STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 159 The following tables present a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (other than residential MSRs which are disclosed in Note 10, “Goodwill and Other Intangible Assets”). Transfers into and out of the fair value hierarchy levels are assumed to occur at the end of the period in which the transfer occurred. None of the transfers into or out of level 3 have been the result of using alternative valuation approaches to estimate fair values. Fair Value Measurements Using Significant Unobservable Inputs (Dollars in millions) Beginning Balance January 1, 2018 Included in Earnings OCI Purchases Sales Settlements Transfers to/from Other Balance Sheet Line Items Transfers into Level 3 Transfers out of Level 3 Fair Value December 31, 2018 Assets Trading assets: Derivative instruments, net $— $65 1 $— $— $— $11 ($63) $— $— $13 Securities AFS: MBS - non-agency residential 59 — — — — (2) — — (57) — ABS 8 — — — — (1) — — (7) — Corporate and other debt securities 5 — — — — — — — (5) — Total securities AFS 72 — — — — (3) — — (69) — LHFI 196 1 2 — — — (36) — 2 — 163 1 Includes issuances, fair value changes, and expirations. Amount related to residential IRLCs is recognized in Mortgage related income, amount related to commercial IRLCs is recognized in Commercial real estate related income, and amount related to Visa derivative liability is recognized in Other noninterest expense. Included $18 million in earnings during the year ended December 31, 2018, related to changes in unrealized gains on net derivative instruments still held at December 31, 2018. 2 Amounts are generally included in Mortgage related income; however, the mark on certain fair value loans is included in Other noninterest income. Included less than $1 million in earnings during the year ended December 31, 2018, related to changes in unrealized losses on LHFI still held at December 31, 2018. Fair Value Measurements Using Significant Unobservable Inputs (Dollars in millions) Beginning Balance January 1, 2017 Included in Earnings OCI Purchases Sales Settlements Transfers to/ from Other Balance Sheet Line Items Transfers into Level 3 Transfers out of Level 3 Fair Value December 31, 2017 Assets Trading assets: Derivative instruments, net $6 $185 1 $— $— $— $— ($191) $— $— $— Securities AFS: U.S. states and political subdivisions 4 — — — — (4) — — — — MBS - non-agency residential 74 (1) 2 1 3 — — (15) — — — 59 ABS 10 — 1 3 — — (3) — — — 8 Corporate and other debt securities 5 — — — — — — — — 5 Total securities AFS 93 (1) 2 2 3 — — (22) — — — 72 Residential LHFS 12 — — — (25) (1) (4) 26 (8) — LHFI 222 — 4 — — — (34) 3 5 — 196 1 Includes issuances, fair value changes, and expirations. Amount related to residential IRLCs is recognized in Mortgage related income, amount related to commercial IRLCs is recognized in Commercial real estate related income, and amount related to Visa derivative liability is recognized in Other noninterest expense. Included $12 million in earnings during the year ended December 31, 2017, related to changes in unrealized gains on net derivative instruments still held at December 31, 2017. 2 Included $1 million in earnings during year ended December 31, 2017, related to changes in unrealized losses on securities AFS still held at December 31, 2017. 3 Amounts recognized in OCI are included in change in net unrealized gains on securities AFS, net of tax. 4 Amounts are generally included in Mortgage related income; however, the mark on certain fair value loans is included in Other noninterest income. Included $1 million in earnings during the year ended December 31, 2017, related to changes in unrealized losses on LHFI still held at December 31, 2017.