SunTrust 2015 Annual Report Download - page 129

Notes to Consolidated Financial Statements, continued
101
For the year ended December 31, 2013, the following table
represents defaults on loans that were first modified between the
periods January 1, 2012 and December 31, 2013 that became 90
days or more delinquent or were charged-off during the period.
Year Ended December 31, 2013
(Dollars in millions) Number of
Loans
Amortized
Cost
Commercial loans:
C&I 55 $5
CRE 5 3
Commercial construction 1 —
Residential loans:
Residential mortgages 287 23
Residential home equity
products 188 10
Residential construction 48 3
Consumer loans:
Other direct 15 1
Indirect 207 2
Credit cards 169 1
Total TDRs 975 $48
The majority of loans that were modified and subsequently
became 90 days or more delinquent have remained on nonaccrual
status since the time of delinquency.
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 within Florida, Georgia,
Maryland, North Carolina, South Carolina, Tennessee, Virginia,
and the District of Columbia. The Company engages in limited
international banking activities. The Company’s total cross-
border outstanding loans were $1.6 billion and $1.3 billion at
December 31, 2015 and 2014, respectively.
With respect to collateral concentration, at December 31,
2015, the Company owned $38.9 billion in loans secured by
residential real estate, representing 29% of total LHFI.
Additionally, the Company had $10.5 billion in commitments to
extend credit on home equity lines and $3.2 billion in mortgage
loan commitments at December 31, 2015. At December 31,
2014, the Company owned $38.8 billion in loans secured by
residential real estate, representing 29% of total LHFI, and had
$10.9 billion in commitments to extend credit on home equity
lines and $3.3 billion in mortgage loan commitments. At both
December 31, 2015 and December 31, 2014, 2% of residential
loans owned were guaranteed by a federal agency or a GSE.
The following table presents loans in the residential
mortgage portfolio that included a high original LTV ratio (in
excess of 80%), an interest only feature, and/or a second lien
position that may increase the Company’s exposure to credit risk
and result in a concentration of credit risk. At December 31, 2015
and December 31, 2014, borrowers' current weighted average
FICO score on these loans was 745 and 738, respectively.
(Dollars in millions)
December 31,
2015
December 31,
2014
Interest only mortgages with MI
or with combined original
LTV 80% 1 $1,563 $3,180
Interest only mortgages with no
MI and with combined
original LTV > 80% 1 547 873
Total interest only mortgages 12,110 4,053
Amortizing mortgages with
combined original LTV > 80%
and/or second liens 28,366 7,368
Total mortgages with
potential concentration of
credit risk $10,476 $11,421
1 Comprised of first and/or second liens, primarily with an initial 10 year interest only
period.
2 Comprised of loans with no MI.