SunTrust 2013 Annual Report Download - page 134

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NOTE 3 - FEDERAL FUNDS SOLD AND SECURITIES BORROWED OR PURCHASED UNDER AGREEMENTS
TO RESELL
Fed funds sold and securities borrowed or purchased under agreements to resell were as follows at December 31:
(Dollars in millions) 2013 2012
Fed funds sold $75 $29
Securities borrowed 184 155
Resell agreements 724 917
Total fed funds sold and securities borrowed or purchased under
agreements to resell $983 $1,101
Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are
carried at the amounts at which securities will be subsequently resold. Securities borrowed are primarily collateralized by
corporate securities. The Company takes possession of all securities purchased under agreements to resell and securities
borrowed and performs the appropriate margin evaluation on the acquisition date based on market volatility, as necessary. It
is the Company's policy to obtain possession of collateral with a fair value between 95% to 110% of the principal amount
loaned under resale and securities borrowing agreements. The total market value of the collateral held was $913 million and
$1.1 billion at December 31, 2013 and 2012, respectively, of which $234 million and $246 million was repledged, respectively.
Netting of Securities - Repurchase and Resell Agreements
The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements
or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar
agreements are discussed in Note 16, "Derivative Financial Instruments." Securities purchased under agreements to resell and
securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between
the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting
party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed.
Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the
contract asset/liability balance, and accordingly, do not include excess collateral received/pledged.
The following table presents the Company's eligible securities borrowed or purchased under agreements to resell and securities
sold under agreements to repurchase at December 31, 2013 and 2012:
Net Amount
Presented in
Consolidated
Balance Sheets
(Dollars in millions)
Gross
Amount
Amount
Offset
Held/
Pledged
Financial
Instruments
Net
Amount
December 31, 2013
Financial assets:
Securities borrowed or purchased under
agreements to resell $908 $— $908 1, 2 $899 $9
Financial liabilities:
Securities sold under agreements to repurchase 1,759 — 1,759 11,759 —
December 31, 2012
Financial assets:
Securities borrowed or purchased under
agreements to resell $1,072 $— $1,072 1,2 $1,069 $3
Financial liabilities:
Securities sold under agreements to repurchase 1,574 — 1,574 11,574 —
1 None of the Company's repurchase and reverse repurchase transactions met the right of setoff criteria for net balance sheet presentation at December 31,
2013 and 2012.
2 Excludes $75 million and $29 million of Fed funds sold which are not subject to a master netting agreement at December 31, 2013 and 2012, respectively.