STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 103 NOTE 6 – INVESTMENT SECURITIES Investment Securities Portfolio Composition December 31, 2018 (Dollars in millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities AFS: U.S. Treasury securities $4,277 $— $66 $4,211 Federal agency securities 221 2 2 221 U.S. states and political subdivisions 606 4 21 589 MBS - agency residential 23,161 128 425 22,864 MBS - agency commercial 2,688 8 69 2,627 MBS - non-agency commercial 943 — 27 916 Corporate and other debt securities 14 — — 14 Total securities AFS $31,910 $142 $610 $31,442 December 31, 2017 1 (Dollars in millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities AFS: U.S. Treasury securities $4,361 $2 $32 $4,331 Federal agency securities 257 3 1 259 U.S. states and political subdivisions 618 7 8 617 MBS - agency residential 22,616 222 134 22,704 MBS - agency commercial 2,121 3 38 2,086 MBS - non-agency residential 55 4 — 59 MBS - non-agency commercial 862 7 3 866 ABS 6 2 — 8 Corporate and other debt securities 17 — — 17 Total securities AFS $30,913 $250 $216 $30,947 1 Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities AFS to Other assets on the Consolidated Balance Sheets. Prior periods have been revised to conform to the current presentation for comparability. See Note 11, "Other Assets," for additional information. The following table presents interest on securities AFS: Year Ended December 31 (Dollars in millions) 2018 2017 2016 Taxable interest $830 $743 $630 Tax-exempt interest 19 13 6 Total interest on securities AFS 1 $849 $756 $636 1 Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities AFS to Other assets on the Consolidated Balance Sheets and began presenting income associated with certain of these equity securities in Trading account interest and other on the Consolidated Statements of Income. For periods prior to January 1, 2018, this income was previously presented in Interest on securities available for sale and has been reclassified to Trading account interest and other for comparability.