STI 2018 Annual Report

Notes to Consolidated Financial Statements, continued 162 Fair Value of Financial Instruments The carrying amounts and fair values of the Company’s financial instruments are as follows: December 31, 2018 Fair Value Measurements (Dollars in millions) Measurement Category Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents Amortized cost $7,495 $7,495 $7,495 $— $— Trading assets and derivative instruments Fair value 5,506 5,506 521 4,965 20 Securities AFS Fair value 31,442 31,442 4,211 27,231 — LHFS Amortized cost 290 291 — 261 30 Fair value 1,178 1,178 — 1,178 — LHFI, net Amortized cost 150,061 148,167 — — 148,167 Fair value 163 163 — — 163 Other 1 Amortized cost 630 630 — — 630 Fair value 95 95 95 — — Financial liabilities: Consumer and other time deposits Amortized cost 15,355 15,106 — 15,106 — Brokered time deposits Amortized cost 642 615 — 615 — Fair value 403 403 — 403 — Short-term borrowings Amortized cost 8,772 8,772 — 8,772 — Long-term debt Amortized cost 14,783 14,729 — 13,024 1,705 Fair value 289 289 — 289 — Trading liabilities and derivative instruments Fair value 1,604 1,604 925 672 7 1 Other financial assets recorded at amortized cost consist of FHLB of Atlanta stock and Federal Reserve Bank of Atlanta stock. Other financial assets recorded at fair value consist of mutual fund investments and other equity securities with readily determinable fair values. December 31, 2017 Fair Value Measurements (Dollars in millions) Measurement Category Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents Amortized cost $6,912 $6,912 $6,912 $— $— Trading assets and derivative instruments Fair value 5,093 5,093 608 4,469 16 Securities AFS Fair value 30,947 30,947 4,331 26,544 72 LHFS Amortized cost 713 716 — 662 54 Fair value 1,577 1,577 — 1,577 — LHFI, net Amortized cost 141,250 141,379 — — 141,379 Fair value 196 196 — — 196 Other 1 Amortized cost 418 418 — — 418 Fair value 56 56 56 — — Financial liabilities: Consumer and other time deposits Amortized cost 12,076 11,906 — 11,906 — Brokered time deposits Amortized cost 749 725 — 725 — Fair value 236 236 — 236 — Short-term borrowings Amortized cost 4,781 4,781 — 4,781 — Long-term debt Amortized cost 9,255 9,362 — 8,304 1,058 Fair value 530 530 — 530 — Trading liabilities and derivative instruments Fair value 1,283 1,283 769 498 16 1 Other financial assets recorded at amortized cost consist of FHLB of Atlanta stock and Federal Reserve Bank of Atlanta stock. Other financial assets recorded at fair value consist of mutual fund investments and other equity securities with readily determinable fair values. Unfunded loan commitments and letters of credit are not included in the table above. At December 31, 2018 and 2017, the Company had $72.0 billion and $66.4 billion, respectively, of unfunded commercial loan commitments and letters of credit. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the related unfunded commitments reserve, which was a combined $72 million and $84 million at December 31, 2018 and 2017, respectively. No active trading market exists for these instruments, and the estimated fair value does not include value associated with the borrower relationship. The Company does not estimate the fair values of consumer unfunded lending commitments which can generally be canceled by providing notice to the borrower.