
—

 
(146
)
 
—

  
(Dollars in millions)
Beginning
balance
January 1,
2011    
 
Included in earnings (sold or settled)   
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers
into
Level 3    
 
Transfers
out of
Level 3    
 
Fair value
September  30,
2011    
 
Included in earnings (held at September 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$6

 

$2

  

$—

  

$—

 

($5
)
 

($2
)
 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
53

 
25

2 
—

  
6

 
(21
)
 
(1
)
 
(20
)
 
—

 
—

 
42

 
11

  
ABS
27

 
9

  
—

  
—

 
(31
)
 
—

 
—

 
—

 
—

 
5

 
2

  
Equity securities
123

 
13

  
—

  
—

 
—

 
(129
)
 
—

 
—

 
—

 
7

 
1

  
Total trading assets
209

 
49

3  
—

  
6

 
(57
)
 
(132
)
 
(20
)
 
—

 
—

 
55

 
14

3  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
74

 
2

  
1

  
—

 
(4
)
 
(11
)
 
—

 
—

 
—

 
62

 
—

  
MBS - private
347

 
(3
)
  
—

  
—

 
—

 
(57
)
 
—

 
—

 
—

 
287

 
(3
)
  
ABS
20

 
—

  
(1
)
  
—

 
—

 
(3
)
 
—

 
—

 
—

 
16

 
—

  
Corporate and other debt securities
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
690

 
—

  
—

  
—

 
—

 
(127
)
 
—

 
—

 
—

 
563

 
—

  
Total securities AFS
1,136

 
(1
)
4  
—

  
—

 
(4
)
 
(198
)
 
—

 
—

 
—

 
933

 
(3
)
4  
LHFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
2

 
(1
)
5  
—

  
—

 
(15
)
 
(1
)
 
—

 
19

 
(2
)
 
2

 
—

  
Corporate and other loans
5

 
(1
)
6  
—

  
—

 
—

 
—

 
(4
)
 
—

 
—

 
—

 
—

  
LHFI
492

 
16

  
—

  
—

 
—

 
(46
)
 
(10
)
 
—

 
—

 
452

 
13

7  
Other assets/(liabilities), net
(24
)
 
229

  
—

  
—

 
—

 
7

 
(149
)
 
—

 
—

 
63

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(145
)
 
1

  
(2
)
8  
—

 
—

 
—

 
—

 
—

 
—

 
(146
)
 
1

  

1 Change in unrealized gains/(losses) included in earnings during the period related to financial assets still held at September 30, 2011.
2 Amounts included in earnings do not include losses accrued as a result of the ARS settlements discussed in Note 14, "Contingencies."
3 Amounts included in earnings are recorded in trading account profits and commissions.
4 Amounts included in earnings are recorded in net securities gains.
5 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
6 Amounts included in earnings are recorded in other noninterest income.
7 Amounts are generally included in mortgage production related income, however, the mark on certain fair value loans is included in trading account profits and commissions.
8 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke common stock as discussed in Note 11, “Derivative Financial Instruments.”


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
Beginning    
balance
July 1,
2010

 
Included in earnings (sold or settled)
 
OCI
 
Purchases, sales,
issuances,
settlements,
maturities,
paydowns, net    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers    
into
Level 3
 
Transfers    
out of
Level 3
 
Fair value
September 30,
2010

 
Included in earnings (held at September 30, 2010) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions

$9

 

$—

  

$—

  

$—

 

$—

 

$—

 

$—

 

$9

 

$—

  
MBS - private
3

 
1

  
—

  
(1
)
 
—

 
—

 
—

 
3

 
—

  
CDO/CLO securities
117

 
13

  
—

  
(7
)
 
—

 
—

 
—

 
123

 
12

  
ABS
48

 
(1
)
  
—

  
8

 
(14
)
 
—

 
—

 
41

 
(1
)
  
Equity securities
120

 
—

  
—

  
—

 
—

 
—

 
—

 
120

 
—

  
Derivative contracts
128

 
2

  
(125
)
2  
—

 
—

 
—

 
—

 
5

 
—

   
Total trading assets
425

 
15

3  
(125
)
  
—

 
(14
)
 
—

 
—

 
301

 
11

3  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
125

 
1

  
1

  
(6
)
 
—

 
—

 
—

 
121

 
—

   
MBS - private
365

 
—

  
19

  
(20
)
 
—

 
—

 
—

 
364

 
—

   
ABS
108

 
—

  
2

  
18

 
—

 
—

 
—

 
128

 
—

   
Corporate and other debt securities
5

 
—

  
—

  
—

 
—

 
—

 
—

 
5

 
—

   
Other equity securities
705

 
—

  
—

  
(24
)
 
—

 
—

 
—

 
681

 
—

   
Total securities AFS
1,308

 
1

5  
22

  
(32
)
 
—

 
—

 
—

 
1,299

 
—

 
LHFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
104

 
(4
)
6  
—

  
(10
)
 
(71
)
 
42

 
(2
)
 
59

 
(5
)
6  
Corporate and other loans
5

 
—

 
—

  
—

 
—

 
—

 
—

 
5

 
—

 
LHFI
411

 
5

8  
—

  
(10
)
 
68

 
—

 
(2
)
 
472

 
3

8  
Other assets/(liabilities), net
53

 
164

6  
—

  
—

 
(137
)
 
—

 
—

 
80

 
—

   

(Dollars in millions)
Beginning
balance
January 1,    
2010

 
Included in earnings (sold or settled)
 
OCI
 
Purchases,
sales,
issuances,
settlements,
maturities,
paydowns,
net    
 
Transfers
from/(to)  other
balance sheet
line items    
 
Transfers    
into
Level 3
 
Transfers    
out of
Level 3
 
Fair value
September 30,
2010

 
Included in earnings (held at September 30, 2010) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions

$7

 

$—

  

$—

  

$2

 

$—

 

$—

 

$—

 

$9

 

($1
)
  
MBS - private
6

 
—

  
—

  
(3
)
 
—

 
—

 
—

 
3

 
(1
)
  
CDO/CLO securities
175

 
30

  
—

  
(82
)
 
—

 
—

 
—

 
123

 
24

  
ABS
51

 
2

  
—

  
2

 
(14
)
 
—

 
—

 
41

 
(1
)
  
Equity securities
151

 
4

  
—

  
(35
)
 
—

 
—

 
—

 
120

 
—

  
Derivative contracts
—

 
9

   
(4
)
2  
—

 
—

 
—

 
—

 
5

 
—

  
Total trading assets
390

 
45

3  
(4
)
  
(116
)
 
(14
)
 
—

 
—

 
301

 
21

1  
Securities AFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
132

 
1

   
(1
)
  
(11
)
 
—

 
—

 
—

 
121

 
—

  
MBS - private
378

 
(2
)
   
53

  
(65
)
 
—

 
—

 
—

 
364

 
(2
)
  
ABS
102

 
1

4  
(5
)
  
30

 
—

 
—

 
—

 
128

 
—

  
Corporate and other debt securities
5

 
—

   
—

  
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
705

 
—

   
—

  
(24
)
 
—

 
—

 
—

 
681

 
—

  
Total securities AFS
1,322

 
—

 5  
47

  
(70
)
 
—

 
—

 
—

 
1,299

 
(2
)
5  
LHFS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
142

 
1

 6  
—

  
(80
)
 
(67
)
 
66

 
(3
)
 
59

 
(10
)
6  
Corporate and other loans
9

 
(2
)
 7  
—

  
(2
)
 
—

 
—

 
—

 
5

 
(2
)
7  
LHFI
449

 
10

 8  
—

  
(35
)
 
51

 
—

 
(3
)
 
472

 
9

8  
Other assets/(liabilities), net
(35
)
 
376

 6  
—

  
6

 
(267
)
 
—

 
—

 
80

 
—

  
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(46
)
 
—

  
46

2  
—

 
—

 
—

 
—

 
—

 
—

  

1 Change in unrealized gains/(losses) included in earnings for the period related to financial assets still held at September 30, 2010.
2 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke stock as discussed in Note 11, “Derivative Financial Instruments.”
3 Amounts included in earnings are recorded in trading account profits/(losses) and commissions.
4 Amounts included in earnings do not include losses accrued as a result of the ARS settlements discussed in Note 14, "Contingencies."
5 Amounts included in earnings are recorded in net securities gains.
6 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
7 Amounts included in earnings are recorded in other noninterest income.
8 Amounts are generally included in mortgage production related income, however, the mark on certain fair value loans is included in trading account profits and commissions.
Change in Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis 
 
 
 
Fair Value Measurement at
September 30, 2011,
Using
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)        
 
Significant
Other
Observable
Inputs
(Level 2)        
 
Significant
Unobservable
Inputs
(Level 3)         
 
Valuation
Allowance
LHFS

$567

 

$—

 

$501

 

$66

 

$1

LHFI
144

 
—

 
—

 
144

 
16

OREO
509

 
—

 
358

 
151

 
(126
)
Other Assets
43

 
—

 
28

 
15

 
(14
)
 
 
 
Fair Value Measurement at
December 31, 2010,
Using
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)        
 
Significant
Other
Observable
Inputs
(Level 2)        
 
Significant
Unobservable
Inputs
(Level 3)         
 
Valuation
    Allowance    
LHFS

$333

 

$—

 

$142

 

$191

 

$—

LHFI
85

 
—

 
—

 
85

 
(15
)
OREO
596

 
—

 
553

 
43

 
(116
)
Affordable Housing
357

 
—

 
—

 
357

 
—

Other Assets
130

 
—

 
90

 
40

 
(20
)
Carrying Amounts and Fair Values of the Company's Financial Instruments 
 
September 30, 2011
 
 
December 31, 2010
 
(Dollars in millions)
Carrying
Amount    
 
Fair
Value     
 
 
Carrying
Amount    
 
Fair
Value     
 
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$5,500

 

$5,500

 (a) 
 

$5,378

 

$5,378

(a) 
Trading assets
6,288

 
6,288

 (b) 
 
6,175

 
6,175

(b) 
Securities AFS
27,502

 
27,502

 (b) 
 
26,895

 
26,895

(b) 
LHFS
2,243

 
2,247

 (c) 
 
3,501

 
3,501

(c) 
LHFI
117,475

 
117,475

  
 
115,975

 
115,975

  
Interest/credit adjustment on LHFI
(2,600
)
 
(2,745
)
  
 
(2,974
)
 
(3,823
)
  
LHFI, as adjusted for interest/credit risk
114,875

 
114,730

 (d) 
 
113,001

 
112,152

(d) 
Market risk/liquidity adjustment on LHFI
—

 
(5,401
)
  
 
—

 
(3,962
)
  
LHFI, fully adjusted

$114,875

 

$109,329

 (d) 
 

$113,001

 

$108,190

(d) 
Financial liabilities
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits

$123,933

 

$124,323

 (e) 
 

$120,025

 

$120,368

(e) 
Brokered deposits
2,283

 
2,301

 (f) 
 
2,365

 
2,381

(f) 
Foreign deposits
35

 
35

 (f) 
 
654

 
654

(f) 
Short-term borrowings
6,232

 
6,224

 (f) 
 
5,821

 
5,815

(f) 
Long-term debt
13,544

 
13,207

 (f) 
 
13,648

 
13,191

(f) 
Trading liabilities
1,735

 
1,735

 (b) 
 
2,678

 
2,678

(b) 

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:
(a)
Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
(b)
Securities AFS, trading assets, and trading liabilities that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.
(c)
LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. In instances when significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data in order to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value.
(d)
LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values.
The Company estimated fair value based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 100% and 99% on the loan portfolio’s net carrying value as of September 30, 2011 and December 31, 2010, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value as of September 30, 2011 and December 31, 2010, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
(e)
Deposit liabilities with no defined maturity such as demand deposits, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow calculation that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values.
(f)
Fair values for foreign deposits, certain brokered deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote.

Reinsurance Arrangements and Guarantees (Tables)
Schedule Of Remaining Outstanding Balance Of Loans Sold [Table Text Block] 
 
Remaining Outstanding Balance by Year of Sale
(Dollars in billions)
2005
 
2006
 
2007
 
2008
 
2009
 
2010
 
2011
 
Total    
GSE1

$4.8

 

$5.7

 

$11.0

 

$12.1

 

$27.3

 

$15.4

 

$11.5

 

$87.8

Ginnie Mae1
0.7

 
0.5

 
0.5

 
2.5

 
5.8

 
4.2

 
2.3

 
16.5

Non-agency
4.1

 
6.0

 
4.8

 
—

 
—

 
—

 
—

 
14.9

Total

$9.6

 

$12.2

 

$16.3

 

$14.6

 

$33.1

 

$19.6

 

$13.8

 

$119.2


1 Balances based on loans serviced by the Company.
Mortgage Loan Repurchase Losses 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Balance at beginning of period

$299

 

$256

 

$265

 

$200

Repurchase provision
117

 
95

 
287

 
371

Charge-offs
(134
)
 
(81
)
 
(270
)
 
(301
)
Balance at end of period

$282

 

$270

 

$282

 

$270

Business Segment Reporting (Tables)
Business Segment Reporting
 
Three Months Ended September 30, 2011
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$40,821

 

$25,242

 

$7,557

 

$23,990

 

$33,159

 

$8,370

 

$31,389

 

$1,548

 

$172,076

Average total liabilities
76,820

 
20,541

 
1,535

 
17,857

 
3,705

 
12,812

 
16,235

 
2,571

 
152,076

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
20,000

 
20,000

Net interest income

$640

 

$159

 

$34

 

$126

 

$121

 

$105

 

$132

 

($54
)
 

$1,263

FTE adjustment
—

 
26

 
—

 
1

 
—

 
—

 
1

 
2

 
30

Net interest income - FTE 1
640

 
185

 
34

 
127

 
121

 
105

 
133

 
(52
)
 
1,293

Provision for credit losses 2
181

 
11

 
133

 
(3
)
 
144

 
26

 
—

 
(145
)
 
347

Net interest income/(loss) after provision for credit losses
459

 
174

 
(99
)
 
130

 
(23
)
 
79

 
133

 
93

 
946

Total noninterest income
286

 
67

 
25

 
109

 
115

 
202

 
103

 
(4
)
 
903

Total noninterest expense
654

 
123

 
100

 
139

 
318

 
235

 
(2
)
 
(7
)
 
1,560

Income/(loss) before provision/(benefit) for income taxes
91

 
118

 
(174
)
 
100

 
(226
)
 
46

 
238

 
96

 
289

Provision/(benefit) for income taxes 3
33

 
42

 
(85
)
 
36

 
(88
)
 
19

 
80

 
38

 
75

Net income/(loss) including income attributable to noncontrolling interest
58

 
76

 
(89
)
 
64

 
(138
)
 
27

 
158

 
58

 
214

Net income/(loss) attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
(4
)
 
2

 
1

 
(1
)
Net income/(loss)

$58

 

$76

 

($89
)
 

$64

 

($138
)
 

$31

 

$156

 

$57

 

$215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2010
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$39,105

 

$24,633

 

$10,395

 

$20,900

 

$34,556

 

$8,941

 

$33,321

 

$148

 

$171,999

Average total liabilities
74,945

 
19,159

 
1,467

 
16,478

 
4,135

 
11,723

 
18,742

 
2,259

 
148,908

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
23,091

 
23,091

Net interest income

$630

 

$142

 

$38

 

$98

 

$123

 

$97

 

$117

 

($7
)
 

$1,238

FTE adjustment
—

 
26

 
—

 
—

 
—

 
—

 
2

 
—

 
28

Net interest income - FTE 1
630

 
168

 
38

 
98

 
123

 
97

 
119

 
(7
)
 
1,266

Provision for credit losses 2
229

 
23

 
156

 
—

 
265

 
15

 
—

 
(73
)
 
615

Net interest income/(loss) after provision for credit losses
401

 
145

 
(118
)
 
98

 
(142
)
 
82

 
119

 
66

 
651

Total noninterest income
278

 
62

 
21

 
196

 
272

 
196

 
24

 
(2
)
 
1,047

Total noninterest expense
623

 
107

 
120

 
121

 
296

 
233

 
1

 
(2
)
 
1,499

Income/(loss) before provision/(benefit) for income taxes
56

 
100

 
(217
)
 
173

 
(166
)
 
45

 
142

 
66

 
199

Provision/(benefit) for income taxes 3
20

 
37

 
(103
)
 
64

 
(63
)
 
16

 
44

 
27

 
42

Net income/(loss) including income attributable to noncontrolling interest
36

 
63

 
(114
)
 
109

 
(103
)
 
29

 
98

 
39

 
157

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
1

 
2

 
1

 
4

Net income/(loss)

$36

 

$63

 

($114
)
 

$109

 

($103
)
 

$28

 

$96

 

$38

 

$153

1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.

 
Nine Months Ended September 30, 2011
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$40,752

 

$25,113

 

$8,230

 

$22,651

 

$33,681

 

$8,489

 

$31,348

 

$1,622

 

$171,886

Average total liabilities
76,582

 
20,459

 
1,479

 
17,620

 
3,487

 
12,658

 
16,058

 
2,682

 
151,025

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
20,861

 
20,861

Net interest income

$1,897

 

$456

 

$105

 

$360

 

$362

 

$305

 

$379

 

($93
)
 

$3,771

FTE adjustment
—

 
76

 
1

 
2

 
—

 
—

 
5

 
—

 
84

Net interest income - FTE 1
1,897

 
532

 
106

 
362

 
362

 
305

 
384

 
(93
)
 
3,855

Provision for credit losses 2
593

 
49

 
353

 
(1
)
 
520

 
54

 
(1
)
 
(381
)
 
1,186

Net interest income/(loss) after provision for credit losses
1,304

 
483

 
(247
)
 
363

 
(158
)
 
251

 
385

 
288

 
2,669

Total noninterest income
830

 
191

 
73

 
477

 
271

 
624

 
254

 
(22
)
 
2,698

Total noninterest expense
1,936

 
358

 
316

 
433

 
847

 
710

 
(11
)
 
(22
)
 
4,567

Income/(loss) before provision/(benefit) for income taxes
198

 
316

 
(490
)
 
407

 
(734
)
 
165

 
650

 
288

 
800

Provision/(benefit) for income taxes 3
72

 
114

 
(242
)
 
149

 
(283
)
 
61

 
236

 
113

 
220

Net income/(loss) including income attributable to noncontrolling interest
126

 
202

 
(248
)
 
258

 
(451
)
 
104

 
414

 
175

 
580

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
—

 
7

 
—

 
7

Net income/(loss)

$126

 

$202

 

($248
)
 

$258

 

($451
)
 

$104

 

$407

 

$175

 

$573

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2010
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$38,856

 

$25,039

 

$11,171

 

$19,597

 

$34,627

 

$8,974

 

$32,557

 

$748

 

$171,569

Average total liabilities
74,411

 
19,864

 
1,667

 
15,272

 
3,581

 
11,449

 
20,040

 
2,702

 
148,986

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
22,583

 
22,583

Net interest income

$1,870

 

$408

 

$124

 

$272

 

$331

 

$280

 

$350

 

($48
)
 

$3,587

FTE adjustment
—

 
80

 
—

 
1

 
—

 
—

 
8

 
—

 
89

Net interest income - FTE 1
1,870

 
488

 
124

 
273

 
331

 
280

 
358

 
(48
)
 
3,676

Provision for credit losses 2
765

 
88

 
344

 
37

 
956

 
44

 
—

 
(96
)
 
2,138

Net interest income/(loss) after provision for credit losses
1,105

 
400

 
(220
)
 
236

 
(625
)
 
236

 
358

 
48

 
1,538

Total noninterest income
857

 
173

 
61

 
449

 
397

 
578

 
193

 
(11
)
 
2,697

Total noninterest expense
1,850

 
335

 
324

 
352

 
812

 
672

 
29

 
(12
)
 
4,362

Income/(loss) before provision/(benefit) for income taxes
112

 
238

 
(483
)
 
333

 
(1,040
)
 
142

 
522

 
49

 
(127
)
Provision/(benefit) for income taxes 3
39

 
87

 
(242
)
 
123

 
(395
)
 
52

 
170

 
25

 
(141
)
Net income/(loss) including income attributable to noncontrolling interest
73

 
151

 
(241
)
 
210

 
(645
)
 
90

 
352

 
24

 
14

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
1

 
1

 
7

 
—

 
9

Net income/(loss)

$73

 

$151

 

($241
)
 

$210

 

($646
)
 

$89

 

$345

 

$24

 

$5

1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.
Accumulated Other Comprehensive Income (Tables)
Comprehensive Income 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Comprehensive income:
 
 
 
 
 
 
 
Net income

$215

 

$153

 

$573

 

$5

OCI:
 
 

 

 
 
Change in unrealized gains on securities, net of taxes
173

 
257

 
294

 
472

Change in unrealized gains on derivatives, net of taxes
182

 
61

 
129

 
438

Change related to employee benefit plans
4

 
2

 
(13
)
 
85

Total comprehensive income

$574

 

$473

 

$983

 

$1,000

Components of Accumulated Other Comprehensive Income 
(Dollars in millions)
September 30,
2011
 
December 31,
2010
Unrealized net gain on AFS securities

$1,820

 

$1,526

Unrealized net gain on derivative financial instruments
661

 
532

Employee benefit plans
(455
)
 
(442
)
Total AOCI

$2,026

 

$1,616

Securities Available for Sale (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 24,627 
$ 24,484 
Unrealized Gains
2,923 
2,534 
Unrealized Losses
48 
123 
Fair Value
27,502 
26,895 
US Treasury Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
374 
5,446 
Unrealized Gains
12 
115 
Unrealized Losses
0 
45 
Fair Value
386 
5,516 
US Government Agencies Debt Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
2,527 
1,883 
Unrealized Gains
118 
19 
Unrealized Losses
0 
7 
Fair Value
2,645 
1,895 
US States and Political Subdivisions Debt Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
471 
565 
Unrealized Gains
21 
17 
Unrealized Losses
2 
3 
Fair Value
490 
579 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
19,302 
14,014 
Unrealized Gains
728 
372 
Unrealized Losses
0 
28 
Fair Value
20,030 
14,358 
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
319 
378 
Unrealized Gains
1 
3 
Unrealized Losses
33 
34 
Fair Value
287 
347 
Collateralized Debt Obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
337 
50 
Unrealized Gains
0 
0 
Unrealized Losses
5 
0 
Fair Value
332 
50 
Asset-backed Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
534 
798 
Unrealized Gains
13 
15 
Unrealized Losses
7 
5 
Fair Value
540 
808 
Corporate And Other Debt Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
53 
464 
Unrealized Gains
2 
19 
Unrealized Losses
1 
1 
Fair Value
54 
482 
Equity Securities, Coca Cola
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
0 
0 
Unrealized Gains
2,027 
1,973 
Unrealized Losses
0 
0 
Fair Value
2,027 
1,973 
Equity Securities, Other
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
710 1
886 1
Unrealized Gains
1 1
1 1
Unrealized Losses
0 1
0 1
Fair Value
$ 711 1
$ 887 1
Securities Available for Sale (Parenthetical) (Detail) (Equity Securities, Other, USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Equity Securities, Other
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Federal Home Loan Bank (FHLB) of Atlanta stock (par value)
$ 171 
$ 298 
Federal Reserve Bank stock (par value)
391 
391 
Mutual fund investments (par value)
$ 148 
$ 197 
Securities Available for Sale - Additional Information (Detail) (USD $)
Sep. 30, 2011
Dec. 31, 2010
Sep. 30, 2011
Trading Assets
Dec. 31, 2010
Trading Assets
Sep. 30, 2011
Mortgage-backed Securities, Issued by Private Enterprises
Other Than Temporarily Impaired Securities
Sep. 30, 2010
Mortgage-backed Securities, Issued by Private Enterprises
Other Than Temporarily Impaired Securities
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
 
Fair value of pledged securities available for sale
$ 7,900,000,000 
$ 6,900,000,000 
 
 
 
 
Trading assets and cash equivalents, pledged
 
 
1,100,000,000 
823,000,000 
 
 
Repurchase agreements
2,016,000,000 
2,180,000,000 
1,000,000,000 
793,000,000 
 
 
Available for sale securities, fair market value
 
 
 
 
$ 176,000,000 
$ 1,000,000 
Amortized Cost and Fair Value of Investments in Debt Securities by Estimated Average Life (Detail) (USD $)
In Millions
Sep. 30, 2011
Distribution of Maturities: Amortized Cost, 1 Year or Less
$ 1,685 
Distribution of Maturities: Amortized Cost, 1-5 Years
14,489 
Distribution of Maturities: Amortized Cost, 5-10 Years
4,666 
Distribution of Maturities: Amortized Cost, After 10 Years
3,077 
Distribution of Maturities: Amortized Cost, Total
23,917 
Distribution of Maturities: Fair Value, 1 Year or Less
1,730 
Distribution of Maturities: Fair Value, 1-5 Years
15,007 
Distribution of Maturities: Fair Value, 5-10 Years
4,862 
Distribution of Maturities: Fair Value, After 10 Years
3,165 
Distribution of Maturities: Fair Value, Total
24,764 
US Treasury Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
9 
Distribution of Maturities: Amortized Cost, 1-5 Years
213 
Distribution of Maturities: Amortized Cost, 5-10 Years
152 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
374 
Distribution of Maturities: Fair Value, 1 Year or Less
9 
Distribution of Maturities: Fair Value, 1-5 Years
224 
Distribution of Maturities: Fair Value, 5-10 Years
153 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
386 
US Government Agencies Debt Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
73 
Distribution of Maturities: Amortized Cost, 1-5 Years
2,209 
Distribution of Maturities: Amortized Cost, 5-10 Years
189 
Distribution of Maturities: Amortized Cost, After 10 Years
56 
Distribution of Maturities: Amortized Cost, Total
2,527 
Distribution of Maturities: Fair Value, 1 Year or Less
74 
Distribution of Maturities: Fair Value, 1-5 Years
2,309 
Distribution of Maturities: Fair Value, 5-10 Years
204 
Distribution of Maturities: Fair Value, After 10 Years
58 
Distribution of Maturities: Fair Value, Total
2,645 
US States and Political Subdivisions Debt Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
136 
Distribution of Maturities: Amortized Cost, 1-5 Years
245 
Distribution of Maturities: Amortized Cost, 5-10 Years
26 
Distribution of Maturities: Amortized Cost, After 10 Years
64 
Distribution of Maturities: Amortized Cost, Total
471 
Distribution of Maturities: Fair Value, 1 Year or Less
139 
Distribution of Maturities: Fair Value, 1-5 Years
260 
Distribution of Maturities: Fair Value, 5-10 Years
27 
Distribution of Maturities: Fair Value, After 10 Years
64 
Distribution of Maturities: Fair Value, Total
490 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
1,101 
Distribution of Maturities: Amortized Cost, 1-5 Years
11,236 
Distribution of Maturities: Amortized Cost, 5-10 Years
4,050 
Distribution of Maturities: Amortized Cost, After 10 Years
2,915 
Distribution of Maturities: Amortized Cost, Total
19,302 
Distribution of Maturities: Fair Value, 1 Year or Less
1,138 
Distribution of Maturities: Fair Value, 1-5 Years
11,644 
Distribution of Maturities: Fair Value, 5-10 Years
4,246 
Distribution of Maturities: Fair Value, After 10 Years
3,002 
Distribution of Maturities: Fair Value, Total
20,030 
Mortgage-backed Securities, Issued by Private Enterprises
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
31 
Distribution of Maturities: Amortized Cost, 1-5 Years
141 
Distribution of Maturities: Amortized Cost, 5-10 Years
130 
Distribution of Maturities: Amortized Cost, After 10 Years
17 
Distribution of Maturities: Amortized Cost, Total
319 
Distribution of Maturities: Fair Value, 1 Year or Less
28 
Distribution of Maturities: Fair Value, 1-5 Years
129 
Distribution of Maturities: Fair Value, 5-10 Years
114 
Distribution of Maturities: Fair Value, After 10 Years
16 
Distribution of Maturities: Fair Value, Total
287 
Collateralized Debt Obligations
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
0 
Distribution of Maturities: Amortized Cost, 1-5 Years
237 
Distribution of Maturities: Amortized Cost, 5-10 Years
100 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
337 
Distribution of Maturities: Fair Value, 1 Year or Less
0 
Distribution of Maturities: Fair Value, 1-5 Years
234 
Distribution of Maturities: Fair Value, 5-10 Years
98 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
332 
Asset-backed Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
328 
Distribution of Maturities: Amortized Cost, 1-5 Years
204 
Distribution of Maturities: Amortized Cost, 5-10 Years
2 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
534 
Distribution of Maturities: Fair Value, 1 Year or Less
335 
Distribution of Maturities: Fair Value, 1-5 Years
203 
Distribution of Maturities: Fair Value, 5-10 Years
2 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
540 
Corporate And Other Debt Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
7 
Distribution of Maturities: Amortized Cost, 1-5 Years
4 
Distribution of Maturities: Amortized Cost, 5-10 Years
17 
Distribution of Maturities: Amortized Cost, After 10 Years
25 
Distribution of Maturities: Amortized Cost, Total
53 
Distribution of Maturities: Fair Value, 1 Year or Less
7 
Distribution of Maturities: Fair Value, 1-5 Years
4 
Distribution of Maturities: Fair Value, 5-10 Years
18 
Distribution of Maturities: Fair Value, After 10 Years
25 
Distribution of Maturities: Fair Value, Total
$ 54 
Securities with Unrealized Losses (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
US Treasury Securities |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
 
$ 2,010 
Less than twelve months, Unrealized Losses
 
45 
Twelve months or longer, Fair Value
 
0 
Twelve months or longer, Unrealized Losses
 
0 
Total, Fair Value
 
2,010 
Total, Unrealized Losses
 
45 
US Government Agencies Debt Securities |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
34 
1,426 
Less than twelve months, Unrealized Losses
0 
7 
Twelve months or longer, Fair Value
0 
0 
Twelve months or longer, Unrealized Losses
0 
0 
Total, Fair Value
34 
1,426 
Total, Unrealized Losses
0 
7 
US States and Political Subdivisions Debt Securities |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
2 
45 
Less than twelve months, Unrealized Losses
0 
1 
Twelve months or longer, Fair Value
32 
35 
Twelve months or longer, Unrealized Losses
2 
2 
Total, Fair Value
34 
80 
Total, Unrealized Losses
2 
3 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
52 
3,497 
Less than twelve months, Unrealized Losses
0 
28 
Twelve months or longer, Fair Value
0 
0 
Twelve months or longer, Unrealized Losses
0 
0 
Total, Fair Value
52 
3,497 
Total, Unrealized Losses
0 
28 
Mortgage-backed Securities, Issued by Private Enterprises |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
9 
18 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
22 
17 
Twelve months or longer, Unrealized Losses
3 
3 
Total, Fair Value
31 
35 
Total, Unrealized Losses
3 
3 
Collateralized Debt Obligations |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
333 
 
Less than twelve months, Unrealized Losses
5 
 
Twelve months or longer, Fair Value
0 
 
Twelve months or longer, Unrealized Losses
0 
 
Total, Fair Value
333 
 
Total, Unrealized Losses
5 
 
Asset-backed Securities |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
0 
0 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
11 
14 
Twelve months or longer, Unrealized Losses
5 
4 
Total, Fair Value
11 
14 
Total, Unrealized Losses
5 
4 
Corporate And Other Debt Securities |
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
0 
0 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
2 
3 
Twelve months or longer, Unrealized Losses
1 
1 
Total, Fair Value
2 
3 
Total, Unrealized Losses
1 
1 
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
430 
6,996 
Less than twelve months, Unrealized Losses
5 
81 
Twelve months or longer, Fair Value
67 
69 
Twelve months or longer, Unrealized Losses
11 
10 
Total, Fair Value
497 
7,065 
Total, Unrealized Losses
16 
91 
Mortgage-backed Securities, Issued by Private Enterprises |
Other Than Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
18 1
0 1
Less than twelve months, Unrealized Losses
1 1
0 1
Twelve months or longer, Fair Value
220 1
286 1
Twelve months or longer, Unrealized Losses
29 1
31 1
Total, Fair Value
238 1
286 1
Total, Unrealized Losses
30 1
31 1
Asset-backed Securities |
Other Than Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
3 1
4 1
Less than twelve months, Unrealized Losses
1 1
1 1
Twelve months or longer, Fair Value
2 1
0 1
Twelve months or longer, Unrealized Losses
1 1
0 1
Total, Fair Value
5 1
4 1
Total, Unrealized Losses
2 1
1 1
Other Than Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
21 1
4 1
Less than twelve months, Unrealized Losses
2 1
1 1
Twelve months or longer, Fair Value
222 1
286 1
Twelve months or longer, Unrealized Losses
30 1
31 1
Total, Fair Value
243 1
290 1
Total, Unrealized Losses
32 1
32 1
Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
451 
7,000 
Less than twelve months, Unrealized Losses
7 
82 
Twelve months or longer, Fair Value
289 
355 
Twelve months or longer, Unrealized Losses
41 
41 
Total, Fair Value
740 
7,355 
Total, Unrealized Losses
$ 48 
$ 123 
Gross Realized Gains and Losses on Sales and OTTI on Securities Available for Sale (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Gross realized gains
$ 4 
$ 69 
$ 180 
$ 147 
Gross realized losses
(2)
0 
(80)
(17)
OTTI
0 
0 
(2)
(2)
Net securities gains
$ 2 
$ 69 
$ 98 
$ 128 
OTTI Losses on Available for Sale Securities (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Net impairment losses recognized in earnings
$ 0 
$ 0 
$ 2 
$ 2 
Mortgage-backed Securities, Issued by Private Enterprises
 
 
 
 
Total OTTI losses
0 
0 
3 
2 
Portion of losses recognized in OCI (before taxes)
0 1
0 1
(1)1
0 1
Net impairment losses recognized in earnings
$ 0 
$ 0 
$ 2 
$ 2 
Significant Inputs Considered in Determining the Measurement of Credit Losses Recognized in Earnings for Private Residential MBS (Detail)
9 Months Ended
Sep. 30, 2011
12 Months Ended
Dec. 31, 2010
Lower Limit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Current default rate
4.00% 
2.00% 
Prepayment rate
12.00% 
14.00% 
Loss severity
39.00% 
37.00% 
Upper Limit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Current default rate
8.00% 
7.00% 
Prepayment rate
22.00% 
22.00% 
Loss severity
44.00% 
46.00% 
Composition of the Company's Loan Portfolio (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 117,475 
$ 115,975 
Loans Held for Sale
2,243 1
3,501 1
Loans Held-for-Investment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
117,475 
115,975 
Loans Held-for-Investment |
Commercial Portfolio Segment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
54,705 
53,488 
Loans Held-for-Investment |
Commercial Portfolio Segment |
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
47,985 2
44,753 2
Loans Held-for-Investment |
Commercial Portfolio Segment |
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,330 
6,167 
Loans Held-for-Investment |
Commercial Portfolio Segment |
Commercial Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,390 
2,568 
Loans Held-for-Investment |
Residential Mortgage Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
44,992 
46,521 
Loans Held-for-Investment |
Residential Mortgage Loans |
Residential Guaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,449 
4,520 
Loans Held-for-Investment |
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
23,517 3
23,959 3
Loans Held-for-Investment |
Residential Mortgage Loans |
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
15,980 
16,751 
Loans Held-for-Investment |
Residential Mortgage Loans |
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,046 
1,291 
Loans Held-for-Investment |
Consumer Portfolio Segment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
17,778 
15,966 
Loans Held-for-Investment |
Consumer Portfolio Segment |
Guaranteed Student Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,333 
4,260 
Loans Held-for-Investment |
Consumer Portfolio Segment |
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,945 
1,722 
Loans Held-for-Investment |
Consumer Portfolio Segment |
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
10,003 
9,499 
Loans Held-for-Investment |
Consumer Portfolio Segment |
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
497 
485 
Loans Held-for-Sale
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans Held for Sale
2,243 
3,501 
Commercial Portfolio Segment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
54,705 
53,488 
Commercial Portfolio Segment |
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
47,985 4
44,753 4
Commercial Portfolio Segment |
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,330 
6,167 
Commercial Portfolio Segment |
Commercial Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,390 
2,568 
Residential Mortgage Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
44,992 
46,521 
Residential Mortgage Loans |
Residential Guaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,449 
4,520 
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
23,517 5
23,959 6
Residential Mortgage Loans |
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
15,980 
16,751 
Residential Mortgage Loans |
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,046 
1,291 
Consumer Portfolio Segment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
17,778 
15,966 
Consumer Portfolio Segment |
Guaranteed Student Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,333 
4,260 
Consumer Portfolio Segment |
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,945 
1,722 
Consumer Portfolio Segment |
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
10,003 
9,499 
Consumer Portfolio Segment |
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
497 
485 
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
47,985 
44,753 
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,330 
6,167 
Commercial Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,390 
2,568 
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
23,517 7
23,959 7
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
15,980 
16,751 
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,046 
1,291 
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,504 8
1,309 8
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
10,003 
9,499 
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 497 
$ 485 
Composition of the Company's Loan Portfolio (Parenthetical) (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
$ 452 
$ 492 
Commercial Portfolio Segment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
3 
4 
Commercial Portfolio Segment |
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
3 
4 
Residential Mortgage Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
449 
488 
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
$ 449 
$ 488 
Loans - Additional Information (Detail) (USD $)
9 Months Ended
Sep. 30,
2011
contracts
years
2010
12 Months Ended
Dec. 31, 2010
years
Jul. 2, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivables, New Accounting Standard, Restructurings, Quantitative Effect of Adoption
 
 
 
$ 93,000,000 
Value of loans transferred from LHFI to LHFS
657,000,000 
296,000,000 
 
 
Loans held for investment sold
 
 
479,000,000 
 
Gain on sale of loans held for investment
 
 
20,000,000 
 
Commitments to lend additional funds to debtors owing receivables
12,000,000 
 
15,000,000 
 
Concentration of credit risk, maximum exposure, percentage of total loans
38.00% 
 
 
 
Interest only period
10 
 
10 
 
Cross-Border Outstanding Loans
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Concentration of credit risk, maximum exposure
418,000,000 
 
446,000,000 
 
Residential Mortgage
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Concentration of credit risk, maximum exposure, percentage of total loans
 
 
40.00% 
 
Concentration of credit risk, maximum exposure
45,000,000,000 
 
46,500,000,000 
 
Government guaranteed
10.00% 
 
10.00% 
 
Residential Mortgage |
Risk Level, High
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Concentration of credit risk, maximum exposure
16,400,000,000 
 
17,600,000,000 
 
Commitments to Extend Credit
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Concentration of credit risk, maximum exposure
13,000,000,000 
 
13,600,000,000 
 
Loan Origination Commitments
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Concentration of credit risk, maximum exposure
7,200,000,000 
 
9,200,000,000 
 
Interest Only Loans |
Risk Level, High
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Concentration of credit risk, maximum exposure
11,700,000,000 
 
13,200,000,000 
 
Amortizing Loans |
Risk Level, High
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Concentration of credit risk, maximum exposure
1,800,000,000 
 
2,000,000,000 
 
Accrual Loans
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Accruing TDRs included in impaired loan balances
2,600,000,000 
 
2,500,000,000 
 
Accruing TDRs current
93.00% 
 
85.00% 
 
Guaranteed Student Loans
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loan portfolio percentage
80.00% 
 
77.00% 
 
Lower Limit
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Minimum amount of modified loan in a TDR to evaluate individually for impairment
$ 4,000,000 
 
 
 
LHFI by Credit Quality Indicator (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Loans held for investment
$ 117,475 
$ 115,975 
Pass |
Commercial and Industrial
 
 
Loans held for investment
45,823 
42,140 
Criticized Accruing |
Commercial and Industrial
 
 
Loans held for investment
1,682 
2,029 
Criticized Nonaccruing |
Commercial and Industrial
 
 
Loans held for investment
480 
584 
Commercial and Industrial
 
 
Loans held for investment
47,985 
44,753 
Pass |
Commercial Real Estate
 
 
Loans held for investment
3,763 
4,316 
Criticized Accruing |
Commercial Real Estate
 
 
Loans held for investment
1,227 
1,509 
Criticized Nonaccruing |
Commercial Real Estate
 
 
Loans held for investment
340 
342 
Commercial Real Estate
 
 
Loans held for investment
5,330 
6,167 
Pass |
Commercial Construction
 
 
Loans held for investment
600 
836 
Criticized Accruing |
Commercial Construction
 
 
Loans held for investment
405 
771 
Criticized Nonaccruing |
Commercial Construction
 
 
Loans held for investment
385 
961 
Commercial Construction
 
 
Loans held for investment
1,390 
2,568 
FICO Score 700 and Above |
Residential Nonguaranteed
 
 
Loans held for investment
16,205 1
15,920 1
FICO Score Between 620 and 699 |
Residential Nonguaranteed
 
 
Loans held for investment
4,184 1
4,457 1
FICO Score Below 620 |
Residential Nonguaranteed
 
 
Loans held for investment
3,128 1 2
3,582 1 2
Residential Nonguaranteed
 
 
Loans held for investment
23,517 1
23,959 1
FICO Score 700 and Above |
Home Equity
 
 
Loans held for investment
11,348 
11,673 
FICO Score Between 620 and 699 |
Home Equity
 
 
Loans held for investment
2,857 
2,897 
FICO Score Below 620 |
Home Equity
 
 
Loans held for investment
1,775 2
2,181 2
Home Equity
 
 
Loans held for investment
15,980 
16,751 
FICO Score 700 and Above |
Residential Construction
 
 
Loans held for investment
695 
828 
FICO Score Between 620 and 699 |
Residential Construction
 
 
Loans held for investment
215 
258 
FICO Score Below 620 |
Residential Construction
 
 
Loans held for investment
136 2
205 2
Residential Construction
 
 
Loans held for investment
1,046 
1,291 
FICO Score 700 and Above |
Consumer Other Direct
 
 
Loans held for investment
1,187 3
973 3
FICO Score Between 620 and 699 |
Consumer Other Direct
 
 
Loans held for investment
231 3
231 3
FICO Score Below 620 |
Consumer Other Direct
 
 
Loans held for investment
86 2 3
105 2 3
Consumer Other Direct
 
 
Loans held for investment
1,504 3
1,309 3
FICO Score 700 and Above |
Consumer Indirect
 
 
Loans held for investment
7,530 
6,780 
FICO Score Between 620 and 699 |
Consumer Indirect
 
 
Loans held for investment
1,764 
1,799 
FICO Score Below 620 |
Consumer Indirect
 
 
Loans held for investment
709 2
920 2
Consumer Indirect
 
 
Loans held for investment
10,003 
9,499 
FICO Score 700 and Above |
Consumer Credit Card
 
 
Loans held for investment
278 
258 
FICO Score Between 620 and 699 |
Consumer Credit Card
 
 
Loans held for investment
148 
149 
FICO Score Below 620 |
Consumer Credit Card
 
 
Loans held for investment
71 2
78 2
Consumer Credit Card
 
 
Loans held for investment
$ 497 
$ 485 
LHFI by Credit Quality Indicator (Parenthetical) (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 117,475 
$ 115,975 
Federally Guaranteed Residential Loans |
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,400 
4,500 
Guaranteed Student Loans |
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
441 
413 
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
23,517 1
23,959 1
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 1,504 2
$ 1,309 2
Payment Status for the LHFI Portfolio (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
$ 111,066 
$ 108,768 
Accruing 30-89 Days Past Due
1,346 
1,532 
Accruing 90+ Days Past Due
1,824 
1,565 
Nonaccruing
3,239 1
4,110 2
Total
117,475 
115,975 
Commercial Portfolio Segment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
53,349 
51,435 
Accruing 30-89 Days Past Due
84 
149 
Accruing 90+ Days Past Due
67 
17 
Nonaccruing
1,205 1
1,887 2
Total
54,705 
53,488 
Commercial Portfolio Segment |
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
47,366 3
44,046 4
Accruing 30-89 Days Past Due
74 3
111 4
Accruing 90+ Days Past Due
66 3
12 4
Nonaccruing
479 1 3 5
584 2 4 5
Total
47,985 3
44,753 3
Commercial Portfolio Segment |
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
4,979 
5,794 
Accruing 30-89 Days Past Due
9 
27 
Accruing 90+ Days Past Due
1 
4 
Nonaccruing
341 1
342 2
Total
5,330 
6,167 
Commercial Portfolio Segment |
Commercial Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
1,004 
1,595 
Accruing 30-89 Days Past Due
1 
11 
Accruing 90+ Days Past Due
0 
1 
Nonaccruing
385 1
961 2
Total
1,390 
2,568 
Residential Mortgage Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
41,153 
42,500 
Accruing 30-89 Days Past Due
766 
899 
Accruing 90+ Days Past Due
1,066 
934 
Nonaccruing
2,007 1
2,188 2
Total
44,992 
46,521 
Residential Mortgage Loans |
Residential Guaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
3,237 
3,469 
Accruing 30-89 Days Past Due
179 
167 
Accruing 90+ Days Past Due
1,033 
884 
Nonaccruing
0 1
0 2
Total
4,449 
4,520 
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
21,728 6
21,916 7
Accruing 30-89 Days Past Due
342 6
456 7
Accruing 90+ Days Past Due
30 6
44 7
Nonaccruing
1,417 1 6 8
1,543 2 7 8
Total
23,517 6
23,959 7
Residential Mortgage Loans |
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
15,417 
16,162 
Accruing 30-89 Days Past Due
223 
234 
Accruing 90+ Days Past Due
0 
0 
Nonaccruing
340 1
355 2
Total
15,980 
16,751 
Residential Mortgage Loans |
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
771 
953 
Accruing 30-89 Days Past Due
22 
42 
Accruing 90+ Days Past Due
3 
6 
Nonaccruing
250 1
290 2
Total
1,046 
1,291 
Consumer Portfolio Segment
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
16,564 
14,833 
Accruing 30-89 Days Past Due
496 
484 
Accruing 90+ Days Past Due
691 
614 
Nonaccruing
27 1
35 2
Total
17,778 
15,966 
Consumer Portfolio Segment |
Guaranteed Student Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
4,245 
3,281 
Accruing 30-89 Days Past Due
413 
383 
Accruing 90+ Days Past Due
675 
596 
Nonaccruing
0 1
0 2
Total
5,333 
4,260 
Consumer Portfolio Segment |
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
1,918 
1,692 
Accruing 30-89 Days Past Due
15 
15 
Accruing 90+ Days Past Due
5 
5 
Nonaccruing
7 1
10 2
Total
1,945 
1,722 
Consumer Portfolio Segment |
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
9,919 
9,400 
Accruing 30-89 Days Past Due
60 
74 
Accruing 90+ Days Past Due
4 
0 
Nonaccruing
20 1
25 2
Total
10,003 
9,499 
Consumer Portfolio Segment |
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
482 
460 
Accruing 30-89 Days Past Due
8 
12 
Accruing 90+ Days Past Due
7 
13 
Nonaccruing
0 1
0 2
Total
497 
485 
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
47,985 
44,753 
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
5,330 
6,167 
Commercial Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
1,390 
2,568 
Residential Nonguaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
23,517 9
23,959 9
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
15,980 
16,751 
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
1,046 
1,291 
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
1,504 10
1,309 10
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
10,003 
9,499 
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
$ 497 
$ 485 
Payment Status for the LHFI Portfolio (Parenthetical) (Detail) (USD $)
Sep. 30, 2011
Dec. 31, 2010
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
$ 452,000,000 
$ 492,000,000 
Nonaccruing 90 Plus Days Past Due
2,500,000,000 
3,300,000,000 
Commercial Portfolio Segment
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
3,000,000 
4,000,000 
Commercial Portfolio Segment |
Commercial and Industrial
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
3,000,000 
4,000,000 
Residential Mortgage Loans
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
449,000,000 
488,000,000 
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
$ 449,000,000 
$ 488,000,000 
LHFI Considered Impaired (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30, 2011
9 Months Ended
Sep. 30, 2011
Dec. 31, 2010
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
$ 4,425 
$ 4,425 
$ 4,687 
Amortized Cost
3,906 1
3,906 1
4,083 2
Related Allowance
479 
479 
605 
Average Amortized Cost
3,847 
3,951 
 
Interest Income Recognized
35 3
95 3
 
Commercial Portfolio Segment |
Commercial and Industrial |
Impaired Financing Receivables With No Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
97 
97 
86 
Amortized Cost
96 1
96 1
67 2
Related Allowance
0 
0 
0 
Average Amortized Cost
96 
101 
 
Interest Income Recognized
1 3
1 3
 
Commercial Portfolio Segment |
Commercial Real Estate |
Impaired Financing Receivables With No Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
89 
89 
110 
Amortized Cost
85 1
85 1
86 2
Related Allowance
0 
0 
0 
Average Amortized Cost
81 
69 
 
Interest Income Recognized
1 3
2 3
 
Commercial Portfolio Segment |
Commercial Construction |
Impaired Financing Receivables With No Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
93 
93 
67 
Amortized Cost
91 1
91 1
52 2
Related Allowance
0 
0 
0 
Average Amortized Cost
74 
92 
 
Interest Income Recognized
0 3
0 3
 
Commercial Portfolio Segment |
Impaired Financing Receivables With No Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
279 
279 
263 
Amortized Cost
272 1
272 1
205 2
Related Allowance
0 
0 
0 
Average Amortized Cost
251 
262 
 
Interest Income Recognized
2 3
3 3
 
Commercial Portfolio Segment |
Commercial and Industrial |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
123 
123 
123 
Amortized Cost
118 1
118 1
96 2
Related Allowance
21 
21 
18 
Average Amortized Cost
109 
123 
 
Interest Income Recognized
1 3
1 3
 
Commercial Portfolio Segment |
Commercial Real Estate |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
129 
129 
103 
Amortized Cost
123 1
123 1
81 2
Related Allowance
27 
27 
19 
Average Amortized Cost
120 
131 
 
Interest Income Recognized
0 3
1 3
 
Commercial Portfolio Segment |
Commercial Construction |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
237 
237 
673 
Amortized Cost
198 1
198 1
524 2
Related Allowance
31 
31 
138 
Average Amortized Cost
192 
301 
 
Interest Income Recognized
1 3
2 3
 
Commercial Portfolio Segment |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
489 
489 
899 
Amortized Cost
439 1
439 1
701 2
Related Allowance
79 
79 
175 
Average Amortized Cost
421 
555 
 
Interest Income Recognized
2 3
4 3
 
Residential Mortgage Loans |
Residential Nonguaranteed |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
2,848 
2,848 
2,785 
Amortized Cost
2,462 1
2,462 1
2,467 2
Related Allowance
278 
278 
309 
Average Amortized Cost
2,471 
2,462 
 
Interest Income Recognized
22 3
66 3
 
Residential Mortgage Loans |
Home Equity |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
544 
544 
503 
Amortized Cost
508 1
508 1
503 2
Related Allowance
95 
95 
93 
Average Amortized Cost
496 
464 
 
Interest Income Recognized
7 3
17 3
 
Residential Mortgage Loans |
Residential Construction |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
253 
253 
226 
Amortized Cost
213 1
213 1
196 2
Related Allowance
25 
25 
26 
Average Amortized Cost
196 
196 
 
Interest Income Recognized
2 3
5 3
 
Residential Mortgage Loans |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
3,645 
3,645 
3,514 
Amortized Cost
3,183 1
3,183 1
3,166 2
Related Allowance
398 
398 
428 
Average Amortized Cost
3,163 
3,122 
 
Interest Income Recognized
31 3
88 3
 
Consumer Portfolio Segment |
Consumer Other Direct |
Impaired Financing Receivables with Related Allowance [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
12 
12 
11 
Amortized Cost
12 1
12 1
11 2
Related Allowance
2 
2 
2 
Average Amortized Cost
12 
12 
 
Interest Income Recognized
$ 0 3
$ 0 3
 
LHFI Considered Impaired (Parenthetical) (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30, 2011
9 Months Ended
Sep. 30, 2011
Financing Receivable, Impaired [Line Items]
 
 
Cash basis interest income
$ 6 
$ 19 
Nonperforming Assets (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Nonaccrual/NPLs
$ 3,239 1
$ 4,110 2
OREO
509 3
596 3
Other repossessed assets
15 
52 
Total nonperforming assets
3,763 
4,758 
Commercial Portfolio Segment
 
 
Nonaccrual/NPLs
1,205 1
1,887 2
Commercial Portfolio Segment |
Commercial and Industrial
 
 
Nonaccrual/NPLs
479 1 4 5
584 2 4 6
Commercial Portfolio Segment |
Commercial Real Estate
 
 
Nonaccrual/NPLs
341 1
342 2
Commercial Portfolio Segment |
Commercial Construction
 
 
Nonaccrual/NPLs
385 1
961 2
Residential Mortgage Loans
 
 
Nonaccrual/NPLs
2,007 1
2,188 2
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Nonaccrual/NPLs
1,417 1 7 8
1,543 2 7 9
Residential Mortgage Loans |
Home Equity
 
 
Nonaccrual/NPLs
340 1
355 2
Residential Mortgage Loans |
Residential Construction
 
 
Nonaccrual/NPLs
250 1
290 2
Consumer Portfolio Segment
 
 
Nonaccrual/NPLs
27 1
35 2
Consumer Portfolio Segment |
Consumer Other Direct
 
 
Nonaccrual/NPLs
7 1
10 2
Consumer Portfolio Segment |
Consumer Indirect
 
 
Nonaccrual/NPLs
$ 20 1
$ 25 2
Nonperforming Assets (Parenthetical) (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Loans carried at fair value
$ 452 
$ 492 
Residential Mortgage |
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Loans carried at fair value
23 
24 
Commercial Portfolio Segment
 
 
Loans carried at fair value
3 
4 
Commercial Portfolio Segment |
Commercial and Industrial
 
 
Loans carried at fair value
3 
4 
Residential Mortgage Loans
 
 
Loans carried at fair value
449 
488 
Residential Mortgage Loans |
Residential Nonguaranteed
 
 
Loans carried at fair value
449 
488 
Federal Housing Administration Loan
 
 
OREO
$ 134 
$ 195 
Loans TDR Modifications (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2011
contracts
9 Months Ended
Sep. 30, 2011
contracts
years
Financing Receivable, Modifications [Line Items]
 
 
PrincipalForgivenessRestructuringImpact
$ 3 
$ 6 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
263 1
581 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
11 3
68 4
total modifications
274 
649 
Financing Receivable, Restructured During Period, Number Of Contracts
2,090 
4,947 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
323 5
731 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
54 5
121 6
Commercial Portfolio Segment [Member] |
Commercial and Industrial [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
51 1
80 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
26 4
total modifications
51 
106 
Financing Receivable, Restructured During Period, Number Of Contracts
208 
382 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
23 5
31 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
6 5
8 6
Commercial Portfolio Segment [Member] |
Commercial Real Estate [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
14 1
43 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
2 3
18 4
total modifications
16 
61 
Financing Receivable, Restructured During Period, Number Of Contracts
9 
34 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
5 5
8 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
21 5
21 6
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
56 1
80 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
9 3
22 4
total modifications
65 
102 
Financing Receivable, Restructured During Period, Number Of Contracts
11 
57 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
1 5
7 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 5
11 6
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
61 1
215 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
2 4
total modifications
61 
217 
Financing Receivable, Restructured During Period, Number Of Contracts
304 
851 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
60 5
230 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
19 5
66 6
Residential Portfolio Segment [Member] |
Home Equity [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
42 1
104 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
0 4
total modifications
42 
104 
Financing Receivable, Restructured During Period, Number Of Contracts
569 
1,308 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
60 5
108 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
6 5
10 6
Residential Portfolio Segment [Member] |
Residential Construction [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
35 1
45 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
0 4
total modifications
35 
45 
Financing Receivable, Restructured During Period, Number Of Contracts
266 
317 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
6 5
24 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
1 5
3 6
Consumer Portfolio Segment [Member] |
Consumer Other Direct [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
0 1
3 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
0 4
total modifications
0 
3 
Financing Receivable, Restructured During Period, Number Of Contracts
7 
61 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
2 5
2 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 5
0 6
Consumer Portfolio Segment [Member] |
Consumer Credit Card Financing Receivable [Member]
 
 
Financing Receivable, Modifications [Line Items]
 
 
Financing Receivable, Amount Restructured During Period, Rate Mod and/or Term Extension
4 1
11 2
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
0 4
total modifications
4 
11 
Financing Receivable, Restructured During Period, Number Of Contracts
716 
1,937 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
166 5
321 6
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
$ 1 5
$ 2 6
Loans Troubled Debt Restructurings (Details) (USD $)
In Millions
Sep. 30, 2011
Jul. 2, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Financing Receivables, New Accounting Standard, Restructurings, Quantitative Effect of Adoption
 
$ 93 
Financing Receivable, Restructured, Payment Default, Related Allowance Amount
$ 4 
 
Activity in the Allowance for Credit Losses (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Dec. 31, 2009
Components:
 
 
 
 
 
 
 
 
Balance at beginning of period
$ 2,795 
$ 3,216 
$ 3,032 
$ 3,235 
 
 
 
 
Provision for loan losses
348 
620 
1,194 
2,199 
 
 
 
 
Benefit for unfunded commitments
(1)
(5)
(8)
(60)
 
 
 
 
Loan charge-offs
(536)
(725)
(1,714)
(2,355)
 
 
 
 
Loan recoveries
44 
35 
146 
122 
 
 
 
 
Balance at end of period
2,650 
3,141 
2,650 
3,141 
 
 
 
 
ALLL
2,600 
3,086 
2,600 
3,086 
2,744 
2,974 
3,156 
3,120 
Unfunded commitments reserve
50 1
55 1
50 1
55 1
 
 
 
 
Allowance for credit losses
$ 2,650 
$ 3,141 
$ 2,650 
$ 3,141 
 
 
 
 
Activity in the ALLL by segment (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
$ 2,744 
$ 3,156 
$ 2,974 
$ 3,120 
Provision for loan losses
348 
620 
1,194 
2,199 
Loan charge-offs
(536)
(725)
(1,714)
(2,355)
Loan recoveries
44 
35 
146 
122 
Balance at end of period
2,600 
3,086 
2,600 
3,086 
Commercial Portfolio Segment
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
1,200 
1,447 
1,303 
1,353 
Provision for loan losses
86 
186 
318 
671 
Loan charge-offs
(214)
(251)
(619)
(694)
Loan recoveries
29 
20 
99 
72 
Balance at end of period
1,101 
1,402 
1,101 
1,402 
Residential Mortgage Loans
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
1,395 
1,538 
1,498 
1,592 
Provision for loan losses
236 
392 
810 
1,406 
Loan charge-offs
(282)
(433)
(970)
(1,511)
Loan recoveries
3 
5 
14 
15 
Balance at end of period
1,352 
1,502 
1,352 
1,502 
Consumer Portfolio Segment
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
149 
171 
173 
175 
Provision for loan losses
26 
42 
66 
122 
Loan charge-offs
(40)
(41)
(125)
(150)
Loan recoveries
12 
10 
33 
35 
Balance at end of period
$ 147 
$ 182 
$ 147 
$ 182 
Changes in the Carrying Amount of Goodwill by Reportable Segment (Detail) (USD $)
In Millions
9 Months Ended
Sep. 30,
2011
2010
Beginning balance
$ 6,323 
$ 6,319 
Intersegment transfers
 
0 
Contingent consideration
1 
4 
Purchase of the assets of asset management business
20 
 
Ending balance
6,344 
6,323 
Retail and Commercial Segment
 
 
Beginning balance
0 
5,739 
Intersegment transfers
 
(5,739)
Contingent consideration
0 
0 
Purchase of the assets of asset management business
0 
 
Ending balance
0 
0 
Retail Banking
 
 
Beginning balance
4,854 
0 
Intersegment transfers
 
4,854 
Contingent consideration
0 
0 
Purchase of the assets of asset management business
0 
 
Ending balance
4,854 
4,854 
Diversified Commercial Banking
 
 
Beginning balance
928 
0 
Intersegment transfers
 
928 
Contingent consideration
0 
0 
Purchase of the assets of asset management business
0 
 
Ending balance
928 
928 
Corporate and Investment Banking Segment
 
 
Beginning balance
180 
223 
Intersegment transfers
 
(43)
Contingent consideration
0 
0 
Purchase of the assets of asset management business
0 
 
Ending balance
180 
180 
Wealth and Investment Management Segment
 
 
Beginning balance
361 
357 
Intersegment transfers
 
0 
Contingent consideration
1 
4 
Purchase of the assets of asset management business
20 
 
Ending balance
$ 382 
$ 361 
Changes in the Carrying Amounts of Other Intangible Assets (Detail) (USD $)
In Millions
9 Months Ended
Sep. 30,
2011
2010
Beginning Balance
$ 1,571 
$ 1,711 
Designated at fair value (transfers from amortized cost)
 
0 
Amortization
(34)
(39)
MSRs originated
183 
198 
Sale of MSRs
(7)
 
Due to fair value election
 
145 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
(443)
(643)
Other changes in fair value
(139)
(168)
Other
7 
 
Ending Balance
1,138 
1,204 
Core Deposits
 
 
Beginning Balance
67 
104 
Designated at fair value (transfers from amortized cost)
 
0 
Amortization
(23)
(29)
MSRs originated
0 
0 
Sale of MSRs
0 
 
Due to fair value election
 
0 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
0 1
0 1
Other changes in fair value
0 2
0 2
Other
0 
 
Ending Balance
44 
75 
Mortgage Servicing Rights, Amortized Cost
 
 
Beginning Balance
0 
604 
Designated at fair value (transfers from amortized cost)
 
(604)
Amortization
0 
0 
MSRs originated
0 
0 
Sale of MSRs
0 
 
Due to fair value election
 
0 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
0 1
0 1
Other changes in fair value
0 2
0 2
Other
0 
 
Ending Balance
0 
0 
Mortgage Servicing Rights, Fair Value
 
 
Beginning Balance
1,439 
936 
Designated at fair value (transfers from amortized cost)
 
604 
Amortization
0 
0 
MSRs originated
183 
198 
Sale of MSRs
(7)
 
Due to fair value election
 
145 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
(443)1
(643)1
Other changes in fair value
(139)2
(168)2
Other
0 
 
Ending Balance
1,033 
1,072 
Other Intangible Assets
 
 
Beginning Balance
65 
67 
Designated at fair value (transfers from amortized cost)
 
0 
Amortization
(11)
(10)
MSRs originated
0 
0 
Sale of MSRs
0 
 
Due to fair value election
 
0 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
0 1
0 1
Other changes in fair value
0 2
0 2
Other
7 
 
Ending Balance
$ 61 
$ 57 
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Dec. 31, 2010
Mortgage servicing related income
$ 58,000,000 
$ 132,000,000 
$ 202,000,000 
$ 290,000,000 
 
Branch Banking Reporting Unit [Member]
 
 
 
 
 
Goodwill Reporting Unit, Fair Value Exceeds Carrying Value Percent Amount
12.00% 
 
12.00% 
 
 
Diversified Commercial Banking Reporting Unit [Member]
 
 
 
 
 
Goodwill Reporting Unit, Fair Value Exceeds Carrying Value Percent Amount
27.00% 
 
27.00% 
 
 
Corporate and Investment Banking Reporting Unit [Member]
 
 
 
 
 
Goodwill Reporting Unit, Fair Value Exceeds Carrying Value Percent Amount
36.00% 
 
36.00% 
 
 
Wealth and Investment Management Reporting Unit [Member]
 
 
 
 
 
Goodwill Reporting Unit, Fair Value Exceeds Carrying Value Percent Amount
150.00% 
 
150.00% 
 
 
Mortgage Servicing Rights
 
 
 
 
 
Mortgage servicing related income
91,000,000 
99,000,000 
277,000,000 
298,000,000 
 
Total unpaid principal amount of mortgaged loans serviced
161,000,000,000 
 
161,000,000,000 
 
167,200,000,000 
Included in these amounts of loans serviced for third parties
129,400,000,000 
 
129,400,000,000 
 
134,100,000,000 
Residential mortgage loans sold
 
 
$ 1,700,000,000 
 
 
Summary of the Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs (Detail) (Estimate of Fair Value, Fair Value Disclosure, USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2011
12 Months Ended
Dec. 31, 2010
Estimate of Fair Value, Fair Value Disclosure
 
 
Fair value of retained MSRs
$ 1,033 
$ 1,439 
Prepayment rate assumption (annual)
18.00% 
12.00% 
Decline in fair value from 10% adverse change
70 
50 
Decline in fair value from 20% adverse change
134 
95 
Discount rate (annual)
11.00% 
12.00% 
Decline in fair value from 10% adverse change
36 
68 
Decline in fair value from 20% adverse change
$ 70 
$ 130 
Weighted-average life (in years)
4.4 
6.2 
Weighted-average coupon
5.20% 
5.40% 
Certain Transfers of Financial Assets and Variable Interest Entities - Additional Information (Detail) (USD $)
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,		 3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,		 3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,		 3 Months Ended
Sep. 30,
2011
2010
2011
2010
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Dec. 31, 2009
2011
Residential Mortgage
Variable Interest Entity, Not Primary Beneficiary
2010
Residential Mortgage
Variable Interest Entity, Not Primary Beneficiary
2011
Residential Mortgage
Variable Interest Entity, Not Primary Beneficiary
2010
Residential Mortgage
Variable Interest Entity, Not Primary Beneficiary
Dec. 31, 2010
Residential Mortgage
Variable Interest Entity, Not Primary Beneficiary
Sep. 30, 2011
Residential Mortgage
Variable Interest Entity, Not Primary Beneficiary
Pricing Service
Sep. 30, 2011
Residential Mortgage
Variable Interest Entity, Not Primary Beneficiary
Subordinate Interests
12 Months Ended
Dec. 31, 2007
Commercial and Corporate Loans
Variable Interest Entity, Not Primary Beneficiary
Sep. 30, 2011
Commercial and Corporate Loans
Variable Interest Entity, Not Primary Beneficiary
Dec. 31, 2010
Commercial and Corporate Loans
Variable Interest Entity, Not Primary Beneficiary
Sep. 30, 2011
Commercial and Corporate Loans
Variable Interest Entity, Not Primary Beneficiary
Preference Shares
Dec. 31, 2010
Commercial and Corporate Loans
Variable Interest Entity, Not Primary Beneficiary
Preference Shares
Sep. 30, 2011
Commercial and Corporate Loans
Variable Interest Entity, Primary Beneficiary
Jan. 2, 2010
Commercial and Corporate Loans
Variable Interest Entity, Primary Beneficiary
9 Months Ended
Sep. 30, 2011
Student Loans
Variable Interest Entity, Primary Beneficiary
Dec. 31, 2010
Student Loans
Variable Interest Entity, Primary Beneficiary
Sep. 30, 2010
Student Loans
Variable Interest Entity, Primary Beneficiary
Sep. 30, 2011
Variable Interest Entity, Primary Beneficiary
Upper Limit
Student Loans
9 Months Ended
Sep. 30, 2011
Upper Limit
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
12 Months Ended
Dec. 31, 2010
Upper Limit
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
9 Months Ended
Sep. 30, 2011
Lower Limit
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
12 Months Ended
Dec. 31, 2010
Lower Limit
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
9 Months Ended
Sep. 30, 2011
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
Dec. 31, 2010
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
Sep. 30, 2011
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
Trading Assets
Dec. 31, 2010
Collateralized Debt Obligations
Variable Interest Entity, Not Primary Beneficiary
Trading Assets
2011
Residential Mortgage Loan Securitization, Government Sponsored Enterprises
2010
Residential Mortgage Loan Securitization, Government Sponsored Enterprises
2011
Residential Mortgage Loan Securitization, Government Sponsored Enterprises
2010
Residential Mortgage Loan Securitization, Government Sponsored Enterprises
Sep. 30, 2011
Upper Limit
Three Pillars
Variable Interest Entity, Primary Beneficiary
years
Sep. 30, 2011
Three Pillars
Variable Interest Entity, Primary Beneficiary
Commercial Portfolio Segment
Sep. 30, 2011
Lower Limit
Three Pillars
Variable Interest Entity, Primary Beneficiary
years
Dec. 31, 2010
Variable Interest Entity, Primary Beneficiary
Commercial Portfolio Segment
Three Pillars
Sep. 30, 2011
Three Pillars
Variable Interest Entity, Primary Beneficiary
Trade Accounts Receivable [Member]
Sep. 30, 2011
Variable Interest Entity, Primary Beneficiary
Loans Receivable [Member]
Three Pillars
Dec. 31, 2010
Three Pillars
Variable Interest Entity, Primary Beneficiary
Loans Receivable [Member]
Dec. 31, 2010
Trade Accounts Receivable [Member]
Three Pillars
Variable Interest Entity, Primary Beneficiary
2011
Three Pillars
Variable Interest Entity, Primary Beneficiary
years
2010
Three Pillars
Variable Interest Entity, Primary Beneficiary
9 Months Ended
Sep. 30, 2011
Three Pillars
Variable Interest Entity, Primary Beneficiary
years
12 Months Ended
Dec. 31, 2010
Three Pillars
Variable Interest Entity, Primary Beneficiary
years
Sep. 30, 2011
Three Pillars
Variable Interest Entity, Primary Beneficiary
Receivables
Dec. 31, 2010
Three Pillars
Variable Interest Entity, Primary Beneficiary
Receivables
Sep. 30, 2011
Total Return Swap
Variable Interest Entity, Not Primary Beneficiary
Dec. 31, 2010
Total Return Swap
Variable Interest Entity, Not Primary Beneficiary
Sep. 30, 2011
Community Development Investments
Variable Interest Entity, Not Primary Beneficiary
Dec. 31, 2010
Community Development Investments
Variable Interest Entity, Not Primary Beneficiary
Sep. 30, 2011
Community Development Investments
Variable Interest Entity, Not Primary Beneficiary
Limited Partner
Dec. 31, 2010
Community Development Investments
Variable Interest Entity, Not Primary Beneficiary
Limited Partner
Sep. 30, 2011
Community Development Investments
General Partner
Dec. 31, 2010
Community Development Investments
General Partner
Sep. 30, 2011
Community Development Investments
Partnership [Member]
Dec. 31, 2010
Community Development Investments
Partnership [Member]
Sep. 30, 2011
Ridgeworth Fund
Variable Interest Entity, Not Primary Beneficiary
Dec. 31, 2010
Ridgeworth Fund
Variable Interest Entity, Not Primary Beneficiary
Dec. 31, 2010
Variable Interest Entity, Not Primary Beneficiary
Sep. 30, 2011
Variable Interest Entity, Primary Beneficiary
day
Dec. 31, 2010
Variable Interest Entity, Primary Beneficiary
Sep. 30, 2011
Commercial Portfolio Segment
Jun. 30, 2011
Commercial Portfolio Segment
Dec. 31, 2010
Commercial Portfolio Segment
Sep. 30, 2010
Commercial Portfolio Segment
Jun. 30, 2010
Commercial Portfolio Segment
Dec. 31, 2009
Commercial Portfolio Segment
Funding commitments extended by Three Pillars to its customers, almost all of which renew annually
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,100,000,000 
 
$ 4,100,000,000 
$ 4,100,000,000 
$ 2,700,000,000 
$ 2,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans sold, pre-tax gains
 
 
 
 
 
 
 
 
167,000,000 
220,000,000 
285,000,000 
443,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of the residual interest
 
 
 
 
 
 
 
 
160,000,000 
 
160,000,000 
 
193,000,000 
143,000,000 
17,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
42,000,000 
29,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
172,553,000,000 
 
172,553,000,000 
 
 
172,874,000,000 
 
 
554,000,000 
 
554,000,000 
 
651,000,000 
 
 
 
2,000,000,000 
2,100,000,000 
2,000,000 
2,000,000 
 
307,000,000 
 
 
490,000,000 
 
 
 
 
 
1,200,000,000 
1,300,000,000 
 
 
 
 
 
 
 
2,700,000,000 
 
2,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
1,200,000,000 
1,100,000,000 
 
 
8,000,000 
8,000,000 
379,000,000 
394,000,000 
1,100,000,000 
1,900,000,000 
 
 
 
 
 
 
 
 
 
Total liabilities
152,353,000,000 
 
152,353,000,000 
 
 
149,744,000,000 
 
 
 
 
 
 
 
 
 
 
1,900,000,000 
 
 
 
 
279,000,000 
 
 
490,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
1,000,000 
110,000,000 
123,000,000 
 
 
2,000,000,000 
 
 
 
 
 
 
 
 
Sale of corporate loans to multi-seller commercial paper conduits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company completed a structured sale of corporate loans to multi-seller commercial paper conduits, which are VIEs administered by unrelated third parties, from which it retained a residual interest in the pool of loans transferred, percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans held
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
311,000,000 
 
448,000,000 
479,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issued
13,544,000,000 1
 
13,544,000,000 1
 
 
13,648,000,000 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
285,000,000 
 
443,000,000 
474,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
728,000,000 1
764,000,000 1
 
 
 
 
 
 
Recourse to the federal government
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
To the extent that losses occur on the SPE’s assets, the SPE has recourse to the federal government as the guarantor up to a maximum guarantee amount of 97%. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government guarantee
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
97.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The weighted average remaining lives of the Company's retained interests, approximating (years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumed discount rate in valuing securities, over LIBOR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14.00% 
16.00% 
8.00% 
14.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Declines in fair values for the total retained interests due to 20% adverse changes in the discount rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
 
10,000,000 
 
9,000,000 
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Servicing fees received by the Company
58,000,000 
132,000,000 
202,000,000 
290,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
87,000,000 
94,000,000 
263,000,000 
280,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses on consolidated loans
2,600,000,000 
3,086,000,000 
2,600,000,000 
3,086,000,000 
2,744,000,000 
2,974,000,000 
3,156,000,000 
3,120,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,700,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,101,000,000 
1,200,000,000 
1,303,000,000 
1,402,000,000 
1,447,000,000 
1,353,000,000 
The Company's activities with Three Pillars generated total fee revenue for the Company, net of direct salary and administrative costs incurred by the Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18,000,000 
20,000,000 
50,000,000 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
58,000,000 
 
58,000,000 
99,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets supporting those commitments have a weighted average life (years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
3 
2.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial terms
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The majority of the commitments that have been originated by companies operating across a number of industries which collateralize, percent of the outstanding commitments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
21.00% 
14.00% 
48.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transactions structured to minimum implied credit and underwriting risk
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Each transaction added to Three Pillars is typically structured to a minimum implied A/A2 rating according to established credit and underwriting policies 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average lives (days)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 
 
 
 
 
 
 
 
Minimum tangible net worth allowed for a period of 15 days
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000 
 
5,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit enhancement requirements as a percent of aggregate commitments of Three Pillars
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.00% 
 
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
6,595,000,000 
 
6,595,000,000 
 
 
7,814,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
199,000,000 
202,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum exposure to loss from variable interest entity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,200,000,000 
 
4,200,000,000 
4,200,000,000 
 
 
 
 
 
 
446,000,000 
458,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans issued by the Company to the limited partnerships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
225,000,000 
222,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior financing outstanding to VIEs
6,288,000,000 
 
6,288,000,000 
 
 
6,175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,400,000,000 
972,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
VIEs had entered into TRS contracts with the Company with outstanding notional amounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,400,000,000 
969,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative asset positions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,000,000 
34,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liability positions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 44,000,000 
$ 32,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Transfers in Which the Company has Continuing Economic Involvement (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Cash flows on interests held
$ 11 
$ 21 
$ 41 
$ 54 
Servicing or management fees
3 
4 
11 
13 
Residential Mortgage
 
 
 
 
Cash flows on interests held
11 
14 
39 
42 
Servicing or management fees
1 
1 
3 
3 
Commercial and Corporate Loans
 
 
 
 
Cash flows on interests held
0 
1 
1 
3 
Servicing or management fees
2 
3 
8 
10 
Consumer Loan
 
 
 
 
Cash flows on interests held
0 
5 
0 
8 
Servicing or management fees
0 
0 
0 
0 
Collateralized Debt Obligations
 
 
 
 
Cash flows on interests held
0 
1 
1 
1 
Servicing or management fees
$ 0 
$ 0 
$ 0 
$ 0 
Earnings/ (Loss) Per Common Share - Additional Information (Detail)
In Millions
Sep. 30, 2011
Sep. 30, 2010
Equivalent shares related to common stock options and common stock warrants outstanding were excluded from the computations of diluted income/(loss) per average common share because they would have been antidilutive
27 
32 
Reconciliation of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders (Detail) (USD $)
In Millions, except Share data
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Net income/(loss)
$ 215 
$ 153 
$ 573 
$ 5 
Series A preferred dividends
(2)
(2)
(5)
(6)
Dividends and accretion of discount on preferred stock issued to the U.S. Treasury
0 
(67)
(66)
(200)
Accelerated accretion for repurchase of preferred stock issued to the U.S. Treasury
0 
0 
(74)
0 
Dividends and undistributed earnings allocated to unvested shares
(2)
0 
(4)
0 
Net income/(loss) available to common shareholders
$ 211 
$ 84 
$ 424 
$ (201)
Average basic common shares
531,928,000 
495,501,000 
521,248,000 
495,243,000 
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract]
 
 
 
 
Stock options
1,000,000 
1,000,000 
2,000,000 
1,000,000 
Restricted stock
2,000,000 
2,000,000 
2,000,000 
2,000,000 
Average diluted common shares
535,395,000 
498,802,000 
524,888,000 
498,515,000 
Net income/(loss) per average common share - diluted
$ 0.39 1
$ 0.17 1
$ 0.81 1
$ (0.41)2
Net income/(loss) per average common share - basic
$ 0.40 
$ 0.17 
$ 0.81 
$ (0.41)
Long-Term Debt and Capital - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
9 Months Ended
Sep. 30,
3 Months Ended
Sep. 30, 2011
3 Months Ended
Mar. 31, 2011
3 Months Ended
Sep. 30, 2010
2011
2010
Dec. 31, 2010
Common stock offerings
 
$ 1,000,000,000 
 
$ 1,017,000,000 
 
 
Senior notes, issuance interest rate
 
3.60% 
 
 
 
 
Senior notes, due date
 
2016 
 
 
 
 
Repurchase of Fixed Rate Cumulative Preferred Stock, series C
 
 
 
4,850,000,000 
 
 
Repurchase of Series C & D preferred stock, accelerating the outstanding discount accretion
0 
 
0 
(74,000,000)
0 
 
Purchase of outstanding warrants
 
 
 
11,000,000 
0 
 
Debt issued
13,544,000,000 1
 
 
13,544,000,000 1
 
13,648,000,000 1
Subordinated debt matured
 
 
 
852,000,000 
 
 
Floating rate euro denominated notes, repayment
 
 
 
320,000,000 
 
 
Common stock offerings, increase in common equity
 
 
 
1,800,000,000 
 
 
Transactions that decreased common equity
 
 
 
2,900,000,000 
 
 
Senior Notes
 
 
 
 
 
 
Senior notes, due date
 
1,000,000,000 
 
 
 
 
Additional Paid in Capital
 
 
 
 
 
 
Common stock offerings
 
 
 
982,000,000 
 
 
Purchase of outstanding warrants
 
 
 
11,000,000 
 
 
Series C Preferred Stock
 
 
 
 
 
 
Repurchase of Fixed Rate Cumulative Preferred Stock, series C
 
3,500,000,000 
 
 
 
 
Series D Preferred Stock
 
 
 
 
 
 
Repurchase of Fixed Rate Cumulative Preferred Stock, series C
 
1,400,000,000 
 
 
 
 
Series C and Series D Preferred Stock
 
 
 
 
 
 
Repurchase of Series C & D preferred stock, accelerating the outstanding discount accretion
 
74,000,000 
 
 
 
 
Warrants [Member]
 
 
 
 
 
 
Class of Warrant or Right, Outstanding
17.9 
 
 
17.9 
 
 
Group 1
 
 
 
 
 
 
Warrant issued to purchase common stock, shares
11.9 
 
 
11.9 
 
 
Warrant issued, initial exercise price
44.15 
 
 
44.15 
 
 
Group 2
 
 
 
 
 
 
Warrant issued to purchase common stock, shares
6.0 
 
 
6.0 
 
 
Warrant issued, initial exercise price
33.70 
 
 
33.70 
 
 
warrants purchased
 
 
 
4 
 
 
The Company's Capital Ratios (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2011
Dec. 31, 2010
Tier 1 common
$ 12,188 
$ 10,737 
Tier 1 capital
14,531 
18,156 
Total capital
18,211 
21,967 
Tier 1 common
9.31% 
8.08% 
Tier 1 capital
11.10% 
13.67% 
Total capital
13.91% 
16.54% 
Tier 1 leverage
8.90% 
10.94% 
Sun Trust Bank
 
 
Tier 1 capital
13,873 
13,120 
Total capital
$ 17,048 
$ 16,424 
Tier 1 capital
10.75% 
10.05% 
Total capital
13.21% 
12.58% 
Tier 1 leverage
8.74% 
8.33% 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Dec. 31, 2010
Provision/(benefit) for income taxes
$ 45 
$ 14 
$ 136 
$ (230)
 
Effective tax rates
17.30% 
8.30% 
19.20% 
(102.10%)
 
Gross cumulative unrecognized tax benefits
99 
 
99 
 
102 
Amount that would affect the Company's effective tax rate, if recognized
67 
 
67 
 
 
Recognized a gross liability for interest related to its UTBs
21 
 
21 
 
21 
Interest expense (income) related to UTBs
(1)
(2)
(1)
1 
 
Reasonably possible decrease in UTBs during the next 12 months
$ 10 
 
$ 10 
 
 
Federal returns examined by the IRS
As of September 30, 2011, the Company’s federal returns through 2006 have been examined by the IRS and all issues have been resolved. The Company’s 2007 through 2009 federal income tax returns are currently under examination by the IRS. 
 
 
 
 
Employee Benefit Plans - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
LTI deferred cash plan - expense
$ 9 
$ 8 
$ 27 
$ 22 
Recognized stock-based compensation tax benefit
5 
5 
17 
16 
Options granted
 
 
813,265 
 
Weighted average prices of option grants
 
 
$ 29.70 
 
Fair value of options granted per share
 
 
$ 10.51 
$ 12.78 
Accrual related to salary shares
3 
 
3 
 
Supplemental Retirement Benefit plans, anticipated employer contributions/benefit payments
 
 
8 
 
Supplemental Retirement Benefit plans, actual contributions/benefit payments
1 
 
6 
 
Contributed to the Postretirement Welfare Plan
1 
 
 
 
Expects to receive a Medicare Subsidy reimbursement
$ 3 
 
$ 3 
 
Pension Plans, Defined Benefit
 
 
 
 
Expected long-term rate of return on plan assets
 
 
7.75% 
 
Other Postretirement Benefit Plans, Defined Benefit
 
 
 
 
Expected long-term rate of return on plan assets
6.75% 
 
6.75% 
 
Restricted stock units with vesting tied to the Company's total shareholder return |
Long Term Incentive Plan
 
 
 
 
Percentage of stock
50.00% 
 
50.00% 
 
Half restricted stock units, the vesting of which is tied to the achievement of a Tier 1 capital ratio target, and the other half in stock options |
Long Term Incentive Plan
 
 
 
 
Percentage of stock
50.00% 
 
50.00% 
 
Restricted Stock
 
 
 
 
Options granted
 
 
1,375,406 
 
Weighted average prices of restricted stock grants
 
 
$ 31.44 
 
Restricted Stock Units (RSUs)
 
 
 
 
Options granted
 
 
344,590 
 
Weighted average prices of restricted stock grants
 
 
$ 37.57 
 
Assumptions Used in Estimating the Grant Date Fair Value of Options Using the Black-Scholes Option Pricing Model (Detail)
9 Months Ended
Sep. 30,
2011
contracts
years
2010
years
Dividend yield
0.75% 
0.17% 
Expected stock price volatility
34.87% 
56.09% 
Risk-free interest rate (weighted average)
2.48% 
2.80% 
Expected life of options
6 
6 
Stock-Based Compensation Expense Recognized in Noninterest Expense (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Stock-based compensation expense:
 
 
 
 
Stock options
$ 4 
$ 4 
$ 11 
$ 11 
Restricted stock
8 
9 
25 
31 
Restricted stock units
1 
0 
9 
0 
Total stock-based compensation expense
$ 13 
$ 13 
$ 45 
$ 42 
Net Periodic Benefit Cost (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Pension Plans, Defined Benefit
 
 
 
 
Service cost
$ 18 
$ 17 
$ 53 
$ 52 
Interest cost
32 
33 
97 
97 
Expected return on plan assets
(47)
(46)
(142)
(137)
Amortization of prior service cost
(5)
(3)
(14)
(9)
Recognized net actuarial loss
11 
16 
32 
46 
Net periodic benefit cost
9 
17 
26 
49 
Other Postretirement Benefit Plans, Defined Benefit
 
 
 
 
Service cost
0 
0 
0 
0 
Interest cost
3 
3 
7 
7 
Expected return on plan assets
(2)
(2)
(6)
(6)
Amortization of prior service cost
0 
0 
0 
0 
Recognized net actuarial loss
0 
0 
1 
1 
Net periodic benefit cost
$ 1 
$ 1 
$ 2 
$ 2 
Derivative Financial Instruments - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
9 Months Ended
Sep. 30,		 3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
3 Months Ended
Sep. 30, 2008
2011
2010
2008
Sun Trust Banks, Inc. and Subsidiaries
Subsidiaries
2008
Sun Trust Bank
Subsidiaries
Sep. 30, 2011
Derivatives Sold
Credit Default Swap
Dec. 31, 2010
Derivatives Sold
Credit Default Swap
2011
Lower Limit
years
2011
Upper Limit
years
2011
Credit and Market Risk
Dec. 31, 2010
Credit and Market Risk
Sep. 30, 2011
Credit and Market Risk
Additional Termination Event [Member]
9 Months Ended
Sep. 30, 2011
Credit and Market Risk
Additional Termination Event [Member]
Credit Downgrade [Member]
Sep. 30, 2011
Credit and Market Risk
Credit Support Annex
Sep. 30, 2011
Credit and Market Risk
Credit Support Annex
Credit Downgrade [Member]
9 Months Ended
Sep. 30, 2011
Credit and Market Risk
Credit Support Annex
Additional Credit Downgrade [Member]
Sep. 30, 2011
Credit Default Swap
Dec. 31, 2010
Credit Default Swap
Sep. 30, 2011
Credit Derivatives Swap Participation
Dec. 31, 2010
Credit Derivatives Swap Participation
Sep. 30, 2011
Total Return Swap
Dec. 31, 2010
Total Return Swap
Sep. 30, 2011
Cash Flow Hedging
Derivative asset positions
 
 
 
 
 
 
 
 
 
$ 2,500,000,000 
$ 1,600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Net derivative asset positions to which the Company was exposed to risk of its counterparties, netted by counterparty where formal netting arrangements exist
 
 
 
 
 
 
 
 
 
3,900,000,000 
2,800,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral held by the Company against derivative asset positions
 
 
 
 
 
 
 
 
 
1,400,000,000 
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted the fair value of its net derivative asset position for estimates of counterparty credit risk
 
 
 
 
 
 
 
 
 
46,000,000 
33,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Posted collateral
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,000,000 
10,000,000 
 
 
 
 
 
 
 
Gross notional amounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
372,000,000 
87,000,000 
 
 
1,400,000,000 
969,000,000 
 
Derivative asset positions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,000,000 
34,000,000 
 
Derivative liability positions
 
 
 
 
 
 
 
 
 
1,200,000,000 
1,100,000,000 
17,000,000 
5,000,000 
1,100,000,000 
 
 
 
 
 
 
44,000,000 
32,000,000 
 
Collateral held
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
318,000,000 
268,000,000 
 
Posted collateral
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
1,000,000,000 
 
 
 
 
 
 
 
 
 
Senior long-term debt ratings from three of the major ratings agencies
 
 
 
 
 
 
 
 
 
A3/BBB+ 
 
 
Baa3/BBB- 
 
 
Ba1/BB+ 
 
 
 
 
 
 
 
Derivative remaining terms, lower limit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
1 month 
 
 
 
2 years 
Derivative remaining terms, higher limit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
7 years 
 
 
 
6 years 
Weighted average on the maximum estimated exposure (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
P3.4Y 
 
 
 
P3.6Y 
Deferred net gains on derivatives that are recorded in AOCI are expected to be reclassified to net interest income over the next twelve months in connection with the recognition of interest income or interest expense on these hedged items
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
337,000,000 
Maximum exposure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
177,000,000 
99,000,000 
67,000,000 
74,000,000 
 
 
 
Fair values of written CDS
 
 
 
 
 
3,000,000 
300,000 
 
 
 
 
 
 
 
 
 
9,000,000 
1,000,000 
 
 
 
 
 
Executed equity forward agreements, underlying shares
30.0 
 
 
22.9 
7.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Probable forecasted sale of Coke
 
 
 
 
 
 
 
6.5 
7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconized ineffectiveness which was recorded in trading account profits and commissions
 
$ 1,000,000 
$ 9,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Positions (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Derivative Financial Instruments, Assets
 
 
Notional amount of derivatives
$ 172,384 1
$ 190,372 
Derivative asset positions
9,237 1
6,203 
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Cash Flow Hedging
 
 
Derivatives designated as hedging relationships, notional amount
17,397 1 2
16,897 2
Derivative asset positions
1,133 1 2
947 2
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Cash Flow Hedging |
Equity Contract |
Available-for-Sale Securities |
Trading Account Assets
 
 
Derivatives designated as hedging relationships, notional amount
1,547 1 2
1,547 2
Derivative asset positions
0 1 2
0 2
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Cash Flow Hedging |
Interest Rate Contract |
Floating Rate Loans |
Trading Account Assets
 
 
Derivatives designated as hedging relationships, notional amount
15,850 1 2
15,350 2
Derivative asset positions
1,133 1 2
947 2
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Fair Value Hedging
 
 
Derivatives designated as hedging relationships, notional amount
1,000 1 3
 
Derivative asset positions
59 1 3
 
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Fair Value Hedging |
Interest Rate Contract |
Fixed Rate Debt |
Trading Account Assets
 
 
Derivatives designated as hedging relationships, notional amount
1,000 1 3
 
Derivative asset positions
59 1 3
 
Derivative Financial Instruments, Assets |
Nondesignated
 
 
Derivatives not designated as hedging instruments, notional amount
153,987 1 4
173,475 4
Derivative asset positions
8,045 1 4
5,256 4
Derivative Financial Instruments, Assets |
Nondesignated |
Future [Member]
 
 
Notional Amount of Interest Rate Derivatives
365 
1,400 
Notional related to equity futures
665 
 
Derivative Financial Instruments, Assets |
Nondesignated |
Equity Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
7,924 1 4 5
5,010 4 6
Derivative asset positions
853 1 4
583 4
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Fixed Rate Debt |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
437 1 4
1,273 4
Derivative asset positions
21 1 4
41 4
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Mortgage Servicing Rights |
Other Assets
 
 
Derivatives not designated as hedging instruments, notional amount
11,633 1 4
20,474 4
Derivative asset positions
476 1 4
152 4
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Loans |
Other Assets
 
 
Derivatives not designated as hedging instruments, notional amount
2,856 1 4 7
7,269 4 8
Derivative asset positions
17 1 4
92 4
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
118,738 1 4 5
132,286 4 6
Derivative asset positions
6,259 1 4
4,211 4
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Corporate Bonds and Loans
 
 
Derivatives not designated as hedging instruments, notional amount
 
0 4
Derivative asset positions
 
0 4
Derivative Financial Instruments, Assets |
Nondesignated |
Foreign Exchange Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
4,297 1 4
2,691 4
Derivative asset positions
239 1 4
92 4
Derivative Financial Instruments, Assets |
Nondesignated |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
1,088 1 4
1,083 4
Derivative asset positions
19 1 4
17 4
Derivative Financial Instruments, Assets |
Nondesignated |
Credit Risk Contract |
Loans |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
50 1 4
15 4
Derivative asset positions
1 1 4
0 4
Derivative Financial Instruments, Assets |
Nondesignated |
Credit Risk Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
1,775 1 4 9
1,094 10 4
Derivative asset positions
59 1 4
39 4
Derivative Financial Instruments, Assets |
Nondesignated |
Other Contract |
Loans |
Other Assets
 
 
Derivatives not designated as hedging instruments, notional amount
4,993 1 4
2,169 4
Derivative asset positions
79 1 4
18 4
Derivative Financial Instruments, Assets |
Nondesignated |
Other Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
196 1 4
111 4
Derivative asset positions
22 1 4
11 4
Derivative Financial Instruments, Liabilities
 
 
Notional amount of derivatives
132,070 1
131,799 
Derivative liability positions, fair value
7,396 1
5,174 
Derivative Financial Instruments, Liabilities |
Designated as Hedging Instrument |
Cash Flow Hedging
 
 
Derivatives designated as hedging relationships, notional amount
1,547 1 2
2,047 2
Derivative liability positions, fair value
146 1 2
155 2
Derivative Financial Instruments, Liabilities |
Designated as Hedging Instrument |
Cash Flow Hedging |
Equity Contract |
Available-for-Sale Securities |
Trading Liabilities
 
 
Derivatives designated as hedging relationships, notional amount
1,547 1 2
1,547 2
Derivative liability positions, fair value
146 1 2
145 2
Derivative Financial Instruments, Liabilities |
Designated as Hedging Instrument |
Cash Flow Hedging |
Interest Rate Contract |
Floating Rate Loans |
Trading Liabilities
 
 
Derivatives designated as hedging relationships, notional amount
0 1 2
500 2
Derivative liability positions, fair value
0 1 2
10 2
Derivative Financial Instruments, Liabilities |
Designated as Hedging Instrument |
Fair Value Hedging
 
 
Derivatives designated as hedging relationships, notional amount
0 1 3
 
Derivative liability positions, fair value
0 1 3
 
Derivative Financial Instruments, Liabilities |
Designated as Hedging Instrument |
Fair Value Hedging |
Interest Rate Contract |
Fixed Rate Debt |
Trading Liabilities
 
 
Derivatives designated as hedging relationships, notional amount
0 1 3
 
Derivative liability positions, fair value
0 1 3
 
Derivative Financial Instruments, Liabilities |
Nondesignated
 
 
Derivatives not designated as hedging instruments, notional amount
130,523 1 4
129,752 4
Derivative liability positions, fair value
7,250 1 4
5,019 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Equity Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
9,504 1 4
8,012 4
Derivative liability positions, fair value
876 1 4
730 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Interest Rate Contract |
Fixed Rate Debt |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
60 1 4
60 4
Derivative liability positions, fair value
10 1 4
4 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Interest Rate Contract |
Mortgage Servicing Rights |
Other Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
9,860 1 4
6,480 4
Derivative liability positions, fair value
46 1 4
73 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Interest Rate Contract |
Loans |
Other Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
5,354 1 4
2,383 4
Derivative liability positions, fair value
43 1 4
20 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Interest Rate Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
98,866 1 4
105,926 4
Derivative liability positions, fair value
5,831 1 4
3,884 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Interest Rate Contract |
Corporate Bonds and Loans |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
 
5 4
Derivative liability positions, fair value
 
0 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Foreign Exchange Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
4,184 1 4
2,818 4
Derivative liability positions, fair value
229 1 4
91 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
496 1 4
495 4
Derivative liability positions, fair value
125 1 4
128 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Credit Risk Contract |
Loans |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
192 1 4
227 4
Derivative liability positions, fair value
2 1 4
2 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Credit Risk Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
1,538 1 4 9
1,039 4
Derivative liability positions, fair value
50 1 4
34 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Other Contract |
Loans |
Other Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
279 1 11 4
2,196 12 4
Derivative liability positions, fair value
16 1 11 4
42 12 4
Derivative Financial Instruments, Liabilities |
Nondesignated |
Other Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
190 1 4
111 4
Derivative liability positions, fair value
22 1 4
11 4
Credit Default Swap [Member]
 
 
Fair values of written CDS
$ 9.0 
$ 1.0 
Derivative Positions (Parenthetical) (Detail) (Nondesignated, USD $)
In Millions
Sep. 30, 2011
Derivative Financial Instruments, Assets
Future
Dec. 31, 2010
Derivative Financial Instruments, Assets
Future
Sep. 30, 2011
Derivative Financial Instruments, Assets
Trading Activity
Dec. 31, 2010
Derivative Financial Instruments, Assets
Trading Activity
1 Months Ended
May 31, 2009
Derivative Financial Instruments, Liabilities
Visa Interest
Sep. 30, 2011
Derivative Financial Instruments, Liabilities
Dec. 31, 2010
Sep. 30, 2011
Trading Activity
Dec. 31, 2010
Trading Activity
Notional amounts related to interest rate futures
$ 365 
$ 1,400 
$ 19,300 
$ 25,000 
 
 
 
 
 
Notional related to equity futures
665 
 
428 
500 
 
 
 
 
 
Asset amount notional from purchased and written interest rate swap risk participation agreements
 
 
 
 
 
 
 
1 
1 
Liability amount notional from purchased and written interest rate swap risk participation agreements
 
 
 
 
 
 
 
6 
8 
Derivative liability recorded in other liabilities, established upon the sale of Visa Class B shares
 
 
 
 
 
16 
23 
 
 
Notional amount, established upon the sale of Visa Class B shares
 
 
 
 
 
$ 134 
$ 134 
 
 
Shares of Class B Visa Inc. common stock sold to another financial institution, shares
 
 
 
 
3.2 
 
 
 
 
Impacts of Derivative Financial Instruments on the Consolidated Statements of Income/(Loss) and the Consolidated Statements of Shareholders' Equity (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Interest Income, Interest and Fees on Loans |
Interest Rate Contract |
Floating Rate Loans |
Cash Flow Hedging
 
 
 
 
Amount of pre-tax gain/(loss) reclassified from AOCI into income (effective portion)
$ 103 1
$ 119 2
$ 321 1
$ 370 2
Equity Contract |
Available-for-Sale Securities |
Cash Flow Hedging
 
 
 
 
Amount of pre-tax gain/(loss) recognized in OCI on derivative (effective portion)
8 
(125)
(2)
42 
Amount of pre-tax gain/(loss) reclassified from AOCI into income (effective portion)
0 1
0 2
0 1
0 2
Interest Rate Contract |
Floating Rate Loans |
Cash Flow Hedging
 
 
 
 
Amount of pre-tax gain/(loss) recognized in OCI on derivative (effective portion)
438 
380 
673 
1,115 
Cash Flow Hedging
 
 
 
 
Amount of pre-tax gain/(loss) recognized in OCI on derivative (effective portion)
446 
255 
671 
1,157 
Amount of pre-tax gain/(loss) reclassified from AOCI into income (effective portion)
103 1
119 2
321 1
370 2
Fair Value Hedging |
Trading Account Profits and Commissions |
Interest Rate Contract |
Fixed Rate Debt
 
 
 
 
Amount of gain on Derivatives recognized in Income
35 3
 
49 3
 
Amount of gain on related Hedged Items recognized in Income
(35)3
 
(50)3
 
Amount of gain recognized in Income on Hedges (Ineffective Portion)
0 3
 
(1)3
 
Nondesignated
 
 
 
 
Amount of gain on Derivatives recognized in Income
369 
511 
598 
968 
Nondesignated |
Trading Account Profits and Commissions |
Equity Contract |
Trading Activity
 
 
 
 
Amount of gain on Derivatives recognized in Income
(9)
(62)
(1)
(56)
Nondesignated |
Trading Account Profits and Commissions |
Interest Rate Contract |
Fixed Rate Debt
 
 
 
 
Amount of gain on Derivatives recognized in Income
(5)
(194)
(4)
(68)
Nondesignated |
Trading Account Profits and Commissions |
Interest Rate Contract |
Trading Activity
 
 
 
 
Amount of gain on Derivatives recognized in Income
41 
256 
78 
285 
Nondesignated |
Trading Account Profits and Commissions |
Interest Rate Contract |
Corporate Bonds and Loans
 
 
 
 
Amount of gain on Derivatives recognized in Income
 
0 
 
(1)
Nondesignated |
Trading Account Profits and Commissions |
Foreign Exchange Contract |
Trading Activity
 
 
 
 
Amount of gain on Derivatives recognized in Income
20 
(20)
13 
5 
Nondesignated |
Trading Account Profits and Commissions |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans
 
 
 
 
Amount of gain on Derivatives recognized in Income
(96)
133 
15 
(69)
Nondesignated |
Trading Account Profits and Commissions |
Credit Risk Contract |
Loans
 
 
 
 
Amount of gain on Derivatives recognized in Income
0 
(1)
(1)
0 
Nondesignated |
Trading Account Profits and Commissions |
Credit Risk Contract |
Trading Activity
 
 
 
 
Amount of gain on Derivatives recognized in Income
6 
2 
14 
6 
Nondesignated |
Mortgage Servicing Income |
Interest Rate Contract |
Mortgage Servicing Rights
 
 
 
 
Amount of gain on Derivatives recognized in Income
397 
315 
488 
783 
Nondesignated |
Mortgage Production Income |
Interest Rate Contract |
Loans
 
 
 
 
Amount of gain on Derivatives recognized in Income
(130)
(82)
(233)
(292)
Nondesignated |
Mortgage Production Income |
Other Contract |
Loans
 
 
 
 
Amount of gain on Derivatives recognized in Income
$ 145 
$ 164 
$ 229 
$ 375 
Impacts of Derivative Financial Instruments on the Consolidated Statements of Income/(Loss) and the Consolidated Statements of Shareholders' Equity (Parenthetical) (Detail) (Cash Flow Hedging, USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Reclassified in pre-tax gains from AOCI into net interest income
$ 103 1
$ 119 2
$ 321 1
$ 370 2
Interest Income (Expense), Net
 
 
 
 
Reclassified in pre-tax gains from AOCI into net interest income
$ 56 
$ 35 
$ 146 
$ 88 
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Assets
 
 
Loans held for sale
$ 1,675 1
$ 3,168 1
Fair Value, Measurements, Recurring
 
 
Assets
 
 
Trading assets
6,288 
6,175 
Loans held for sale
1,675 
3,168 
LHFI
452 
492 
Other intangible assets
1,033 
1,439 
Other assets
550 2
241 2
Liabilities
 
 
Trading liabilities
1,735 
2,678 
Brokered deposits
1,056 
1,213 
Long-term debt
2,016 
2,837 
Other liabilities
84 2
114 2
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1
 
 
Assets
 
 
Trading assets
488 
353 
Loans held for sale
0 
0 
LHFI
0 
0 
Other intangible assets
0 
0 
Other assets
4 2
0 2
Liabilities
 
 
Trading liabilities
546 
559 
Brokered deposits
0 
0 
Long-term debt
0 
0 
Other liabilities
0 2
0 2
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities
 
 
Assets
 
 
Securities available for sale
2,413 
7,489 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
386 
5,516 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
Collateralized Debt Obligations
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
Asset-backed Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
Corporate And Other Debt Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
2,027 
1,973 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Available-for-Sale Securities |
Equity Securities, Other
 
 
Assets
 
 
Securities available for sale
0 3
0 4
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
US Treasury Securities
 
 
Assets
 
 
Trading assets
209 
187 
Liabilities
 
 
Trading liabilities
326 
439 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading assets
0 
0 
Liabilities
 
 
Trading liabilities
0 
 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Collateralized Debt Obligations
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Asset-backed Securities
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Corporate And Other Debt Securities
 
 
Assets
 
 
Trading assets
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Commercial Paper
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Equity Securities
 
 
Assets
 
 
Trading assets
0 
0 
Liabilities
 
 
Trading liabilities
14 
 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading assets
279 
166 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Trading Loans
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Residential Mortgage, Loans Held For Sale
 
 
Assets
 
 
Loans held for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Corporate and Other
 
 
Assets
 
 
Loans held for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 1 |
Derivative Financial Instruments, Liabilities
 
 
Liabilities
 
 
Trading liabilities
206 
120 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2
 
 
Assets
 
 
Trading assets
6,933 
5,613 
Loans held for sale
1,673 
3,161 
LHFI
0 
0 
Other intangible assets
0 
0 
Other assets
467 2
223 2
Liabilities
 
 
Trading liabilities
2,179 
1,974 
Brokered deposits
1,056 
1,213 
Long-term debt
2,016 
2,837 
Other liabilities
68 2
72 2
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities
 
 
Assets
 
 
Securities available for sale
24,156 
18,270 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
2,645 
1,895 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Securities available for sale
428 
505 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
20,030 
14,358 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
Collateralized Debt Obligations
 
 
Assets
 
 
Securities available for sale
332 
50 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
Asset-backed Securities
 
 
Assets
 
 
Securities available for sale
524 
788 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
Corporate And Other Debt Securities
 
 
Assets
 
 
Securities available for sale
49 
477 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Available-for-Sale Securities |
Equity Securities, Other
 
 
Assets
 
 
Securities available for sale
148 3
197 4
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
US Treasury Securities
 
 
Assets
 
 
Trading assets
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading assets
612 
361 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Trading assets
77 
123 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading assets
509 
301 
Liabilities
 
 
Trading liabilities
1 
 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Trading assets
0 
9 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Collateralized Debt Obligations
 
 
Assets
 
 
Trading assets
2 
2 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Asset-backed Securities
 
 
Assets
 
 
Trading assets
32 
32 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Corporate And Other Debt Securities
 
 
Assets
 
 
Trading assets
445 
743 
Liabilities
 
 
Trading liabilities
211 
398 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Commercial Paper
 
 
Assets
 
 
Trading assets
78 
14 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Equity Securities
 
 
Assets
 
 
Trading assets
78 
98 
Liabilities
 
 
Trading liabilities
0 
 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading assets
3,414 
2,577 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Trading Loans
 
 
Assets
 
 
Trading assets
1,686 
1,353 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Residential Mortgage, Loans Held For Sale
 
 
Assets
 
 
Loans held for sale
1,362 
2,845 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Corporate and Other
 
 
Assets
 
 
Loans held for sale
311 
316 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 2 |
Derivative Financial Instruments, Liabilities
 
 
Liabilities
 
 
Trading liabilities
1,967 
1,576 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3
 
 
Assets
 
 
Trading assets
55 
209 
Loans held for sale
2 
7 
LHFI
452 
492 
Other intangible assets
1,033 
1,439 
Other assets
79 2
18 2
Liabilities
 
 
Trading liabilities
146 
145 
Brokered deposits
0 
0 
Long-term debt
0 
0 
Other liabilities
16 2
42 2
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities
 
 
Assets
 
 
Securities available for sale
933 
1,136 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Securities available for sale
62 
74 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Securities available for sale
287 
347 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
Collateralized Debt Obligations
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
Asset-backed Securities
 
 
Assets
 
 
Securities available for sale
16 
20 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
Corporate And Other Debt Securities
 
 
Assets
 
 
Securities available for sale
5 
5 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Available-for-Sale Securities |
Equity Securities, Other
 
 
Assets
 
 
Securities available for sale
563 3
690 4
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
US Treasury Securities
 
 
Assets
 
 
Trading assets
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading assets
0 
0 
Liabilities
 
 
Trading liabilities
0 
 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Trading assets
1 
6 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Collateralized Debt Obligations
 
 
Assets
 
 
Trading assets
42 
53 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Asset-backed Securities
 
 
Assets
 
 
Trading assets
5 
27 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Corporate And Other Debt Securities
 
 
Assets
 
 
Trading assets
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Commercial Paper
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Equity Securities
 
 
Assets
 
 
Trading assets
7 
123 
Liabilities
 
 
Trading liabilities
0 
 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Trading Loans
 
 
Assets
 
 
Trading assets
0 
0 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Residential Mortgage, Loans Held For Sale
 
 
Assets
 
 
Loans held for sale
2 
2 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Corporate and Other
 
 
Assets
 
 
Loans held for sale
0 
5 
Fair Value, Measurements, Recurring |
Fair Value, Inputs, Level 3 |
Derivative Financial Instruments, Liabilities
 
 
Liabilities
 
 
Trading liabilities
146 
145 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Assets
 
 
Trading assets
7,476 
 
Liabilities
 
 
Trading liabilities
2,871 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
US Treasury Securities
 
 
Assets
 
 
Trading assets
209 
 
Liabilities
 
 
Trading liabilities
326 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading assets
612 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Trading assets
77 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading assets
509 
 
Liabilities
 
 
Trading liabilities
1 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Trading assets
1 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Collateralized Debt Obligations
 
 
Assets
 
 
Trading assets
44 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Asset-backed Securities
 
 
Assets
 
 
Trading assets
37 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Corporate And Other Debt Securities
 
 
Assets
 
 
Trading assets
445 
 
Liabilities
 
 
Trading liabilities
211 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Commercial Paper
 
 
Assets
 
 
Trading assets
78 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Equity Securities
 
 
Assets
 
 
Trading assets
85 
 
Liabilities
 
 
Trading liabilities
14 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading assets
3,693 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Trading Loans
 
 
Assets
 
 
Trading assets
1,686 
 
Fair Value, Measurements, Recurring |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Derivative Financial Instruments, Liabilities
 
 
Liabilities
 
 
Trading liabilities
2,319 
 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities
 
 
Assets
 
 
Securities available for sale
27,502 
26,895 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
386 
5,516 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
2,645 
1,895 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Securities available for sale
490 
579 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
20,030 
14,358 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Securities available for sale
287 
347 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
Collateralized Debt Obligations
 
 
Assets
 
 
Securities available for sale
332 
50 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
Asset-backed Securities
 
 
Assets
 
 
Securities available for sale
540 
808 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
Corporate And Other Debt Securities
 
 
Assets
 
 
Securities available for sale
54 
482 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
2,027 
1,973 
Fair Value, Measurements, Recurring |
Available-for-Sale Securities |
Equity Securities, Other
 
 
Assets
 
 
Securities available for sale
711 3
887 4
Fair Value, Measurements, Recurring |
US Treasury Securities
 
 
Assets
 
 
Trading assets
 
187 
Liabilities
 
 
Trading liabilities
 
439 
Fair Value, Measurements, Recurring |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading assets
 
361 
Fair Value, Measurements, Recurring |
US States and Political Subdivisions Debt Securities
 
 
Assets
 
 
Trading assets
 
123 
Fair Value, Measurements, Recurring |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading assets
 
301 
Fair Value, Measurements, Recurring |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
Assets
 
 
Trading assets
 
15 
Fair Value, Measurements, Recurring |
Collateralized Debt Obligations
 
 
Assets
 
 
Trading assets
 
55 
Fair Value, Measurements, Recurring |
Asset-backed Securities
 
 
Assets
 
 
Trading assets
 
59 
Fair Value, Measurements, Recurring |
Corporate And Other Debt Securities
 
 
Assets
 
 
Trading assets
 
743 
Liabilities
 
 
Trading liabilities
 
398 
Fair Value, Measurements, Recurring |
Commercial Paper
 
 
Assets
 
 
Trading assets
 
14 
Fair Value, Measurements, Recurring |
Equity Securities
 
 
Assets
 
 
Trading assets
 
221 
Fair Value, Measurements, Recurring |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading assets
 
2,743 
Fair Value, Measurements, Recurring |
Trading Loans
 
 
Assets
 
 
Trading assets
 
1,353 
Fair Value, Measurements, Recurring |
Residential Mortgage, Loans Held For Sale
 
 
Assets
 
 
Loans held for sale
1,364 
2,847 
Fair Value, Measurements, Recurring |
Corporate and Other
 
 
Assets
 
 
Loans held for sale
311 
321 
Fair Value, Measurements, Recurring |
Derivative Financial Instruments, Liabilities
 
 
Liabilities
 
 
Trading liabilities
 
1,841 
Fair Value, Measurements, Recurring |
Fair Value Adjustments on Hedges and Derivative Contracts [Member]
 
 
Assets
 
 
Trading assets
(1,188)5
 
Liabilities
 
 
Trading liabilities
$ (1,136)5
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) (Equity Securities, Other, Fair Value, Measurements, Recurring, USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Equity Securities, Other |
Fair Value, Measurements, Recurring
 
 
Federal Home Loan Bank (FHLB) of Atlanta stock stated at par value
$ 171 
$ 298 
Federal Reserve Bank stock stated at par value
391 
391 
Mutual fund investments (par value)
$ 148 
$ 197 
Fair Value Option Elected, Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
LHFS
$ 1,675 1
$ 3,168 1
Brokered deposits
1,056 
1,213 
Aggregate Fair Value Under Fair Value Option
 
 
Trading loans
1,686 
1,353 
LHFS
1,671 
3,160 
LHFI
424 
462 
Brokered deposits
1,056 
1,213 
Long-term debt
2,016 
2,837 
Aggregate Fair Value Under Fair Value Option |
Loans Held-for-Sale
 
 
Past due loans of 90 days or more
3 
2 
Nonaccrual loans
1 
6 
Aggregate Fair Value Under Fair Value Option |
Loans Held For Investment [Member]
 
 
Past due loans of 90 days or more
2 
2 
Nonaccrual loans
26 
28 
Aggregate Unpaid Principal Balance Under Fair Value Option
 
 
Trading loans
1,665 
1,320 
LHFS
1,630 
3,155 
LHFI
455 
517 
Brokered deposits
1,045 
1,188 
Long-term debt
1,901 
2,753 
Aggregate Unpaid Principal Balance Under Fair Value Option |
Loans Held-for-Sale
 
 
Past due loans of 90 days or more
3 
2 
Nonaccrual loans
9 
25 
Aggregate Unpaid Principal Balance Under Fair Value Option |
Loans Held For Investment [Member]
 
 
Past due loans of 90 days or more
4 
4 
Nonaccrual loans
49 
54 
Fair Value Over/(Under) Unpaid Principal
 
 
Trading loans
21 
33 
LHFS
41 
5 
LHFI
(31)
(55)
Brokered deposits
11 
25 
Long-term debt
115 
84 
Fair Value Over/(Under) Unpaid Principal |
Loans Held-for-Sale
 
 
Past due loans of 90 days or more
0 
0 
Nonaccrual loans
(8)
(19)
Fair Value Over/(Under) Unpaid Principal |
Loans Held For Investment [Member]
 
 
Past due loans of 90 days or more
(2)
(2)
Nonaccrual loans
$ (23)
$ (26)
Change in Fair Value of Financial Instruments for which the FVO has been Elected (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Trading Account Profits And Commissions [Member] |
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
$ (11)
$ 7 
$ (14)
$ 14 
Trading Account Profits And Commissions [Member] |
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
3 
1 
15 
(3)
Trading Account Profits And Commissions [Member] |
Loans Held-for-Investment
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(1)
1 
3 
(1)
Trading Account Profits And Commissions [Member] |
Mortgage Servicing Rights [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Trading Account Profits And Commissions [Member] |
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
27 
(59)
24 
(67)
Trading Account Profits And Commissions [Member] |
Long-Term Debt
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
7 
(97)
(31)
(222)
Mortgage Production Income [Member] |
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
181 1
206 1
330 1
498 1
Mortgage Production Income [Member] |
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 1
0 1
0 1
0 1
Mortgage Production Income [Member] |
Loans Held-for-Investment
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
17 1
6 1
13 1
13 1
Mortgage Production Income [Member] |
Mortgage Servicing Rights [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
1 1
8 1
5 1
14 1
Mortgage Production Income [Member] |
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 1
0 1
0 1
0 1
Mortgage Production Income [Member] |
Long-Term Debt
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 1
0 1
0 1
0 1
Mortgage Servicing Income [Member] |
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Loans Held-for-Investment
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Mortgage Servicing Rights [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(437)
(290)
(582)
(810)
Mortgage Servicing Income [Member] |
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Long-Term Debt
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
3 2
1 3
15 2
(3)3
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
170 2
213 3
316 2
512 3
Mortgage Servicing Rights [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(436)2
(282)3
(577)2
(796)3
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
27 2
(59)3
24 2
(67)3
Long-Term Debt
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
7 2
(97)3
(31)2
(222)3
Loans Held-for-Investment
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
$ 16 2
$ 7 3
$ 16 2
$ 12 3
Change in Fair Value of Financial Instruments for which the FVO has been Elected (Parenthetical) (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,		 3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
12 Months Ended
Dec. 31, 2010
2011
Loans Held-for-Sale
Mortgage Production Income
2010
Loans Held-for-Sale
Mortgage Production Income
2011
Loans Held-for-Sale
Mortgage Production Income
2010
Loans Held-for-Sale
Mortgage Production Income
2011
Mortgage Servicing Rights
Mortgage Production Income
2010
Mortgage Servicing Rights
Mortgage Production Income
2011
Mortgage Servicing Rights
Mortgage Production Income
2010
Mortgage Servicing Rights
Mortgage Production Income
Income recognized upon the sale of loans
$ 20 
$ 46 
$ 57 
$ 178 
$ 184 
$ 1 
$ 7 
$ 5 
$ 14 
Fair Value Measurement and Election - Additional Information (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30,
3 Months Ended
Sep. 30, 2011
3 Months Ended
Mar. 31, 2011
3 Months Ended
Sep. 30, 2010
2011
2010
Dec. 31, 2010
Proceeds from sale of retained interest
 
$ 20 
 
 
 
 
Gains recognized from redemptions of ARS
1 
 
2 
34 
10 
 
LHFI at fair value
452 
 
 
452 
 
492 
Incremental charge-off
536 
 
725 
1,714 
2,355 
 
Loans sold at carrying value
 
 
 
 
 
479 
Loans returned to LHFI
 
 
 
53 
111 
 
Structured Investment Vehicle |
Collateralized Debt Obligations
 
 
 
 
 
 
Proceeds from sale of trading assets
 
21 
 
 
 
 
Asset-backed Securities |
Auto Loans |
Home Equity Lines Of Credit
 
 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
 
31 
 
 
 
 
Asset-backed Securities |
Trading Assets |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Fair value measurement with unobservable inputs reconciliation recurring basis asset and liabilities level 3 transfers out of
 
 
 
32 
 
 
Asset-backed Securities |
Available-for-Sale Securities |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Fair value measurement with unobservable inputs reconciliation recurring basis asset and liabilities level 3 transfers out of
 
 
 
74 
 
 
Asset-backed Securities |
Student Loans
 
 
 
 
 
 
Government guarantee
97.00% 
 
 
97.00% 
 
 
Equity Securities |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Mutual funds net asset value
$ 1 
 
 
$ 1 
 
 
Equity Securities |
Fair Value, Inputs, Level 3
 
 
 
 
 
 
Fair value of ARS recorded in trading equity securities
7 
 
 
7 
 
123 
Gains recognized from redemptions of ARS
1 
 
 
13 
 
 
FHLB stock and Federal Reserve Bank stock
562 
 
 
562 
 
 
Repurchase of stock by FHLB of Atlanta
 
 
 
127 
 
 
Equity Securities, Coca Cola |
Fair Value, Inputs, Level 3
 
 
 
 
 
 
Derivative in a liability position, fair value
146 
 
 
146 
 
145 
Trading Account Assets |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Trading loans were outstanding
256 
 
 
256 
 
381 
Residential Mortgage, Loans Held For Sale |
Non Performing Loans
 
 
 
 
 
 
Transferred loans that were previously designated as held for investment to held for sale
 
 
 
47 
160 
 
Incremental charge-off
 
 
 
10 
 
 
Loans sold at carrying value
34 
 
 
34 
 
 
Loans returned to LHFI
 
 
 
13 
 
 
Residential Mortgage, Loans Held For Sale |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Recognized losses due to changes in fair value attributable to borrower-specific credit risk
4 
 
4 
14 
16 
 
Corporate and Other |
Fair Value, Inputs, Level 3
 
 
 
 
 
 
Loans that were acquired through the acquisition of GB&T
3 
 
 
3 
 
 
Residential Mortgage Loans |
Nonmarketable securities |
Fair Value, Inputs, Level 3
 
 
 
 
 
 
Loans held for investment
449 
 
 
449 
 
 
Brokered Deposits |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Recognized gains (losses) on liabilities due to changes in its own credit spread
13 
 
47 
1 
40 
 
Long-Term Debt |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Recognized gains (losses) on liabilities due to changes in its own credit spread
57 
 
69 
43 
86 
 
Private Equity Funds |
Other Assets |
Fair Value, Inputs, Level 3
 
 
 
 
 
 
Impairment charge
1 
 
1 
5 
3 
 
Repossessed Personal Property |
Other Assets |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Impairment charge
 
 
1 
1 
8 
 
Lower Limit
 
 
 
 
 
 
Probable forecasted sale of Coke
 
 
 
6.5 
 
 
Upper Limit
 
 
 
 
 
 
Probable forecasted sale of Coke
 
 
 
7 
 
 
Collateralized Debt Obligations |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
Issued securities contained in a consolidated CLO at fair value in order to recognize the nonrecourse nature of these liabilities
285 
 
 
285 
 
 
Total Return Swap |
Fair Value, Inputs, Level 2
 
 
 
 
 
 
LHFI at fair value
1,400 
 
 
1,400 
 
972 
Interest Rate Lock Commitments
 
 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
(95)
 
137 
(149)
267 
 
Affordable Housing
 
 
 
 
 
 
Impairment charge
 
 
 
 
5 
 
Other Assets |
Fair Value, Inputs, Level 3
 
 
 
 
 
 
Impairment charge
 
 
 
 
2 
 
Fair Value, Inputs, Level 2 |
Personal Property Under Operating Leases
 
 
 
 
 
 
Impairment charge
$ 2 
 
 
$ 3 
$ 11 
 
Reconciliation of the Beginning and Ending Balances for Fair Valued Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Trading Account Assets
 
 
 
 
Beginning balance
$ 62 
$ 425 
$ 209 
$ 390 
Included in earnings
(5)1
15 2
49 1
45 2
OCI
0 
(125)
0 
(4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
6 
 
6 
 
Sales
0 
 
(57)
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
0 
 
(116)
Settlements
(8)
 
(132)
 
Transfers to/from other balance sheet line items
0 
(14)
(20)
(14)
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
55 
301 
55 
301 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
(5)1
11 2
14 1
21 3
Trading Account Assets |
Collateralized Debt Obligations
 
 
 
 
Beginning balance
42 
117 
53 
175 
Included in earnings
(6)4
13 
25 4
30 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
6 
 
6 
 
Sales
0 
 
(21)
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(7)
 
(82)
Settlements
0 
 
(1)
 
Transfers to/from other balance sheet line items
0 
0 
(20)
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
42 
123 
42 
123 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
(6)
12 
11 
24 
Trading Account Assets |
US States and Political Subdivisions Debt Securities
 
 
 
 
Beginning balance
 
9 
 
7 
Included in earnings
 
0 
 
0 
OCI
 
0 
 
0 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
0 
 
2 
Transfers to/from other balance sheet line items
 
0 
 
0 
Transfers into Level 3
 
0 
 
0 
Transfers out of Level 3
 
0 
 
0 
Fair value, ending balance
 
9 
 
9 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
 
0 
 
(1)
Trading Account Assets |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
 
 
Beginning balance
2 
3 
6 
6 
Included in earnings
0 
1 
2 
0 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
(5)
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(1)
 
(3)
Settlements
(1)
 
(2)
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
1 
3 
1 
3 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
(1)
Trading Account Assets |
Asset-backed Securities
 
 
 
 
Beginning balance
5 
48 
27 
51 
Included in earnings
0 
(1)
9 
2 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
(31)
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
8 
 
2 
Settlements
0 
 
0 
 
Transfers to/from other balance sheet line items
0 
(14)
0 
(14)
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
5 
41 
5 
41 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
(1)
2 
(1)
Trading Account Assets |
Equity Securities
 
 
 
 
Beginning balance
13 
120 
123 
151 
Included in earnings
1 
0 
13 
4 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
0 
 
(35)
Settlements
(7)
 
(129)
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
7 
120 
7 
120 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
1 
0 
1 
0 
Trading Account Assets |
Derivative Financial Instruments, Assets
 
 
 
 
Beginning balance
 
128 
 
0 
Included in earnings
 
2 
 
9 
OCI
 
(125)5
 
(4)5
Purchases, sales, issuances, settlements, maturities paydowns, net
 
0 
 
0 
Transfers to/from other balance sheet line items
 
0 
 
0 
Transfers into Level 3
 
0 
 
0 
Transfers out of Level 3
 
0 
 
0 
Fair value, ending balance
 
5 
 
5 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
 
0 
 
0 
Available-for-Sale Securities
 
 
 
 
Beginning balance
1,000 
1,308 
1,136 
1,322 
Included in earnings
1 6
1 6
(1)6
0 6
OCI
(11)
22 
0 
47 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
(4)
 
(4)
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(32)
 
(70)
Settlements
(53)
 
(198)
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
933 
1,299 
933 
1,299 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 6
0 
(3)6
(2)6
Available-for-Sale Securities |
US States and Political Subdivisions Debt Securities
 
 
 
 
Beginning balance
68 
125 
74 
132 
Included in earnings
1 
1 
2 
1 
OCI
0 
1 
1 
(1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
(4)
 
(4)
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(6)
 
(11)
Settlements
(3)
 
(11)
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
62 
121 
62 
121 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Available-for-Sale Securities |
Mortgage-backed Securities, Issued by Private Enterprises
 
 
 
 
Beginning balance
311 
365 
347 
378 
Included in earnings
0 
0 
(3)
(2)
OCI
(9)
19 
0 
53 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(20)
 
(65)
Settlements
(15)
 
(57)
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
287 
364 
287 
364 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
(3)
(2)
Available-for-Sale Securities |
Asset-backed Securities
 
 
 
 
Beginning balance
19 
108 
20 
102 
Included in earnings
0 
0 
0 
1 4
OCI
(2)
2 
(1)
(5)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
18 
 
30 
Settlements
(1)
 
(3)
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
16 
128 
16 
128 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Available-for-Sale Securities |
Corporate And Other Debt Securities
 
 
 
 
Beginning balance
5 
5 
5 
5 
Included in earnings
0 
0 
0 
0 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
0 
 
0 
Settlements
0 
 
0 
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
5 
5 
5 
5 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Available-for-Sale Securities |
Equity Securities, Other
 
 
 
 
Beginning balance
597 
705 
690 
705 
Included in earnings
0 
0 
0 
0 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(24)
 
(24)
Settlements
(34)
 
(127)
 
Transfers to/from other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
563 
681 
563 
681 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Loans Held-for-Sale
 
 
 
 
Beginning balance
3 
 
 
 
Included in earnings
0 
 
 
 
OCI
0 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
 
 
Sales
(1)
 
 
 
Settlements
0 
 
 
 
Transfers to/from other balance sheet line items
(3)
 
 
 
Transfers into Level 3
3 
 
 
 
Transfers out of Level 3
0 
 
 
 
Fair value, ending balance
2 
 
2 
 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
 
 
 
Loans Held-for-Sale |
Corporate and Other Loans
 
 
 
 
Beginning balance
 
5 
5 
9 
Included in earnings
 
0 
(1)7
(2)7
OCI
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
 
0 
 
Sales
 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
0 
 
(2)
Settlements
 
 
0 
 
Transfers to/from other balance sheet line items
 
0 
(4)
0 
Transfers into Level 3
 
0 
0 
0 
Transfers out of Level 3
 
0 
0 
0 
Fair value, ending balance
0 
5 
0 
5 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
 
0 
0 
(2)7
Loans Held-for-Sale |
Residential Mortgage, Loans Held For Sale
 
 
 
 
Beginning balance
 
104 
2 
142 
Included in earnings
 
(4)8
(1)8
1 8
OCI
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
 
0 
 
Sales
 
 
(15)
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(10)
 
(80)
Settlements
 
 
(1)
 
Transfers to/from other balance sheet line items
 
(71)
0 
(67)
Transfers into Level 3
 
42 
19 
66 
Transfers out of Level 3
 
(2)
(2)
(3)
Fair value, ending balance
2 
59 
2 
59 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
 
(5)8
0 
(10)8
Loans Held-for-Investment
 
 
 
 
Beginning balance
449 
411 
492 
449 
Included in earnings
16 
5 9
16 
10 9
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
(10)
 
(35)
Settlements
(12)
 
(46)
 
Transfers to/from other balance sheet line items
(1)
68 
(10)
51 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
(2)
0 
(3)
Fair value, ending balance
452 
472 
452 
472 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
14 9
3 9
13 9
9 9
Other Assets and Liabilities, Net
 
 
 
 
Beginning balance
12 
53 
(24)
(35)
Included in earnings
145 
164 8
229 
376 8
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
0 
 
6 
Settlements
1 
 
7 
 
Transfers to/from other balance sheet line items
(95)
(137)
(149)
(267)
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
63 
80 
63 
80 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Derivative Financial Instruments, Liabilities
 
 
 
 
Beginning balance
(154)
 
(145)
(46)
Included in earnings
0 
 
1 
0 
OCI
8 10
 
(2)10
46 5
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases
0 
 
0 
 
Sales
0 
 
0 
 
Purchases, sales, issuances, settlements, maturities paydowns, net
 
 
 
0 
Settlements
0 
 
0 
 
Transfers to/from other balance sheet line items
0 
 
0 
0 
Transfers into Level 3
 
 
 
0 
Transfers out of Level 3
 
 
 
0 
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liabilities Transfers Into Level 3
0 
 
0 
 
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liabilities Transfers Out Of Level 3
0 
 
0 
 
Fair value, ending balance
(146)
0 
(146)
0 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
$ 0 
 
$ 1 
$ 0 
Carrying Value of Those Assets Measured at Fair Value on a Non-Recurring Basis (Detail) (Fair Value, Measurements, Nonrecurring, USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Fair Value, Inputs, Level 2 |
Loans Held-for-Sale
 
 
Assets measured at fair value on a non-recurring basis
$ 501 
$ 142 
Fair Value, Inputs, Level 2 |
Loans Held-for-Investment
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
Fair Value, Inputs, Level 2 |
Other Real Estate Owned
 
 
Assets measured at fair value on a non-recurring basis
358 
553 
Fair Value, Inputs, Level 2 |
Affordable Housing
 
 
Assets measured at fair value on a non-recurring basis
 
0 
Fair Value, Inputs, Level 2 |
Other Assets
 
 
Assets measured at fair value on a non-recurring basis
28 
90 
Fair Value, Inputs, Level 3 |
Loans Held-for-Sale
 
 
Assets measured at fair value on a non-recurring basis
66 
191 
Fair Value, Inputs, Level 3 |
Loans Held-for-Investment
 
 
Assets measured at fair value on a non-recurring basis
144 
85 
Fair Value, Inputs, Level 3 |
Other Real Estate Owned
 
 
Assets measured at fair value on a non-recurring basis
151 
43 
Fair Value, Inputs, Level 3 |
Affordable Housing
 
 
Assets measured at fair value on a non-recurring basis
 
357 
Fair Value, Inputs, Level 3 |
Other Assets
 
 
Assets measured at fair value on a non-recurring basis
15 
40 
Valuation Allowance |
Loans Held-for-Sale
 
 
Valuation Allowance
1 
0 
Valuation Allowance |
Loans Held-for-Investment
 
 
Valuation Allowance
16 
(15)
Valuation Allowance |
Other Real Estate Owned
 
 
Valuation Allowance
(126)
(116)
Valuation Allowance |
Affordable Housing
 
 
Valuation Allowance
 
0 
Valuation Allowance |
Other Assets
 
 
Valuation Allowance
(14)
(20)
Fair Value, Inputs, Level 1 [Member] |
Loans Held-for-Sale
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Loans Held-for-Investment
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Other Real Estate Owned
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Affordable Housing
 
 
Assets measured at fair value on a non-recurring basis
 
0 
Fair Value, Inputs, Level 1 [Member] |
Other Assets
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
Loans Held-for-Sale
 
 
Assets measured at fair value on a non-recurring basis
567 
333 
Loans Held-for-Investment
 
 
Assets measured at fair value on a non-recurring basis
144 
85 
Other Real Estate Owned
 
 
Assets measured at fair value on a non-recurring basis
509 
596 
Affordable Housing
 
 
Assets measured at fair value on a non-recurring basis
 
357 
Other Assets
 
 
Assets measured at fair value on a non-recurring basis
$ 43 
$ 130 
Carrying Amounts and Fair Values of the Company's Financial Instruments (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Financial assets
 
 
LHFS
$ 1,675 1
$ 3,168 1
LHFI at fair value
452 
492 
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
5,500 
5,378 
Trading assets
6,288 
6,175 
Securities AFS
27,502 
26,895 
LHFS
2,243 
3,501 
LHFI at fair value
117,475 
115,975 
Interest/credit adjustment on LHFI
(2,600)
(2,974)
LHFI, as adjusted for interest/credit risk
114,875 
113,001 
Market risk/liquidity adjustment on LHFI
0 
0 
LHFI, fully adjusted
114,875 
113,001 
Financial liabilities
 
 
Consumer and commercial deposits
123,933 
120,025 
Brokered deposits
2,283 
2,365 
Foreign deposits
35 
654 
Short-term borrowings
6,232 
5,821 
Long-term debt
13,544 
13,648 
Trading liabilities
1,735 
2,678 
Estimate of Fair Value, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
5,500 2
5,378 2
Trading assets
6,288 3
6,175 3
Securities AFS
27,502 3
26,895 3
LHFS
2,247 4
3,501 4
LHFI at fair value
117,475 
115,975 
Interest/credit adjustment on LHFI
(2,745)
(3,823)
LHFI, as adjusted for interest/credit risk
114,730 5
112,152 5
Market risk/liquidity adjustment on LHFI
(5,401)
(3,962)
LHFI, fully adjusted
109,329 5
108,190 5
Financial liabilities
 
 
Consumer and commercial deposits
124,323 6
120,368 6
Brokered deposits
2,301 7
2,381 7
Foreign deposits
35 7
654 7
Short-term borrowings
6,224 7
5,815 7
Long-term debt
13,207 7
13,191 7
Trading liabilities
$ 1,735 3
$ 2,678 3
[5] LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values.The Company estimated fair value based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 100% and 99% on the loan portfolio’s net carrying value as of September 30, 2011 and December 31, 2010, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value as of September 30, 2011 and December 31, 2010, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
Carrying Amounts and Fair Values of the Company's Financial Instruments (Parenthetical) (Detail)
Sep. 30, 2011
Dec. 31, 2010
Estimated fair value of loan portfolio's net carrying value
100.00% 
99.00% 
Reinsurance Arrangements and Guarantees - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
12 Months Ended
Dec. 31,		 3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,		 12 Months Ended
Dec. 31,		 12 Months Ended
Dec. 31,
9 Months Ended
Sep. 30, 2011
2010
2009
2008
79 Months Ended
Sep. 30, 2011
Sep. 13, 2011
1 Months Ended
May 31, 2009
Derivative Financial Instruments, Liabilities [Member]
Visa Interest
Not Designated as Hedging Instrument [Member]
Sep. 30, 2011
Derivative Financial Instruments, Liabilities [Member]
Not Designated as Hedging Instrument [Member]
Dec. 31, 2010
Derivative Financial Instruments, Liabilities [Member]
Not Designated as Hedging Instrument [Member]
Sep. 30, 2011
Derivative Financial Instruments, Liabilities [Member]
Dec. 31, 2010
Derivative Financial Instruments, Liabilities [Member]
Sep. 30, 2011
Upper Limit
Mortgage Reinsurance Contracts
2011
Mortgage Reinsurance Contracts
2010
Mortgage Reinsurance Contracts
2011
Mortgage Reinsurance Contracts
2010
Mortgage Reinsurance Contracts
Dec. 31, 2010
Mortgage Reinsurance Contracts
Sep. 30, 2011
Standby Letters of Credit
Dec. 31, 2010
Standby Letters of Credit
Sep. 30, 2011
Mortgage Loans and Mortgage Servicing Rights
Dec. 31, 2010
Mortgage Loans and Mortgage Servicing Rights
Sep. 30, 2011
Mortgage Loans and Mortgage Servicing Rights
Sales
Dec. 31, 2010
Mortgage Loans and Mortgage Servicing Rights
Sales
2011
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
2010
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Dec. 31, 2010
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Sep. 30, 2011
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Non Performing Loans
Dec. 31, 2010
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Non Performing Loans
1 Months Ended
May 31, 2009
Visa Interest
9 Months Ended
Sep. 30, 2011
Visa Interest
2010
Visa Interest
2009
Visa Interest
9 Months Ended
Sep. 30, 2011
Non-Agency Securities
2010
Non-Agency Securities
2009
Non-Agency Securities
2008
Non-Agency Securities
Sep. 30, 2011
Agency Securities
Dec. 31, 2010
Agency Securities
Sep. 30, 2011
Ginnie Mae
Sep. 30, 2011
Contingent Consideration
Dec. 31, 2010
Contingent Consideration
Mortgage loans were covered by such mortgage reinsurance contracts
 
 
 
 
 
 
 
 
 
 
 
 
$ 8,300,000,000 
 
$ 8,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loss exposure ceded to the Company
 
 
 
 
 
 
 
 
 
 
 
 
320,000,000 
 
320,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of loss exposure based on funds held in each seperate trust account, including net premiums due to the trust accounts
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of loss exposure based on funds held in each separate trust account, reserved for reducing the Company's net remaining loss exposure
 
 
 
 
 
 
 
 
 
 
 
 
41,000,000 
 
41,000,000 
 
148,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future reported losses
 
 
 
 
 
 
 
 
 
 
 
9,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future cash losses
 
 
 
 
 
 
 
 
 
 
 
9,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium income, mortgage reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
6,000,000 
10,000,000 
20,000,000 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for losses, mortgage reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
7,000,000 
18,000,000 
25,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential amount obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,500,000,000 
6,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,000,000 
5,000,000 
Fair value of contingent payments
 
 
 
 
 
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
3,000,000 
Guarantee obligations, carrying value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
106,000,000 
109,000,000 
282,000,000 
265,000,000 
7,000,000 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans sold from January 1, 2005 to September 30, 2011
239,800,000,000 
 
 
 
239,800,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,300,000,000 
 
 
 
184,500,000,000 
 
25,000,000,000 
 
 
Repurchase request volume
1,101,000,000 
1,100,000,000 
1,100,000,000 
557,000,000 
4,600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47,000,000 
55,000,000 
99,000,000 
148,000,000 
 
 
 
 
 
Unpaid principal balance of loans related to unresolved requests previously received from investors
490,000,000 
293,000,000 
 
 
490,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28,000,000 
29,000,000 
 
 
462,000,000 
264,000,000 
 
 
 
Repurchased or otherwise settled mortgages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
488,000,000 
512,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchased mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
199,000,000 
 
153,000,000 
100,000,000 
86,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount funded by Visa into an escrow account to fund judgments and settlements relating to litigation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
Shares of Class B Visa Inc. common stock sold to another financial institution, shares
 
 
 
 
 
 
3.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares of Class B Visa Inc. common stock sold to another financial institution, value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
112,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Shares of Class B Visa Inc. common stock sold to another financial institution, recognized a gain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
112,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to derivative counterparty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,000,000 
17,000,000 
10,000,000 
 
 
 
 
 
 
 
 
 
Derivative liability positions, fair value
 
 
 
 
 
 
 
$ 7,250,000,000 1 2
$ 5,019,000,000 2
$ 7,396,000,000 1
$ 5,174,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 16,000,000 
$ 23,000,000 
 
 
 
 
 
 
 
 
 
 
Common stock conversion rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.6296 
0.4881 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Balance of Loans Sold by Vintage and Type of Buyer (Detail) (USD $)
In Billions
Sep. 30, 2011
Outstanding balance remaining of loans sold to outside investors
$ 119.2 
Vintage 2005
 
Outstanding balance remaining of loans sold to outside investors
9.6 
Vintage 2005 |
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
4.1 
Vintage 2005 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
4.8 1
Vintage 2005 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.7 1
Vintage 2006
 
Outstanding balance remaining of loans sold to outside investors
12.2 
Vintage 2006 |
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
6.0 
Vintage 2006 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
5.7 1
Vintage 2006 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.5 1
Vintage 2007
 
Outstanding balance remaining of loans sold to outside investors
16.3 
Vintage 2007 |
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
4.8 
Vintage 2007 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
11.0 1
Vintage 2007 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.5 1
Vintage 2008
 
Outstanding balance remaining of loans sold to outside investors
14.6 
Vintage 2008 |
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2008 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
12.1 1
Vintage 2008 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
2.5 1
Vintage 2009
 
Outstanding balance remaining of loans sold to outside investors
33.1 
Vintage 2009 |
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2009 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
27.3 1
Vintage 2009 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
5.8 1
Vintage 2010
 
Outstanding balance remaining of loans sold to outside investors
19.6 
Vintage 2010 |
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2010 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
15.4 1
Vintage 2010 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
4.2 1
Fiscal Year 2011
 
Outstanding balance remaining of loans sold to outside investors
13.8 
Fiscal Year 2011 |
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
0 
Fiscal Year 2011 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
11.5 1
Fiscal Year 2011 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
2.3 1
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
87.8 1
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
16.5 1
Non-Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
$ 14.9 
Mortgage Loan Repurchase Losses (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Reserve for mortgage loan repurchase losses
 
 
 
 
Balance at beginning of period
$ 299 
$ 256 
$ 265 
$ 200 
Repurchase provision
117 
95 
287 
371 
Charge-offs
(134)
(81)
(270)
(301)
Balance at end of period
$ 282 
$ 270 
$ 282 
$ 270 
Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Sep. 13, 2011
Aug. 19, 2011
Dec. 31, 2010
Feb. 28, 2008
Sep. 30, 2011
Other Auction Rate Securities Claims
Dec. 31, 2010
Other Auction Rate Securities Claims
May 31, 2009
Overdrafts Fee Cases
legalmatter
May 31, 2009
Trust Preferred Securities
legalmatter
1 Months Ended
Nov. 30, 2009
Collateralized Debt Obligations
Sep. 30, 2011
Lower Limit
Sep. 30, 2011
Upper Limit
Aggregate range of reasonably possible losses on legal matters in excess of the accrued liability
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 160 
$ 260 
Reserved for the remaining probable loss that could be reasonably estimated
 
 
 
 
 
 
 
 
7 
24 
 
 
 
 
 
Contingent Receipt, Judgement Award for Damages
 
 
 
 
 
34 
 
 
 
 
 
 
 
 
 
Contingent Payments
 
 
 
 
5 
 
 
 
 
 
 
 
 
 
 
Contingent Receipt, Prejudgement Interest Award
 
 
 
 
 
6 
 
 
 
 
 
 
 
 
 
Accrued fines for settlement with FINRA
5 
 
5 
 
 
 
 
 
 
 
 
 
 
 
 
Total amount of ARS the Company has purchased
617 
 
617 
 
 
 
 
 
 
 
 
 
 
 
 
Cumulative losses on ARS
112 
 
112 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of ARS purchased pursuant to the pending settlement, trading securities
43 
 
43 
 
 
 
147 
 
 
 
 
 
 
 
 
Fair value of ARS purchased pursuant to the pending settlement, available for sale securities
104 
 
104 
 
 
 
128 
 
 
 
 
 
 
 
 
Total gain (loss) relating to the ARS agreements recognized
1 
2 
34 
10 
 
 
 
 
 
 
 
 
 
 
 
Auction rate securities par amount at the time of the collapse of the auction rate market
 
 
 
 
 
 
 
152 
 
 
 
 
 
 
 
Auction rate securities accrued and settled
 
 
14 
 
 
 
 
 
 
 
 
 
 
 
 
Number of putative class actions
 
 
 
 
 
 
 
 
 
 
2 
3 
 
 
 
Amount sold of an asset that is now related to a loss contingency
 
 
 
 
 
 
 
 
 
 
 
$ 690 
 
 
 
Complaint allegations
 
 
 
 
 
 
 
 
 
 
 
 
the security has lost over $5 million in value 
 
 
Business Segment Reporting (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Average total assets
$ 172,076 
$ 171,999 
$ 171,886 
$ 171,569 
Average total liabilities
152,076 
148,908 
151,025 
148,986 
Average total equity
20,000 
23,091 
20,861 
22,583 
Net, interest income
1,263 
1,238 
3,771 
3,587 
FTE adjustment
30 
28 
84 
89 
Net interest income (FTE)
1,293 1
1,266 1
3,855 1
3,676 1
Provision for credit losses
347 2
615 2
1,186 2
2,138 2
Net interest income/(loss) after provision for credit losses
946 
651 
2,669 
1,538 
Noninterest income
903 
1,047 
2,698 
2,697 
Noninterest expense
1,560 
1,499 
4,567 
4,362 
Income/(loss) before provision/(benefit) for income taxes
289 
199 
800 
(127)
Provision/(benefit) for income taxes
75 3
42 3
220 3
(141)3
Net income/(loss) including income attributable to noncontrolling interest
214 
157 
580 
14 
Net income attributable to noncontrolling interest
(1)
4 
7 
9 
Net income/(loss)
215 
153 
573 
5 
Retail Banking
 
 
 
 
Average total assets
40,821 
39,105 
40,752 
38,856 
Average total liabilities
76,820 
74,945 
76,582 
74,411 
Average total equity
0 
0 
0 
0 
Net, interest income
640 
630 
1,897 
1,870 
FTE adjustment
0 
0 
0 
0 
Net interest income (FTE)
640 1
630 1
1,897 1
1,870 1
Provision for credit losses
181 2
229 2
593 2
765 2
Net interest income/(loss) after provision for credit losses
459 
401 
1,304 
1,105 
Noninterest income
286 
278 
830 
857 
Noninterest expense
654 
623 
1,936 
1,850 
Income/(loss) before provision/(benefit) for income taxes
91 
56 
198 
112 
Provision/(benefit) for income taxes
33 3
20 3
72 3
39 3
Net income/(loss) including income attributable to noncontrolling interest
58 
36 
126 
73 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income/(loss)
58 
36 
126 
73 
Diversified Commercial Banking
 
 
 
 
Average total assets
25,242 
24,633 
25,113 
25,039 
Average total liabilities
20,541 
19,159 
20,459 
19,864 
Average total equity
0 
0 
0 
0 
Net, interest income
159 
142 
456 
408 
FTE adjustment
26 
26 
76 
80 
Net interest income (FTE)
185 1
168 1
532 1
488 1
Provision for credit losses
11 2
23 2
49 2
88 2
Net interest income/(loss) after provision for credit losses
174 
145 
483 
400 
Noninterest income
67 
62 
191 
173 
Noninterest expense
123 
107 
358 
335 
Income/(loss) before provision/(benefit) for income taxes
118 
100 
316 
238 
Provision/(benefit) for income taxes
42 3
37 3
114 3
87 3
Net income/(loss) including income attributable to noncontrolling interest
76 
63 
202 
151 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income/(loss)
76 
63 
202 
151 
Commercial Real Estate
 
 
 
 
Average total assets
7,557 
10,395 
8,230 
11,171 
Average total liabilities
1,535 
1,467 
1,479 
1,667 
Average total equity
0 
0 
0 
0 
Net, interest income
34 
38 
105 
124 
FTE adjustment
0 
0 
1 
0 
Net interest income (FTE)
34 1
38 1
106 1
124 1
Provision for credit losses
133 2
156 2
353 2
344 2
Net interest income/(loss) after provision for credit losses
(99)
(118)
(247)
(220)
Noninterest income
25 
21 
73 
61 
Noninterest expense
100 
120 
316 
324 
Income/(loss) before provision/(benefit) for income taxes
(174)
(217)
(490)
(483)
Provision/(benefit) for income taxes
(85)3
(103)3
(242)3
(242)3
Net income/(loss) including income attributable to noncontrolling interest
(89)
(114)
(248)
(241)
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income/(loss)
(89)
(114)
(248)
(241)
Corporate and Investment Banking
 
 
 
 
Average total assets
23,990 
20,900 
22,651 
19,597 
Average total liabilities
17,857 
16,478 
17,620 
15,272 
Average total equity
0 
0 
0 
0 
Net, interest income
126 
98 
360 
272 
FTE adjustment
1 
0 
2 
1 
Net interest income (FTE)
127 1
98 1
362 1
273 1
Provision for credit losses
(3)2
0 2
(1)2
37 2
Net interest income/(loss) after provision for credit losses
130 
98 
363 
236 
Noninterest income
109 
196 
477 
449 
Noninterest expense
139 
121 
433 
352 
Income/(loss) before provision/(benefit) for income taxes
100 
173 
407 
333 
Provision/(benefit) for income taxes
36 3
64 3
149 3
123 3
Net income/(loss) including income attributable to noncontrolling interest
64 
109 
258 
210 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income/(loss)
64 
109 
258 
210 
Mortgage
 
 
 
 
Average total assets
33,159 
34,556 
33,681 
34,627 
Average total liabilities
3,705 
4,135 
3,487 
3,581 
Average total equity
0 
0 
0 
0 
Net, interest income
121 
123 
362 
331 
FTE adjustment
0 
0 
0 
0 
Net interest income (FTE)
121 1
123 1
362 1
331 1
Provision for credit losses
144 2
265 2
520 2
956 2
Net interest income/(loss) after provision for credit losses
(23)
(142)
(158)
(625)
Noninterest income
115 
272 
271 
397 
Noninterest expense
318 
296 
847 
812 
Income/(loss) before provision/(benefit) for income taxes
(226)
(166)
(734)
(1,040)
Provision/(benefit) for income taxes
(88)3
(63)3
(283)3
(395)3
Net income/(loss) including income attributable to noncontrolling interest
(138)
(103)
(451)
(645)
Net income attributable to noncontrolling interest
0 
0 
0 
1 
Net income/(loss)
(138)
(103)
(451)
(646)
Wealth and Investment Management
 
 
 
 
Average total assets
8,370 
8,941 
8,489 
8,974 
Average total liabilities
12,812 
11,723 
12,658 
11,449 
Average total equity
0 
0 
0 
0 
Net, interest income
105 
97 
305 
280 
FTE adjustment
0 
0 
0 
0 
Net interest income (FTE)
105 1
97 1
305 1
280 1
Provision for credit losses
26 2
15 2
54 2
44 2
Net interest income/(loss) after provision for credit losses
79 
82 
251 
236 
Noninterest income
202 
196 
624 
578 
Noninterest expense
235 
233 
710 
672 
Income/(loss) before provision/(benefit) for income taxes
46 
45 
165 
142 
Provision/(benefit) for income taxes
19 3
16 3
61 3
52 3
Net income/(loss) including income attributable to noncontrolling interest
27 
29 
104 
90 
Net income attributable to noncontrolling interest
(4)
1 
0 
1 
Net income/(loss)
31 
28 
104 
89 
Corporate Other and Treasury
 
 
 
 
Average total assets
31,389 
33,321 
31,348 
32,557 
Average total liabilities
16,235 
18,742 
16,058 
20,040 
Average total equity
0 
0 
0 
0 
Net, interest income
132 
117 
379 
350 
FTE adjustment
1 
2 
5 
8 
Net interest income (FTE)
133 1
119 1
384 1
358 1
Provision for credit losses
0 2
0 2
(1)2
0 2
Net interest income/(loss) after provision for credit losses
133 
119 
385 
358 
Noninterest income
103 
24 
254 
193 
Noninterest expense
(2)
1 
(11)
29 
Income/(loss) before provision/(benefit) for income taxes
238 
142 
650 
522 
Provision/(benefit) for income taxes
80 3
44 3
236 3
170 3
Net income/(loss) including income attributable to noncontrolling interest
158 
98 
414 
352 
Net income attributable to noncontrolling interest
2 
2 
7 
7 
Net income/(loss)
156 
96 
407 
345 
Reconciling Items
 
 
 
 
Average total assets
1,548 
148 
1,622 
748 
Average total liabilities
2,571 
2,259 
2,682 
2,702 
Average total equity
20,000 
23,091 
20,861 
22,583 
Net, interest income
(54)
(7)
(93)
(48)
FTE adjustment
2 
0 
0 
0 
Net interest income (FTE)
(52)1
(7)1
(93)1
(48)1
Provision for credit losses
(145)2
(73)2
(381)2
(96)2
Net interest income/(loss) after provision for credit losses
93 
66 
288 
48 
Noninterest income
(4)
(2)
(22)
(11)
Noninterest expense
(7)
(2)
(22)
(12)
Income/(loss) before provision/(benefit) for income taxes
96 
66 
288 
49 
Provision/(benefit) for income taxes
38 3
27 3
113 3
25 3
Net income/(loss) including income attributable to noncontrolling interest
58 
39 
175 
24 
Net income attributable to noncontrolling interest
1 
1 
0 
0 
Net income/(loss)
$ 57 
$ 38 
$ 175 
$ 24 
Comprehensive Income (Detail) (USD $)
In Millions
3 Months Ended
Sep. 30,		 9 Months Ended
Sep. 30,
2011
2010
2011
2010
Comprehensive income:
 
 
 
 
Net income/(loss)
$ 215 
$ 153 
$ 573 
$ 5 
OCI:
 
 
 
 
Change in unrealized gains on securities, net of taxes
173 
257 
294 
472 
Change in unrealized gains/(losses) on derivatives, net of taxes
182 
61 
129 
438 
Change related to employee benefit plans
4 
2 
(13)
85 
Total comprehensive income
$ 574 
$ 473 
$ 983 
$ 1,000 
Components of Accumulated Other Comprehensive Income (Detail) (USD $)
In Millions
Sep. 30, 2011
Dec. 31, 2010
Unrealized net gain on AFS securities
$ 1,820 
$ 1,526 
Unrealized net gain on derivative financial instruments
661 
532 
Employee benefit plans
(455)
(442)
Total AOCI
$ 2,026 
$ 1,616