SunTrust 2005 Annual Report Download - page 34
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SUNTRUST ANNUAL REPORT32
TABLE • Securities Available For Sale
As of December
Amortized Unrealized Unrealized Fair
(Dollars in millions) Cost Gains Losses Value
U.S. Treasury and other U.S. government
agencies and corporations
,. . . ,.
,. . . ,.
,. . . ,.
States and political subdivisions
. . . .
. . . .
. . . .
Asset-backed securities
,. . . ,.
,. . . ,.
,. . . ,.
Mortgage-backed securities
,. . . ,.
,. . . ,.
,. . . ,.
Corporate bonds
,. . . ,.
,. . . ,.
,. . . ,.
Other securities
,. ,. — ,.
. ,. — ,.
. ,. — ,.
Total securities available for sale
,. ,. . ,.
,. ,. . ,.
,. ,. . ,.
Includes the Company’s investment in ,, shares of common stock of The Coca-Cola Company.
other repossessed assets to .% at December , from .% at
December , . Nonperforming loans at December , included
. million of nonaccrual loans and . million of restructured loans,
the latter of which represents a group of consumer workout loans.
Nonaccrual loans decreased . million, or .%, compared to
, with a majority of the decline in the commercial loan category. This
decline resulted from a reduction in new additions to large corporate non-
accrual loans, loan sales activity, charge-offs, improvement in credit quality
and client repayment.
When a loan is placed on nonaccrual, unpaid interest is reversed
against interest income. Interest income on nonaccrual loans, if recognized,
is either recorded using the cash basis method of accounting or recog-
nized at the end of the loan after the principal has been reduced to zero,
depending on the type of loan. If and when a nonaccrual loan is returned
to accruing status, the accrued interest at the date the loan is placed on
nonaccrual status, and foregone interest during the nonaccrual period, are
recorded as interest income only after all principal has been collected for
commercial loans. For consumer loans and residential mortgage loans,
the accrued interest at the date the loan is placed on nonaccrual status,
and foregone interest during the nonaccrual period, are recorded as inter-
est income as of the date the loan no longer meets the and days
past due criteria, respectively. During the twelve months ended December
, , and , cash basis interest income for nonaccrual loans
amounted to . million, . million and . million, respectively.
As of December , , and , estimated interest income of
. million, . million and . million, respectively, would have
been recorded if all such loans had been accruing interest according to their
original contract terms.
Accruing loans past due ninety days or more increased . mil-
lion, or .%, from December , to . million as of December
, . The increase primarily relates to the inclusion of previously sold
delinquent Government National Mortgage Association loans, which the
Company has an option to repurchase.
SECURITIES AVAILABLE FOR SALE
The investment portfolio is managed as part of the overall asset and liability
management process to optimize income and market performance over an
entire interest rate cycle while mitigating risk. The Company managed the
portfolio in with the goal of continuing to improve yield while reduc-
ing the size to partially fund robust loan growth. The average yield for
MANAGEMENT’S DISCUSSION AND ANALYSIS continued