Suntrust Banks 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 29, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Trading Symbol	STI
Entity Registrant Name	SUNTRUST BANKS INC
Entity Central Index Key	0000750556
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		499,887,039

Consolidated Statements of Inco

Consolidated Statements of Income/(Loss) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010		3 Months Ended Mar. 31, 2009
Interest Income
Interest and fees on loans	$1,316,756		$1,412,885
Interest and fees on loans held for sale	33,177		61,832
Interest and dividends on securities available for sale
Taxable interest	175,902		181,202
Tax-exempt interest	8,928		10,699
Dividends	18,959	[1]	18,162	[1]
Interest on funds sold and securities purchased under agreements to resell	245		937
Interest on deposits in other banks	18		113
Trading account interest	19,701		43,505
Total interest income	1,573,686		1,729,335
Interest Expense
Interest on deposits	233,045		423,873
Interest on funds purchased and securities sold under agreements to repurchase	1,092		2,733
Interest on trading liabilities	6,135		6,160
Interest on other short-term borrowings	3,194		5,155
Interest on long-term debt	158,783		229,316
Total interest expense	402,249		667,237
Net interest income	1,171,437		1,062,098
Provision for credit losses	861,609		994,098
Net interest income after provision for credit losses	309,828		68,000
Noninterest Income
Service charges on deposit accounts	195,902		206,394
Other charges and fees	129,100		124,321
Trust and investment management income	122,087		116,010
Mortgage production related income/(loss)	(30,929)		250,470
Mortgage servicing related income	70,504		83,352
Card fees	86,934		75,660
Investment banking income	55,916		59,534
Retail investment services	46,740		56,713
Trading account profits/(losses) and commissions	(7,268)		107,293
Other noninterest income	27,631		38,114
Net securities gains	1,543	[2]	3,377	[2]
Total noninterest income	698,160		1,121,238
Noninterest Expense
Employee compensation	556,498		573,022
Employee benefits	135,295		163,030
Outside processing and software	148,703		138,361
Net occupancy expense	91,141		87,417
Regulatory assessments	64,335		47,473
Credit and collection services	73,790		47,918
Other real estate expense	46,008		44,372
Equipment expense	40,513		43,540
Marketing and customer development	34,127		34,725
Operating losses	13,797		22,621
Amortization/impairment of goodwill/intangible assets	13,187		767,016
Mortgage reinsurance	9,400		70,039
Net gain on extinguishment of debt	(9,307)		(25,304)
Other noninterest expense	143,056		137,793
Total noninterest expense	1,360,543		2,152,023
Income/(loss) before provision/(benefit) for income taxes	(352,555)		(962,785)
Provision/(benefit) for income taxes	(194,162)		(150,777)
Net income/(loss) including income attributable to noncontrolling interest	(158,393)		(812,008)
Net income attributable to noncontrolling interest	2,421		3,159
Net income/(loss)	(160,814)		(815,167)
Net income/(loss) available to common shareholders	($229,184)		($875,381)
Net income/(loss) per average common share
Diluted	-0.46		-2.49
Basic	-0.46		-2.49
Dividends declared per common share	0.01		0.1
Average common shares - diluted	494,871	[3]	351,352	[3]
Average common shares - basic	494,871		351,352
[1]Includes dividends on common stock of The Coca-Cola Company $13,200 $12,300
[2]Includes other-than-temporary impairment losses of $1 million for the three months ended March 31, 2010 and $1 million for the three months ended March 31, 2009. During the three months ended March 31, 2010 there were no non-credit related unrealized losses recorded in other comprehensive income associated with OTTI securities.
[3]For earnings per share calculation purposes, the impact of dilutive securities are excluded from the diluted share count during periods that the Company has recognized a net loss available to common shareholders because the impact would be anti-dilutive.

1_Consolidated Statements of In

Consolidated Statements of Income/(Loss) (Parenthetical) (USD $)
	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Dividends on common stock of The Coca-Cola Company	$13,200,000	$12,300,000
Net securities gains, other-than-temporary impairment losses	$1,000,000	$1,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands, except Share data	Mar. 31, 2010		Dec. 31, 2009
Assets
Cash and due from banks	$4,671,345		$6,456,406
Interest-bearing deposits in other banks	24,665		24,109
Funds sold and securities purchased under agreements to resell	1,613,663		516,656
Cash and cash equivalents	6,309,673		6,997,171
Trading assets	6,038,104		4,979,938
Securities available for sale	26,238,529		28,477,042
Loans held for sale (loans at fair value: $2,650,980 as of March 31, 2010; $2,923,375 as of December 31, 2009)	3,696,990	[1]	4,669,823	[1]
Loans (loans at fair value: $420,484 as of March 31, 2010; $448,720 as of December 31, 2009)	113,979,448	[2]	113,674,844	[2]
Allowance for loan and lease losses	(3,176,000)		(3,120,000)
Net loans	110,803,448		110,554,844
Premises and equipment	1,553,786		1,551,794
Goodwill	6,322,878		6,319,078
Other intangible assets (MSRs at fair value: $1,641,188 as of March 31, 2010; $935,561 as of December 31, 2009)	1,799,919		1,711,299
Customers' acceptance liability	5,912		6,264
Other real estate owned	627,639		619,621
Other assets	8,399,377		8,277,861
Total assets	171,796,255		174,164,735
Liabilities and Shareholders' Equity
Noninterest-bearing consumer and commercial deposits	25,148,837		24,244,041
Interest-bearing consumer and commercial deposits	90,994,812		92,059,411
Total consumer and commercial deposits	116,143,649		116,303,452
Brokered deposits (CDs at fair value: $1,241,806 as of March 31, 2010; $1,260,505 as of December 31, 2009)	2,350,846		4,231,530
Foreign deposits	254,941		1,328,584
Total deposits	118,749,436		121,863,566
Funds purchased	1,158,713		1,432,581
Securities sold under agreements to repurchase	2,794,195		1,870,510
Other short-term borrowings	2,387,640		2,062,277
Long-term debt (debt at fair value: $3,944,137 as of March 31, 2010; $3,585,892 as of December 31, 2009)	16,531,380	[3]	17,489,516	[3]
Acceptances outstanding	5,912		6,264
Trading liabilities	3,246,890		2,188,923
Other liabilities	4,302,163		4,720,243
Total liabilities	149,176,329		151,633,880
Preferred stock	4,923,292		4,917,312
Common stock, $1.00 par value	514,667		514,667
Additional paid in capital	8,446,209		8,521,042
Retained earnings	8,419,219		8,562,807
Treasury stock, at cost, and other	(989,840)		(1,055,136)
Accumulated other comprehensive income, net of tax	1,306,379		1,070,163
Total shareholders' equity	22,619,926		22,530,855
Total liabilities and shareholders' equity	$171,796,255		$174,164,735
Common shares outstanding	499,857,812		499,156,858
Common shares authorized	750,000,000		750,000,000
Preferred shares outstanding	50,225		50,225
Preferred shares authorized	50,000,000		50,000,000
Treasury shares of common stock	14,808,783		15,509,737
[1]Includes loans held for sale of consolidated VIEs $310,899 -
[2]Includes loans of consolidated VIEs 1,544,856 -
[3]Includes debt of consolidated VIEs 284,728 -

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Per Share data	Mar. 31, 2010	Dec. 31, 2009
Loans held for sale, loans at fair value	$2,650,980	$2,923,375
Loans,loans at fair value	420,484	448,720
Other intangible assets,MSRs at fair value	1,641,188	935,561
Brokered deposits,CDs at fair value	1,241,806	1,260,505
Long-term debt, fair value	3,944,137	3,585,892
Common stock, par value	$1	$1
Loans held for sale of consolidated VIEs	310,899
Loans of consolidated VIEs	1,544,856
Long-term debt, debt of consolidated VIEs	$284,728

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (USD $)
In Thousands	Preferred Stock	Common Stock	Additional Paid in Capital	Retained Earnings	Treasury Stock and Other		Accumulated Other Comprehensive Income	Total
Beginning Balance at Dec. 31, 2008	$5,221,703	$372,799	$6,904,644	$10,388,984	($1,368,450)	[1]	$981,125	$22,500,805
Beginning Balance (in shares) at Dec. 31, 2008		354,515
Net loss				(815,167)				(815,167)
Other comprehensive income:
Change in unrealized gains (losses) on securities, net of taxes							48,968	48,968
Change in unrealized gains (losses) on derivatives, net of taxes							(18,993)	(18,993)
Change related to employee benefit plans							22,915	22,915
Total Comprehensive income (loss)								(762,277)
Change in noncontrolling interest					(679)	[1]		(679)
Common stock dividends, $0.01 in 2010 and $0.10 in 2009 per share				(35,621)				(35,621)
Series A preferred stock dividends, $1,000 in 2010 and $1,000 in 2009 per share				(5,000)				(5,000)
U.S. Treasury preferred stock dividends, $1,250 in 2010 and $1,250 in 2009 per share				(60,625)				(60,625)
Accretion of discount associated with U.S. Treasury preferred stock	5,654			(5,654)
Exercise of stock options and stock compensation expense			3,285					3,285
Restricted stock activity (in shares)		1,658
Restricted stock activity			(161,571)		138,995	[1]		(22,576)
Amortization of restricted stock compensation					20,283	[1]		20,283
Issuance of stock for employee benefit plans and other (in shares)		520
Issuance of stock for employee benefit plans and other			(32,822)	(3)	40,856	[1]		8,031
Ending Balance (in shares) at Mar. 31, 2009		356,693
Ending Balance at Mar. 31, 2009	5,227,357	372,799	6,713,536	9,466,914	(1,168,995)	[1]	1,034,015	21,645,626
Beginning Balance at Dec. 31, 2009	4,917,312	514,667	8,521,042	8,562,807	(1,055,136)	[1]	1,070,163	22,530,855
Beginning Balance (in shares) at Dec. 31, 2009		499,157
Net loss				(160,814)				(160,814)
Other comprehensive income:
Change in unrealized gains (losses) on securities, net of taxes							39,123	39,123
Change in unrealized gains (losses) on derivatives, net of taxes							121,936	121,936
Change related to employee benefit plans							75,157	75,157
Total Comprehensive income (loss)								75,402
Change in noncontrolling interest					(2,479)	[1]		(2,479)
Common stock dividends, $0.01 in 2010 and $0.10 in 2009 per share				(4,992)				(4,992)
Series A preferred stock dividends, $1,000 in 2010 and $1,000 in 2009 per share				(1,725)				(1,725)
U.S. Treasury preferred stock dividends, $1,250 in 2010 and $1,250 in 2009 per share				(60,625)				(60,625)
Accretion of discount associated with U.S. Treasury preferred stock	5,980			(5,980)
Exercise of stock options and stock compensation expense			5,669					5,669
Restricted stock activity (in shares)		492
Restricted stock activity			(67,535)		39,748	[1]		(27,787)
Amortization of restricted stock compensation					12,268	[1]		12,268
Issuance of stock for employee benefit plans and other (in shares)		209
Issuance of stock for employee benefit plans and other			(12,967)	1,975	15,759	[1]		4,767
Fair value election of MSRs				88,995				88,995
Adoption of VIE consolidation guidance				(422)				(422)
Ending Balance (in shares) at Mar. 31, 2010		499,858
Ending Balance at Mar. 31, 2010	$4,923,292	$514,667	$8,446,209	$8,419,219	($989,840)	[1]	$1,306,379	$22,619,926
[1]Balance at March 31, 2010 includes ($1,030,156) for treasury stock, ($65,401) for compensation element of restricted stock, and $105,717 for noncontrolling interest. Balance at March 31, 2009 includes ($1,173,026) for treasury stock, ($107,985) for compensation element of restricted stock, and $112,016 for noncontrolling interest.

2_Consolidated Statements of Sh

Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Common stock dividends, per share	0.01	0.1
Series A preferred stock dividends, per share	$1,000	$1,000
U.S. Treasury preferred stock dividends, per share	$1,250	$1,250
Treasure stock, Ending Balance	($1,030,156)	($1,173,026)
Ending Balance, compensation element of restricted stock	(65,401)	(107,985)
Ending Balance, noncontrolling interest	$105,717	$112,016

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	3 Months Ended Mar. 31, 2010		3 Months Ended Mar. 31, 2009
Cash Flows from Operating Activities:
Net income/(loss) including income attributable to noncontrolling interest	($158,393)		($812,008)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation, amortization and accretion	197,944		234,985
Goodwill impairment			751,156
MSRs impairment Recovery			(31,298)
Origination of MSRs	(66,300)		(146,290)
Provisions for credit losses and foreclosed property	903,653		1,026,917
Amortization of restricted stock compensation	12,268		20,283
Stock option compensation	5,669		3,285
Excess tax benefits from stock-based compensation	16		(181)
Net gain on extinguishment of debt	(9,307)		(25,304)
Net securities gains	(1,543)	[1]	(3,377)	[1]
Net gain on sale of assets	(8,439)		(6,913)
Net decrease/(increase) in loans held for sale	1,422,737		(2,937,455)
Contributions to retirement plans	(2,603)		(1,286)
Net (increase)/decrease in other assets	(857,066)		739,273
Net increase/(decrease) in other liabilities	380,449		(547,123)
Net cash provided by/(used in) operating activities	1,819,085		(1,735,336)
Cash Flows from Investing Activities:
Proceeds from maturities, calls and paydowns of securities available for sale	1,106,359		780,575
Proceeds from sales of securities available for sale	2,726,341		6,488,762
Purchases of securities available for sale	(1,570,269)		(9,500,312)
Proceeds from maturities, calls and paydowns of trading securities	44,114		23,577
Proceeds from sales of trading securities			2,009,051
Purchases of trading securities			(85,965)
Net decrease in loans	8,438		2,072,094
Proceeds from sales of loans held for investment	229,848		181,379
Capital expenditures	(48,338)		(47,126)
Contingent consideration and other payouts related to acquisitions	(4,083)		(15,343)
Proceeds from the sale of other assets	155,547		86,023
Net cash provided by investing activities	2,647,957		1,992,715
Cash Flows from Financing Activities:
Net (decrease)/increase in deposits	(3,113,062)		5,198,430
Assumption of deposits, net			445,482
Net decrease in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings	(1,048,123)		(1,863,316)
Proceeds from the issuance of long-term debt			574,560
Repayment of long-term debt	(925,997)		(4,090,686)
Excess tax benefits from stock-based compensation	(16)		181
Common and preferred dividends paid	(67,342)		(98,433)
Net cash (used in)/provided by financing activities	(5,154,540)		166,218
Net (decrease)/increase in cash and cash equivalents	(687,498)		423,597
Cash and cash equivalents at beginning of period	6,997,171		6,637,402
Cash and cash equivalents at end of period	6,309,673		7,060,999
Supplemental Disclosures:
Loans transferred from loans held for sale to loans	2,769		8,565
Loans transferred from loans to loans held for sale	184,901
Loans transferred from loans to other real estate owned	181,628		213,287
Accretion on U.S. Treasury preferred stock	5,980		5,654
Total assets of consolidated VIEs at January 1, 2010	$2,049,392
[1]Includes other-than-temporary impairment losses of $1 million for the three months ended March 31, 2010 and $1 million for the three months ended March 31, 2009. During the three months ended March 31, 2010 there were no non-credit related unrealized losses recorded in other comprehensive income associated with OTTI securities.

Significant Accounting Policies

Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Significant Accounting Policies	Note 1 Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The Company evaluated subsequent events through the date its financial statements were issued. These financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended December31, 2009. Except for accounting policies that have been modified or recently adopted as described below, there have been no significant changes to the Companys accounting policies as disclosed in the Annual Report on Form 10-K for the year ended December31, 2009. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are considered held for investment. The Companys loan balance is comprised of loans held in portfolio, including commercial loans, consumer loans, real estate loans and lines, credit card receivables, direct financing leases, leveraged leases, and nonaccrual and restructured loans. Interest income on all types of loans is accrued based upon the outstanding principal amounts, except those classified as nonaccrual loans. The Company typically classifies commercial and commercial real estate loans as nonaccrual when one of the following events occurs: (i)interest or principal has been in default 90 days or more, unless the loan is secured by collateral having realizable value sufficient to discharge the debt in full and the loan is in the legal process of collection; (ii)collection of recorded interest or principal is not anticipated; or (iii)income for the loan is recognized on a cash basis due to the deterioration in the financial condition of the debtor. Consumer and residential mortgage loans are typically placed on nonaccrual when payments have been in default for 90 and 120 days or more, respectively. When a loan is placed on nonaccrual, unpaid interest is reversed against interest income. Interest income on nonaccrual loans, if recognized, is either recorded using the cash basis method of accounting or recognized at the end of the loan after the principal has been reduced to zero, depending on the type of loan. If and when borrowers demonstrate the ability to repay a loan in accordance with the contractual terms of a loan classified as nonaccrual, the loan may be returned to accrual status. See Allowance for Loan and Le

Trading Assets and Liabilities

Trading Assets and Liabilities
	3 Months Ended Mar. 31, 2010
Trading Assets and Liabilities	Note 2 Trading Assets and Liabilities The fair values of the components of trading assets and liabilities at March31, 2010 and December31, 2009 were as follows: (Dollars in thousands) (Unaudited) March31 2010 December 31 2009 Trading Assets U.S. Treasury securities $856,962 $498,781 Federal agency securities 418,466 474,188 U.S. states and political subdivisions 209,501 58,520 Residential mortgage-backed securities - agency 159,547 94,164 Residential mortgage-backed securities - private 5,288 6,463 Collateralized debt obligations 158,252 174,942 Corporate and other debt securities 530,742 465,637 Commercial paper 44,704 639 Asset backed securities 50,908 50,775 Equity securities 250,375 256,096 Derivative contracts 2,628,972 2,610,288 Trading loans 724,387 289,445 Total trading assets $6,038,104 $4,979,938 Trading Liabilities U.S. Treasury securities $1,348,719 $189,461 Federal agency securities 3,813 3,432 Corporate and other debt securities 161,307 144,142 Equity securities 248 7,841 Derivative contracts 1,732,803 1,844,047 Total trading liabilities $3,246,890 $2,188,923

Securities Available for Sale

Securities Available for Sale
	3 Months Ended Mar. 31, 2010
Securities Available for Sale	Note 3 Securities Available for Sale Securities AFS at March31, 2010 and December31, 2009 were as follows: March31, 2010 (Dollars in thousands) (Unaudited) Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities $5,204,825 $2,501 $1,826 $5,205,500 Federal agency securities 1,982,052 19,685 488 2,001,249 U.S. states and political subdivisions 895,947 26,920 7,093 915,774 Residential mortgage-backed securities - agency 13,435,188 301,264 25,544 13,710,908 Residential mortgage-backed securities - private 445,662 711 77,167 369,206 Asset-backed securities 1,002,540 10,724 9,465 1,003,799 Corporate bonds and other debt securities 495,971 14,551 1,364 509,158 Common stock of The Coca-Cola Company 69 1,649,931 - 1,650,000 Other equity securities1 871,999 936 - 872,935 Total securities available for sale $24,334,253 $2,027,223 $122,947 $26,238,529 December31, 2009 (Dollars in thousands) (Unaudited) Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities $5,206,383 $719 $30,576 $5,176,526 Federal agency securities 2,733,534 12,704 8,653 2,737,585 U.S. states and political subdivisions 927,887 27,799 10,629 945,057 Residential mortgage-backed securities - agency 15,704,594 273,207 61,724 15,916,077 Residential mortgage-backed securities - private 471,583 1,707 95,207 378,083 Asset-backed securities 309,611 10,559 5,423 314,747 Corporate bonds and other debt securities 505,185 9,989 3,373 511,801 Common stock of The Coca-Cola Company 69 1,709,931 - 1,710,000 Other equity securities1 786,248 918 - 787,166 Total securities available for sale $26,645,094 $2,047,533 $215,585 $28,477,042 1Includes $343 million and $343 million of FHLB of Cincinnati and FHLB of Atlanta stock stated at par value, $360 million and $360 million of Federal Reserve Bank stock stated at par value and $168 million and $82 million of mutual fund investments stated at fair value as of March31, 2010 and December31, 2009, respectively. See Note 14, Contingencies, to the Consolidated Financial Statements for information concerning ARS classified as securities AFS. Securities AFS that were pledged to secure public deposits, repurchase agreements, trusts, and other funds had a fair value of $6.4 billion as of March31, 2010. Further, under The Agreements, the Company pledged its shares of common stock of The Coca-Cola Company, which had a fair value of $1.7 billion as of March31, 2010. See Note 10, Derivative Financial Instruments, to the Consolidated Financial Statements which further discusses this transaction. The Company has also pledged $1.2 billion of certain trading assets and cash equivalents to secure $1.2 billion of repurchase agreements as of March31, 2010. Additionally, as of March31, 2010, the Company had pledged $47.5 billion of net eligible lo

Allowance for Credit Losses

Allowance for Credit Losses
	3 Months Ended Mar. 31, 2010
Allowance for Credit Losses	Note 4 Allowance for Credit Losses Activity in the allowance for credit losses is summarized in the table below: Three Months Ended March31 % Change (Dollars in thousands) (Unaudited) 2010 2009 Balance at beginning of period $3,234,900 $2,378,507 36 % Provision for loan losses 875,909 994,098 (12) Provision for unfunded commitments1 (14,300) 2,662 (637) Allowance from consolidation of VIE 676 - Loan charge-offs (861,961) (646,916) 33 Loan recoveries 41,377 36,822 12 Balance at end of period $3,276,601 $2,765,173 18 % Components: ALLL $3,176,000 $2,735,000 16 % Unfunded commitments reserve2 100,601 30,173 233 Allowance for credit losses $3,276,601 $2,765,173 18 % 1Beginning in the fourth quarter of 2009, the Company recorded the provision for unfunded commitments within the provision for credit losses in the Consolidated Statements of Income/(Loss). Considering the immateriality of this provision prior to the fourth quarter of 2009, the provision for unfunded commitments remains classified within other noninterest expense in the Consolidated Statements of Income/(Loss). 2The unfunded commitments reserve is separately recorded in other liabilities in the Consolidated Balance Sheets.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	3 Months Ended Mar. 31, 2010
Goodwill and Other Intangible Assets	Note 5 Goodwill and Other Intangible Assets Goodwill is required to be tested for impairment on an annual basis or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. In 2009 and the first quarter of 2010, the Companys reporting units were comprised of Retail, Commercial, Commercial Real Estate, Household Lending, Corporate and Investment Banking, Wealth and Investment Management, and Affordable Housing. Due to the continued recessionary environment and sustained deterioration in the economy during the first quarter of 2009, the Company performed a complete goodwill impairment analysis for all of its reporting units. The estimated fair value of the Retail, Commercial, and Wealth and Investment Management reporting units exceeded their respective carrying values as of March31, 2009; however, the fair value of the Household Lending, Corporate and Investment Banking, Commercial Real Estate (included in Retail and Commercial segment), and Affordable Housing (included in Retail and Commercial segment) reporting units were less than their respective carrying values. The implied fair value of goodwill of the Corporate and Investment Banking reporting unit exceeded the carrying value of the goodwill, thus no goodwill impairment was recorded for this reporting unit. However, the implied fair value of goodwill applicable to the Household Lending, Commercial Real Estate, and Affordable Housing reporting units was less than the carrying value of the goodwill. As of March31, 2009, an impairment loss of $751 million was recorded, which was the entire amount of goodwill carried by each of those reporting units. $677 million of the goodwill impairment charge was non-deductible for tax purposes. The goodwill impairment charge was a direct result of continued deterioration in the real estate markets and macro economic conditions that put downward pressure on the fair value of these businesses. The primary factor contributing to the impairment recognition was further deterioration in the actual and projected financial performance of these reporting units, as evidenced by the increase in net charge-offs and nonperforming loans. The decline in fair value of these reporting units was significantly influenced by the current economic downturn, which resulted in depressed earnings in these businesses and the significant decline in the Companys market capitalization during the first quarter of 2009. No events have occurred nor circumstances changed since the annual testing of the Companys goodwill on September30, 2009 that caused re-testing of goodwill during the first quarter of 2010. The changes in the carrying amount of goodwill by reportable segment for the three months ended March31 are as follows: (Dollars in thousands) (Unaudited) Retail and Commercial Wholesale Corporate and Investment Banking Household Lending Mortgage Wealth and Investment Management Total Balance, January1, 2009 $5,911,990 $522,548 $- $- $278,254 $330,711 $7,043,503 Intersegment transfers 1

Certain Transfers of Financial

Certain Transfers of Financial Assets, Mortgage Servicing Rights and Variable Interest Entities
	3 Months Ended Mar. 31, 2010
Certain Transfers of Financial Assets, Mortgage Servicing Rights and Variable Interest Entities	Note 6 - Certain Transfers of Financial Assets, Mortgage Servicing Rights and Variable Interest Entities Certain Transfers of Financial Assets and related Variable Interest Entities The Company has transferred residential and commercial mortgage loans, student loans, commercial and corporate loans, and CDO securities in sale or securitization transactions in which the Company has, or had, continuing involvement. All such transfers have been accounted for as sales by the Company. The Companys continuing involvement in such transfers includes owning certain beneficial interests, including senior and subordinate debt instruments as well as equity interests, servicing or collateral manager responsibilities, and guarantee or recourse arrangements. Except as specifically noted herein, the Company is not required to provide additional financial support to any of the entities to which the Company has transferred financial assets, nor has the Company provided any support it was not otherwise obligated to provide. Prior to January1, 2010, interests that were held by the Company in transferred financial assets, excluding servicing and collateral management rights, were generally recorded as securities AFS or trading assets at their allocated carrying amounts based on their relative fair values at the time of transfer and were subsequently remeasured at fair value. In accordance with the new accounting guidance related to transfers of financial assets that became effective on January1, 2010, upon completion of future transfers of assets that satisfy the conditions to be reported as a sale, the Company will derecognize the transferred assets and recognize at fair value any beneficial interests in the transferred financial assets such as trading assets or securities AFS, as well as servicing rights retained and guarantee liabilities incurred. See Note 13, Fair Value Measurement and Election, to the Consolidated Financial Statements for further discussion of the Companys fair value methodologies. When evaluating transfers and other transactions with VIEs for consolidation under the newly adopted VIE consolidation guidance, the Company first determines if it has a VI in the VIE. A VI is typically in the form of securities representing retained interests in the transferred assets and, at times, servicing rights and collateral manager fees. If the Company has a VI in the entity, it then evaluates whether or not it has both (1)the power to direct the activities that most significantly impact the economic performance of the VIE, and (2)the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If the Company determines that it does not have power over the significant activities of the VIE, an analysis of the economics of the VIE is not necessary. If it is determined that the Company does have power over the significant activities of the VIE, the Company must determine if it also has an obligation to absorb losses and/or the right to receive benefits that could potentially be significant to the VIE. Below is a summary of transfers of financial assets to VIEs for which the Company has retained s

Loss Per Share

Loss Per Share
	3 Months Ended Mar. 31, 2010
Loss Per Share	Note 7 Loss Per Share Net loss is the same in the calculation of basic and diluted loss per average common share. Equivalent shares of 32million and 33million related to common stock options and common stock warrants outstanding as of March31, 2010 and 2009, respectively, were excluded from the computations of diluted loss per average common share because they would have been antidilutive. A reconciliation of the difference between average basic common shares outstanding and average diluted common shares outstanding for the three months ended March31, 2010 and 2009 is included below. For EPS calculation purposes, the impact of dilutive securities are excluded from the diluted share count during periods that the Company has recognized a net loss available to common shareholders because the impact would be antidilutive. Additionally, included below is a reconciliation of net loss to net loss available to common shareholders. Three Months Ended March31 (In thousands, except per share data) (Unaudited) 2010 2009 Net loss ($160,814) ($815,167) Series A preferred dividends (1,726) (5,000) U.S. Treasury preferred dividends and accretion of discount (66,605) (66,279) Dividends and undistributed earnings allocated to unvested shares (39) 11,065 Net loss available to common shareholders ($229,184) ($875,381) Average basic common shares 494,871 351,352 Effect of dilutive securities: Stock options 908 - Restricted stock 2,459 545 Average diluted common shares 498,238 351,897 Loss per average common share - diluted ($0.46) ($2.49) Loss per average common share - basic ($0.46) ($2.49)

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes	Note 8 - Income Taxes The provision for income taxes was a benefit of $194 million and $151 million for the three months ended March31, 2010 and 2009, respectively, representing effective tax rates of (54.7%)and (15.6%), respectively, during those periods. The Company calculated the benefit for income taxes for the three months ended March31, 2010 and 2009 based on the discrete methodology using actual year-to-date results. The Company moved from an insignificant net deferred tax asset at December31, 2009 to a net deferred tax liability at March31, 2010 after the carryback of the 2009 federal net operating loss. As of March31, 2010, the Companys gross cumulative UTBs amounted to $106 million, of which $71 million (net of federal tax benefit) would affect the Companys effective tax rate, if recognized. As of December31, 2009, the Companys gross cumulative UTBs amounted to $161 million. The reduction in UTBs was primarily attributable to the settlement of an examination by a taxing authority and the related payments and reversal of the liability. Additionally, the Company recognized a gross liability of $31 million and $39 million for interest related to its UTBs as of March31, 2010 and December31, 2009, respectively. Interest related to UTBs was income of approximately $5 million for the three months ended March31, 2010, compared to an expense of approximately $8 million, for the same period in 2009. The Company continually evaluates the UTBs associated with its uncertain tax positions. It is reasonably possible that the total UTBs could decrease during the next 12 months by up to $18 million due to completion of tax authority examinations and the expiration of statutes of limitations. The Company files consolidated and separate income tax returns in the United States federal jurisdiction and in various state jurisdictions. As of March31, 2010, the Companys federal returns through 2006 have been examined by the IRS. All issues have been resolved for tax years through 2004. Only one issue remains in dispute for tax years 2005 and 2006. Generally, the state jurisdictions in which the Company files income tax returns are subject to examination for a period from three to seven years after returns are filed.

Employee Benefit Plans

Employee Benefit Plans
	3 Months Ended Mar. 31, 2010
Employee Benefit Plans	Note 9 - Employee Benefit Plans The Company sponsors various short and LTI plans for eligible employees. The Company delivers LTIs through various incentive programs, including stock options, restricted stock, LTI cash plan, and salary shares. Certain employees received long-term deferred cash awards which are subject to a three year vesting requirement. The accrued liability related to these deferred cash grants was $34 million and $28 million as of March31, 2010 and December 31, 2009, respectively. An important new compensation development that had the characteristics of both base salary and equity emerged as part of the U.S. Treasurys Interim Final Rule on TARP Standards for Compensation and Corporate Governance. This compensation development became known as salary shares. Specifically, the Interim Rule prohibits the payment of short-term incentives (annual bonus) and stock options to the Senior Executive Officers and to the next 20 most highly compensated employees. Effective January1, 2010, the Company chose to use the salary share concept because it is specifically authorized by EESA to address the constraints on the annual cash bonus and equity awards; and the Company believes it is necessary that it use this approach to remain competitive and to minimize the risk of talent flight to other companies with whom it competes. Specifically, the Company will pay additional base salary amounts in the form of stock (salary shares) to the NEOs and other employees who are among the next 20 most highly-compensated employees. The Company will do this each pay period in the form of stock units under the SunTrust Banks, Inc. 2009 Stock Plan. The stock units will not include any rights to receive dividends or dividend equivalents. As required by EESA, each salary share will be non-forfeitable upon grant but may not be sold or transferred until the expiration of a holding period. As a result, the NEO is at risk for the value of our stock price until the stock unit is settled. The stock units will be settled in cash; one half on March31, 2011 and one half on March31, 2012, unless settled earlier due to the executives death. The amount to be paid on settlement of the stock units will be equal to the value of a share of SunTrust common stock on the settlement date. Benefit plan determinations and limits were established to ensure that the salary shares were accounted for equitably within relevant benefit plans. As of March31, 2010, the accrual related to salary shares is $2 million. Stock-Based Compensation The weighted average fair values of options granted during the first three months of 2010 and 2009 were $12.75 per share and $4.73 per share, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: ThreeMonthsEndedMarch31 (Unaudited) 2010 2009 Dividend yield 0.17 % 4.42 % Expected stock price volatility 56.23 84.20 Risk-free interest rate (weighted average) 2.84 1.99 Expected life of options 6years 6years The following table presents a summary of stock option an

Derivative Financial Instrument

Derivative Financial Instruments
	3 Months Ended Mar. 31, 2010
Derivative Financial Instruments	Note 10 - Derivative Financial Instruments The Company enters into various derivative financial instruments, both in a dealer capacity to facilitate client transactions and as an end user as a risk management tool. Where derivatives have been entered into with clients, the Company generally manages the risk associated with these derivatives within the framework of its VAR approach that monitors total exposure daily and seeks to manage the exposure on an overall basis. Derivatives are used as a risk management tool to hedge the Companys exposure to changes in interest rates or other identified market or credit risks, either economically or in accordance with the hedge accounting provisions. The Company may also enter into derivatives, on a limited basis, in consideration of trading opportunities in the market. In addition, as a normal part of its operations, the Company enters into IRLCs on mortgage loans that are accounted for as freestanding derivatives and has certain contracts containing embedded derivatives that are carried, in their entirety, at fair value. All freestanding derivatives and any embedded derivatives that the Company bifurcates from the host contracts are carried at fair value in the Consolidated Balance Sheets in trading assets, other assets, trading liabilities, or other liabilities. The associated gains and losses are either recorded in OCI, net of tax, or within the Consolidated Statements of Income/(Loss) depending upon the use and designation of the derivatives. Credit and Market Risk Associated with Derivatives Derivatives expose the Company to credit risk. If the counterparty fails to perform, the credit risk at that time would be equal to the net derivative asset position, if any, for that counterparty. The Company minimizes the credit or repayment risk in derivatives by entering into transactions with high credit-quality counterparties that are reviewed periodically by the Companys Credit Risk Management division. The Companys derivatives may also be governed by an ISDA; depending on the nature of the derivative transactions, bilateral collateral agreements may be in place as well. When the Company has more than one outstanding derivative transaction with a single counterparty and there exists a legally enforceable master netting agreement with the counterparty, the Company considers its exposure to the counterparty to be the net market value of all positions with that counterparty, if such net value is an asset to the Company, and zero, if such net value is a liability to the Company. As of March31, 2010, net derivative asset positions to which the Company was exposed to risk of its counterparties were $1.7 billion, representing the net of $2.5 billion in net derivative gains by counterparty, netted by counterparty where formal netting arrangements exist, adjusted for collateral of $0.8 billion that the Company holds in relation to these gain positions. As of December31, 2009, net derivative asset positions to which the Company was exposed to risk of its counterparties were $1.8 billion, representing the net of $2.5 billion in derivative gains by counterparty, netted by counterparty where formal netting

Reinsurance Arrangements and Gu

Reinsurance Arrangements and Guarantees
	3 Months Ended Mar. 31, 2010
Reinsurance Arrangements and Guarantees	Note 11 - Reinsurance Arrangements and Guarantees Reinsurance The Company provides mortgage reinsurance on certain mortgage loans through contracts with several primary mortgage insurance companies. Under these contracts, the Company provides aggregate excess loss coverage in a mezzanine layer in exchange for a portion of the pools mortgage insurance premium. As of March31, 2010, approximately $14.6 billion of mortgage loans were covered by such mortgage reinsurance contracts. The reinsurance contracts are intended to place limits on the Companys maximum exposure to losses by defining the loss amounts ceded to the Company as well as by establishing trust accounts for each contract. The trust accounts, which are comprised of funds contributed by the Company plus premiums earned under the reinsurance contracts, are maintained to fund claims made under the reinsurance contracts. If claims exceed funds held in the trust accounts, the Company does not intend to make additional contributions beyond future premiums earned under the existing contracts. At March31, 2010, the total loss exposure ceded to the Company was approximately $638 million; however, the maximum amount of loss exposure based on funds held in each separate trust account, including net premiums due to the trust accounts, was limited to $287 million. Of this amount, $284 million of losses have been reserved for as of March31, 2010, reducing the Companys net remaining loss exposure to $3 million. Future reported losses may exceed $3 million, since future premium income will increase the amount of funds held in the trust; however, future cash losses, net of premium income, are not expected to exceed $3 million. The amount of future premium income is limited to the population of loans currently outstanding since additional loans are not being added to the reinsurance contracts; future premium income could be further curtailed to the extent the Company agrees to relinquish control of individual trusts to the mortgage insurance companies. Premium income, which totaled $11 million and $13 million for the three month periods ended March31, 2010 and March31, 2009, respectively, are reported as part of noninterest income. The related provision for losses, which totaled $9 million and $70 million for the three month periods ended March31, 2010 and March31, 2009, respectively, is reported as part of noninterest expense. The reserve for estimated losses incurred under its reinsurance contracts totaled $284 million at March31, 2010 and $285 million at December31, 2009. The Companys evaluation of the required reserve amount includes an estimate of claims to be paid by the trust related to loans in default and an assessment of the sufficiency of future revenues, including premiums and investment income on funds held in the trusts, to cover future claims. Guarantees The Company has undertaken certain guarantee obligations in the ordinary course of business. The issuance of a guarantee imposes an obligation for the Company to stand ready to perform, and should certain triggering events occur, it also imposes an obligation to make future payments. Payments may be in the form of ca

Concentrations of Credit Risk

Concentrations of Credit Risk
	3 Months Ended Mar. 31, 2010
Concentrations of Credit Risk	Note 12 - Concentrations of Credit Risk Credit risk represents the maximum accounting loss that would be recognized at the reporting date if borrowers failed to perform as contracted and any collateral or security proved to be of no value. Concentrations of credit risk (whether on- or off-balance sheet) arising from financial instruments can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, certain loan products, or certain regions of the country. Credit risk associated with these concentrations could arise when a significant amount of loans, related by similar characteristics, are simultaneously impacted by changes in economic or other conditions that cause their probability of repayment to be adversely affected. The Company does not have a significant concentration of risk to any individual client except for the U.S. government and its agencies. The major concentrations of credit risk for the Company arise by collateral type in relation to loans and credit commitments. The only significant concentration that exists is in loans secured by residential real estate. At March31, 2010, the Company owned $46.5 billion in residential mortgage loans and home equity lines, representing 41% of total loans, $3.4 billion of residential construction loans, representing 3% of total loans, and an additional $14.8 billion in commitments to extend credit on home equity loans and $10.2 billion in mortgage loan commitments. At December31, 2009, the Company had $46.7 billion in residential mortgage loans and home equity lines, representing 41% of total loans, $3.8 billion of residential construction loans, representing 3% of total loans and an additional $15.2 billion in commitments to extend credit on home equity loans and $12.2 billion in mortgage loan commitments. The Company originates and retains certain residential mortgage loan products that include features such as interest only loans, high LTV loans, and low initial interest rate loans. As of March31, 2010, the Company owned $14.9 billion of interest only loans, primarily with a 10 year interest only period. Approximately $2.5 billion of those loans had combined original LTV ratios in excess of 80% with no mortgage insurance. Additionally, the Company owned approximately $3.0 billion of amortizing loans with combined original LTV ratios in excess of 80% with no mortgage insurance. The Company attempts to mitigate and control the risk in each loan type through private mortgage insurance and underwriting guidelines and practices. A geographic concentration arises because the Company operates primarily in the Southeastern and Mid-Atlantic regions of the United States. SunTrust engages in limited international banking activities. The Companys total cross-border outstanding loans were $513 million and $572 million as of March31, 2010 and December31, 2009, respectively.

Fair Value Measurement and Elec

Fair Value Measurement and Election
	3 Months Ended Mar. 31, 2010
Fair Value Measurement and Election	Note 13 - Fair Value Measurement and Election The Company carries certain assets and liabilities at fair value on a recurring basis and appropriately classifies them as level 1, level 2 or level 3 within the fair value hierarchy. The Companys recurring fair value measurements are based on a requirement to carry such assets and liabilities at fair value or the Companys election to carry certain financial assets and financial liabilities at fair value. Assets and liabilities that are required to be carried at fair value on a recurring basis include trading securities, securities AFS, and derivative financial instruments. Assets and liabilities that the Company has elected to carry at fair value on a recurring basis include certain loans and LHFS, MSRs and certain issuances of fixed rate debt. In certain circumstances, fair value enables a company to more accurately align its financial performance with the economic value of actively traded or hedged assets or liabilities. Fair value also enables a company to mitigate the non-economic earnings volatility caused from financial assets and financial liabilities being carried at different bases of accounting, as well as to more accurately portray the active and dynamic management of a companys balance sheet. In cases where the Company believed that fair value was more representative of the results of its activities, the Company elected to carry certain financial instruments at fair value, as discussed further herein. The classification of an instrument as level 3 versus level 2 involves judgment and is based on a variety of subjective factors. A market is considered inactive if significant decreases in the volume and level of activity for the asset or liability have been observed. In determining whether a market is inactive, the Company evaluates such factors as the number of recent transactions in either the primary or secondary markets, whether price quotations are current, the nature of the market participants, the variability of price quotations, the significance of bid/ask spreads, declines in (or the absence of) new issuances and the availability of public information. Inactive markets necessitate the use of additional judgment when valuing financial instruments, such as pricing matrices, cash flow modeling and the selection of an appropriate discount rate. The assumptions used to estimate the value of an instrument where the market was inactive were based on the Companys assessment of the assumptions a market participant would use to value the instrument in an orderly transaction and included considerations of illiquidity in the current market environment. Where the Company determined that a significant decrease in the volume and level of activity had occurred, the Company was then required to evaluate whether significant adjustments were required to market data to arrive at an exit price. Beginning January1, 2010, the Company changed its policy for recording transfers into and out of the fair value hierarchy levels in response to amended U.S. GAAP. All such transfers are now assumed to be as of the end of the quarter in which the transfer occurred, whereas, previously, the Compa

Contingencies

Contingencies
	3 Months Ended Mar. 31, 2010
Contingencies	Note 14 Contingencies Litigation and Regulatory Matters The Company and its subsidiaries are parties to numerous claims and lawsuits arising in the course of their normal business activities, some of which involve claims for substantial amounts. The Companys experience has shown that the damages often alleged by plaintiffs or claimants are overstated, unsubstantiated by legal theory, unsupported by the facts, and/or bear no relation to the ultimate award that a court might grant. Because of these factors, the Company typically cannot provide a meaningful estimate of the range of reasonably possible outcomes of claims in the aggregate or by individual claim. On a case-by-case basis, however, reserves are established for those legal claims in which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. In no cases are those accrual amounts material to the financial condition of the Company. The actual costs of resolving these claims may be substantially higher or lower than the amounts reserved. It is the opinion of management that liabilities arising from legal claims in excess of the amounts currently accrued, if any, will not have a material impact to the Companys financial condition or results of operations. The following is a description of the nature of certain litigation and regulatory matters. Auction Rate Securities Investigations and Claims FINRA Auction Rate Securities Investigation In September 2008, STRH and STIS entered into an agreement in principle with FINRA related to the sales and brokering of ARS by STRH and STIS. This agreement was non-binding and subject to the negotiation of a final settlement. At this time there is no final settlement with FINRA, and FINRA has resumed its investigation. Notwithstanding that fact, the Company announced in November 2008 that it would move forward with ARS purchases from essentially the same categories of investors who would have been covered by the original agreement with FINRA. Additionally, the Company has elected to purchase ARS from certain other investors not addressed by the agreement. As of March 31, 2010, the Company has already purchased approximately $573 million of ARS and is expected to purchase approximately $69 million in additional ARS. As of March 31, 2010, the Company has repurchased approximately 89% of the securities it intended to purchase. The fair value of ARS purchased pursuant to the pending settlement, net of redemptions and calls, is approximately $171 million and $176 million in trading securities and $171 million and $156 million in securities AFS, at December31, 2009, respectively. The Company has reserved for the remaining probable loss that could be reasonably estimated to be approximately $24 million and $33 million at March 31, 2010 and December 31, 2009, respectively. The remaining loss amount represents the difference between the par amount and the estimated fair value of the remaining ARS that the Company believes it will likely purchase from investors. This amount may change by the movement in fair market value of the underlying investment and therefore, can be impacted by changes in the per

Business Segment Reporting

Business Segment Reporting
	3 Months Ended Mar. 31, 2010
Business Segment Reporting	Note 15 - Business Segment Reporting The Company has four business segments used to measure business activities: Retail and Commercial, Corporate and Investment Banking, Household Lending, and Wealth and Investment Management with the remainder in Corporate Other and Treasury. Retail and Commercial generally serves consumers and businesses with up to $100 million in annual revenue. Retail and Commercial provides services to clients through an extensive network of traditional and in-store branches, ATMs, the internet (www.suntrust.com), and the telephone (1-800-SUNTRUST). Financial products and services offered to consumers include consumer deposits, home equity lines, consumer lines, and other fee-based products. The business also serves commercial clients including business banking clients, government/not-for-profit enterprises, as well as commercial and residential developers and investors. Financial products and services offered to business clients include commercial and commercial real estate lending, financial risk management, insurance premium financing, treasury and payment solutions including commercial card services, as well as specialized commercial real estate investments delivered through SunTrust Community Capital. Retail and Commercial also serves as an entry point and provides services for other lines of business. When client needs change and expand, Retail and Commercial refers clients to its Wealth and Investment Management, Corporate and Investment Banking, and the Household Lending lines of business. Corporate and Investment Banking serves clients in the large and middle corporate and commercial markets. The Corporate Banking Group generally serves clients with greater than $750 million in annual revenue and is focused on selected industry sectors: consumer and retail, diversified, energy, financial services and technology, and healthcare. The Middle Market Group generally serves clients with annual revenue ranging from $100 million to $750 million and is more geographically focused. Through SunTrust Robinson Humphrey, Corporate and Investment Banking provides an extensive range of investment banking products and services to its clients, including strategic advice, capital raising, and financial risk management. These investment banking products and services are also provided to Commercial and Wealth and Investment Management clients. In addition, Corporate and Investment Banking offers traditional lending, leasing, treasury management services and institutional investment management to its clients. Household Lending offers residential mortgages, home equity lines and loans, indirect auto, student, bank card and other consumer loan products. Loans are originated through the Companys extensive network of traditional and in-store retail branches, via the internet (www.suntrust.com), and by phone (1-800-SUNTRUST). Residential mortgage loans are also originated nationally through the Companys wholesale and correspondent channels. These products are either sold in the secondary market primarily with servicing rights retained or held in the Companys loan portfolio. The line of business services loans for itself,

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income
	3 Months Ended Mar. 31, 2010
Accumulated Other Comprehensive Income	Note 16 - Accumulated Other Comprehensive Income Comprehensive income was calculated as follows: ThreeMonthsEnded March31 (Dollars in thousands) (Unaudited) 2010 2009 Comprehensive income: Net income/(loss) ($160,814) ($815,167) Other comprehensive income: Change in unrealized gains (losses) on securities, net of taxes 39,123 48,968 Change in unrealized gains (losses) on derivatives, net of taxes 121,936 (18,993) Change related to employee benefit plans 75,157 22,915 Total comprehensive income $75,402 ($762,277) The components of AOCI were as follows: (Dollars in thousands) (Unaudited) March31 2010 December31 2009 Unrealized net gain on available for sale securities $1,199,105 $1,159,982 Unrealized net gain on derivative financial instruments 534,256 412,320 Employee benefit plans (426,982) (502,139) Total accumulated other comprehensive income $1,306,379 $1,070,163