SunTrust 2015 Annual Report Download - page 132

Download and view the complete annual report

Please find page 132 of the 2015 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.

Page out of 196

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196

Notes to Consolidated Financial Statements, continued
104
monitored events and circumstances during the fourth quarter of
2015 and did not observe any factors that would more-likely-
than-not reduce the fair value of a reporting unit below its
respective carrying value. See Note 1, "Significant Accounting
Policies," for additional information regarding the Company's
goodwill accounting policy.
There were no changes in the carrying amount of goodwill
by reportable segment for the year ended December 31, 2015.
Changes in the carrying amount of goodwill by reportable
segment for the year ended December 31, 2014 are presented in
the following table.
(Dollars in millions)
Consumer Banking
and Private Wealth
Management
Wholesale
Banking Total
Balance, January 1, 2014 $4,262 $2,107 $6,369
Acquisition of Lantana Oil and Gas Partners, Inc. — 8 8
Sale of RidgeWorth — (40) (40)
Balance, December 31, 2014 $4,262 $2,075 $6,337
Other Intangible Assets
Changes in the carrying amounts of other intangible assets for the years ended December 31 are as follows:
(Dollars in millions)
MSRs -
Fair Value Other Total
Balance, January 1, 2015 $1,206 $13 $1,219
Amortization 1— (8) (8)
Servicing rights originated 238 13 251
Servicing rights purchased 109 — 109
Changes in fair value:
Due to changes in inputs and assumptions 2(32) — (32)
Other changes in fair value 3(210) — (210)
Servicing rights sold (4) — (4)
Balance, December 31, 2015 $1,307 $18 $1,325
Balance, January 1, 2014 $1,300 $34 $1,334
Amortization 1— (12) (12)
Servicing rights originated 178 — 178
Servicing rights purchased 130 — 130
Changes in fair value:
Due to changes in inputs and assumptions 2(234) — (234)
Other changes in fair value 3(167) — (167)
Servicing rights sold (1) — (1)
Sale of RidgeWorth — (9) (9)
Balance, December 31, 2014 $1,206 $13 $1,219
1 Does not include expense associated with non-qualified community development investments. See Note 10, "Certain Transfers of Financial Assets and Variable
Interest Entities," for additional information.
2 Primarily reflects changes in option adjusted spreads and prepayment speed assumptions, due to changes in interest rates.
3 Represents changes due to the collection of expected cash flows, net of accretion due to the passage of time.
The Company's estimated future amortization of intangible
assets subject to amortization was immaterial at December 31,
2015.
Servicing Rights
The Company retains servicing rights for certain of its sales or
securitizations of residential mortgage and consumer indirect
loans. MSRs on residential mortgage loans and servicing rights
on consumer indirect loans are the only servicing assets
capitalized by the Company and are classified within other
intangible assets on the Company's Consolidated Balance
Sheets.
Mortgage Servicing Rights
Income earned by the Company on its MSRs is derived primarily
from contractually specified mortgage servicing fees and late
fees, net of curtailment costs. Such income earned for the year
ended December 31, 2015, 2014, and 2013 was $347 million,
$329 million, and $317 million, respectively. These amounts are