STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 101 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, 2018 December 31, 2017 (Dollars in millions) Overnight and Continuous Up to 30 days 30-90 days Total Overnight and Continuous Up to 30 days 30-90 days Total U.S. Treasury securities $197 $7 $— $204 $95 $— $— $95 Federal agency securities 112 10 — 122 101 15 — 116 MBS - agency 881 35 — 916 694 135 — 829 CP 78 — — 78 19 — — 19 Corporate and other debt securities 216 158 80 454 316 88 40 444 Total securities sold under agreements to repurchase $1,484 $210 $80 $1,774 $1,225 $238 $40 $1,503 For securities sold under agreements to repurchase, theCompany 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 19, "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. Generally,MRAs require collateral to exceed the asset or liability recognized on the balance sheet. Transactions subject to these agreements are treated as collateralized financings, and those with a single counterparty are permitted to be presented net on the Company's Consolidated Balance Sheets, provided certain criteria are met that permit balance sheet netting. At December 31, 2018 and 2017, there were no such transactions subject to legally enforceable MRAs that were eligible for balance sheet netting. The following table includes the amount of collateral pledged or received related to exposures subject to enforceable MRAs.While these agreements are typically over-collateralized, the amount of collateral presented in this table is limited to the amount of the related recognized asset or liability for each counterparty. (Dollars in millions) Gross Amount Amount Offset Net Amount Presented in Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount December 31, 2018 Financial assets: Securities borrowed or purchased under agreements to resell $1,637 $— $1,637 1 $1,624 $13 Financial liabilities: Securities sold under agreements to repurchase 1,774 — 1,774 1,774 — December 31, 2017 Financial assets: Securities borrowed or purchased under agreements to resell $1,473 $— $1,473 1 $1,462 $11 Financial liabilities: Securities sold under agreements to repurchase 1,503 — 1,503 1,503 — 1 Excludes $42 million and $65 million of Fed Funds sold, which are not subject to a master netting agreement at December 31, 2018 and 2017, respectively.