STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 110 Impaired Loans A loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the agreement. Commercial nonaccrual loans greater than $3million and certain commercial and consumer loans whose terms have been modified in a TDR are individually evaluated for impairment. Smaller-balance homogeneous loans that are collectively evaluated for impairment and loans measured at fair value are not included in the following tables. Additionally, the following tables exclude guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss due to the government guarantee. December 31, 2018 December 31, 2017 (Dollars in millions) Unpaid Principal Balance Carrying 1 Value Related ALLL Unpaid Principal Balance Carrying 1 Value Related ALLL Impaired LHFI with no ALLL recorded: Commercial loans: C&I $132 $79 $— $38 $35 $— CRE 10 — — — — — Total commercial LHFI with no ALLL recorded 142 79 — 38 35 — Consumer loans: Residential mortgages - nonguaranteed 501 397 — 458 363 — Residential construction 12 7 — 15 9 — Total consumer LHFI with no ALLL recorded 513 404 — 473 372 — Impaired LHFI with an ALLL recorded: Commercial loans: C&I 81 70 13 127 117 19 CRE — — — 21 21 2 Total commercial LHFI with an ALLL recorded 81 70 13 148 138 21 Consumer loans: Residential mortgages - nonguaranteed 1,006 984 96 1,133 1,103 113 Residential home equity products 849 799 44 953 895 54 Residential construction 79 76 6 93 90 7 Other direct 57 57 1 59 59 1 Indirect 133 133 5 123 122 7 Credit cards 30 9 2 26 7 1 Total consumer LHFI with an ALLL recorded 2,154 2,058 154 2,387 2,276 183 Total impaired LHFI $2,890 $2,611 $167 $3,046 $2,821 $204 1 Carrying value reflects charge-offs that have been recognized plus other amounts that have been applied to adjust the net book balance. Included in the impaired LHFI carrying values above at December 31, 2018 and 2017 were $2.3 billion and $2.4 billion of accruing TDRs, of which 97% and 96% were current, respectively. See Note 1, “Significant Accounting Policies,” for further information regarding the Company’s loan impairment policy.