SunTrust 2005 Annual Report Download - page 84
Download and view the complete annual report
Please find page 84 of the 2005 SunTrust annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
 |
 |
SUNTRUST ANNUAL REPORT82
The following is an analysis of capitalized mortgage servicing rights included in intangible assets in the Consolidated Balance Sheets:
(Dollars in thousands)
Balance at beginning of year , , ,
Amortization (,) (,) (,)
Servicing rights originated , , ,
Lighthouse acquisition — — ,
NCF acquisition — , —
Balance at end of year , , ,
Included . million, . million, and . million for the years ended December , , , and , respectively, on loans that have been paid-in-full and loans that have been foreclosed.
The above sensitivities are hypothetical and should be used with caution. As
the amounts indicate, changes in fair value based on variations in assump-
tions generally cannot be extrapolated because the relationship of the
change in assumption to the change in fair value may not be linear. Also,
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 could
magnify or counteract the sensitivities.
Payment rate (annual) .% .%
Weighted-average life (in years) . .
Discount rate .% .%
Weighted-average coupon .% .%
(Dollars in millions)
Fair value of retained mortgage servicing rights . .
Prepayment rate assumption (annual) .% .%
Decline in fair value of % adverse change . .
Decline in fair value of % adverse change . .
Residual cash flows discount rate (annual) .% .%
Decline in fair value of % adverse change . .
Decline in fair value of % adverse change . .
NOTE • Securitization Activity/Mortgage Servicing Rights
In , the Company securitized . million of residential mortgage
loans, receiving net proceeds totaling . million, and recognized a
pretax loss of . million. Interests of . million retained from the
residential mortgage loan securitization were valued using quoted market
prices or quoted market prices of similar assets and were classified as trad-
ing assets. In addition, the Company continues to perform servicing for the
residential mortgage loans and recognized a servicing asset of . million
at fair value. The fair value was derived using the following assumptions:
prepayment speed of .%, an average life of . years, and a discount
rate of .%.
As of December , and , the Company had retained inter-
ests of . million and . million, respectively, classified as securi-
ties available for sale and . million classified as trading assets as of
December , .
A summary of the key economic assumptions used to measure total
mortgage servicing rights and the sensitivity of the December ,
and fair values to immediate % and % adverse changes in those
assumptions follows.
No valuation allowances were required at December , , , and
for the Company’s mortgage servicing rights. As of December ,
and , the total unpaid principle balance of mortgage loans ser-
viced was . billion and . billion, respectively. Included in these
amounts were . billion and . billion as of December , and
, respectively, of loans serviced for third parties.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued