SunTrust 2015 Annual Report Download - page 66

38
LOANS
Our disclosures about the credit quality of our loan portfolio and
the related credit reserves (i) describe the nature of credit risk
inherent in the loan portfolio, (ii) provide information on how
we analyze and assess credit risk in arriving at an adequate and
appropriate ALLL, and (iii) explain changes in the ALLL as well
as reasons for those changes.
Our loan portfolio consists of three loan segments:
commercial, residential, and consumer. Loans are assigned to
these segments based on the type of borrower, purpose,
collateral, and/or our underlying credit management processes.
Additionally, we further disaggregate each loan segment into
loan types based on common characteristics within each loan
segment.
Commercial Loans
C&I loans include loans to fund business operations or activities,
loans secured by owner-occupied properties, corporate credit
cards, and other wholesale lending activities. Commercial loans
secured by owner-occupied properties are classified as C&I loans
because the primary source of loan repayment for these
properties is business income and not real estate operations. CRE
and commercial construction loans include investor loans where
repayment is largely dependent upon the operation, refinance,
or sale of the underlying real estate.
Residential Loans
Residential mortgages, both government-guaranteed and
nonguaranteed, consist of loans secured by 1-4 family homes,
mostly prime, first-lien loans. Residential home equity products
consist of equity lines of credit and closed-end equity loans that
may be in either a first lien or junior lien position. Residential
construction loans include owner-occupied residential lot loans
and construction-to-perm loans.
Consumer Loans
Consumer loans include government-guaranteed student loans,
other direct loans (consisting primarily of direct auto loans, loans
secured by negotiable collateral, unsecured loans, and private
student loans), indirect loans (consisting of loans secured by
automobiles, boats, and recreational vehicles), and consumer
credit cards.
The composition of our loan portfolio at December 31 is shown in Table 6.
Loan Portfolio by Types of Loans Table 6
(Dollars in millions) 2015 2014 2013 2012 2011
Commercial loans:
C&I $67,062 $65,440 $57,974 $54,048 $49,538
CRE 6,236 6,741 5,481 4,127 5,094
Commercial construction 1,954 1,211 855 713 1,240
Total commercial loans 75,252 73,392 64,310 58,888 55,872
Residential loans:
Residential mortgages - guaranteed 629 632 3,416 4,252 6,672
Residential mortgages - nonguaranteed 124,744 23,443 24,412 23,389 23,243
Residential home equity products 13,171 14,264 14,809 14,805 15,765
Residential construction 384 436 553 753 980
Total residential loans 38,928 38,775 43,190 43,199 46,660
Consumer loans:
Guaranteed student 4,922 4,827 5,545 5,357 7,199
Other direct 6,127 4,573 2,829 2,396 2,059
Indirect 10,127 10,644 11,272 10,998 10,165
Credit cards 1,086 901 731 632 540
Total consumer loans 22,262 20,945 20,377 19,383 19,963
LHFI $136,442 $133,112 $127,877 $121,470 $122,495
LHFS 2$1,838 $3,232 $1,699 $3,399 $2,353
1 Includes $257 million, $272 million, $302 million, $379 million, and $431 million of LHFI measured at fair value at December 31, 2015, 2014, 2013, 2012, and 2011, respectively.
2 Includes $1.5 billion, $1.9 billion, $1.4 billion, $3.2 billion, and $2.1 billion of LHFS measured at fair value at December 31, 2015, 2014, 2013, 2012, and 2011, respectively.