STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 105 Investment Securities in an Unrealized Loss Position The Company held certain investment securities where amortized cost exceeded fair value, resulting in unrealized loss positions. Market changes in interest rates and credit spreads may result in temporary unrealized losses as the market prices of securities fluctuate. At December 31, 2018, the Company did not intend to sell these securities nor was it more-likely-than-not that theCompanywould be required to sell these securities before their anticipated recovery or maturity. The Company reviewed its portfolio for OTTI in accordance with the accounting policies described in Note 1, "Significant Accounting Policies." Investment securities in an unrealized loss position at period end are presented in the following tables: December 31, 2018 Less than twelve months Twelve months or longer Total (Dollars in millions) Fair Value Unrealized 1 Losses Fair Value Unrealized 1 Losses Fair Value Unrealized 1 Losses Temporarily impaired securities AFS: U.S. Treasury securities $— $— $4,177 $66 $4,177 $66 Federal agency securities — — 63 2 63 2 U.S. states and political subdivisions 49 1 430 20 479 21 MBS - agency residential 1,229 5 15,384 420 16,613 425 MBS - agency commercial 68 — 1,986 69 2,054 69 MBS - non-agency commercial 106 1 773 26 879 27 Corporate and other debt securities — — 9 — 9 — Total temporarily impaired securities AFS 1,452 7 22,822 603 24,274 610 OTTI securities AFS 2 : Total OTTI securities AFS — — — — — — Total impaired securities AFS $1,452 $7 $22,822 $603 $24,274 $610 1 Unrealized losses less than $0.5 million are presented as zero within the table. 2 OTTI securities AFS are impaired securities for which OTTI credit losses have been previously recognized in earnings. December 31, 2017 1 Less than twelve months Twelve months or longer Total (Dollars in millions) Fair Value Unrealized 2 Losses Fair Value Unrealized 2 Losses Fair Value Unrealized 2 Losses Temporarily impaired securities AFS: U.S. Treasury securities $1,993 $12 $841 $20 $2,834 $32 Federal agency securities 23 — 60 1 83 1 U.S. states and political subdivisions 267 3 114 5 381 8 MBS - agency residential 8,095 38 4,708 96 12,803 134 MBS - agency commercial 887 9 915 29 1,802 38 MBS - non-agency commercial 134 1 93 2 227 3 ABS — — 4 — 4 — Corporate and other debt securities 10 — — — 10 — Total temporarily impaired securities AFS 11,409 63 6,735 153 18,144 216 OTTI securities AFS 3 : ABS — — 1 — 1 — Total OTTI securities AFS — — 1 — 1 — Total impaired securities AFS $11,409 $63 $6,736 $153 $18,145 $216 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. 2 Unrealized losses less than $0.5 million are presented as zero within the table. 3 OTTI securities AFS are impaired securities for which OTTI credit losses have been previously recognized in earnings. The Company does not consider the unrealized losses on temporarily impaired securities AFS to be credit-related. These unrealized losses were due primarily to market interest rates being higher than the securities' stated coupon rates, and therefore, they were recorded in AOCI, net of tax.