SunTrust 2014 Annual Report Download - page 118

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Notes to Consolidated Financial Statements, continued
95
activities as well as non-trading activities and assumes a limited
degree of market risk by managing the size and nature of its
exposure. The Company has pledged $1.1 billion and $731
million of trading securities to secure $1.1 billion and $717
million of repurchase agreements at December 31, 2014 and
2013, respectively. Additionally, the Company has pledged $202
million and $97 million of trading securities to secure certain
derivative agreements at December 31, 2014 and 2013,
respectively.
NOTE 5 – SECURITIES AVAILABLE FOR SALE
Securities Portfolio Composition
December 31, 2014
(Dollars in millions) Amortized
Cost Unrealized
Gains Unrealized
Losses Fair
Value
U.S. Treasury securities $1,913 $9 $1 $1,921
Federal agency securities 471 15 2 484
U.S. states and political subdivisions 200 9 — 209
MBS - agency 22,573 558 83 23,048
MBS - private 122 2 1 123
ABS 19 2 — 21
Corporate and other debt securities 38 3 — 41
Other equity securities 1921 2 — 923
Total securities AFS $26,257 $600 $87 $26,770
December 31, 2013
(Dollars in millions) Amortized
Cost Unrealized
Gains Unrealized
Losses Fair
Value
U.S. Treasury securities $1,334 $6 $47 $1,293
Federal agency securities 1,028 13 57 984
U.S. states and political subdivisions 232 7 2 237
MBS - agency 18,915 421 425 18,911
MBS - private 155 1 2 154
ABS 78 2 1 79
Corporate and other debt securities 39 3 — 42
Other equity securities 1841 1 — 842
Total securities AFS $22,622 $454 $534 $22,542
1 At December 31, 2014, other equity securities was comprised of the following: $376 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank of Atlanta stock, $138 million
in mutual fund investments, and $7 million of other. At December 31, 2013, other equity securities was comprised of the following: $336 million in FHLB of Atlanta stock, $402 million
in Federal Reserve Bank of Atlanta stock, $103 million in mutual fund investments, and $1 million of other.
The following table presents interest and dividends on securities AFS:
Year Ended December 31
(Dollars in millions) 2014 2013 2012
Taxable interest $565 $537 $579
Tax-exempt interest 10 10 15
Dividends 38 32 61
Total interest and dividends $613 $579 $655
Securities AFS pledged to secure public deposits, repurchase
agreements, trusts, and other funds had a fair value of $2.6 billion
and $11.0 billion at December 31, 2014 and 2013, respectively.
During the year ended December 31, 2012, the Company
accelerated the termination of the Agreements that hedged the
Company's investment in The Coca-Cola Company common
stock, and the Company sold, in the market or to The Coca-Cola
Company Counterparty, 59 million of its 60 million shares of
The Coca-Cola Company and contributed the remaining 1
million shares of The Coca-Cola Company to the SunTrust
Foundation for a net gain of $1.9 billion. The $38 million
contribution to the SunTrust Foundation was recognized in
noninterest expense. Details of the transactions are discussed in
Note 17, "Derivative Financial Instruments."