SunTrust 2011 Annual Report Download - page 141
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Please find page 141 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)
125
Restructured Loans
TDRs are loans in which the borrower is experiencing financial difficulty and the Company has granted an economic concession
to the borrower that it would not otherwise consider. When loans are modified under the terms of a TDR, the Company typically
offers the borrower an extension of the loan maturity date and/or a reduction in the original contractual interest rate. In certain
limited situations, the Company may offer to restructure a commercial loan in a manner that ultimately results in the forgiveness
of contractually specified principal balances.
As a result of adopting newly issued accounting guidance during 2011 that clarifies a creditor's determination of whether a
restructuring is a TDR, the Company reassessed all loan restructurings that occurred between January 1, 2011 and June 30, 2011
for identification as TDRs. The reassessment resulted in the identification of $93 million of additional TDRs as of the adoption
date of July 1, 2011. During the third quarter, these loans were evaluated for impairment and an incremental allowance of $4
million was recognized.
At December 31, 2011 and 2010, the Company had $5 million and $15 million, respectively, in commitments to lend additional
funds to debtors owing receivables whose terms have been modified in a TDR.
The number and amortized cost of loans modified under the terms of a TDR during the year ended December 31, 2011, by type
of modification, are shown in the following tables:
(Dollars in millions)
Commercial loans:
Commercial & industrial
Commercial real estate
Commercial construction
Residential loans:
Residential mortgages - nonguaranteed
Home equity products
Residential construction
Consumer loans:
Other direct
Credit cards
Total TDRs
Number of
Loans
Modified
466
40
49
1,018
1,701
421
80
2,336
6,111
Principal
Forgiveness1
$26
35
20
—
—
—
—
—
$81
Rate
Modification2
$28
25
8
238
130
16
—
13
$458
Term Extension
and/or Other
Concessions
$47
14
77
26
6
46
4
—
$220
Total
$101
74
105
264
136
62
4
13
$759
1Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate
modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness for the Commercial segment during the year ended
December 31, 2011 was $14 million, substantially all of which related to Commercial construction. There was no principal forgiveness for Residential or Consumer
loans during the year ended December 31, 2011.
2Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or
other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the year
ended December 31, 2011.