SunTrust 2015 Annual Report Download - page 116

Notes to Consolidated Financial Statements, continued
88
amount loaned under these arrangements. The Company
monitors collateral values daily and calls for additional collateral
to be provided as warranted under the agreement. At December
31, 2015 and 2014, the total market value of collateral held was
$1.2 billion and $1.1 billion, respectively, of which $73 million
and $222 million was repledged, respectively.
Securities Sold Under Agreements to Repurchase
Securities sold under agreements to repurchase are accounted for as secured borrowings. The following table presents the Company’s
related activity, by collateral type and remaining contractual maturity:
December 31, 2015 December 31, 2014
(Dollars in millions)
Overnight
and
Continuous
Up to 30
days Total
Overnight
and
Continuous
Up to 30
days Total
U.S. Treasury securities $112 $— $112 $376 $— $376
Federal agency securities 319 — 319 231 — 231
MBS - agency 837 23 860 1,059 45 1,104
CP 49 — 49 238 — 238
Corporate and other debt securities 242 72 314 327 — 327
Total securities sold under agreements to repurchase $1,559 $95 $1,654 $2,231 $45 $2,276
For these securities sold under agreements to repurchase, the
Company would be obligated to provide additional collateral in
the event of a significant decline in fair value of the collateral
pledged. This risk is managed by monitoring the liquidity and
credit quality of the collateral, as well as the maturity profile of
the transactions.
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 17, "Derivative
Financial Instruments." The following table presents the
Company's securities borrowed or purchased under agreements
to resell and securities sold under agreements to repurchase that
are subject to MRAs. Under the terms of the MRA, all
transactions between the Company and a 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 against obligations owed. Any payments,
deliveries, or other transfers may be applied against each other
and presented net on the Company's Consolidated Balance
Sheets, provided criteria are met that permit balance sheet
netting. At December 31, 2015 and 2014, there were no such
transactions subject to legally enforceable MRAs that were
eligible for balance sheet netting.
Financial instrument collateral received or pledged related
to exposures subject to legally enforceable MRAs are not netted
on the Consolidated Balance Sheets, but are presented in the
following table as a reduction to the net amount presented in the
Consolidated Balance Sheets to derive the held/pledged financial
instruments by counterparty. The collateral amounts held/
pledged are limited for presentation purposes to the related
recognized asset/liability balance for each counterparty, and
accordingly, do not include excess collateral received/pledged.
(Dollars in millions)
Gross
Amount
Amount
Offset
Net Amount
Presented in
Consolidated
Balance Sheets
Held/Pledged
Financial
Instruments
Net
Amount
December 31, 2015
Financial assets:
Securities borrowed or purchased under agreements to resell $1,239 $— $1,239 1$1,229 $10
Financial liabilities:
Securities sold under agreements to repurchase 1,654 — 1,654 1,654 —
December 31, 2014
Financial assets:
Securities borrowed or purchased under agreements to resell $1,122 $— $1,122 1$1,112 $10
Financial liabilities:
Securities sold under agreements to repurchase 2,276 — 2,276 2,276 —
1 Excludes $38 million of Fed funds sold, which are not subject to a master netting agreement at both December 31, 2015 and 2014.