STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 151 December 31, 2017 Fair Value Measurements (Dollars in millions) Level 1 Level 2 Level 3 Netting Adjustments 1 Assets/Liabilities at Fair Value Assets Trading assets and derivative instruments: U.S. Treasury securities $157 $— $— $— $157 Federal agency securities — 395 — — 395 U.S. states and political subdivisions — 61 — — 61 MBS - agency — 700 — — 700 Corporate and other debt securities — 655 — — 655 CP — 118 — — 118 Equity securities 56 — — — 56 Derivative instruments 395 3,493 16 (3,102) 802 Trading loans — 2,149 — — 2,149 Total trading assets and derivative instruments 608 7,571 16 (3,102) 5,093 Securities AFS: U.S. Treasury securities 4,331 — — — 4,331 Federal agency securities — 259 — — 259 U.S. states and political subdivisions — 617 — — 617 MBS - agency residential — 22,704 — — 22,704 MBS - agency commercial — 2,086 — — 2,086 MBS - non-agency residential — — 59 — 59 MBS - non-agency commercial — 866 — — 866 ABS — — 8 — 8 Corporate and other debt securities — 12 5 — 17 Total securities AFS 2 4,331 26,544 72 — 30,947 LHFS — 1,577 — — 1,577 LHFI — — 196 — 196 Residential MSRs — — 1,710 — 1,710 Other assets 2 56 — — — 56 Liabilities Trading liabilities and derivative instruments: U.S. Treasury securities 577 — — — 577 Corporate and other debt securities — 289 — — 289 Equity securities 9 — — — 9 Derivative instruments 183 4,243 16 (4,034) 408 Total trading liabilities and derivative instruments 769 4,532 16 (4,034) 1,283 Brokered time deposits — 236 — — 236 Long-term debt — 530 — — 530 1 Amounts represent offsetting cash collateral received from, and paid to, the same derivative counterparties, and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists. See Note 19, “Derivative Financial Instruments,” for additional information. 2 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.