SUNTRUST BANKS INC, 10-K filed on 2/24/2014
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2013
Feb. 19, 2014
Jun. 28, 2013
Entity Registrant Name
 
SUNTRUST BANKS INC 
 
 
Entity Central Index Key
 
0000750556 
 
 
Current Fiscal Year End Date
 
--12-31 
 
 
Entity Filer Category
 
Large Accelerated Filer 
 
 
Document Type
 
10-K 
 
 
Document Period End Date
Dec. 31, 2012 
Dec. 31, 2013 
 
 
Document Fiscal Year Focus
 
2013 
 
 
Document Fiscal Period Focus
 
Q4 
 
 
Amendment Flag
 
false 
 
 
Entity Common Stock, Shares Outstanding
 
 
534,671,799 
 
Entity Well-known Seasoned Issuer
 
Yes 
 
 
Entity Voluntary Filers
 
No 
 
 
Entity Current Reporting Status
 
Yes 
 
 
Entity Public Float
 
 
 
$ 17.0 
Consolidated Statements of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Interest Income
 
 
 
Interest and fees on loans
$ 4,633 
$ 5,035 
$ 5,219 
Interest and fees on loans held for sale
107 
112 
93 
Interest and Dividend Income, Securities, Available-for-sale
579 
655 1
791 1
Trading account interest and other
69 
65 
78 
Total interest income
5,388 
5,867 
6,181 
Interest Expense
 
 
 
Interest on deposits
291 
429 
624 
Interest Expense, Long-term Debt
210 
299 
449 
Interest on other borrowings
34 
37 
43 
Total interest expense
535 
765 
1,116 
Net, interest income
4,853 
5,102 
5,065 
Provision for Loan, Lease, and Other Losses
553 
1,395 2
1,513 2
Interest Income (Expense), after Provision for Loan Loss
4,300 
3,707 
3,552 
Noninterest Income
 
 
 
Service charges on deposit accounts
657 
676 
685 
Fees and Commissions, Other
369 
402 
415 
Fees and Commissions, Credit and Debit Cards
310 
316 
463 
Fees and Commissions, Fiduciary and Trust Activities
518 
512 
531 
Investment Advisory, Management and Administrative Fees
267 
241 
230 
Investment Banking Revenue
356 
342 
317 
Trading Gain (Loss)
182 
211 
248 
Fees and Commissions, Mortgage Banking
314 
343 
(5)
Servicing Fees, Net
87 
260 
224 
Gain (Loss) on Sale of Securities, Net
3
1,974 3
117 3
Noninterest Income, Other Operating Income
152 
96 
196 
Total noninterest income
3,214 
5,373 
3,421 
Noninterest Expense
 
 
 
Employee compensation
2,488 
2,603 
2,494 
Other Labor-related Expenses
413 
474 
382 
Outside processing and software
746 
710 
653 
Net occupancy expense
348 
359 
356 
Operating losses
503 
277 
377 
Credit and collection services
264 
239 
275 
Federal Deposit Insurance Corporation Premium Expense
181 
233 
300 
Equipment Expense
181 
188 
178 
Marketing and Advertising Expense
135 
184 
184 
Professional Fees
73 
165 
120 
Amortization of Intangible Assets and Impairment of Goodwill
23 
46 
43 
Gains (Losses) on Sales of Other Real Estate
(4)
(140)
(264)
Net loss/(gain) on extinguishment of debt
(16)
Other Noninterest Expense
521 
689 
611 
Noninterest Expense
5,880 
6,323 
6,234 
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest
1,634 
2,757 
739 
Income Tax Expense (Benefit)
273 
773 
79 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
1,361 
1,984 
660 
Net Income (Loss) Attributable to Noncontrolling Interest
17 
26 
13 
Net Income (Loss) Attributable to Parent
1,344 
1,958 
647 
Net Income (Loss) Available to Common Stockholders, Basic
$ 1,297 
$ 1,931 
$ 495 
Earnings Per Share, Diluted
$ 2.41 
$ 3.59 
$ 0.94 
Earnings Per Share, Basic
$ 2.43 
$ 3.62 
$ 0.94 
Common Stock, Dividends, Per Share, Declared
$ 0.35 
$ 0.20 
$ 0.12 
Weighted Average Number of Shares Outstanding, Diluted
539,093 
538,061 
527,618 
Weighted Average Number of Shares Outstanding, Basic
534,283 
534,149 
523,995 
Consolidated Statements of Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dividends on common stock of The Coca-Cola Company
 
$ 31 1
$ 56 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
2
2
2
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest, Available-for-sale Securities
$ 1 
$ 6 
$ 4 
Consolidated Statement of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net Income (Loss) Attributable to Parent
$ 1,344 
$ 1,958 
$ 647 
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
(597)
(1,343)
337 
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax
(253)
(37)
37 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
252 
(60)
(241)
Other Comprehensive Income (Loss), Net of Tax
(598)
(1,440)
133 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
$ 746 
$ 518 
$ 780 
Consolidated Statement of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax
$ (349)
$ (738)
$ 199 
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax Effect
(148)
(25)
22 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax
$ 147 
$ (35)
$ (141)
Consolidated Balance Sheets (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Assets
 
 
Cash and Due from Banks
$ 4,258 
$ 7,134 
Federal Funds Sold and Securities Purchased under Agreements to Resell
983 
1,101 
Interest-bearing Deposits in Banks and Other Financial Institutions
22 
22 
Cash and cash equivalents
5,263 
8,257 
Trading assets
5,040 
6,227 
Available-for-sale Securities
22,542 
21,953 
Loans Held for Sale
1,699 1
3,399 1
Loans held for investment
127,877 2
121,470 2
Loans and Leases Receivable, Allowance
(2,044)
(2,174)
Net loans
125,833 
119,296 
Premises and equipment
1,565 
1,564 
Goodwill
6,369 
6,369 
Intangible Assets, Net (Excluding Goodwill)
1,334 
956 
Other real estate owned
170 
264 
Other Assets
5,520 
5,157 
Total assets
175,335 
173,442 
Liabilities and Shareholders' Equity
 
 
Noninterest-bearing consumer and commercial deposits
38,800 
39,481 
Interest-bearing Deposit Liabilities
90,959 
92,835 
Total deposits
129,759 
132,316 
Funds purchased
1,192 
617 
Securities Sold under Agreements to Repurchase
1,759 3
1,574 3
Other Short-term Borrowings
5,788 
3,303 
Long-term Debt
10,700 4
9,357 4
Trading liabilities
1,181 
1,176 
Other Liabilities
3,534 
4,114 
Total liabilities
153,913 
152,457 
Preferred Stock, Value, Outstanding
725 
725 
Common Stock, Value, Outstanding
550 
550 
Additional paid in capital
9,115 
9,174 
Retained earnings
11,936 
10,817 
Treasury stock, at cost, and other
(615)5
(590)5
Accumulated Other Comprehensive Income (Loss), Net of Tax
(289)
309 
Total shareholders' equity
21,422 
20,985 
Total liabilities and shareholders' equity
$ 175,335 
$ 173,442 
Common Stock, Shares, Outstanding
536,097 
538,959 
Common shares authorized
750,000 
750,000 
Preferred Stock, Shares Outstanding
Preferred Stock, Shares Authorized
50,000 
50,000 
Treasury shares of common stock
13,824 
10,962 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Loans Held-for-sale, Fair Value Disclosure
$ 1,378 
$ 3,243 
Loans Receivable, Fair Value Disclosure
302 
379 
Servicing Asset at Fair Value, Amount
1,300 
899 
Deposits, Fair Value Disclosure
764 
832 
Long-term Debt, Fair Value
1,556 
1,622 
Common stock, par value
$ 1.00 
$ 1.00 
Loans Receivable Held-for-sale, Net
1,699 1
3,399 1
Loans held for investment
127,877 2
121,470 2
Long-term Debt
10,700 3
9,357 3
Stockholders' Equity Attributable to Noncontrolling Interest
119 
114 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Long-term Debt, Fair Value
256 
286 
Loans Receivable Held-for-sale, Net
 
319 
Loans held for investment
327 
365 
Long-term Debt
597 
666 
Repurchase Agreements [Member]
 
 
Trading Securities Pledged as Collateral
731 
727 
Portion at Fair Value Measurement [Member] |
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Loans Receivable Held-for-sale, Net
$ 261 
$ 319 
Consolidated Statements of Shareholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock and Other
Accumulated Other Comprehensive Income (Loss) [Member]
Common Stock [Member]
Common Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Series C and Series D Preferred Stock [Member]
Preferred Stock [Member]
Series C and Series D Preferred Stock [Member]
Retained Earnings [Member]
Series B Preferred Stock [Member]
Series B Preferred Stock [Member]
Preferred Stock [Member]
Series E Preferred Stock [Member]
Series E Preferred Stock [Member]
Preferred Stock [Member]
Series E Preferred Stock [Member]
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, beginning of period at Dec. 31, 2010
$ 23,130 
$ 4,942 
$ 515 
$ 8,403 
$ 8,542 
$ (888)1
$ 1,616 2
 
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, beginning of period at Dec. 31, 2010
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
647 
 
 
 
647 
 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
133 
 
 
 
 
 
133 2
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Period Increase (Decrease)
(22)
 
 
 
 
(22)1
 
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock, Cash
(64)
 
 
 
(64)
 
 
 
 
 
 
 
 
 
 
 
 
Dividends, Preferred Stock, Cash
(7)
 
 
 
(7)
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Us Treasury Preferred Stock Dividends
(60)
 
 
 
(60)
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, Accretion of Redemption Discount
 
 
 
 
 
 
 
 
 
(6)
 
 
 
 
 
Stock Redeemed or Called During Period, Value
(4,850)
 
 
 
 
 
 
 
 
 
(4,776)
(74)
 
 
 
 
 
Adjustments to Additional Paid in Capital, Other
(11)
 
 
(11)
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
 
 
 
 
1,017 
35 
982 
 
 
103 
103 
 
 
 
Stock Issued During Period, Shares, New Issues
 
 
 
 
 
 
 
 
35,000,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
12 
 
 
11 
 
1
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
(8)
 
 
(58)
 
50 1
 
 
 
 
 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
32 
 
 
 
 
32 1
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Employee Benefit Plan
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Employee Benefit Plan
14 
 
 
(21)
 
35 1
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Dec. 31, 2011
20,066 
275 
550 
9,306 
8,978 
(792)1
1,749 2
 
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, end of period at Dec. 31, 2011
 
 
537,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
1,958 
 
 
 
1,958 
 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(1,440)
 
 
 
 
 
(1,440)2
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Period Increase (Decrease)
 
 
 
 
1
 
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock, Cash
(107)
 
 
 
(107)
 
 
 
 
 
 
 
 
 
 
 
 
Dividends, Preferred Stock, Cash
(12)
 
 
 
(12)
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
438 
450 
(12)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
21 
 
 
(44)
 
65 1
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
 
 
(63)
 
69 1
 
 
 
 
 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
30 
 
 
 
 
30 1
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Employee Benefit Plan
18 
 
 
(13)
 
31 1
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Dec. 31, 2012
20,985 
725 
550 
9,174 
10,817 
(590)1
309 2
 
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, end of period at Dec. 31, 2012
538,959,000 
 
539,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
1,344 
 
 
 
1,344 
 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(598)
 
 
 
 
 
(598)2
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Period Increase (Decrease)
 
 
 
 
1
 
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock, Cash
(188)
 
 
 
(188)
 
 
 
 
 
 
 
 
 
 
 
 
Dividends, Preferred Stock, Cash3
(37)
 
 
 
(37)
 
 
 
 
 
 
 
 
 
 
 
 
Treasury Stock, Shares, Acquired
 
 
 
 
 
 
 
 
(5,000,000)
 
 
 
 
 
 
 
 
Treasury Stock, Value, Acquired, Cost Method
(150)
 
 
 
 
(150)1
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
16 
 
 
(27)
 
43 1
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
 
 
(35)
 
39 1
 
 
 
 
 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
32 
 
 
 
 
32 1
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Employee Benefit Plan
 
 
 
1
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Dec. 31, 2013
$ 21,422 
$ 725 
$ 550 
$ 9,115 
$ 11,936 
$ (615)1
$ (289)2
 
 
 
 
 
 
 
 
 
 
Common Stock, Shares, Outstanding, end of period at Dec. 31, 2013
536,097,000 
 
536,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Common stock dividends, per share
$ 0.35 
$ 0.20 
$ 0.12 
Treasury Stock, Value
$ (615)1
$ (590)1
 
Stockholders' Equity Attributable to Noncontrolling Interest
119 
114 
 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
(77)
520 
1,863 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax
279 
532 
569 
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax
(491)
(743)
(683)
Treasury Stock and Other
 
 
 
Treasury Stock, Value
(684)
(656)
(851)
Deferred Compensation Equity
(50)
(48)
(48)
Stockholders' Equity Attributable to Noncontrolling Interest
 
$ 114 
$ 107 
Series A Preferred Stock [Member]
 
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 4,056 
$ 4,052 
$ 4,056 
Series B Preferred Stock [Member]
 
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 4,056 
$ 4,052 
 
Series E Preferred Stock [Member]
 
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 5,793 
$ 0 
 
Series C and Series D Preferred Stock [Member]
 
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
 
 
$ 1,236 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash Flows from Operating Activities:
 
 
 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
$ 1,361 
$ 1,984 
$ 660 
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
 
 
 
Depreciation, Amortization and Accretion, Net
708 
757 
760 
Goodwill impairment
Origination of Mortgage Servicing Rights (MSRs)
352 
336 
224 
Provisions for credit losses and foreclosed property
605 
1,535 
1,664 
Mortgage repurchase provision
114 
713 
502 
Deferred Income Tax Expense (Benefit)
495 
194 
83 
Stock Option Compensation And Amortization Of Restricted Stock Compensation
34 
35 
44 
Net loss/(gain) on extinguishment of debt
(16)
Gain (Loss) on Sale of Securities, Net
1
1,974 1
117 1
Net gain on sale of assets
(267)
(1,063)
(390)
Gain on pension curtailment
88 
Net decrease/(increase) in loans held for sale
2,104 
194 
2,234 
Net (increase)/decrease in other assets
235 
974 
(604)
Increase (Decrease) in Other Operating Liabilities
(827)
(1,026)
18 
Net Cash Provided by (Used in) Operating Activities
4,208 
2,010 
4,539 
Cash Flows from Investing Activities:
 
 
 
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities
5,522 
7,371 
5,557 
Proceeds from sales of securities available for sale
2,063 
4,300 
12,557 
Purchases of securities available for sale
(9,215)
(5,814)
(18,872)
Proceeds from maturities, calls, and paydowns of trading securities
139 
Proceeds from sales of trading securities
102 
Proceeds from (payments for) Originations and Purchases of Loans Held-for-investment
(8,409)
(6,400)
(10,575)
Proceeds from sales of loans
819 
4,916 
270 
Capital expenditures
(200)
(206)
(131)
Payments related to acquisitions, including contingent consideration
12 
24 
Proceeds from Sale of Other Real Estate
472 
585 
735 
Net cash (used in)/provided by investing activities
(8,941)
4,743 
(10,242)
Cash Flows from Financing Activities:
 
 
 
Net (decrease)/increase in total deposits
(2,557)
4,394 
4,878 
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
3,245 
(5,972)
6,650 
Proceeds from Issuance of Long-term Debt
1,564 
4,000 
1,749 
Repayment of long-term debt
(155)
(5,772)
(4,571)
Proceeds from the issuance of common stock
1,017 
Proceeds from Issuance of Preferred Stock and Preference Stock
438 
103 
Repurchase of preferred stock
4,850 
Payments for Repurchase of Warrants
(11)
Payments for Repurchase of Common Stock
(150)
Common and preferred dividends paid
(225)
(119)
(131)
Stock option activity
17 
26 
Net cash provided by/(used in) financing activities
1,739 
(3,005)
4,834 
Net (decrease)/increase in cash and cash equivalents
(2,994)
3,748 
(869)
Cash and cash equivalents at beginning of period
8,257 
4,509 
5,378 
Cash and cash equivalents at end of period
5,263 
8,257 
4,509 
Supplemental Disclosures:
 
 
 
Interest Paid
533 
774 
1,138 
Income Taxes Paid
168 
607 
68 
Proceeds from Income Tax Refunds
99 
Transfer of Loans Held-for-sale to Portfolio Loans
43 
71 
63 
Loans transferred from loans to loans held for sale
280 
3,695 
754 
Transfer to Other Real Estate
255 
399 
725 
Amortization Of Deferred Gain On Sale Lease Back Of Premises
58 
67 
59 
Accretion of discount for preferred stock issued to the U.S. Treasury
$ 0 
$ 0 
$ 80 
Acquisitions/Dispositions Acquisitions/Dispositions (Notes)
Mergers, Acquisitions and Dispositions Disclosures [Text Block]
NOTE 2 - ACQUISITIONS/DISPOSITIONS
During the three years ended December 31, 2013, the Company consummated the following acquisitions:
 
(Dollars in millions)
 
Date
 
Cash paid
 
Goodwill
 
Other Intangibles
 
Gain
 
Comments
2012
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition of assets of FirstAgain, LLC
 
6/22/2012
 

($12
)
 

$32

 

$—

 

$—

 
Goodwill recorded is tax-deductible.
2011
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition of certain additional assets of CSI Capital Management
 
5/9/2011
 
(19
)
 
20

 
7

 

 
Goodwill and intangibles  recorded are tax-deductible.

There were no material acquisitions or dispositions during the year ended December 31, 2013; however, the Company reached a definitive agreement in 2013 to sell RidgeWorth, and the sale is expected to close in the second quarter of 2014. See Note 20, "Business Segment Reporting," for additional detail.
Significant Accounting Policies
Significant Accounting Policies [Text Block]
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
General

SunTrust, one of the nation's largest commercial banking organizations, is a financial services holding company with its headquarters in Atlanta, Georgia. Through its principal subsidiary, SunTrust Bank, the Company offers a full line of financial services for consumers and businesses including deposit, credit, mortgage banking, and trust and investment services. Additional subsidiaries provide asset management, securities brokerage, and capital market services. SunTrust operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. In certain businesses, SunTrust also operates in select markets nationally. SunTrust provides clients with a selection of technology-based banking channels, including the internet, mobile, ATMs, and telebanking. SunTrust’s client base encompasses a broad range of individuals and families, businesses, institutions, and governmental agencies. Within its geographic footprint, SunTrust operated under the following business segments during 2013: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking, with the other activities included in Corporate Other. For additional information on the Company’s business segments, see Note 20, “Business Segment Reporting.”

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions.

The Company holds VIs, which are contractual ownership or other interests that change with changes in the fair value of a VIE's net assets. The Company consolidates a VIE if it is the primary beneficiary, which is the party that has both the power to direct the activities that most significantly impact the financial performance of the VIE and the obligation to absorb losses or rights to receive benefits through its VIs that could potentially be significant to the VIE. To determine whether or not a VI held by the Company could potentially be significant to the VIE, both qualitative and quantitative factors regarding the nature, size, and form of the Company's involvement with the VIE are considered. The assessment of whether or not the Company is the primary beneficiary of a VIE is performed on an on-going basis. The Company consolidates VOEs, which are entities that are not VIEs, that are controlled through the Company's equity interests.

Investments in companies which are not VIEs, or where the Company is not the primary beneficiary of a VIE, that the Company has the ability to exercise significant influence over operating and financing decisions, are accounted for using the equity method of accounting. These investments are included in other assets in the Consolidated Balance Sheets at cost, adjusted to reflect the Company's portion of income, loss, or dividends of the investee. Unconsolidated equity investments that do not meet the criteria to be accounted for under the equity method are accounted for under the cost method. Cost method investments are included in other assets in the Consolidated Balance Sheets and dividends received or receivable from these investments are included as a component of other noninterest income in the Consolidated Statements of Income.

Results of operations of companies purchased are included from the date of acquisition. Results of operations associated with companies or net assets sold are included through the date of disposition. The Company reports any noncontrolling interests in its subsidiaries in the equity section of the Consolidated Balance Sheets and separately presents the income or loss attributable to the noncontrolling interest of a consolidated subsidiary in its Consolidated Statements of Income. Assets and liabilities of purchased companies are initially recorded at estimated fair values at the date of acquisition.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

The Company evaluated subsequent events through the date its financial statements were issued.

Cash and Cash Equivalents

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

Securities and Trading Activities

Debt securities and marketable equity securities are classified at trade date as trading or securities AFS. Trading account assets and liabilities are carried at fair value with changes in fair value recognized within noninterest income. Securities AFS are used as part of the overall asset and liability management process to optimize income and market performance over an entire interest rate cycle. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts on debt securities are amortized as an adjustment to yield over the estimated life of the security. Securities AFS are carried at fair value with unrealized gains and losses, net of any tax effect, included in AOCI as a component of shareholders’ equity. Realized gains and losses, including OTTI, are determined using the specific identification method and are recognized as a component of noninterest income in the Consolidated Statements of Income.

On a quarterly basis, securities AFS are reviewed for possible OTTI. In determining whether OTTI exists for securities in an unrealized loss position, the Company assesses whether it has the intent to sell the security or, for debt securities, the Company assesses the likelihood of selling the security prior to the recovery of its amortized cost basis. If the Company intends to sell the debt security or it is more-likely-than-not that the Company will be required to sell the debt security prior to the recovery of its amortized cost basis, the debt security is written down to fair value, and the full amount of any impairment charge is recognized as a component of noninterest income in the Consolidated Statements of Income. If the Company does not intend to sell the debt security and it is more-likely-than-not that the Company will not be required to sell the debt security prior to recovery of its amortized cost basis, only the credit component of any impairment of a debt security is recognized as a component of noninterest income in the Consolidated Statements of Income, with the remaining impairment recorded in OCI.

The OTTI review for marketable equity securities includes an analysis of the facts and circumstances of each individual investment and focuses on the severity of loss, the length of time the fair value has been below cost, the expectation for that security's performance, the financial condition and near-term prospects of the issuer, and management's intent and ability to hold the security to recovery. A decline in value of an equity security that is considered to be other-than-temporary is recognized as a component of noninterest income in the Consolidated Statements of Income.

Nonmarketable equity securities are accounted for under the cost or equity method and are included in other assets in the Consolidated Balance Sheets. The Company reviews nonmarketable securities accounted for under the cost method on a quarterly basis, and reduces the asset value when declines in value are considered to be other-than-temporary. Equity method investments are recorded at cost, adjusted to reflect the Company’s portion of income, loss, or dividends of the investee. Realized income, realized losses, and estimated other-than-temporary unrealized losses on cost and equity method investments are recognized in noninterest income in the Consolidated Statements of Income.

For additional information on the Company’s securities activities, see Note 4, “Trading Assets and Liabilities and Derivatives,” and Note 5, “Securities Available for Sale.”

Loans Held for Sale

The Company’s LHFS generally includes certain residential mortgage loans, commercial loans, and student loans. Loans are initially classified as LHFS when they are identified as being available for immediate sale and a formal plan exists to sell them. LHFS are recorded at either fair value, if elected, or the lower of cost or fair value on an individual loan basis. Origination fees and costs for LHFS recorded at LOCOM are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for LHFS that are recorded at fair value. Fair value is derived from observable current market prices, when available, and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models, in which the Company uses its best estimates of assumptions it believes would be used by market participants in estimating fair value. Adjustments to reflect unrealized gains and losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as noninterest income in the Consolidated Statements of Income.

The Company may transfer certain residential mortgage loans, commercial loans, and student loans to a held for sale classification at LOCOM. At the time of transfer, any credit losses are recorded as a reduction in the ALLL. Subsequent credit losses, as well as incremental interest rate or liquidity related valuation adjustments, are recorded as a component of noninterest income in the Consolidated Statements of Income. The Company may also transfer loans from held for sale to held for investment. At the time of transfer, any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield using the interest method, unless the loan was elected upon origination to be accounted for at fair value. If a held for sale loan is transferred to held for investment for which fair value accounting was elected, it will continue to be accounted for at fair value in the held for investment portfolio. For additional information on the Company’s LHFS activities, see Note 6, “Loans.”

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are considered LHFI. The Company’s loan balance is comprised of loans held in portfolio, including commercial loans, consumer loans, and residential loans. Interest income on all types of loans, except those classified as nonaccrual, is accrued based upon the outstanding principal amounts using the effective yield method.

Commercial loans (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 and private student loans, other direct, indirect, and credit card) are considered to be past due when payment is not received from the borrower by the contractually specified due date. Guaranteed student loans continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. Other direct and indirect loans are typically placed on nonaccrual when payments have been past due for 90 days or more except when the borrower has declared bankruptcy, in which case, they are moved to nonaccrual status once they become 60 days past due. When a loan is placed on nonaccrual, unpaid interest is reversed against interest income. Interest income on nonaccrual loans, if recognized, is recognized on a cash basis. Nonaccrual consumer loans are typically returned to accrual status once they are no longer past due.

Residential loans (guaranteed and nonguaranteed residential mortgages, home equity products, and residential construction) are considered to be past due when a monthly payment is due and unpaid for one month. Guaranteed residential mortgages continue to accrue interest regardless of delinquency status because collection of principal and interest is reasonably assured. Nonguaranteed residential mortgages and residential construction loans are generally placed on nonaccrual when three payments are past due. Home equity products are generally placed on nonaccrual when payments are 90 days past due. The exceptions for nonguaranteed residential mortgages, residential construction loans, and home equity products are: (i) when the borrower has declared bankruptcy, in which case, they are moved to nonaccrual status once they become 60 days past due; (ii) loans discharged in Chapter 7 bankruptcy that have not been reaffirmed by the borrower, in which case, they are moved to nonaccrual status immediately; and (iii) second lien loans which are classified as nonaccrual when the first lien loan is classified as nonaccrual even if the second lien loan is performing. When a loan is placed on nonaccrual, 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, with the exception of the aforementioned Chapter 7 bankruptcy loans, which remain on nonaccrual until there is six months of payment performance following discharge by the bankruptcy court.

TDRs are loans in which the borrower is experiencing financial difficulty at the time of restructure and the borrower received an economic concession either from the Company or as the product of a bankruptcy court order. To date, the Company’s TDRs have been predominantly first and second lien residential mortgages and home equity lines of credit. Prior to granting a modification of a borrower’s loan terms, the Company performs an evaluation of the borrower’s financial condition and ability to service under the potential modified loan terms. The types of concessions generally granted are extensions of the loan maturity date and/or reductions in the original contractual interest rate. Typically, if a loan is accruing interest at the time of modification, the loan remains on accrual status and is subject to the Company’s charge-off and nonaccrual policies. See the “Allowance for Credit Losses” section below for further information regarding these policies. If a loan is on nonaccrual before it is determined to be a TDR then the loan remains on nonaccrual. Typically, TDRs may be returned to accrual status if there has been at least a six month sustained period of repayment performance by the borrower. Generally, once a residential loan becomes a TDR, the Company expects that the loan will continue to be reported as a TDR for its remaining life even after returning to accruing status unless the modified rates and terms at the time of modification were available 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. Fees received for providing loan commitments that result in funded loans are recognized over the term of the loan as an adjustment of the yield. If a loan is never funded, the commitment fee is recognized into noninterest income at the expiration of the commitment period. Origination fees and costs are recognized in noninterest income and expense at the time of origination for newly-originated loans that are accounted for at fair value. For additional information on the Company's loans activities, see Note 6, “Loans.”

Allowance for Credit Losses

The allowance for credit losses is composed of the ALLL and the reserve for unfunded commitments. The Company’s ALLL is the amount considered adequate to absorb probable current inherent losses within the portfolio based on management’s evaluation of the size and current risk characteristics of the loan portfolio. In addition to the review of credit quality through ongoing credit review processes, the Company employs a variety of modeling and estimation techniques to measure credit risk and construct an appropriate and adequate ALLL. Numerous asset quality measures, both quantitative and qualitative, are considered in estimating the ALLL. Such evaluation considers numerous factors for each of the loan portfolio segments, including, but not limited to net charge-off trends, internal risk ratings, changes in internal risk ratings, loss forecasts, collateral values, geographic location, delinquency rates, nonperforming and restructured loan status, origination channel, product mix, underwriting practices, industry conditions, and economic trends. Additionally, refreshed FICO scores are considered for consumer and residential loans and single name borrower concentration is considered for commercial loans. These credit quality factors are incorporated into various loss estimation models and analytical tools utilized in the ALLL process and/or are qualitatively considered in evaluating the overall reasonableness of the ALLL.

Large commercial (all loan classes) nonaccrual loans and certain consumer (other direct, indirect, and credit card), residential (nonguaranteed residential mortgages, home equity products, and residential construction), and commercial (all classes) loans whose terms have been modified in a TDR are individually 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 LGD 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. Commercial loans are charged-off when they are considered uncollectible. Losses on unsecured consumer loans are generally recognized at 120 days past due, except for losses on guaranteed student loans which are recognized at 270 days past due. However, if the borrower is in bankruptcy, the loan is charged-off in the month the loan becomes 60 days past due. Losses, as appropriate, on secured consumer loans, including residential real estate, are typically recognized at 120 or 180 days past due, depending on the loan and collateral type, in compliance with the FFIEC guidelines. However, if the borrower is in bankruptcy, the secured asset is evaluated once the loan becomes 60 days past due. The loan value in excess of the secured asset value is written down or charged-off after the valuation occurs. Additionally, if a residential loan is discharged in Chapter 7 bankruptcy and not reaffirmed by the borrower, the Company's policy is to immediately charge-off the excess of the carrying amount over the fair value of the collateral. Chapter 7 bankruptcy loans are placed on nonaccrual status and remain on nonaccrual status, regardless of collateral value, until there is at least a six month period of repayment performance by the borrower following discharge by the bankruptcy court.

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 inclusive of marketing 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 CRE loans secured by property, an acceptable third party appraisal or other form of evaluation, as permitted by regulation, is obtained prior to the origination of the loan and upon a subsequent transaction involving a material change in terms. In addition, updated valuations may be obtained during the life of a transaction, as appropriate, such as when a loan's performance materially deteriorates. In situations where an updated appraisal has not been received or a formal evaluation performed, the Company monitors factors that can positively or negatively impact property value, such as the date of the last valuation, the volatility of property values in specific markets, changes in the value of similar properties, and changes in the characteristics of individual properties. Changes in collateral value affect the ALLL through the risk rating or impaired loan evaluation process. Charge-offs are recognized when the amount of the loss is quantifiable and timing is known. The charge-off is measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated 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, the Company obtains a new valuation annually. Any additional loss based on the new valuation is either charged-off or provided for through the ALLL. At foreclosure, a new valuation is obtained and the loan is transferred to OREO at the new valuation less estimated selling costs; any loan balance in excess of the transfer value is charged-off. Estimated declines in value of the residential collateral between these formal evaluation events are captured in the ALLL based on changes in the house price index in the applicable MSA or other market information.

In addition to the ALLL, the Company also estimates probable losses related to unfunded lending commitments, such as letters of credit and binding unfunded loan commitments. Unfunded lending commitments are analyzed and segregated by risk similar to funded loans based on the Company’s internal risk rating scale. These risk classifications, in combination with probability of commitment usage, existing economic conditions, and any other pertinent information, result in the estimation of the reserve for unfunded lending commitments. The reserve for unfunded lending commitments is reported on the Consolidated Balance Sheets in other liabilities and the provision associated with changes in the unfunded lending commitment reserve is reported in the Consolidated Statements of Income in provision for credit losses. For additional information on the Company's allowance for credit loss activities, see Note 7, “Allowance for Credit Losses.”

Premises and Equipment

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

Goodwill and Other Intangible Assets

Goodwill represents the excess purchase price over the fair value of identifiable net assets of acquired companies. Goodwill is assigned to reporting units, which are operating segments or one level below an operating segment, as of the acquisition date. Goodwill is assigned to the Company’s reporting units that are expected to benefit from the synergies of the business combination.

Goodwill is not amortized and instead is tested by reporting unit for impairment, at least annually, or as events and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount 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. If, after considering all relevant events and circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two step impairment test is not necessary. If the Company determines via qualitative analysis that it is more likely than not that the fair value of a reporting unit is less than its carrying value, a two step goodwill impairment test is performed. The first step is used to identify potential impairment and the second step, if required, measures the amount of impairment by comparing the carrying amount of goodwill to its implied fair value. If the implied fair value of the goodwill exceeds the carrying amount, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. Identified intangible assets that have a designated finite life are amortized over their useful lives and are evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. For additional information on the Company’s activities related to goodwill and other intangibles, see Note 9, “Goodwill and Other Intangible Assets.”

MSRs

The Company recognizes as assets the rights to service mortgage loans based on the estimated fair value of the MSRs when loans are sold and the associated servicing rights are retained. The Company has elected to record all MSRs at fair value. Fair value is determined by projecting net servicing cash flows, which are then discounted to estimate the fair value. The Company actively hedges its MSRs. 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. The carrying value of MSRs is reported on the Consolidated Balance Sheets in other intangible assets. Servicing fees are recognized as they are received and changes in fair value are also reported in mortgage servicing related income in the Consolidated Statements of Income. For additional information on the Company’s servicing fees, see Note 9, “Goodwill and Other Intangible Assets.”

Other Real Estate Owned

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

Loan Sales and Securitizations

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

Income Taxes

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

Earnings Per Share

Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, plus common share equivalents calculated for stock options, warrants, and restricted stock outstanding using the treasury stock method.

The Company has issued certain restricted stock awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These restricted shares are considered participating securities. Accordingly, the Company calculated net income available to common shareholders pursuant to the two-class method, whereby net income is allocated between common shareholders and participating securities.

Net income available to common shareholders represents net income after preferred stock dividends, accretion of the discount on preferred stock issuances, gains or losses from any repurchases of preferred stock, and dividends and allocation of undistributed earnings to the participating securities. For additional information on the Company’s EPS, see Note 12, “Net Income Per Common Share.”

Securities Sold Under Agreements to Repurchase and Securities Purchased Under Agreements to Resell

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

Guarantees

The Company recognizes a liability at the inception of a guarantee, at an amount equal to the estimated fair value of the obligation. A guarantee is defined as a contract that contingently requires a company to make payment to a guaranteed party based upon changes in an underlying asset, liability, or equity security of the guaranteed party, or upon failure of a third party to perform under a specified agreement. The Company considers the following arrangements to be guarantees: certain asset purchase/sale agreements, standby letters of credit and financial guarantees, certain indemnification agreements included within third party contractual arrangements, and certain derivative contracts. For additional information on the Company’s guarantor obligations, see Note 17, “Guarantees.”

Derivative Financial Instruments and Hedging Activities

The Company records all contracts that satisfy the definition of a derivative at fair value in the Consolidated Balance Sheets. Accounting for changes in the fair value of a derivative is dependent upon whether or not it has been designated in a formal, qualifying hedging relationship. The Company offsets all outstanding derivative transactions with a single counterparty as well as any cash collateral paid to and received from that counterparty for derivative contracts that are subject to ISDA or other legally enforceable master netting arrangements and meet accounting guidance for offsetting treatment. 

Changes in the fair value of derivatives not designated in a hedging relationship are recorded in noninterest income. This includes derivatives that the Company enters into in a dealer capacity to facilitate client transactions and as a risk management tool to economically hedge certain identified market risks, along with certain IRLCs on residential mortgage loans that are a normal part of the Company’s operations. The Company also evaluates contracts, such as brokered deposits and short-term debt, to determine whether any embedded derivatives are required to be bifurcated and separately accounted for as freestanding derivatives. For certain contracts containing embedded derivatives, the Company has elected not to bifurcate the embedded derivative and instead carry the entire contract at fair value.

Certain derivatives used as risk management tools are also designated as accounting hedges of the Company’s exposure to changes in interest rates or other identified market risks. The Company prepares written hedge documentation for all derivatives which are designated as hedges of (1) changes in the fair value of a recognized asset or liability (fair value hedge) attributable to a specified risk or (2) a forecasted transaction, such as the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management’s assertion that the hedge will be highly effective. Methodologies related to hedge effectiveness and ineffectiveness are consistent between similar types of hedge transactions and have included (i) statistical regression analysis of changes in the cash flows of the actual derivative and a perfectly effective hypothetical derivative, and (ii) statistical regression analysis of changes in the fair values of the actual derivative and the hedged item.

For designated hedging relationships, the Company performs retrospective and prospective effectiveness testing using quantitative methods and does not assume perfect effectiveness through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly for ongoing effectiveness. Changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a fair value hedge are recorded in current period earnings, along with the changes in the fair value of the hedged item that are attributable to the hedged risk. The effective portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge are initially recorded in AOCI and reclassified to earnings in the same period that the hedged item impacts earnings; any ineffective portion is recorded in current period earnings.

Hedge accounting ceases on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. For discontinued fair value hedges where the hedged item remains outstanding, the hedged item would cease to be remeasured at fair value attributable to changes in the hedged risk and any existing basis adjustment would be recognized as an adjustment to earnings over the remaining life of the hedged item. For discontinued cash flow hedges, the unrealized gains and losses recorded in AOCI would be reclassified to earnings in the period when the previously designated hedged cash flows occur unless it was determined that transaction was probable to not occur, whereby any unrealized gains and losses in AOCI would be immediately reclassified to earnings. For additional information on the Company’s derivative activities, see Note 16, “Derivative Financial Instruments,” and Note 18, “Fair Value Election and Measurement.”

Stock-Based Compensation

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

Employee Benefits

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

Foreign Currency Transactions

Foreign denominated assets and liabilities resulting from foreign currency transactions are valued using period end foreign exchange rates and the associated interest income or expense is determined using approximate weighted average exchange rates for the period. The Company may elect to enter into foreign currency derivatives to mitigate its exposure to changes in foreign exchange rates. The derivative contracts are accounted for at fair value. Gains and losses resulting from such valuations are included in noninterest income in the Consolidated Statements of Income.

Fair Value

Certain assets and liabilities are measured at fair value on a recurring basis. Examples of these include derivative instruments, AFS and trading securities, certain LHFI and LHFS, certain issuances of long-term debt, brokered deposits, and MSR assets. Fair value is used on a non-recurring basis as a measurement basis either when assets are evaluated for impairment, the basis of accounting is LOCOM, or for disclosure purposes. Examples of these non-recurring uses of fair value include certain LHFS and LHFI, OREO, goodwill, intangible assets, certain cost or equity method investments and long-lived assets. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value.

The Company applies the following fair value hierarchy:

Level 1 – Assets or liabilities valued using unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date, such as publicly-traded instruments or futures contracts.

Level 2 – Assets and liabilities valued based on observable market data for similar instruments.

Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market; instruments valued based on the best available data, some of which may be internally developed, and considers risk premiums that a market participant would require.

To determine the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. If available, the Company looks to active and observable markets to price identical assets or liabilities. If identical assets and liabilities are not traded in active markets, the Company looks to market observable data for similar assets and liabilities. Nevertheless, the Company uses alternative valuation techniques to derive a fair value measurement for those assets and liabilities that are either not actively traded in observable markets or for which market observable inputs are not available. For additional information on the Company’s valuation of its assets and liabilities held at fair value, see Note 18, “Fair Value Election and Measurement.”
Accounting Policies Recently Adopted and Pending Accounting Pronouncements
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities." The ASU requires additional disclosures about financial instruments and derivative instruments that are offset or subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, which more narrowly defined the scope of financial instruments to only include derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions. The Company adopted these ASUs at January 1, 2013, and the adoption did not have an impact on the Company's financial position, results of operations, or EPS. See Note 3, "Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell" and Note 16, "Derivative Financial Instruments."
In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" which provides disclosure guidance on amounts reclassified out of AOCI by component. The Company adopted the ASU at January 1, 2013, and the adoption did not have an impact on the Company's financial position, results of operations, or EPS. See Note 21, "Accumulated Other Comprehensive Income."
In March 2013, the FASB issued ASU 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force)." The ASU requires additional disclosures about joint and several liability arrangements and requires the Company to measure obligations resulting from joint and several liability arrangements as the sum of the amount the Company agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the Company expects to pay on behalf of its co-obligors. The ASU is effective for the fiscal years and interim periods beginning after December 15, 2013. The Company adopted the ASU at January 1, 2014 and the adoption did not have an impact on the Company's financial position, results of operations, or EPS.
In June 2013, the FASB issued ASU 2013-08, "Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements." The ASU clarifies the characteristics of an investment company and requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. The ASU is effective for the fiscal years and interim periods beginning after December 15, 2013. The Company adopted the ASU at January 1, 2014 and the adoption did not have a significant impact on the Company's financial position, results of operations, or EPS.

In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (a consensus of the Emerging Issues Task Force).” The ASU permits the Fed Funds Effective Swap Rate (OIS) to be used as a benchmark interest rate for hedge accounting purposes, in addition to U.S. Treasury rates, and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The ASU was effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of the ASU had no impact on the Company's current hedging relationships and, thus, no impact on the Company's financial position, results of operations, or EPS.

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force).” Prior to this ASU, U.S. GAAP did not include explicit guidance on the financial statement presentation of a UTB when a NOL carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires, with limited exceptions, that a UTB, or a portion of a UTB, should be presented in the financial statements as a reduction to a DTA for a NOL carryforward, a similar tax loss, or a tax credit carryforward. The ASU is effective for fiscal years and interim periods beginning after December 15, 2013. As early adoption is permitted, the Company adopted this ASU upon issuance and applied it retrospectively as permitted. As this ASU only impacts financial statement presentation and related footnote disclosures, there is no impact on the Company's financial position, results of operations, or EPS.

In January 2014, the FASB issued ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)." The ASU allows for use of the proportional amortization method for qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the income statement as a component of income tax expense. The ASU provides for a practical expedient, which allows for amortization of only expected tax credits over the period tax credits are expected to be received. This method is permitted if it produces a measurement that is substantially similar to the measurement that would result from using both tax credits and other tax benefits. The ASU is effective for fiscal years and interim periods beginning after December 15, 2014. As early adoption is permitted, the Company adopted this ASU upon issuance and expects to use the practical expedient method. The standard is required to be applied retrospectively, therefore prior period amounts included in noninterest expense prior to adoption will be reclassified in prior period presentations during 2014. During the year ended December 31, 2013, prior to adoption, $49 million of initial investment costs were included in other noninterest expense in the Consolidated Statements of Income. No other impact is expected on the Company's financial position, results of operations, or EPS.

In January 2014, the FASB issued ASU 2014-04, "Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)." The update clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The ASU is effective for fiscal years and interim periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a significant impact on the Company's financial position, results of operations, or EPS.
Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]
NOTE 3 - FEDERAL FUNDS SOLD AND SECURITIES BORROWED OR PURCHASED UNDER AGREEMENTS TO RESELL

Fed funds sold and securities borrowed or purchased under agreements to resell were as follows at December 31:
(Dollars in millions)
2013
 
2012
Fed funds sold

$75

 

$29

Securities borrowed
184

 
155

Resell agreements
724

 
917

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

$983

 

$1,101


Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which securities will be subsequently resold. Securities borrowed are primarily collateralized by corporate securities. The Company takes possession of all securities purchased under agreements to resell and securities borrowed and performs the appropriate margin evaluation on the acquisition date based on market volatility, as necessary. It is the Company's policy to obtain possession of collateral with a fair value between 95% to 110% of the principal amount loaned under resale and securities borrowing agreements. The total market value of the collateral held was $913 million and $1.1 billion at December 31, 2013 and 2012, respectively, of which $234 million and $246 million was repledged, respectively.

Netting of Securities - Repurchase and Resell Agreements
The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar agreements are discussed in Note 16, "Derivative Financial Instruments." Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received/pledged.

The following table presents the Company's eligible securities borrowed or purchased under agreements to resell and securities sold under agreements to repurchase at December 31, 2013 and 2012:
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged Financial Instruments
 
Net
Amount
December 31, 2013
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell
$908
 
$—
 
$908
1, 2 
$899
 

$9

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

 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell
$1,072
 
$—
 
$1,072
1,2 
$1,069
 

$3

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,574
 
 
1,574
1 
1,574
 


1 None of the Company's repurchase and reverse repurchase transactions met the right of setoff criteria for net balance sheet presentation at December 31, 2013 and 2012.
2 Excludes $75 million and $29 million of Fed funds sold which are not subject to a master netting agreement at December 31, 2013 and 2012, respectively.
Securities Available for Sale
Securities Available for Sale
NOTE 5 – SECURITIES AVAILABLE FOR SALE

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

$1,334

 

$6

 

$47

 

$1,293

Federal agency securities
1,028

 
13

 
57

 
984

U.S. states and political subdivisions
232

 
7

 
2

 
237

MBS - agency
18,915

 
421

 
425

 
18,911

MBS - private
155

 
1

 
2

 
154

ABS
78

 
2

 
1

 
79

Corporate and other debt securities
39

 
3

 

 
42

Other equity securities1
841

 
1

 

 
842

Total securities AFS

$22,622

 

$454

 

$534

 

$22,542

 
 
 
 
 
 
 
 
 
December 31, 2012
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$212

 

$10

 

$—

 

$222

Federal agency securities
1,987

 
85

 
3

 
2,069

U.S. states and political subdivisions
310

 
15

 
5

 
320

MBS - agency
17,416

 
756

 
3

 
18,169

MBS - private
205

 
4

 

 
209

ABS
214

 
5

 
3

 
216

Corporate and other debt securities
42

 
4

 

 
46

Other equity securities1
701

 
1

 

 
702

Total securities AFS

$21,087

 

$880

 

$14

 

$21,953

1 At December 31, 2013, other equity securities was comprised of the following: $336 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank stock, $103 million in mutual fund investments, and $1 million of other. At December 31, 2012, other equity securities was comprised of the following: $229 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank stock, $69 million in mutual fund investments, and $2 million of other.

The following table presents interest and dividends on securities AFS:
 
Year Ended December 31
(Dollars in millions)
2013
 
2012
2011
Taxable interest

$537

 

$579


$688

Tax-exempt interest
10

 
15

21

Dividends1
32

 
61

82

Total interest and dividends

$579

 

$655


$791


1 Includes dividends on the Coke common stock of $31 million and $56 million, for the years ended December 31, 2012 and 2011, respectively.

Securities AFS that were pledged to secure public deposits, repurchase agreements, trusts, and other funds had a fair value of $11.0 billion and $10.6 billion at December 31, 2013 and 2012, respectively. At December 31, 2013 and 2012, there were no securities AFS pledged under secured borrowing arrangements under which the secured party has possession of the collateral and would customarily sell or repledge that collateral, other than in an event of default of the Company.

During the year ended December 31, 2012, the Company accelerated the termination of the Agreements that hedged the Coke common stock, and the Company sold, in the market or to the Coke Counterparty, 59 million of its 60 million shares of Coke and contributed the remaining 1 million shares of Coke to the SunTrust Foundation for a net gain of $1.9 billion. The $38 million contribution to the SunTrust Foundation was recognized in noninterest expense. Details of the transactions are discussed in Note 16, "Derivative Financial Instruments."

The amortized cost and fair value of investments in debt securities at December 31, 2013, 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 penalties.

 
Distribution of Maturities
(Dollars in millions)
1 Year
or Less
 
1-5
Years
 
5-10
Years
 
After 10
Years
 
Total
Amortized Cost:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$1

 

$645

 

$688

 

$—

 

$1,334

Federal agency securities
51

 
261

 
566

 
150

 
1,028

U.S. states and political subdivisions
102

 
66

 
21

 
43

 
232

MBS - agency
1,575

 
5,780

 
7,800

 
3,760

 
18,915

MBS - private

 
155

 

 

 
155

ABS
58

 
18

 
2

 

 
78

Corporate and other debt securities

 
22

 
17

 

 
39

Total debt securities

$1,787

 

$6,947

 

$9,094

 

$3,953

 

$21,781

Fair Value:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$1

 

$647

 

$645

 

$—

 

$1,293

Federal agency securities
51

 
271

 
518

 
144

 
984

U.S. states and political subdivisions
104

 
70

 
21

 
42

 
237

MBS - agency
1,665

 
5,969

 
7,756

 
3,521

 
18,911

MBS - private

 
154

 

 

 
154

ABS
57

 
20

 
2

 

 
79

Corporate and other debt securities

 
25

 
17

 

 
42

Total debt securities

$1,878

 

$7,156

 

$8,959

 

$3,707

 

$21,700

 Weighted average yield1
2.95
%
 
2.72
%
 
2.83
%
 
2.85
%
 
2.81
%
1Average yields are based on amortized cost and presented on a FTE basis.

Securities in an Unrealized Loss Position
The Company held certain investment securities where amortized cost exceeded fair market value, resulting in unrealized loss positions. Market changes in interest rates and credit spreads may result in temporary unrealized losses as the market price of securities fluctuates. At December 31, 2013, the Company did not intend to sell these securities nor was it more-likely-than-not that the Company would be required to sell these securities before their anticipated recovery or maturity. The Company has reviewed its portfolio for OTTI in accordance with the accounting policies in Note 1, "Significant Accounting Policies."
 
December 31, 2013
 
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

$1,036

 

$47

 

$—

 

$—

 

$1,036

 

$47

Federal agency securities
398

 
29

 
264

 
28

 
662

 
57

U.S. states and political subdivisions
12

 

 
20

 
2

 
32

 
2

MBS - agency
9,173

 
358

 
618

 
67

 
9,791

 
425

ABS

 

 
13

 
1

 
13

 
1

Total temporarily impaired securities
10,619

 
434

 
915

 
98

 
11,534

 
532

OTTI securities1:
 
 
 
 
 
 
 
 
 
 
 
MBS - private
105

 
2

 

 

 
105

 
2

Total OTTI securities
105

 
2

 

 

 
105

 
2

Total impaired securities

$10,724

 

$436

 

$915

 

$98

 

$11,639

 

$534


 
December 31, 2012
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
   Value   
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair