SunTrust 2011 Annual Report Download - page 142
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Please find page 142 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)
126
The preceding table represents loans modified under the terms of a TDR during the year ended December 31, 2011, whereas the
following table represents loans modified as a TDR over a longer time period between January 1, 2010 and December 31, 2011
that became 90 days or more delinquent during the year ended December 31, 2011.
(Dollars in millions)
Commercial loans:
Commercial & industrial
Commercial real estate
Commercial construction
Residential loans:
Residential mortgages
Home equity products
Residential construction
Consumer loans:
Other direct
Credit cards
Total TDRs
Number of Loans
51
10
23
271
127
25
2
377
886
Amortized Cost
$10
17
15
75
13
3
—
3
$136
The majority of loans that were modified and subsequently became 90 days or more delinquent have remained on nonaccrual
status since the time of modification.
Concentrations of Credit Risk
The Company does not have a significant concentration of risk to any individual client except for the U.S. government and its
agencies. However, a geographic concentration arises because the Company operates primarily in the Southeastern and Mid-
Atlantic regions of the U.S. The Company engages in limited international banking activities. The Company’s total cross-border
outstanding loans were $630 million and $446 million at December 31, 2011 and 2010, respectively.
The major concentrations of credit risk for the Company arise by collateral type in relation to loans and credit commitments. The
only significant concentration that exists is in loans secured by residential real estate. At December 31, 2011, the Company owned
$46.7 billion in residential loans, representing 38% of total LHFI, and had $12.7 billion in commitments to extend credit on home
equity lines and $7.8 billion in mortgage loan commitments. Of the residential loans owned at December 31, 2011, 14% were
guaranteed by a federal agency or a GSE. At December 31, 2010, the Company owned $46.5 billion in residential real estate loans,
representing 40% of total LHFI, and had $13.6 billion in commitments to extend credit on home equity lines and $9.2 billion in
mortgage loan commitments. Of the residential loans owned at December 31, 2010, 10% were guaranteed by a federal agency or
a GSE.
Included in the residential mortgage portfolio were $14.7 billion and $16.1 billion of mortgage loans at December 31, 2011 and
2010, respectively, that included terms such as an interest only feature, a high LTV ratio, or a junior lien position that may increase
the Company’s exposure to credit risk and result in a concentration of credit risk. Of these mortgage loans, $9.4 billion and $11.0
billion were interest only loans, primarily with a ten year interest only period. Approximately $1.9 billion of those interest only
loans as of December 31, 2011 and $2.2 billion as of December 31, 2010, were loans with no mortgage insurance and were either
first liens with combined original LTV ratios in excess of 80% or were junior liens. Additionally, the Company owned approximately
$5.3 billion and $5.0 billion of amortizing loans with no mortgage insurance as of December 31, 2011 and 2010, respectively,
comprised of first liens with combined original LTV ratios in excess of 80% and junior liens. Despite changes in underwriting
guidelines that have curtailed the origination of high LTV loans, the balances of such loans with no mortgage insurance have
increased as the benefits of mortgage insurance covering certain junior lien mortgage loans have been exhausted, resulting in the
loans effectively no longer being insured.