STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 114 Year Ended December 31, 2016 1 (Dollars in millions) Number of Loans Modified Rate Modification Term Extension and/or Other Concessions Total Commercial loans: C&I 84 $2 $68 $70 Commercial construction 1 — — — Consumer loans: Residential mortgages - nonguaranteed 397 79 12 91 Residential home equity products 2,611 9 227 236 Residential construction 1 — — — Other direct 2 3,925 — 50 50 Indirect 1,539 — 32 32 Credit cards 720 3 — 3 Total TDR additions 9,278 $93 $389 $482 1 Includes loans modified under the terms of a TDR that were charged-off during the period. 2 Includes 3,321 loans with a carrying value of $41 million that were modified prior to 2016 and reclassified as TDRs in the fourth quarter of 2016. TDRs that defaulted during the years ended December 31, 2018, 2017, and 2016, which were first modified within the previous 12 months, were immaterial. The majority of loans that were modified under the terms of a TDR and subsequently became 90 days or more delinquent have remained on nonaccrual status since the time of delinquency. Concentrations of Credit Risk The Company does not have a significant concentration of credit risk to any individual client except for the U.S. government and its agencies. However, a geographic concentration arises because the majority of the Company's LHFI portfolio represents borrowers that reside in Florida, Georgia, Virginia, Maryland, and North Carolina. The Company’s cross-border outstanding loans totaled $1.8 billion and $1.4 billion at December 31, 2018 and 2017, respectively. With respect to collateral concentration, the Company's recorded investment in residential real estate secured LHFI totaled $38.9 billion at December 31, 2018 and represented 26% of total LHFI. At December 31, 2017, the Company's recorded investment in residential real estate secured LHFI totaled $38.6 billion and represented 27% of total LHFI. Additionally, at December 31, 2018 and 2017, the Company had commitments to extend credit on home equity lines of $10.3 billion and $10.1 billion, and had residential mortgage commitments outstanding of $2.7 billion and $3.0 billion, respectively. At both December 31, 2018 and December 31, 2017, 1% of the Company's LHFI secured by residential real estate was insured by the FHA or guaranteed by the VA. The following table presents loans in the residential mortgage portfolio that included a high original LTV ratio (in excess of 80%), an interest only feature, and/or a second lien position that may increase the Company's exposure to credit risk and result in a concentration of credit risk.At December 31, 2018 and December 31, 2017, the current weighted average FICO score for the borrowers of these loans was 759 and 756, respectively. (Dollars in millions) December 31, 2018 December 31, 2017 Interest only mortgages with MI or with combined original LTV 80% 1 $464 $569 Interest only mortgages with no MI and with combined original LTV > 80% 1 28 77 Total interest only mortgages 1 492 646 Amortizing mortgages with combined original LTV > 80% and/or second liens 2 10,922 10,197 Total mortgages with potential concentration of credit risk $11,414 $10,843 1 Comprised of first and/or second liens, primarily with an initial 10 year interest only period. 2 Comprised of loans with no MI.