SunTrust 2007 Annual Report Download - page 107

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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
Securities with unrealized losses at December 31 were as follows:
2007
Less than twelve
months
Twelve months or
longer Total
(Dollars in thousands)
Fair
Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
U.S. Treasury and other U.S. government agencies
and corporations $41 $- $9,968 $1 $10,009 $1
States and political subdivisions 47,666 264 102,888 1,189 150,554 1,453
Asset-backed securities 202,766 31,380 1,344 3 204,110 31,383
Mortgage-backed securities 683,475 5,104 808,551 11,223 1,492,026 16,327
Corporate bonds 43,954 1,370 32,001 279 75,955 1,649
Total securities with unrealized losses $977,902 $38,118 $954,752 $12,695 $1,932,654 $50,813
2006
Less than twelve
months Twelve months or longer Total
(Dollars in thousands)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
U.S. Treasury and other U.S. government agencies
and corporations $138,467 $864 $859,815 $15,280 $998,282 $16,144
States and political subdivisions 112,893 545 211,746 4,094 324,639 4,639
Asset-backed securities 104,927 159 629,867 17,425 734,794 17,584
Mortgage-backed securities 1,997,556 10,207 11,651,772 233,555 13,649,328 243,762
Corporate bonds 19,797 497 336,193 7,024 355,990 7,521
Total securities with unrealized losses $2,373,640 $12,272 $13,689,393 $277,378 $16,063,033 $289,650
During the first quarter of 2007, approximately $16.0 billion in available for sale securities were transferred to trading assets
in conjunction with the Company’s comprehensive review of its balance sheet management strategies and adoption of SFAS
No. 159. Market changes in interest rates and market changes in credit spreads will result in temporary unrealized losses as a
normal fluctuation in the market price of securities. The $12.7 million in unrealized losses greater than 12 months are
primarily Fannie Mae and Freddie Mac Agency adjustable rate mortgage-backed securities that were purchased in 2005 at
lower yields than current market yields. The turmoil in the financial markets during the second half of 2007 increased market
yields on agency mortgage-backed securities as a result of credit spreads widening. The Company has the intent and ability
to hold these securities until recovery and has reviewed them for other-than-temporary impairment in accordance with the
accounting policies outlined in Note 1 to the Consolidated Financial Statements and does not consider them to be other-than-
temporarily impaired.
95