STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 153 The following tables present the changes in fair value of financial instruments for which the FVO has been elected. The tables do not reflect the change in fair value attributable to related economic hedges that the Company uses to mitigate market- related risks associatedwith the financial instruments. Generally, changes in the fair value of economic hedges are recognized in Trading income, Mortgage related income, Commercial real estate related income, or Other noninterest income as appropriate, and are designed to partially offset the change in fair value of the financial instruments referenced in the tables below. The Company’s economic hedging activities are deployed at both the instrument and portfolio level. Fair Value Gain/(Loss) for the Year Ended December 31, 2018 for Items Measured at Fair Value Pursuant to Election of the FVO (Dollars in millions) Trading Income Mortgage Related Income 1 Other Noninterest Income Total Changes in Fair Values Included in Earnings 2 Assets: Trading loans $14 $— $— $14 LHFS — 7 — 7 LHFI — — 1 1 Residential MSRs — (141) — (141) Liabilities: Brokered time deposits 13 — — 13 Long-term debt 10 — — 10 1 Income related to LHFS does not include income from IRLCs. For the year ended December 31, 2018, income related to residential MSRs includes income recognized upon the sale of loans reported at LOCOM. 2 Changes in fair value for the year ended December 31, 2018 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be measured at fair value are recognized in Interest income or Interest expense in the Consolidated Statements of Income. Fair Value Gain/(Loss) for the Year Ended December 31, 2017 for Items Measured at Fair Value Pursuant to Election of the FVO (Dollars in millions) Trading Income Mortgage Related Income 1 Other Noninterest Income Total Changes in Fair Values Included in Earnings 2 Assets: Trading loans $21 $— $— $21 LHFS — 61 — 61 Residential MSRs — (243) — (243) Liabilities: Long-term debt 21 — — 21 1 Income related to LHFS does not include income from IRLCs. For the year ended December 31, 2017, income related to residential MSRs includes income recognized upon the sale of loans reported at LOCOM. 2 Changes in fair value for the year ended December 31, 2017 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, and long-term debt that have been elected to be measured at fair value are recognized in Interest income or Interest expense in the Consolidated Statements of Income.