SunTrust 2011 Annual Report Download - page 133
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Please find page 133 of the 2011 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.Notes to Consolidated Financial Statements (Continued)
117
Securities in an Unrealized Loss Position
The Company held certain investment securities having unrealized loss positions. Market changes in interest rates and credit
spreads will result in temporary unrealized losses as the market price of securities fluctuates. As of December 31, 2011, the
Company did not intend to sell these securities nor was it more-likely-than-not that the Company would be required to sell these
securities before their anticipated recovery or maturity. The Company has reviewed its portfolio for OTTI in accordance with the
accounting policies outlined in Note 1, “Significant Accounting Policies.”
(Dollars in millions)
Temporarily impaired securities:
Federal agency securities
U.S. states and political subdivisions
MBS - agency
CDO/CLO securities
ABS
Total temporarily impaired securities
Other-than-temporarily impaired securities:1
MBS - private
ABS
Total other-than-temporarily impaired
securities
Total impaired securities
(Dollars in millions)
Temporarily impaired securities:
U.S. Treasury securities
Federal agency securities
U.S. states and political subdivisions
MBS - agency
MBS - private
ABS
Corporate and other debt securities
Total temporarily impaired securities
Other-than-temporarily impaired securities:1
MBS - private
ABS
Total other-than-temporarily impaired
securities
Total impaired securities
December 31, 2011
Less than twelve months
Fair
Value
$10
1
224
50
—
285
15
1
16
$301
December 31, 2010
Less than twelve months
Fair
Value
$2,010
1,426
45
3,497
18
—
—
6,996
—
4
4
$7,000
Unrealized
Losses
$—
—
—
—
—
—
1
—
1
$1
Unrealized
Losses
$45
7
1
28
—
—
—
81
—
1
1
$82
Twelve months or longer
Fair
Value
$—
28
1
—
11
40
206
3
209
$249
Twelve months or longer
Fair
Value
$—
—
35
—
17
14
3
69
286
—
286
$355
Unrealized
Losses
$—
4
—
—
5
9
30
2
32
$41
Unrealized
Losses
$—
—
2
—
3
4
1
10
31
—
31
$41
Total
Fair
Value
$10
29
225
50
11
325
221
4
225
$550
Total
Fair
Value
$2,010
1,426
80
3,497
35
14
3
7,065
286
4
290
$7,355
Unrealized
Losses
$—
4
—
—
5
9
31
2
33
$42
Unrealized
Losses
$45
7
3
28
3
4
1
91
31
1
32
$123
1Includes OTTI securities for which credit losses have been recorded in earnings in current or prior periods.
The Company adopted the updated accounting guidance for determining OTTI on securities on April 1, 2009, and in conjunction
therewith, analyzed the securities for which it had previously recognized OTTI and recognized a cumulative effect adjustment,
representing the non-credit component of OTTI of $8 million, net of tax. The Company had previously recorded the non-credit
component as impairment through earnings; therefore, this amount was reclassified from retained earnings to AOCI.
Unrealized losses on securities that have been in a temporarily impaired position for longer than twelve months include municipal
ARS and one ABS collateralized by 1999 vintage home equity loans. The municipal securities are backed by investment grade
rated obligors; however, the fair value of these securities continues to be impacted by the lack of a functioning ARS market and