STI 2018 Annual Report

45 NONPERFORMING ASSETS NPA and TDR Composition and Other Credit Data Table 11 At December 31 (Dollars in millions) 2018 2017 2016 2015 2014 NPAs: Commercial NPLs: C&I $157 $215 $390 $308 $151 CRE 2 24 7 11 21 Commercial construction — 1 17 — 1 Total commercial NPLs 159 240 414 319 173 Consumer NPLs: Residential mortgages - nonguaranteed 204 206 177 183 254 Residential home equity products 138 203 235 145 174 Residential construction 11 11 12 16 27 Other direct 7 7 6 6 6 Indirect 7 7 1 3 — Total consumer NPLs 367 434 431 353 461 Total nonaccrual loans/NPLs 1 $526 $674 $845 $672 $634 OREO 2 $54 $57 $60 $56 $99 Other repossessed assets 9 10 14 7 9 Nonperforming LHFS — — — — 38 Total NPAs $589 $741 $919 $735 $780 Accruing LHFI past due 90 days or more $1,652 $1,405 $1,288 $981 $1,057 Accruing LHFS past due 90 days or more 1 2 1 — 1 TDRs: Accruing restructured loans $2,339 $2,468 $2,535 $2,603 $2,592 Nonaccruing restructured loans 1 291 286 306 176 273 Ratios: NPLs to period-end LHFI 0.35% 0.47% 0.59% 0.49% 0.48% NPAs to period-end LHFI, OREO, other repossessed assets, and nonperforming LHFS 0.39 0.52 0.64 0.54 0.59 1 Nonaccruing restructured loans are included in total nonaccrual loans/NPLs. 2 Does not include foreclosed real estate related to loans insured by the FHA or guaranteed by the VA. Proceeds due from the FHA and the VA are recorded as a receivable in Other assets in the Consolidated Balance Sheets until the property is conveyed and the funds are received. The receivable related to proceeds due from the FHA and the VA totaled $50 million, $45 million, $50 million, $52 million, and $57 million at December 31, 2018, 2017, 2016, 2015, and 2014, respectively. Problem loans or loans with potential weaknesses, such as nonaccrual loans, loans over 90 days past due and still accruing, and TDR loans, are disclosed in the NPAtable above. Loans with known potential credit problems that may not otherwise be disclosed in this table include accruing criticized commercial loans, which are disclosed along with additional credit quality information in Note 7, “Loans,” to the Consolidated Financial Statements in this Form 10-K. At December 31, 2018 and December 31, 2017, there were no known significant potential problem loans that are not otherwise disclosed. See the "Critical Accounting Policies" MD&A section of this Form 10-K for additional information regarding our policy on loans classified as nonaccrual. NPAs decreased $152 million, or 21%, during 2018. The decrease in NPAs was driven primarily by a decrease in commercial NPLs and the return to accrual status of certain nonperforming home equity products. Nonperforming Loans NPLs at December 31, 2018 totaled $526 million, a decrease of $148million, or 22%, fromDecember 31, 2017, driven primarily by decreases in C&I, CRE, and home equity NPLs. The ratio of NPLs to period-end LHFI was 0.35% and 0.47% at December 31, 2018 and December 31, 2017, respectively. Commercial NPLs decreased $81 million, or 34%, during 2018 driven by decreases in C&I and CRE NPLs of $58 million, or 27%, and $22 million, or 92%, respectively. These decreases were due primarily to charge-offs, paydowns, and the return to accrual status of certain C&I NPLs. Consumer NPLs decreased $67 million, or 15%, from December 31, 2017, driven by the return to accrual status of certain home equity products. Interest income on consumer nonaccrual loans, if received, is recognized on a cash basis. Interest income on commercial nonaccrual loans is not generally recognized until after the principal amount has been reduced to zero. Interest income