STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 146 Pursuant to the adoption of ASU 2017-12, the following table presents gains and losses on derivatives in fair value and cash flow hedging relationships by contract type and by income statement line item for the year ended December 31, 2018. For the years ended December 31, 2017 and 2016, the amounts presented below were not conformed to the new hedge accounting guidance. The table does not disclose the financial impact of the activities that these derivative instruments are intended to hedge. Net Interest Income Noninterest Income (Dollars in millions) Interest and fees on LHFI Interest on Long-term Debt Interest on Deposits Trading Income Total Year Ended December 31, 2018 Interest income/(expense), including the effects of fair value and cash flow hedges $6,058 ($375) ($711) $161 $5,133 (Loss)/gain on fair value hedging relationships: Interest rate contracts: Amounts related to interest settlements on derivatives $— ($1) $— $— ($1) Recognized on derivatives — (24) — — (24) Recognized on hedged items — 11 1 — — 11 Net expense recognized on fair value hedges $— ($14) $— $— ($14) Loss on cash flow hedging relationships: Interest rate contracts: Amount of pre-tax loss reclassified from AOCI into income ($72) 2 $— $— $— ($72) Net expense recognized on cash flow hedges ($72) $— $— $— ($72) Year Ended December 31, 2017 Interest income/(expense), including the effects of fair value and cash flow hedges $5,385 ($288) ($404) $189 $4,882 Gain/(loss) on fair value hedging relationships: Interest rate contracts: Amounts related to interest settlements on derivatives $— $15 $— $— $15 Recognized on derivatives — — — (38) (38) Recognized on hedged items — — — 40 40 Net income recognized on fair value hedges $— $15 $— $2 $17 Gain on cash flow hedging relationships: Interest rate contracts: Amount of pre-tax gain reclassified from AOCI into income $89 2 $— $— $— $89 Net income recognized on cash flow hedges $89 $— $— $— $89 Year Ended December 31, 2016 Interest income/(expense), including the effects of fair value and cash flow hedges $4,939 ($260) ($259) $211 $4,631 Gain/(loss) on fair value hedging relationships: Interest rate contracts: Amounts related to interest settlements on derivatives $— $17 $— $— $17 Recognized on derivatives — — — (87) (87) Recognized on hedged items — — — 89 89 Net income recognized on fair value hedges $— $17 $— $2 $19 Gain on cash flow hedging relationships: Interest rate contracts: Amount of pre-tax gain reclassified from AOCI into income $244 2 $— $— $— $244 Net income recognized on cash flow hedges $244 $— $— $— $244 1 Includes amortization from de-designated fair value hedging relationships. 2 These amounts include pre-tax gains/(losses) related to cash flow hedging relationships that have been terminated and were reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.