TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  CIT Group Inc

Reporting month(s):  January 2010   

Original Submission date:  March 1, 2010

Submitted on: March 15, 2010

Person to be contacted regarding this report:   Peter Justini – 973‐422‐3678

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

Transportation Finance – Business Aircraft

The corporate aviation market appears to be stabilizing with used jet inventories down for the fifth

consecutive month and jet aircraft orders/ cancellations remaining at consistent levels.  Backlogs at

major manufactures of new aircraft are holding steady while flight operations have returned to previous

year‐over‐year levels and are predicted to increase 9‐13% over 2009.  New aircraft deliveries historically

lag economic upturns by six to eight quarters, so no major improvement in new deliveries is forecasted

prior to mid‐2012.  

Transportation Finance – Commercial Aircraft

Consistent with the previous month, for the next several months we continue to expect pressure on

margins, reflecting lower lease rates on new deliveries and newly remarketed aircraft.  Commercial Air

revenues remain strong for January resulting from high asset utilization.  

Transportation Finance – Rail Cars

While market conditions have stabilized (weekly rail loadings have improved), weak car loadings and

improved train speeds have resulted in significant excess capacity in the rail network; approximately

29% of the North American fleet is being stored as carriers and shippers continue to reduce costs and

rationalize fleet size.  In this market environment, the goal for many companies is to sacrifice rate to

keep rail cars on lease to mitigate storage and freight charges, as well as position the fleet for industry

turn around.

Leveraged Finance (relative to the Transportation Sector)

The macro industry factors are beginning to ripple through Aerospace supply chain.  The slowdown in

aircraft build rates, especially in the general aviation sector is beginning to have negative cash flow

implications for our borrowers.  Those borrowers that are tied to building aircraft are starting to feel the

pain of a slowing aviation industry.  When production picks up their fortunes will reverse, but there is a

lag between general economic activity and aviation build rates.

Deal activity appears to be increasing while pricing levels are coming down.  There was a real slowdown

in M&A activity in 2009 as compared to the previous year.  That decline is beginning to reverse and that

drives loan volume.  Therefore, the number of financing opportunities is increasing and the cost of that

financing is starting to come down as the debt market corrects itself.   

Corporate Finance / Loan Syndication

January continued 2009’s year‐end recovery as volume totaled $8.4B of new institutional loan volume (a

post Lehman high), versus a 2009 monthly average of $3.2B.  The high yield market produced $16.9MM,

versus the ’09 average of $14B.    While both numbers are robust, the loan volume fell short of

expectations and the high yield market displayed some signs of cooling as a few deals were pulled ‘due

to market conditions’.  
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  CIT Group Inc

Reporting month(s):  January 2010   

Original Submission date:  March 1, 2010

Submitted on: March 15, 2010

Person to be contacted regarding this report:   Peter Justini – 973‐422‐3678

  

The S&P loan leverage index average rose 2.03% in January after advancing 2.94% in December. All

rating classes showed gains in January as investors sought risk in search of return; Loans rated “BB” rose

1.64%, single “B” rated loans rose 1.82% and “CCC’s’ were up another 5.48%.  Overall, secondary loan

pricing rose to 93.35 from a 93.04 year‐end level.

  

While the January mergers and acquisition volume disappointed expectations some of the void has been

filled with existing financings, dividend recapitalizations and re‐pricings. With market technicals very

issuer friendly the average break price exceeded par for the first time since June of 2007. The technical

imbalance led to yield declines as well with the average new issuance yield narrowing to 6.56% in

January down from 6.88% in December and 7.19% in November.  To further illustrate that point, 42% of

1st lien loans flexed down versus and average of 32% in Q4 ’09 and the reduction more profound in

January at 68 bps versus 38 bps last year. In summary, bond repayments continue to result in surplus

cash in the loan market and the insufficient supply of new loan volume drives pricing and structural

quality down as investors compete to deploy cash.  

Trade Finance

Conditions in the marketplace remain unchanged from the previous month; loan demand from our

continuing client base is down slightly compared with last year and demand from new clients is

significantly reduced.  We continue to observe a decrease in liquidity as the money center and regional

banks have returned to much higher standards regarding loan documentation, loan covenants and

collateral perfection.   

Vendor Finance

CIT’s loan demand continues to be negatively impacted by the markets uncertainty as to CIT’s go‐

forward strategy forcing customers to look for alternative sources and limiting new customer application

activity submitted to Vendor Finance “VF”. We anticipate that will change with recent CEO appointment,

but absent competitive cost of capital, timing is difficult to predict.

Consolidation of funding sources within the global vendor markets has increased the overall demand for

VF type products.   January volume decreased versus December, and it is still significantly lower than

historical levels.  

There was limited global syndication activity in the month of January as a result of the limited liquidity in

the markets and CIT’s uncertainty.  Traditional syndication investors (one off deals and portfolio

acquisitions) are being careful on their investments and have moved to a “flight to quality”; investors

are looking for:

• Investment grade deals  

• Focused on mid to large ticket transactions (no small ticket), resulting in higher margins  

• Opportunistic pricing

As for the macroeconomics across the Vendor Finance business segments, CIT is seeing/ experiencing

the following:
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  CIT Group Inc

Reporting month(s):  January 2010   

Original Submission date:  March 1, 2010

Submitted on: March 15, 2010

Person to be contacted regarding this report:   Peter Justini – 973‐422‐3678

• Canada ‐ like the US, the Canadian economy has begun to emerge from the Global Recession.

However, there is concern surrounding the impact of easing stimulus and recent reports from

TD Bank warn of sluggish growth over the next decade. The International Monetary Fund

predicts the economy to expand by 2.1% versus its expected contraction of 2.5% in 2009. Recent

economic boost was experienced from stronger exports to the US and Europe as these

economies emerge from recession. Export growth could be slowed by the current strength of

the Canadian dollar.

• Latin American ‐ the Latin American economy appears to have come out of the recession as GDP

growth is expected to be at 4.1% in 2010 after shrinking 1.8% this year, according to forecasts by

the UN Economic Commission. Recovery is expected in all countries within the region led by

Brazil with a GDP growth forecast of 5.5% in 2010. Brazil's growth can be attributed to demand

for commodities including oil and a growing middle class increasing consumer spending. Even

Mexico, which was hardest hit by the recession, is expected to have GDP growth of 3.5% in 2010

after contracting 6.7% this year. Latin America's recovery will be more robust than previous

slumps mainly because of swift government intervention through rate reductions and stimulus

spending. Regional growth is not expected to improve unemployment substantially, which is

currently at 8%.

• Europe UK ‐ the UK has remained in recession with GDP reducing by 0.4% in Q3. The 2010

outlook for the UK remains poor with full year growth of only 0.3% expected. A general election

will take place in the next 6 months and any new government will need to address the huge

deficit with material cuts in Government spending a near certainty.  

• Europe Continental Europe – the overall trend is that Europe is moving out of recession with

Germany & France delivering 2 quarters of positive growth, however the recovery is weaker

than hoped and the concern remains that there may be a decline in Q4 / Q1 with a spike in

insolvencies. Positive Euro Zone growth of 0.5% is being forecast for 2010.  However, GDP is

anticipated to remain at 2007/08 levels.

• US ‐ US economic conditions have improved with positive GDP growth of 2.5% in Q3. However,

GDP growth was positively impacted by Government stimulus action including the very

successful "Cash for Clunkers" program. Continued economic recovery is forecasted but growth

is expected to be sluggish at best, with minimal employment recovery until late 2010.

Consumer spending, a primary driver of growth, is anticipated to remain weak for the

foreseeable future particularly in light of unemployment reaching over 10%. As stimulus action

is reduced or eliminated, the impact to the economic health remains an unknown and a risk to

recovery. Economic conditions in the US have been improving and continued slow growth in the

near term is expected. We have now seen 6 consecutive months of increase in the Composite

Leading Economic Indicators Index. However, growth is expected to be tempered by high

unemployment rates through 2010.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  CIT Group Inc

Reporting month(s):  January 2010   

Original Submission date:  March 1, 2010

Submitted on: March 15, 2010

Person to be contacted regarding this report:   Peter Justini – 973‐422‐3678

Small Business Lending

CIT Small Business Lending (SBL) continued to provide financing to small businesses, at lower than

normal levels but significantly above the prior year. Higher lending amounts are attributed to SBL’s re‐

entry to the market following CIT’s exit from bankruptcy in December.  

Lending standards for small business loans appear to have stabilized following significant tightening over

the past year. However, demand from small businesses remains weak due to softening sales and

investments.   

While consumer spending has risen modestly over the past four months consumer confidence must

improve to maintain the positive trend. Small business sentiment, however, is positive with improved

revenues and income expected over the next six months. According to payroll processor, ADP, the loss

of small business jobs continued in January but at a slower pace and small businesses in the service

sector added jobs for the second consecutive month.

  

Liquidity provided by the secondary market for SBA guaranteed loans is strong with very favorable

pricing for sellers such as SBL. The impact of FASB 166 – Accounting for Transfers and Servicing of

Financial Assets and Extinguishment of Liabilities and the termination of the Treasury’s TALF program

are uncertain but generally anticipated to be minimal. The market for non‐guaranteed small business

loans remains extremely limited.  

Unemployment declined slightly in January but still hovers near 10%. Stubbornly high unemployment

and the impact on consumer confidence could stall the economic recovery, especially that of small

businesses.  

Consumer Lending

The Student lending spreads continue to be stable at 3ML + 75 – 85 in the non‐ term asset‐backed loan

facility “TALF” market.

CIT’s student loans portfolios performed well in Q4 especially when compared to the previous quarter.

Both charge offs and delinquencies have improved over Q3 and full year numbers beat our expectations;

in early 2010 we have not experienced any deterioration from prior periods and actuals met our

forecasts.

The unsecured consumer Loan portfolio continues to liquidate quickly. The charge‐off number continues

to show a positive trend while in prior years the portfolio consistently experienced deterioration in Q4.
Name of institution: Citigroup Submission date: March 1, 2010 Person to be c

PART I. QUANTITATIVE OVERVIEW

2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $135,715 $135,434 $132,472 Consists of residential whole loans. Excludes assets classified as trading assets that are not part of

the core mortgage portfolio.

b. Total Originations $3,338 $3,908 $3,441 Originations includes new loans whether for refinancing of an existing home or the purchase of a

home. It does not include troubled debt restructurings which usually includes a restructuring of

terms and not additional extensions of credit.

(1) Refinancings $1,861 $2,213 $2,009 If on a refinancing, amounts were added to the existing loan balance, the total amount of the new

loan is reported. Originations include both loans originated for the balance sheet as well as loans

originated for sale.

(2) New Home Purchases $410 $476 $294

2. Home Equity

a. Average Total Loan Balance $61,225 $60,542 $59,815 Includes HELOC and 2nd mortgages.

b. Originations (New Lines+Line Increases) $90 $106 $74 If a line is increased, only the amount of the increase is included in originations. If we originated a

new HELOC or 2nd, we included the amount drawn in the Ending and Average Balances, and we

included the total new line in originations.

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

The decrease in 

rates, special pr

was down prima

Home equity loa

than in prior yea

primarily due to 

2009

1

c. Total Used and Unused Commitments $78,054 $77,250 $77,565

3. US Card ‐ Managed

a. Average Total Loan Balance ‐ Managed $139,431 $140,261 $137,588 Balances do not include commercial card activity.

b. New Account Originations (Initial Line Amt) $6,874 $8,482 $4,033

c. Total Used and Unused Commitments $803,603 $781,140 $776,214

4. Other Consumer

a. Average Total Loan Balance $57,252 $56,477 $70,954 Includes auto, student and personal loans. Student loans includes related deferred fees and lines

of credit with schools (which are secured by student loans).

b. Originations $888 $978 $2,002

Loan origination 

in accounting st

Purchase sales w

receivables were 

month due to se

members contin

programs increa

January.

1
SCHEDULE B: COMMERCIAL LENDING (Millions $) NOV DEC JAN Key 

1. C & Ia. Average Total Loan and Lease Balance $25,677 $24,126 $33,316 Renewals and new commitments are on a facility basis. Facilities may include L/Cs. Renewals

represent credit facilities that expired/matured and were renewed during the period.

b. Renewal of Existing Accounts $1,404 $1,583 $373

c. New Commitments $1,924 $702 $4772. Commercial Real Estate

a. Average Total Loan and Lease Balance $23,601 $22,784 $23,265 Renewals and new commitments are on a facility basis. Facilities may include L/Cs. Renewals

represent credit facilities that expired/matured and were renewed during the period.

b. Renewal of Existing Accounts $139 $282 $194

c. New Commitments $37 $294 $47SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

4. Small Business Loans3

a. Average Total Loan Balance $10,413 $10,201 $9,976

Average comme

Average balance

Average balance

accounts are do

Mergers & Acqu

2

b. Originations $128 $107 $95SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities ‐$2,312 $4,188 $1,249 Does not include maturities and pay downs. Net Purchased Volume is reported using cost basis.

b. Asset Backed Securities $1,108 $118 $268

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 $151,238 $152,030 $157,267 Average Total Matched Book (Repo/Reverse Repo) is before FIN 41 netting. Includes security

lending activity.

b. Average Total Debit Balances2 $15,039 $14,782 $15,463

3. Underwriting

a. Total Equity Underwriting $42 $3,407 $28 Equity Underwriting represents Citi's portion of underwritten issue.

b. Total Debt Underwriting $16,768 $10,370 $17,104 Debt underwriting represents Citi's portion of underwritten issue and extensions of credit to

finance specific individual Community Development projects that are in bond form.

The increase in M

Industry stats inclu

1. 30 High Yield de

2. 87 Investment G

3. 47 Equity and Lin

The increase in M

Mortgage and A

Notes:3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

1. Not applicable if matched book activity does not exceed $50 billion.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:    Citigroup

Reporting month(s):    January 2010   

Submission date:    March 1, 2010

Person to be contacted regarding this report:   Carol Hayles or Peter Bieszard

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

Company description:  Citigroup Inc. (“Citi”) does business in the United States through Citibank, Citi

Institutional Clients Group, The Citi Private Bank, Primerica, Diners Club, CitiFinancial, CitiMortgage and

Citi Cards.   

All data cited below reflect comparisons to December 2009, unless otherwise noted.

Consumer Lending:  Citi originated $9.6 billion in loans to U.S. consumers and small businesses in

January, down 29 percent from December.  Unemployment declined from 10.0 percent to 9.7 percent

month‐to‐month, but sustained weakness in the U.S. economy contributed to lower loan volumes.

In January, first mortgage loan originations declined 12 percent to $3.4 billion from December volumes,

which benefitted from a reduction in fixed rates, pricing changes and an increase in marketing activity.  

Average mortgage loan balances were $132.5 billion or 2 percent lower than December levels.

Average home equity loan balances in January were $59.8 billion, declining 1 percent from December.  

Used and unused commitments were $77.6 billion, or approximately flat compared with December.   

As in previous months, Citi continued to expand participation in its loss mitigation efforts and programs

focused on helping homeowners facing financial difficulty to modify their loans.  Through initiatives like

the Citi Homeownership Assistance Program, the CitiFinancial Home Affordable Mortgage Program and

the Home Affordable Mortgage Program, Citi modified approximately 13,500 first mortgage and home

equity loans with a total value of approximately $2.4 billion in January.

In January, Citi issued new credit card lines totaling $4.0 billion, a decrease of 52 percent from

December.  Seasonal consumer spending contributed to a 25 percent month‐to‐month decline in

purchase sales, which were also 15 percent lower than in January 2009.

Card members continue to participate in Citi’s expanded eligibility forbearance programs.  More than

166,000 card members enrolled in these programs in January, compared with 154,000 in December.  

Total balances covered by Citi’s forbearance programs increased by 2 percent on a month‐to‐month

basis and 59 percent from the prior year period.   

Total originations in other consumer lending categories doubled month‐to‐month to $2.0 billion, the

third consecutive monthly increase.  Average total loan balances for these categories were $71.0 billion,

rising 26 percent from December.  Auto loan origination volumes increased 16 percent, benefiting from
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:    Citigroup

Reporting month(s):    January 2010   

Submission date:    March 1, 2010

Person to be contacted regarding this report:   Carol Hayles or Peter Bieszard

2

a reversal in seasonal demand trends.  An increase in seasonal demand also contributed to a rise in

personal installment origination volumes, which increased more than two‐fold from December.  

Commercial Lending:  Commercial lending activity increased in January, as Citi originated $18.2 billion in

corporate loans, up 10 percent from December.

New Commercial & Industrial (C&I) loan commitments totaled $477.1 million, declining 32percent from

December as a result of lower M&A activity again in January.  Renewals of existing accounts decreased

to $373.3 million from $1.6 billion in December, driven by lower renewal volumes.  Average C&I loan

balances increased 38 percent to $33.3 billion month‐to‐month, reflecting changes in accounting

standards covering consolidations.

In January, new Commercial Real Estate (CRE) loan commitments declined to $47.4 million from $294

million in December due to lower deal volume.  Loan renewals also declined to $193.8 million, or 31

percent lower than December levels also due to lower deal volume.  Average total CRE loan and lease

balances were $23.3 billion, or 2 percent higher than in December.

Other Intermediation Activities:  Citi recorded net purchases of $1.5 billion in mortgage‐ and asset‐

backed securities (MBS/ABS) in January, reflecting increased investor interest.

Citi’s total debt underwriting was $17.1 billion in January, an increase of 65 percent from the prior

month, reflecting higher average principal per deal.  High yield underwriting activity included 30 deals

totaling $12.7 billion, compared with 40 transactions with a cumulative value of $16.8 billion in

December.  Citi lead managed 8 deals with an aggregate value of $1.1 billion.  In January, Citi also

participated in 87 investment grade transactions with an aggregate value of $72.3 billion, compared

with 147 deals totaling $40.2 billion in December.  Citi lead managed 18 of these transactions with a

total value of $6.6 billion.  Citi participated in 47 equity and linked deals with an aggregate value of $7.6

billion in January, compared with 73 deals totaling $63.6 billion in December.  Citi lead managed 8 of

these deals with a total value of $410 million.  Total equity underwriting was negatively impacted by a

decrease in deal volume and average principal per deal.
Name of institution: COMERICA INCORPORATED Submission date: 02/26/2010 Person to be c

PART I. QUANTITATIVE OVERVIEW

2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $1,664 $1,652 $1,643 Consists of 1st lien 1‐4 family residential mortgage and construction loans originated by Comerica

Bank.

b. Total Originations $34 $36 $29 Consists of loans funded during the period, including those originated for sale.

(1) Refinancings $16 $21 $24(2) New Home Purchases $18 $15 $5

2. Home Equity

a. Average Total Loan Balance $1,799 $1,804 $1,797 Consists of both fixed and revolving home equity (2nd lien) loans.

b. Originations (New Lines+Line Increases) $9 $10 $6 Excludes commitments/originations where home equity collateral is provided for multiple

purposes (personal and business), which are included in Commercial Lending commitments

(Schedule B).

First mortgage o

'10/$12M Decem

January originat

2009

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

1

c. Total Used and Unused Commitments $3,229 $3,220 $3,196

3. US Card ‐ Managed

a. Average Total Loan Balance ‐ Managed $58 $56 $56 Consists primarily of commercial bankcard loans.

b. New Account Originations (Initial Line Amt) $18 $23 $19 Includes new card loans funded during the period and new referrals to our consumer card partner.

c. Total Used and Unused Commitments $389 $385 $386

4. Other Consumer

a. Average Total Loan Balance $655 $650 $644 Consists of consumer installment loans (both secured and unsecured) and student loans.

b. Originations $26 $41 $33

January other co

partially offset b

New account or

'09/$10M Novem

1
SCHEDULE B: COMMERCIAL LENDING (Millions $) NOV DEC JAN Key 

1. C & Ia. Average Total Loan and Lease Balance $24,458 $24,316 $23,631 Consists of loans for commercial and industrial purposes to both domestic and international

borrowers, lease financing and other non‐consumer, non‐real estate loans.

b. Renewal of Existing Accounts $2,935 $2,251 $1,014 Includes renewals of and increases to lines with existing customers.

c. New Commitments $461 $416 $175 Consists of binding commitments to new customers and new lines to existing customers, net of

participations sold. Includes commitments/originations where home equity collateral is provided

for multiple purposes (personal and business).

2. Commercial Real Estate

a. Average Total Loan and Lease Balance $14,111 $13,988 $13,850 Consists of loans made to businesses where 50% or more of the collateral is real estate (primarily

owner‐occupied) and loans made to businesses or developers for building construction.

b. Renewal of Existing Accounts $326 $350 $150 Includes renewals of and increases to lines with existing customers.

c. New Commitments $80 $31 $98 Consists of binding commitments to new customers and new lines to existing customers, net of

participations sold.

4. Small Business Loans3

a. Average Total Loan Balance $3,752 $3,723 $3,697 Includes Small Business Administration loans and loans to other entities generally with annual

sales of less than $10 million at initial relationship.

January renewals decr

National/Other marke

($483M), National Dea

($31M) and Commerci

January new commerc

markets, respectively, 

$28M and $16M in Mi

increases of $65M in N

January comme

$34M and $16M 

January new CR

market, partially 

January originat

Texas and West

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

2

b. Originations $151 $173 $133 Consists of renewals and new commitments to both existing and new customers.

SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities $600 $1,249 $100 Represents net purchases (gross purchases, net of gross sales) of mortgage‐backed securities (AAA‐

rated agency securities) for investment portfolio available‐for‐sale on a trade date basis. Excludes

principal paydowns.

b. Asset Backed Securities  ‐$9 $0 ‐$4 Represents net purchases (gross purchases, net of gross sales) of asset‐backed auction‐rate

securities. Purchases were made as an accommodation to customers from October through

December 2008.

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 N/A N/A N/A

b. Average Total Debit Balances2 N/A N/A N/A3. Underwriting

a. Total Equity Underwriting $0 $0 $0 Amount of equity securities underwritten where the Corporation was manager or co‐manager of

the issue. All done on "best efforts" basis.

b. Total Debt Underwriting $9,467 $18,919 $3,454 Amount of debt securities underwritten where the Corporation had either a manager or co‐

manager role. All done on "best efforts" basis.

Notes:3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

1. Not applicable if matched book activity does not exceed $50 billion.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  COMERICA INCORPORATED

Reporting month(s):  January 2010   

Submission date:  February 26, 2010

Person to be contacted regarding this report:  Darlene Persons

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas.  Comerica

Incorporated is strategically aligned into three major business segments: the Business Bank, the Retail

Bank and Wealth & Institutional Management, and operates in four primary markets: Texas, the

Midwest (primarily Michigan), Western (primarily California and Arizona) and Florida.   

The principal focus of Comerica Incorporated is to meet the needs of small and medium‐sized

businesses, multinational corporations and governmental entities through various products and services

including loans and lines of credit, letters of credit, deposits,  international trade finance and other

services.  The Business Bank, which includes all business customers except for small business,

traditionally accounts for at least two‐thirds of net interest income. In addition to serving the needs of

businesses, Comerica Incorporated also offers a variety of consumer products, including deposit

accounts, installment loans, credit cards, home equity lines of credit and residential mortgage loans.

Fiduciary services, private banking, retirement services and other wealth management services are also

provided.

Due to deteriorating economic conditions in our markets in early 2008, especially in California and

Michigan, Management began a process intended to reduce business loans and commitments to

preserve capital and generate appropriate loan pricing for current risks. With the receipt of TARP

proceeds, Management's focus moved toward establishing new and expanding existing lending

relationships, with appropriate pricing and credit standards. While economic recovery appears to be

underway, loan demand remains subdued as loan growth typically lags other economic indicators.  

Comerica Incorporated has historically focused on appropriate and consistent underwriting standards

and, while continuing to tighten controls, has not significantly tightened its underwriting standards

during the Snapshot reporting periods of October 2008 through January 2010.

Consumer Lending  

Consumer lending activity in January 2010 compared to December 2009 varied across the lending

categories.  Home Equity and Other Consumer originations decreased.  In the First Mortgage category,

residential refinancings increased while new home purchases decreased.  Home Equity application

volumes increased in January 2010 compared to December 2009, while First Mortgage and Other

Consumer application volumes decreased during this period.

In addition to direct consumer residential mortgage activity, residential mortgage lending was also

facilitated through lending to commercial customers in our Mortgage Banker and Financial Services

Divisions.  Renewals and new commitments of $108 million were booked in the Mortgage Banker and

Financial Services Divisions in January 2010.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  COMERICA INCORPORATED

Reporting month(s):  January 2010   

Submission date:  February 26, 2010

Person to be contacted regarding this report:  Darlene Persons

2

Commercial Lending

C&I lending renewals decreased in January 2010 from December 2009.  The decreases were seen in

nearly all markets and divisions.  C&I new commitments decreased in January 2010 from December

2009, primarily in the Texas, Midwest and Western markets, partially offset by an increase in the

National/Other market.  

Commercial real estate renewals decreased in January 2010 from December 2009.  Decreases occurred  

in all markets and all divisions except for the National Dealer Services division.  Commercial real estate

new commitments increased in January 2010 from December 2009 with the increase concentrated in

the National/Other market and the Mortgage Banker lending division.

The decline in commercial lending renewals and commitments in January 2010 reflected both ongoing

subdued loan demand and seasonally low activity.

  

Small Business Lending

The Small Business division focuses on meeting the needs of entities with annual sales of generally less

than $10 million at initial relationship, which is consistent with the definition of a company that is not

national in scope.  The Small Business division includes SBA lending.  Small Business C&I and CRE

renewals and new commitments decreased in January 2010 from December 2009.  By market, the C&I

and the CRE renewal decreases were spread across all markets.  Small Business C&I new commitments

decreased in the Western market offset by small increases in the Texas and Midwest markets.  The

decreases in CRE new commitments were spread across the Midwest and Texas markets.

  

Other Intermediation Activities

  

Debt underwriting in which our broker/dealer subsidiary participated as a manager or a co‐manager

during January 2010 totaled $3.5 billion, providing access to liquidity for municipalities and corporate

customers.
Name of institution: Fifth Third Bancorp Submission date: February 26, 2010 Person to be c

PART I. QUANTITATIVE OVERVIEW

2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $11,287 $11,022 $10,665 Average balance consists of 1‐4 family residential mortgage loans consistent with the classification

of the FR Y9C report. This includes loans held for sale and held for investment.

b. Total Originations $1,648 $1,831 $1,247(1) Refinancings $1,105 $1,386 $979(2) New Home Purchases $543 $446 $268

2. Home Equity

a. Average Total Loan Balance $11,697 $11,649 $11,962 Average balance consists of HELOC and HELOAN accounts consistent with the classification of the

FR Y9C report.

b. Originations (New Lines+Line Increases) $75 $102 $99

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Total origination

Originations we

purchases.Fifth Third exten

2009

1

c. Total Used and Unused Commitments $19,727 $19,582 $19,710

3. US Card ‐ Managed

a. Average Total Loan Balance ‐ Managed $2,254 $2,258 $2,259 Average balance consists of US cards for consumer obligors only, consistent with the classification

of the FR Y9C report. Business cards are included in C&I balances.

b. New Account Originations (Initial Line Amt) $103 $121 $88

c. Total Used and Unused Commitments $11,012 $10,923 $10,893

4. Other Consumer

a. Average Total Loan Balance $9,446 $9,453 $10,560 Average balance consists of auto and other consumer loans and leases consistent with the

classification of the FR Y9C report.

b. Originations $307 $352 $303

Other consumer 

decrease of app

January new cre

December.

1
SCHEDULE B: COMMERCIAL LENDING (Millions $) NOV DEC JAN Key 

1. C & Ia. Average Total Loan and Lease Balance $27,360 $27,213 $27,915 Average balance consists of non‐real estate commercial loans and leases consistent with the

classification of the FR Y9C report. This includes business cards.

b. Renewal of Existing Accounts $1,548 $2,407 $1,109 Includes renewed funded loans and renewed commitments.

c. New Commitments $1,078 $1,919 $664 Includes new commitments both funded and unfunded

2. Commercial Real Estate

a. Average Total Loan and Lease Balance $17,949 $17,719 $17,400 Average balance consists of real estate secured commercial loans consistent with the classification

of the FR Y9C report.

b. Renewal of Existing Accounts $471 $1,226 $228 Includes renewed funded loans and renewed commitments.

c. New Commitments $132 $196 $106 Includes new commitments both funded and unfunded

4. Small Business Loans3

a. Average Total Loan Balance $5,312 $5,238 $5,200 Small business loans are those classified as small business under standards established by Fifth

Third Bank. These loans are already presented within the C&I and CRE categories. Thus, this

disclosure is a subset of schedule B items 1 and 2.

New CRE comm

million in Decem

million versus D

volume significa

Small Business c

in December 200

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

New C&I commi

December 2009 

January 2010 of 

2

b. Originations $275 $408 $213SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities $1,476 $632 $482 Consists of MBS purchases less sales for the month.

b. Asset Backed Securities  ‐$8 ‐$69 ‐$805 Consists of ABS purchases less sales for the month.

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 NA NA NA

b. Average Total Debit Balances2 NA NA NA3. Underwriting

a. Total Equity Underwriting NA NA NA

b. Total Debt Underwriting $663 $251 $880

Mortgage backe

the investment 

consolidation of 

Notes:3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

1. Not applicable if matched book activity does not exceed $50 billion.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  Fifth Third Bancorp

Reporting month(s):  January 2010   

Submission date:  February 26, 2010

Person to be contacted regarding this report: Blane Scarberry

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

Commercial sections

CRE:  Average CRE balances decreased by approximately 1.8% in January 2010 compared to December

2009.  New CRE commitments originated in January 2010 were $106 million, which was down slightly

from $196 million in December 2009.  Renewal levels for existing accounts decreased significantly in

January 2010 to $228 million versus December 2009 at $1.226 billion due to normal year end seasonal

trends that increases renewal volume significantly in December.  Payments and dispositions of troubled

CRE outpaced the volume of renewals and new originations in January causing the overall balances to

continue to decline.  As commercial vacancy rates continue to increase, Fifth Third continues to monitor

the CRE portfolios and continues to suspend lending on new non‐owner occupied properties and on new

homebuilder and developer projects in order to manage existing portfolio positions. We feel this is

prudent given that we do not believe added exposure in those sectors is warranted given our

expectation for continued elevated loss trends in the performance of those portfolios.

C&I:  Average C&I balances increased by approximately 2.6% in January 2010 compared to December

2009.  The increase was driven by the January 1, 2010 consolidation of an off balance sheet vehicle that

contained C&I loans.  Without those loans, the C&I balances would have been approximately flat to

December 2009.  New C&I commitments originated in January 2010 decreased to $664 million

compared to $1.919 billion in December 2009 due to normal seasonal trends and slow demand.  

Renewal levels for existing accounts in January 2010 of $1.109 billion were down from December 2009

at $2.407 billion as borrowers continue to deleverage their balance sheets.  Lending in the Commercial

segment continues to qualified borrowers exhibiting average risk or better.  Continued emphasis is

placed on prudent underwriting and demonstrated ability to repay as we are seeing certain borrowers’

sales and profit margins narrow and the number of business bankruptcies increase.  Overall loan

demand has remained soft as we are seeing caution in the view of the timing of a recovery in the

economy from our C&I borrowers, which varies by geography.   While corporate profits are up, business

investment growth continues to be slow.  In general, customers continue to deleverage and increase

liquidity through asset sales and reduced inventories versus expanding operations and purchasing

equipment.   

The primary market for syndicated credit and large corporate deals remains soft in January 2010.  Given

the outlook for the economy, many companies continue to defer plans for capital expenditures and

inventory build, which in turn has reduced the need for financing.  Merger and acquisition activity

continued to remain slow in January.  Terms and covenants continue to be somewhat tighter than usual,
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  Fifth Third Bancorp

Reporting month(s):  January 2010   

Submission date:  February 26, 2010

Person to be contacted regarding this report: Blane Scarberry

2

which has also served to constrain demand.  Credit spreads have narrowed somewhat in recent months,

including the non‐investment grade rating categories, which could favorably impact volume if spreads

continue to fall.

Small Business:  Average Small Business balances decreased by approximately 0.7% in January 2010

compared to December 2009.  Small Business commitments originated in January 2010 were $213

million, which was down from $408 million in December 2009.  Demand for Small Business credit has

been in a relatively stable range with a slight bias to run off over new production.  Business Banking loan

originations continue to be made using prudent underwriting standards.     

Overall, average total commercial loan and lease balances were up 0.9% in January 2010 compared to

December 2009 as a result of the consolidation of off balance sheet loans in January 2010.  Without

those loans, total commercial loan and lease balances would have been down approximately 0.8% in

January 2010.  We continue to actively work out problem loans and receive principal payments from

borrowers, which more than offset new loan volume in the month of January 2010.   

Consumer section

Consumer:  January 2010 overall loan volume for non‐mortgage consumer credit (home equity, credit

card and auto) was down compared to December 2009 given decrease in all non‐mortgage consumer

credit demand.

January 2010 mortgage lending continued to be driven by attractive interest rates.  Total originations for

the month were approximately $1.3 billion, a decrease of $584 million.  Originations were driven by

$979 million of refinancing activity and nearly $270 million of new home purchases. We also extended

$99 million of new home equity lines of credit during the month.

January new credit card extensions were $88 million, a decrease over our $121 million of extensions in

December.  Other consumer loan originations, which include new car loans, were $303 million in

January.  This was a decrease of approximately $49 million from December.   

During the month of January, Fifth Third continued to monitor the need for prudent adjustments to

consumer lending standards, consistent with peer institutions as reported by the Federal Reserve and as

observed in the market.      

Treasury

Mortgage backed security balances increased $482 million during the month due to an increased

allocation to the investment portfolio within this sector. Asset backed securities declined by $805 million

due to the consolidation of the of the commercial paper facility sponsored by the bank.
Submission date: February 26, 2010 Person to be contacted 

PART I. QUANTITATIVE OVERVIEW

2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $198 $198 $196

b. Total Originations $0 $0 $0(1) Refinancings $0 $0 $0(2) New Home Purchases $0 $0 $0

2. Home Equity

a. Average Total Loan Balance $10 $9 $9b. Originations (New Lines+Line Increases) $0 $0 $0c Total Used and Unused Commitments $16 $16 $16

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: The Hartford Financial Services Group, Inc.

The Hartford's activities in 

which it acquired on June 2

The Hartford's activities in 

which it acquired on June 2

2009

1

c. Total Used and Unused Commitments $16 $16 $163. US Card ‐ Manageda. Average Total Loan Balance ‐ Managed N/A N/A N/A

b. New Account Originations (Initial Line Amt) N/A N/A N/A

c. Total Used and Unused Commitments N/A N/A N/A

4. Other Consumer

a. Average Total Loan Balance $0 $0 $0b. Originations $0 $0 $0

The Hartford's activities in 

which it acquired on June 2

Neither The Hartford nor Fe

Lending ‐ US Card‐Managed 

1
SCHEDULE B: COMMERCIAL LENDING (Millions $) NOV DEC JAN Key 

1. C & Ia. Average Total Loan and Lease Balance $10 $9 $9 Reflects a daily average.

b. Renewal of Existing Accounts $0 $0 $0

c. New Commitments $0 $0 $02. Commercial Real Estate

a. Average Total Loan and Lease Balance $6,024 $5,853 $5,712 Average loan balance for loans issued by Federal Trust Bank is calculated as the mean of daily

closing balances. The average loan balance for all other commercial real estate mortgage loan

investments made by The Hartford is calculated as the mean of the beginning‐ and end‐of‐

period carrying amounts.

b. Renewal of Existing Accounts $0 $1 $0 The Hartford's activities in Commercial Real Estate ‐ Renewals are limited to those of Federal

Trust Bank, which it acquired on June 24, 2009.

c. New Commitments $0 $0 $04. Small Business Loans3

a. Average Total Loan Balance $0 $0 $0

Given the economic enviro

commercial real estate are 

The Hartford's activities in 

acquired on June 24, 2009.

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

The Hartford's activities in 

acquired on June 24, 2009. 

corporations by investing in 

corporate debt securities. (

II. Qualitative Overview)

2

b. Originations $0 $0 $0SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities $14,199 $13,830 $13,778 Represents carrying value as of January 31, 2010, including CMBS of $8,666 million, CREs of

$501 million and RMBS of $4,611 million.

b. Asset Backed Securities $4,942 $4,976 $5,067 Represents carrying value as of January 31, 2010, including ABS of $2,590 million, CLOs of

$2,456 million and Other CDOs of $21 million.

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 N/A N/A N/A

b. Average Total Debit Balances2 N/A N/A N/A3. Underwriting

a. Total Equity Underwriting N/A N/A N/A

b. Total Debt Underwriting N/A N/A N/A

Net sales were approximat

January 31, 2010, related p

MBS investments.

Notes:3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

1. Not applicable if matched book activity does not exceed $50 billion.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  The Hartford Financial Services Group, Inc.

Reporting month(s):  January 2010   

Submission date:  February 26, 2010

Person to be contacted regarding this report: Shannon Lapierre

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

The Hartford Financial Services Group, Inc. (together with its subsidiaries, “The Hartford”) is an

insurance and financial services company.  The Hartford, headquartered in Connecticut, provides

investment products, individual life, group life and group disability insurance products, and property and

casualty insurance products in the United States.

The Hartford’s business model is different from those of traditional commercial banks.  As a result its

intermediation activities are also different.  In general, The Hartford provides capital to other financial

institutions, corporations, municipalities and governments and government agencies by investing in

their debt securities.  Indirectly, The Hartford supports consumer lending through its investments in

residential mortgage‐backed securities and securitized consumer asset‐backed securities.  The Hartford

also supports commercial lending through its investments in commercial mortgage loans on real estate

and commercial mortgage‐backed securities.  See the discussion that follows for more information on

The Hartford’s mortgage‐backed securities (MBS), asset‐backed securities (ABS) and commercial lending

activities.  In addition, The Hartford invests in limited partnerships and equity of publicly traded entities.   

CMBS/MBS/ABS Activity

One of The Hartford’s largest intermediation activities includes our investing activities in mortgage and

asset‐backed securities.  Mortgage‐backed securities primarily include Commercial Mortgage‐backed

Securities (CMBS), government sponsored entity (GSE) Mortgage‐backed Securities (MBS) and

Residential Mortgage‐backed Securities (RMBS) supported by mortgage loans that do not conform to

the GSE underwriting standards due to large loan balances and/or underwriting standards.  Asset‐

backed securities (ABS) consist primarily of collateralized loan obligations (CLOs) and consumer ABS.  

Our consumer ABS holdings consist of securities backed by credit cards, student loans and auto loans.

ABS, CMBS and RMBS remain depressed in relation to the securities’ original cost basis due to continued

weakness in the real estate market caused by deterioration in market fundamentals, rising

delinquencies and declines in property values.  Net sales were approximately $221 million in ABS, CMBS,

and RMBS securities for the month ending January 31, 2010, related primarily to certain agency MBS

investments.

Commercial Lending

Commercial lending, which consists of commercial mortgage loans and, to a lesser extent, agricultural

mortgages, represents 6% of our total investments, excluding equity securities held in trading accounts,

as of January 31, 2010.  These loans are collateralized by a variety of commercial and agricultural
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  The Hartford Financial Services Group, Inc.

Reporting month(s):  January 2010   

Submission date:  February 26, 2010

Person to be contacted regarding this report: Shannon Lapierre

2

properties and are diversified both geographically throughout the United States and by property type.  

Our loans take the form of whole loans, where we are the sole lender, as well as loan participations.  

Given the economic environment, additional investments by The Hartford in mortgage loans for

commercial real estate are expected to be limited in the near term.

Direct Consumer Lending

The Hartford’s consumer lending is contained entirely within Federal Trust Corporation and its bank

subsidiary.  As of January 31, 2010, Federal Trust Bank held $196 million (carrying value) of residential

mortgage loans.

Other Intermediation Activities

Outside of MBS, ABS and mortgage loans on real estate, our invested asset portfolio consists largely of

investment grade corporate securities, municipal securities, U.S. treasuries and agencies, and short term

investments.

For the month of January, The Hartford was a net purchaser of marketable securities of roughly $600

million, primarily corporate credits of $1,019 million.  In the investment grade corporate credit space,

purchases were predominately in companies well positioned in the current economic environment.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: KeyCorp Submission date: 2/26/10 Person to be 

PART I. QUANTITATIVE OVERVIEW

2009 2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 

1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $3,181 $3,176 $3,159 First Mortgage includes loans secu

loans secured by first liens.

red by 1‐4 family residential properties including home equity The reduction

December 200

b. Total Originations $153 $150 $117 Total Originations include both portfolio and held‐for‐sale loan originations.(1) Refinancings $88 $85 $71

(2) New Home Purchases $65 $65 $46

2. Home Equity

a. Average Total Loan Balance $8,401 $8,396 $8,370 Home Equity includes home equity

included with First Mortgages abo

lines of credit only (Home equity loans secured by first liens are

ve).

Home Equity lolevel in January

b. Originations (New Lines+Line Increases) $71 $57 $48c. Total Used and Unused Commitments $16,408 $16,357 $16,318

3. US Card ‐ Manageda. Average Total Loan Balance ‐ Managed $5 $0 $0 US Card ‐ Managed includes Credit Card loans. In December 2

b. New Account Originations (Initial Line Amt) $0 $0 $0c. Total Used and Unused Commitments $41 $0 $04. Other Consumera. Average Total Loan Balance $7,473 $7,423 $10,249 Other Consumer includes all other non‐revolving consumer loans. The average to

KeyCorp's Janu

education loan

b. Originations $17 $66 $134 KeyCorp's fede
A N/A N/A

2 on ns ng pr erage or marg serv s

SCHEDULE B: COMMERCIAL LENDING (Millions $) Key 

1. C & I NOV DEC JANa. Average Total Loan and Lease Balance $27,427 $27,051 $26,567 C & I includes lease financing recei

to depository institutions and othe

vables, commercial and industrial loans, agricultural loans, loans

r nonconsumer loans.

New commitmmillion. The hi

portfolios. Ove

b. Renewal of Existing Accounts $1,073 $1,269 $581 Renewals of existing accounts include outstanding balances and unused commitments for which increasing. The

the terms were extended or changed. A renewed commitment may or may not have an active

draw.

c. New Commitments $519 $530 $525 New commitments include outstanding balances and unused commitments. Commitment

amounts exclude standby letters of credit.

2. Commercial Real Estate

a. Average Total Loan and Lease Balance $16,599 $16,000 $15,427 Commercial Real Estate includes c

residential properties and by other

onstruction and land loans, loans secured by multi‐family

nonresidential properties.

CRE loan demaextending and

market. Mana

b. Renewal of Existing Accounts $693 $880 $233 Renewals of existing accounts include outstanding balances and unused commitments for which refinancing act

the terms were extended or changed. A renewed commitment may or may not have an active

draw.

financing these 

c. New Commitments $72 $88 $34 New commitments include outstanding balances and unused commitments. Commitment

amounts exclude standby letters of credit.

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)4. Small Business Loans3

a. Average Total Loan Balance $3,303 $3,267 $3,212 Small Business includes loans guar

loans internally classified as small

anteed by the Small Business Administration ("SBA") and other

business loans.

Small BusinessSBA approvalslevel. January

b. Originations $40 $45 $24 the seasonality 

SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volumea. Mortgage Backed Securities ‐$63 $508 ‐$282 January mortgage backed securitie

$282 million in sales, paydowns, ca

s ("MBS") net purchased volume includes no purchases and

lls and maturities.

KeyCorp's liqui

b. Asset Backed Securities $0 $0 $0

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 N/

b. Average Total Debit Balances2 N/A N/A N/A

3. Underwritinga. Total Equity Underwriting $46 $226 $79 Represents KeyCorp's equity underwriting commitments. KeyCorp was th

compared to th$133 million in

b. Total Debt Underwriting $646 $322 $193 Represents KeyCorp's taxable and municipal debt underwriting commitments. Municipal debt 

Notes:1. Not applicable if matched book activity does not exceed $50 billion.2. Applicable Applicable only for institutions i titutions offering offeri prime brokerage brok or other margin lending lending services to clients.3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  KeyCorp

Reporting month(s):  January 2010         

Submission date: 2/26/10

Person to be contacted regarding this report:  Robert L. Morris   

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

Cleveland‐based KeyCorp is one of the nation's largest bank‐based financial services companies, with

consolidated total assets of approximately $93 billion at December 31, 2009.  Through KeyBank and

certain other subsidiaries, KeyCorp provides a wide range of retail and commercial banking, commercial

leasing, investment management, consumer finance, and investment banking products and services to

individual, corporate and institutional clients through two major business groups, Community Banking

and National Banking.  The Community Banking group serves consumers and small to mid‐sized

businesses through the company's 14‐state branch network, which is organized into three internally

defined geographic regions:  Rocky Mountains and Northwest, Great Lakes, and Northeast.  The National

Banking group includes those corporate and consumer business units that operate nationally, within and

beyond KeyCorp's 14‐state branch network, as well as internationally.     

General

January credit demand in the Commercial Real Estate (“CRE”) segment remained weak, while there was

modest improvement in the Commercial Lending (“C & I”) segment.  KeyCorp experienced an increase in

new loan inquiries in the Middle Market and Institutional portfolios.  Excluding Home Equity loan

applications, Consumer branch‐based application volume increased modestly in January from the

December 2009 level.   

KeyCorp’s lending strategies remain focused on serving the needs of existing and new relationship

clients while being mindful of risk‐reward and strategic capital allocation.

Consumer

In January, Home Equity loan application volume declined by 4% from the December 2009 level, while

other branch‐based application volume increased for the first time in several months.  The continued

favorable rate environment contributed to an increase in mortgage application volume, following two

consecutive months of decline.   

As previously reported, KeyCorp’s decision to discontinue the education lending business will not impact

loan origination volume until the funding of previously approved loan applications is completed in

March 2010.   The average balance in the Other Consumer loan category increased by approximately

$2.8 billion from the December balance, as a result of KeyCorp’s January 1, 2010, adoption of new

accounting guidance, which required the company to consolidate its education loan securitization trusts.   

There were no material changes in KeyCorp’s underwriting standards in January.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  KeyCorp

Reporting month(s):  January 2010         

Submission date: 2/26/10

Person to be contacted regarding this report:  Robert L. Morris   

2

C & I

In January, new loan approvals for new and existing Middle Market clients increased for the third

consecutive month and were up $42 million, or 37%, from December.  New commitments to new

Institutional Bank clients totaled $111 million, the highest level experienced in six months.  In addition,

new loan inquiries increased in the Middle Market and Institutional portfolios.   

In the Small Business segment, credit‐worthy clients continue to act conservatively and are resistant to

adding capacity or additional debt.  However, Small Business loan demand improved this month as loan

approvals rose to $50 million, the highest level experienced since June 2009.  SBA loan approvals

increased more than 50% from the January 2009 level and were 33% higher than the monthly average

for 2009.  Management anticipates that SBA loan activity will continue to be strong in 2010, due to the

SBA’s continued waiver of loan guarantee fees and the 90% loan guarantee program.

Commercial Real Estate

There was no change in loan demand trends in the CRE segment during January.  The CRE market

outlook continues to be weak.  Approximately 90% of the $34 million in new commitments originated in

January was attributable to the Small Business and Middle Market portfolios.

During January, KeyCorp continued to extend and modify existing credits given the lack of liquidity and

refinancing options available in the CRE market.  Renewal volume of $233 million was down significantly

from the December level of $880 million.  This reflects the fact that a substantial portion of the portfolio

had already been renewed or restructured.  In the Institutional CRE portfolio, most real estate

investment trusts (“REITs”) have issued additional capital and reduced debt levels, allowing their credit

lines to be modified and extended.  For CRE development projects, KeyCorp has created a fixed‐rate 3‐5

year loan program to modify and extend qualifying loans for existing customers.   
Name of institution: Marshall & Ilsley Corporation Submission date: 02/26/10 Person to be c

PART I. QUANTITATIVE OVERVIEW

2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $7,132 $7,037 $6,901 Includes all closed end residential RE; First Mortgages and Home Equity Loans (Approximately 80%

of Home Equity Loans are held in first position). This excludes construction and vacant land loans

which are included in the Commercial Real Estate section as average loan balances.

b. Total Originations $203 $198 $155 1‐4 Family Residential Mortgage Originations ‐ includes loans held by M&I Portfolio and loans

originated to be sold into the secondary market. This excludes construction and vacant land loans

which are included in the Commercial Real Estate section as new commitments.

(1) Refinancings $125 $135 $111(2) New Home Purchases $78 $63 $44

2. Home Equity

a. Average Total Loan Balance $2,737 $2,733 $2,722 Includes Home Equity Lines only.

b. Originations (New Lines+Line Increases) $64 $57 $54

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Mortgage origin

rising rates in De

During the same 

over‐year is attr

loans and amort

Home Equity ou

January than pri

2009

1

c. Total Used and Unused Commitments $4,957 $4,935 $4,898

3. US Card ‐ Managed

a. Average Total Loan Balance ‐ Managed $277 $287 $287 Includes Consumer Card only.

b. New Account Originations (Initial Line Amt) $6 $6 $5

c. Total Used and Unused Commitments $1,282 $1,291 $1,295

4. Other Consumer

a. Average Total Loan Balance $2,128 $2,096 $2,073 Includes consumer PRA & LOCs. Subcategories include Auto Leases, Dealer Finance, Personal,

Securities Loans, and Student Loans.

b. Originations $43 $59 $56 Includes Additional Notes and Refinances to existing customers and notes to new customers.

Average Loan Ba

Average Balance

Unused Commit

1
SCHEDULE B: COMMERCIAL LENDING (Millions $) NOV DEC JAN Key 

1. C & Ia. Average Total Loan and Lease Balance $13,214 $13,042 $12,804 Includes A/R and Inventory, Dealer Commercial, Agricultural, IRB's and Muni, and Commercial

Leases.

b. Renewal of Existing Accounts $182 $161 $153 Renewals include renewal of existing accounts where new money is requested, terms are

modified, or new master line is established.

c. New Commitments $65 $146 $24 Includes New Loans to New Customers and Unused Commitments to C&I (Also includes Unused

Commitments to: Finance Agricultural Production and Other).

2. Commercial Real Estate

a. Average Total Loan and Lease Balance $19,941 $19,560 $19,139 Includes Business Purpose 1‐4 and Construction, Development, & Vacant Land (Commercial and

Residential).

b. Renewal of Existing Accounts $43 $64 $35 Renewals include renewal of existing accounts where new money is requested, terms are

modified, or new master line is established.

c. New Commitments $40 $71 $19 Includes New Loans to New Customers and Unused Commitments for CRE (Also includes Unused

Commitments to: New Construction, Land Development and Other Land; Farmland; 1‐4 Family

Residential Properties; Multi‐Family (5 or more) Residential Properties).

4. Small Business Loans3

a. Average Total Loan Balance $3,462 $3,426 $3,397 Includes SBA‐guaranteed loans and Business Loans & Commitments < $1 million to customers with

Revenue < $1 million. Excludes Letters of Credit.

Corresponding w

month led by Co

Construction an

Average Balance

Loans. January origination again 

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

Average balance

reduce capital e

acquisition activ

2

b. Originations $12 $31 $13SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities $202 $895 $507 Includes Mortgage Backed security purchase activities net of any security MBS sale activities,

within the consolidated investment holdings. At Qtr‐end this may also include Traded‐not‐settled

transactions.

b. Asset Backed Securities $0 $0 $02. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 N/A N/A N/A

b. Average Total Debit Balances2 N/A N/A N/A3. Underwriting

a. Total Equity Underwriting N/A N/A N/A

b. Total Debt Underwriting N/A N/A N/A

g g 

current econom

Notes:3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

1. Not applicable if matched book activity does not exceed $50 billion.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  Marshall & Ilsley Corporation

Reporting month(s):  January 2010   

Submission date:  02/26/2010

Person to be contacted regarding this report:  Gregory A. Smith

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

Marshall & Ilsley Corporation (M&I) is a diversified financial services corporation headquartered in

Milwaukee, Wisconsin.  M&I Marshall & Ilsley Bank is the largest Wisconsin‐based bank, with 192 offices

throughout the state.  In addition, M&I has 53 locations throughout Arizona; 32 offices in Indianapolis

and nearby communities; 36 offices along Florida’s west coast and in central Florida; 16 offices in Kansas

City and nearby communities; 26 offices in metropolitan Minneapolis/St. Paul, and one in Duluth, Minn.;

and one office in Las Vegas, Nev.  M&I’s Southwest Bank subsidiary has 17 offices in the greater St. Louis

area.  

The communities and customers M&I serves continue to face impacts from current recessionary

conditions of the economy.  Nonetheless, M&I extended approximately $230 million of new credit to

new and existing customers in January for a total of over $6.6 billion since the infusion of CPP capital in

mid‐November 2008 (The “new credit” amount includes new and expanded extensions of credit, or

commitments to extend credit, as well as renewals of existing credit where a new promissory note was

executed).  Additionally, M&I has continued with a franchise‐wide foreclosure abatement program

designed to keep families in their homes, including a foreclosure moratorium on certain owner‐occupied

residential loans through March 31, 2010.  

In Commercial and Industrial loans, loan demand continues to be weak across all of our markets.  

Continued economic uncertainty has resulted in borrowers reducing capital expenditures, delaying

investment in infrastructure (plants and equipment), experiencing lower inventories and receivables,

and lower merger and acquisition activity, all of which influence customer borrowing needs.

In Commercial Real Estate, Construction and Development concentrations continue to decline in‐line

with our corporate goal of reducing credit exposure in this sector.  Continued economic uncertainty has

resulted in increased challenges for customers across a variety of sectors including retail, office and

hospitality.

In Residential Real Estate, we are primarily utilizing secondary market options to effectively address the

demand for fixed rate mortgage originations and selectively using the balance sheet for adjustable rate

mortgages.  Mortgage originations decreased from December to January.  The decrease in refinancing

activity (due to rising rates in December) added to the decrease in January new home originations which

is seasonally typical.  During the same period, mortgage application volume also decreased.  The

Average Loan Balance decline year‐over‐year is attributed to originations being sold in the secondary

market, periodic sales of non‐performing loans and amortization of the portfolio.  We continue to focus

on serving customer needs as evidenced by $3.3 billion of total mortgage originations in 2009.
Name of institution: PNC Financial Services Group Submission date: 2/26/2010 Person to be conta

PART I. QUANTITATIVE OVERVIEW

2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $19,827 $19,701 $19,657

b. Total Originations $761 $686 $617(1) Refinancings $454 $437 $463(2) New Home Purchases $307 $249 $154

2. Home Equity

a. Average Total Loan Balance $36,091 $35,977 $35,847b. Originations (New Lines+Line Increases) $264 $283 $214

2009

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

1

c. Total Used and Unused Commitments $55,040 $54,453 $54,431

3. US Card ‐ Managed

a. Average Total Loan Balance ‐ Managed $6,488 $6,514 $6,497

b. New Account Originations (Initial Line Amt) $137 $119 $110

c. Total Used and Unused Commitments $24,964 $24,741 $24,696

4. Other Consumer

a. Average Total Loan Balance $12,987 $13,407 $14,155b. Originations $210 $463 $823

• Line 3 represents credit cards and other revolving products exposure.

• Total outstandings for Credit card alone were $4,114 million in January, slightly lower than

December ($4,200 million). New account volume for Credit Card alone was 6.93% higher than

December level.

1
SCHEDULE B: COMMERCIAL LENDING (Millions $) NOV DEC JAN Key 

1. C & Ia. Average Total Loan and Lease Balance $61,115 $59,941 $61,168b. Renewal of Existing Accounts $3,607 $5,580 $3,447

c. New Commitments $2,000 $2,709 $3,8912. Commercial Real Estate

a. Average Total Loan and Lease Balance $23,306 $23,399 $22,982b. Renewal of Existing Accounts $401 $888 $556

c. New Commitments $159 $426 $844. Small Business Loans3

a. Average Total Loan Balance $11,530 $11,438 $11,355 The Small Business loans include PNC Business Banking (Retail line of business) plus those small

business loans that are managed in our C&IB portfolio.

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

2

b. Originations $231 $273 $257SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities ‐$235 $1,139 ‐$1,812 Trade Date was used to determine the month in which the purchase occurred. The Mortgage

Backed Securities include MBS, CMBS, CMO's (both agency and non‐agency). Also, the Net

Purchased amount consists of Purchases less sells for the month.

b. Asset Backed Securities $182 $442 $235

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 N/A N/A N/A PNC matched book activity is less than $50 billion and is therefore not being reported, per

Treasury's guidance in footnote 1.

b. Average Total Debit Balances2 N/A N/A N/A PNC is not a prime broker and does not offer other margin lending services to clients.

Therefore, per Treasury's guidance in footnote 2, this section is not applicable to PNC.

3. Underwriting

a. Total Equity Underwriting $21 $68 $13

b. Total Debt Underwriting $492 $759 $170

Notes:1. Not applicable if matched book activity does not exceed $50 billion.

3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: PNC Financial Services Group, Inc.

Reporting month(s): January 2010   

Person to be contacted regarding this report: Shaheen Dil

Submission date: February 26, 2010

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation’s largest diversified financial

services organizations providing retail and business banking; residential mortgage banking; specialized

services for corporations and government entities, including corporate banking, real estate and asset‐

based lending; wealth management; asset management and global fund services. PNC is committed to

supporting the objectives of the Emergency Economic Stabilization Act, and is continuing to make credit

available to qualified borrowers. PNC is working closely where appropriate with customers who are

experiencing financial hardship to set up new repayment schedules, loan modifications and forbearance

programs. Overall, PNC originated approximately $9.7 billion in loans and commitments to lend in

January, 13% lower than in December.  

First Mortgage

New first mortgage applications in January were $845 million, down approximately 25% from December

and consistent with industry trends.  December applications were unexpectedly higher as a result of a

drop in interest rates that caused a temporary surge in new refinance applications.  Closed loan fundings

totaled $617 million for the month, 8% lower than December, reflecting typical seasonality trends.  

Conventional loans were 76% of the total, including loans originated for sale to Fannie Mae or Freddie

Mac as well as jumbo loans originated for portfolio.  FHA insured and VA guaranteed loans accounted

for 24% of the total.  Fixed rate mortgages represented 96% of the total.

Execution of the Home Affordable Refinance Program (HARP) and the Home Affordable Modification

Program (HAMP) continues. During January, 281 HARP refinances totaling $56.1 million were funded.  

Program to date, 2,383 HARP refinances totaling $482.0 million have been funded.  Through January,

72,564 HAMP solicitations have been sent to eligible borrowers.    20,472 HAMP Trial Plan offers have

been extended.  13,141 borrowers are active in HAMP Trial Modifications. 77 borrowers have been

converted to final HAMP loan modifications.  832 are pending permanent modification.

During January, 436 non‐HAMP loan modifications were completed.  1,009 borrowers were active in

repayment plans.  3,877 borrowers were active in payment forbearance plans.  407 short sale

transactions were completed.

Consumer Lending

Home Equity origination volume declined in January as a result of lower production levels in December,

which carried over and impacted new originations for January.  Overall, lower consumer demand along

with normal seasonal trends has negatively impacted production.  Furthermore, the decline in new

originations has contributed to lower average balances as payments outpaced new originations in

January.  Marketing and sales support efforts are well underway to help improve production levels.

1
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: PNC Financial Services Group, Inc.

Reporting month(s): January 2010   

Person to be contacted regarding this report: Shaheen Dil

Submission date: February 26, 2010

In Other Consumer Loans, Education Lending is still experiencing a seasonal increase due to the second

disbursements of loans applied for in the peak summer season, coinciding with the start of second

semester.   Other installment loan volume was up slightly year over year.  Branch training, customer

mailings and internet advertising efforts continue to help augment originations. With respect to Indirect

Lending, January originations increased by 9% compared to December 2009.  Despite increased

competition, low dealership foot‐traffic due to severe weather conditions, and lower inventory levels at

dealerships due to a lack of supply.  

Loss Mitigation – Distressed Assets – Home Equity, Non‐Prime Mortgage, Bank Owned Mortgage and

Construction Lending; the expansion of the Homeowners Assistance Centers to the Florida market

continues apace and is on schedule for business by end of March 2010.  Non‐prime borrower research

was conducted on how to better reach borrowers in distress and to simplify the loan modification

process.  Ongoing programs to assist borrowers with short sales and refinances continues in both the

broker home equity portfolio and the construction lending portfolio.  Also, we are evaluating ways to

execute the 2MP program (Second Lien Modification Program) and the Home Affordable Foreclosure

Alternative program for first mortgages.   

US Credit Cards (excluding other revolving exposure)

Total outstandings for the Credit card portfolio in January ($4.114 billion) were down from December

($4.200 billion).  New account volume was higher than the prior month (up 6.93%).  Total accounts

booked in January were 12.8 thousand, of which 10.4 thousand were new consumer accounts and 2.4

thousand were business card accounts.  The average credit line granted was $8,270 for consumer cards

and $9,477 for business cards.  Total credit line granted for the new accounts was lower in January

($95.4 million versus $101.5 million in December).  Total credit available is $23,721 million for January

versus $23,684 million for December.  The branch network continues to be the main driver of new

account activity for the Credit Card portfolio.

Business Banking (in Retail line of business)

Balances in Business Banking (customers with annual revenues less than $10 million) declined less than

1% in January from prior month.  During January, PNC Business Banking extended $257 million in credit

commitments to small businesses including SBA loans.  Volume was down 6% from December but the

pipeline is building and activities are being executed across the bank to lend as much as possible.

Targeted leads were provided to the branches and direct sales force in late December and early January.  

Second look processes are in place to ensure every effort is made to approve small business loans.

C&I   

PNC remains keenly focused on providing credit to qualified C&I borrowers. During 2009, we led more

than 120 syndicated financing transactions, totaling more than $6.3 billion, for middle market

companies located across the country.

PNC is highly focused on generating new sales across our entire product and service set. In fact, 2009

sales results for most of our commercial banking businesses in the legacy PNC markets were

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: PNC Financial Services Group, Inc.

Reporting month(s): January 2010   

Person to be contacted regarding this report: Shaheen Dil

Submission date: February 26, 2010

substantially ahead of 2008 sales results. And we expect similar sales strength in the legacy National City

markets as most of those markets convert to PNC during the first half of 2010.   

At the same time, we continue to hear from many C&I clients and prospects that they remain very

cautious in their own planning, choosing to protect their existing capital and maintain existing credit

facilities in order to avoid the new realities of today’s market pricing and structure requirements.

Borrowers continue to pay down bank credit with debt and equity issuances, which rose toward the end

of 2009 as issuers sought to price deals before the end of the year.  We continue to see loan utilization

rates at historically low levels as our clients’ working capital needs remain low in this economy.

We also continue to see the loan market become increasingly competitive.  Spreads peaked in the

second quarter and have steadily tightened since.  Tenors are also lengthening, as we are beginning to

see four‐ and 5‐year deals again, whereas earlier in the year almost no deals went beyond 3 years.  We

have not seen any other material changes in structure, so discipline remains generally strong.   

In the past few weeks we have begun to see M&A deals across our segments, although it’s too early to

declare a trend.  The deals have been driven by strategic buyers and post transaction leverage remains

moderate in the transactions we have seen.  We are hopeful that this M&A activity and leveling of

utilization rates are indicators that loan demand will begin to increase as 2010 progresses.   

We continue to identify an abundance of asset‐based lending opportunities with companies whose

financial performance may have declined but who remain viable and have asset values that support

secured lending structures. The strong demand in 2009 resulted in a record number of new business

originations and a pipeline of new loan opportunities that remains healthy.  In fact, we are currently

planning to add staff in order to pursue these opportunities. As of December 2009, the growth provided

by new lending opportunities and seasonal borrowings of existing clients had reversed a previous

yearlong decline in customer loan balances associated with lower inventory and receivables levels.  In

early 2010, we are expecting seasonal declines in the utilization of credit lines by the retail customer

base.  Today, line utilization remains in line with industry averages of 39%, which is almost 10% lower

than a year ago.

PNC’s loan growth will continue to be moderated by the need to gradually reduce credit exposure to

some companies where PNC and National City have historically both provided credit and where the

combined loan levels are now in excess of established risk tolerance limits.

Commercial Real Estate

PNC remains committed to commercial real estate lending.  However, the slowdown in the overall

market, coupled with reduced borrower demand, the substantial combined exposure of PNC and

National City, as well as ongoing payoffs and charge‐offs, suggests that aggregate loan balances will

continue to decline for some time. PNC continues to work with credit‐worthy borrowers to restructure

and modify their loans.  In addition, PNC continues to be very active in real estate lending to multifamily

owners and operators with whom we are leveraging our strong relationships with agency lenders such

as Fannie Mae and Freddie Mac.  While most of these programs do not result in loans on our balance

sheet, many do require substantial use of capital to support loss‐sharing arrangements. PNC also

3
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: PNC Financial Services Group, Inc.

Reporting month(s): January 2010   

Person to be contacted regarding this report: Shaheen Dil

Submission date: February 26, 2010

4

continues to purchase Low Income Housing Tax Credits that provide equity for the construction of low‐

income housing projects. Although these investments are not reflected as loans on our balance sheet,

they do inject growth capital into the economy and require substantial use of our own capital base.  
Name of institution: Regions Financial Corporation Submission date: February 26, 2010 

PART I. QUANTITATIVE OVERVIEW

SCHEDULE A: CONSUMER LENDING (Millions $) 20101. First Mortgage Nov Dec Jan Key a. Average Loan Balance (Daily Average Total Outstanding) $16,283 $16,404 $16,323 First and second residential 1‐4 family mortgages, including residential mortgages held for sa

b. Total Originations $689 $644 $416 Loan originations designated for the secondary market and those to be held in portfolio on

Regions' balance sheet.

(1) Refinancings $393 $384 $260 Total originations designated as refinance status.

(2) New Home Purchases $296 $260 $157 Total originations designated as new purchase status.

2. Home Equity

a. Average Total Loan Balance $15,509 $15,436 $15,342 Average balances include Home Equity loans and HELOCs.

b. Originations (New Lines+Line Increases) $77 $94 $61 New Home Equity loans, lines and increases.

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

2009

c. Total Used and Unused Commitments $25,840 $25,749 $25,489 Total portfolio of Home Equity loans and funded and unfunded HELOCs. Funded portion inclu

in average balance above.

3. US Card ‐ Managed

a. Average Total Loan Balance ‐ Managed N/A N/A N/A N/A ‐ Regions Financial Corp is an Agent Bank.

b. New Account Originations (Initial Line Amt) N/A N/A N/Ac. Total Used and Unused Commitments N/A N/A N/A

4. Other Consumer

a. Average Total Loan Balance $4,191 $4,094 $4,117 Includes consumer direct, indirect, other revolving (i.e., overdraft lines) and student loans hel

sale.

b. Originations $76 $91 $297 Includes direct and student lending origination activity.

1
SCHEDULE B: COMMERCIAL LENDING (Millions $)

1. C & I Nov Dec Jan Key 

a. Average Total Loan and Lease Balance $34,456 $34,281 $34,252 Average outstanding funded balances (net of deferred fees and costs) for commercial related

loans and leases. Also includes owner‐occupied commercial real estate mortgage and

construction loans made to operating businesses.

b. Renewal of Existing Accounts $1,624 $1,528 $1,260 Renewal of existing funded and unfunded commitments for commercial and owner‐occupied 

estate related loans based upon posting date of renewal. Also includes letters of credit.

c. New Commitments $994 $1,291 $639 New funded and unfunded commitments for commercial and owner‐occupied real estate related loans

based upon posting date of the commitment. Also includes letters of credit and leases. Variable Rate

Demand Note (VRDN) fundings are excluded from new commitment activity.

2. Commercial Real Estatea. Average Total Loan and Lease Balance $22,804 $22,399 $21,916 Average outstanding funded balances (net of deferred fees and costs) for commercial investo

owned real estate related loans. Also includes Commercial loans held for sale.

b. Renewal of Existing Accounts $1,230 $1,636 $932 Renewal of existing funded and unfunded commitments for commercial investor‐owned real

estate related loans based upon posting date of renewal. Also includes letters of credit.

c. New Commitments $41 $132 $17 New funded and unfunded commitments for commercial investor‐owned real estate related loans base

upon posting date of the commitment. Also includes letters of credit. Variable Rate Demand Note (VR

fundings are excluded from new commitment activity.

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

4. Small Business Loans3

a. Average Total Loan Balance $13,852 $13,780 $13,712 Average outstanding funded balances (net of deferred fees and costs) for commercial and commercial real estate relate

made to small business clients, which we generally define as clients with revenues up to $10 million. These balances ar

reflected as components of C&I, Commercial Real Estate and First Mortgage reported above.

b. Originations $542 $630 $470 New and renewed production of funded and unfunded commitments made to small business

clients, which we generally define as clients with revenues up to $10 million. These originatio

are reflected as components of C&I and Commercial Real Estate reported above.

SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities $516 $1,726 $1,038 Net purchase volume as captured in bond accounting system. Reflects settlement date.

b. Asset Backed Securities $0 $0 $02. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 N/A N/A N/A

b. Average Total Debit Balances2 $801 $805 $767 Reflects average margin receivables as recorded on the general ledger.

3. Underwriting

a. Total Equity Underwriting $21 $73 $91 Total equity underwriting activity. Represents Regions' participation percentage.

b. Total Debt Underwriting $1,470 $1,724 $740 Debt issuances delivered monthly. Represents Regions' participation percentage.

Notes:3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loa

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

1. Not applicable if matched book activity does not exceed $50 billion.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s):    January, 2010      

Submission date:  February 26, 2010

Person to be contacted regarding this report:  David Turner, Chief Financial Officer

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

I. Company Description

Regions Financial Corporation (“Regions” or the “Company”) is a financial holding company

headquartered in Birmingham, Alabama, which operates throughout the South, Midwest and Texas.

Regions provides traditional commercial, retail and mortgage banking services, as well as other financial

services in the fields of investment banking, asset management, trust, securities brokerage, insurance

and other specialty financing.  At December 31, 2009, Regions had total consolidated assets of

approximately $142 billion.   

Regions conducts its banking operations through Regions Bank, its brokerage and investment banking

business through Morgan Keegan & Company, Inc. (“Morgan Keegan”), and its insurance brokerage

business through Regions Insurance Group, Inc.

II. Overall Summary  

In January, new and renewed commitments decreased by $1.8 billion to $3.6 billion for the month, and

average balances were down $0.7 billion from December to $92.0 billion.

The month over month decrease in new and renewed commitments was driven primarily by a $0.7

billion decrease in renewals in Commercial Real Estate and a $0.7 billion decrease in new commitments

in C&I.

III. Consumer Lending

A. Mortgage Lending

The mortgage division originated mortgage loans totaling $416 million in January 2010.  Overall

production decreased 35% from the prior month.  New purchase originations declined from the prior

month 40%, and refinancing activity decreased 33%.  Application activity in January decreased 1.4%.

Regions’ mortgage division rolled out the U.S. Treasury sponsored Home Affordable Refinance Program

(HARP) in late March 2009, which provides borrowers who have an existing loan owned or securitized by

Fannie Mae or Freddie Mac, the ability to refinance to more beneficial financing terms with no new or

additional mortgage insurance required, even if their current loan‐to‐value ratio is higher than it was on

the original loan.  The loan‐to‐value ratio can not exceed 125%.  January originations included

approximately $41 million related to 226 loans refinanced under the Home Affordable Refinance

Program.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s):    January, 2010      

Submission date:  February 26, 2010

Person to be contacted regarding this report:  David Turner, Chief Financial Officer

2

Regions’ has implemented the U. S. Treasury sponsored Home Affordable Modification Program (HMP)

for FNMA/FHLMC loans serviced by Regions. This program is designed to assist mortgage borrowers who

have an existing loan owned or securitized by Fannie Mae or Freddie Mac, and who are in imminent

danger of default or are already in default to obtain modified financing terms prescribed by the

program.  In accordance with the program guidelines, Regions has distributed approximately 1,184

modification packages to eligible borrowers subject to a ninety‐day trial period. The first modifications

under this program were seen in July 2009.  In the month of January, Regions completed 75

modifications totaling $11.4 million in unpaid principal.  Regions currently services approximately $19.9

billion of Fannie Mae and Freddie Mac mortgages.

B. Home Equity Lending

Home Equity production declined 35% in January to $61MM. The decline in production can be

attributed to reduced bookings and reduced loan size January versus December. Home Equity Lending

production remains low, down 40% compared to same period prior year. Lower production is the result

of reduced application volume and declining home values limiting the qualifying amount for

homeowners, thus driving lower loan sizes.  January’s application volume increased 16% and approval

rates increased 3.5%, leading indicators that future production should improve.

Overall Home Equity average balances declined $94 million or 0.6% in January to $15.3 billion.  The

HELOAN portfolio declined $31 million, 1.7%, while HELOC balances declined $63 million, 0.5%,

reflecting portfolio paydowns in excess of new production.

C. Other Consumer Lending

Overall, Other Consumer Lending balances increased 0.6% in January compared to December primarily

driven by student lending originations (spring term).  However, this was offset by continued run‐off in

the Indirect Lending portfolio.   

D. Customer Assistance Program

Regions continues to work to meet the unique needs of financially troubled borrowers to stem

foreclosures and keep customers in their homes. Well before the full effects of the credit crisis were

realized, Regions launched an extensive Customer Assistance Program (CAP) for troubled borrowers.  As

unemployment levels continue to elevate and the housing crisis lingers our goal remains the same ‐ to

ensure customers who encounter financial difficulty know they have options and that Regions wants to

work with them.

As a result, Regions has taken steps including renegotiating the terms of mortgages and home equity

loans, keeping families in their homes and allowing Regions to maintain a foreclosure rate well below

industry average for residential first mortgages.  Overall, the number of Regions first mortgage loans in

the foreclosure process is less than half the national average. (1.80% for Regions vs. 4.47% nationally in

the third quarter of 2009.)  Since inception of the program, Regions has restructured more than $1.9
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s):    January, 2010      

Submission date:  February 26, 2010

Person to be contacted regarding this report:  David Turner, Chief Financial Officer

3

billion in mortgages, including $31 million in Jan 2010. Regions has assisted more than 27,000

homeowners with solutions. 

In addition, Regions introduced the U.S. Treasury sponsored Home Affordable Modification Program for

loans serviced on behalf of Fannie Mae and Freddie Mac back in late March.  To date, we have initiated

1,184 trial period modifications for $183 million and of those, 513 have been completed for $81 million.

IV. Commercial Lending

November and December amounts have been reclassified to reflect owner‐occupied commercial real

estate mortgage and construction loans as C & I loans consistent with the January presentation.

A.  Commercial and Industrial Lending

Loan demand remained soft in January, as the stagnant economy continues to drive more conservative

leverage positions.  Outstanding loan balances remained relatively flat in January as compared to

December levels.  Outstanding loan balance declines throughout 2009 were driven by declining line

utilization rates resulting from economic factors, however, line utilization rates have remained relatively

stable since October 2009.

In the middle market, client appetite for additional debt remains low.  Lower sales volumes have

resulted in lower inventory and accounts receivable financing requirements.  Businesses are less likely to

invest in or expand their operations given the current economic outlook.

  

Lending activity continues to increase in the not‐for‐profit/public institution sector, as many large

investment‐grade borrowers are exiting the bond market and seeking senior bank debt. With the

expansion of the rules for bank qualified lending, the Stimulus Act is providing additional opportunities

to extend credit to public entities.

Regions defines small business, in general, as clients with revenues up to $10 million.  Small business

lending activity is reflected within our Commercial and Industrial, Commercial Real Estate and

Residential Mortgage outstanding loan balances and production.   

Small businesses are experiencing lower working capital requirements resulting from lower sales

volumes and are reluctant to make capital investments given the current economic outlook.  As a result,

we are seeing small businesses build cash in their operating accounts.  Loan pipelines ended January

2010 at 74% of the prior year level and down 19% versus December.  Small business line utilization rates

have continued to remain stable.

B.  Commercial Real Estate Lending

The focus in commercial real estate lending continues to be on renewing and restructuring real estate

loans with existing clients versus active pursuit of new real estate loans.  Renewal activity includes loan

restructuring, remargining and repricing, consistent with the current credit quality of the sponsor, the

performance of the project and the current market.  As homebuilders sell existing inventory, we
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s):    January, 2010      

Submission date:  February 26, 2010

Person to be contacted regarding this report:  David Turner, Chief Financial Officer

4

continue to convert lot loans to residential construction loans, in turn, reducing our land and lot

portfolio.  

In January, new loan demand remained low.  Developers are reluctant to begin new projects or

purchase existing projects under current economic conditions.

V. Treasury Activities  

Management of interest rate risk is among the most fundamental tenets in banking.  Banking

institutions utilize the Available for Sale investment portfolio as a primary tool to balance the inherent

interest rate risk arising from core banking activities.  Agency Mortgage‐Backed securities provided an

efficient means to offset asset sensitivity and maintain the desired liquidity profile, while offering a

compelling risk adjusted return on the use of capital.  Mortgage‐Backed security activity in January

totaled $1.0 billion, which consists of Agency Fixed‐Rate Mortgage‐Backed Products.  

VI. Equity and Debt Activities at Morgan Keegan

The Morgan Keegan Equity department saw that issuers were able to raise money during January

despite the DOW index trading down during the month.  The leading industries for the month were

finance, oil & gas, utilities and healthcare.  The year 2009 outperformed 2008 in the number of

transactions by 60%.  Although we do not anticipate such a sharp contrast between 2009 and 2010, we

do expect to see growth in IPO and secondary issuance.  The January slowdown in Morgan Keegan Debt

underwriting (compared with Q4 2009) is consistent with historical underwriting trends.    We expect

underwriting volume to increase incrementally each month thru June before tapering off in the summer

months.  
Name of institution: SunTrust Banks, Inc. Submission date: 03/01/10 Person to be c

PART I. QUANTITATIVE OVERVIEW

2010

SCHEDULE A: CONSUMER LENDING (Millions $) NOV DEC JAN Key 1. First Mortgagea. Average Loan Balance (Daily Average Total Outstanding) $32,589 $32,385 $31,866 Consists of (1‐4 family) residential whole loans and closed end loans secured by junior liens

originated as part of a home purchase or refinance transactions. Includes loans retained in

SunTrust's loan portfolio and loans currently recorded in loans held for sale.

b. Total Originations $2,867 $2,724 $1,913 Includes all loans originated or purchased by SunTrust through the Retail and Wholesale channels.

Volumes include all activity regardless of whether the loans are retained in the loan portfolio, or

recorded in loans held for sale and ultimately sold to a third party.

(1) Refinancings $1,688 $1,617 $1,290(2) New Home Purchases $1,179 $1,107 $623

2. Home Equity

a. Average Total Loan Balance $17,688 $17,680 $17,509 Average balance, originations, and commitments include both Home Equity Lines and Home Equity

Loans.

b. Originations (New Lines+Line Increases) $89 $110 $85

Originations dec

decreased $519 

sale into the sec

some firming of 

economic stimu

Average balance

23% from Decem

2009

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

1

c. Total Used and Unused Commitments $33,462 $33,243 $32,936

3. US Card ‐ Managed

a. Average Total Loan Balance ‐ Managed $1,000 $997 $1,068 Purchases drawn against SunTrust consumer and commercial credit card lines of credit are booked

in the calendar month transacted.

b. New Account Originations (Initial Line Amt) $4 $721 $13 SunTrust issues both commercial and consumer credit card lines of credit. New line commitments

are recognized when approved and cards are issued.

c. Total Used and Unused Commitments $3,514 $4,139 $4,125 This is the line commitment total for all credit card accounts of record.

4. Other Consumer

a. Average Total Loan Balance $12,306 $12,209 $12,393 Average balances and originations include student loans, direct installment loans (auto and non‐

auto), indirect installment loans (auto and marine), and unsecured personal credit lines.

b. Originations $316 $485 $649

Average balance

mainly to season

The $71 million 

million of purch

the accounts pu

2009 average m

nearly 26% in Ja

1
SCHEDULE B: COMMERCIAL LENDING (Millions $) NOV DEC JAN Key 

1. C & Ia. Average Total Loan and Lease Balance $32,993 $32,369 $33,635 Includes average outstandings for Commercial & Industrial loans and leases extended to small

business, commercial, middle market, and large corporate clients.

b. Renewal of Existing Accounts $966 $1,427 $723 Renewals represent credit facilities and stand‐alone notes that matured and were renewed during

the reporting period. Includes funded loans and unfunded commitments, but does not include

letters of credit or derivatives.

c. New Commitments $851 $1,184 $702 Includes new facilities, stand‐alone notes, and leases extended to new or existing clients. Reflects

both funded loans and unfunded commitments. Does not include takedowns under existing

commitments, letters of credit, or derivatives.

2. Commercial Real Estate

a. Average Total Loan and Lease Balance $22,604 $22,231 $21,893 Includes commercial loans secured by owner occupied or non‐owner occupied real estate.

Includes loans extended for real estate financing as well as loans made for other purposes and

collateralized by real estate.

b. Renewal of Existing Accounts $210 $341 $150 Renewals represent credit facilities and stand‐alone notes that matured and were renewed during

the reporting period. Includes funded loans and unfunded commitments, but does not include

letters of credit or derivatives.

c. New Commitments $171 $215 $157 Includes new facilities and stand‐alone notes extended to new or existing clients. Reflects both

funded loans and unfunded commitments. Does not include takedowns under existing

commitments, letters of credit, or derivatives.

4. Small Business Loans3

a. Average Total Loan Balance $5,346 $5,311 $5,288 Average balances and originations include loans originated in the business banking group which

includes loans guaranteed by the SBA. Business Banking primarily serves clients with annual sales

of $5 million or less.

Commercial rea

accounts decrea

SCHEDULE C: MEMORANDA ‐ SMALL BUSINESS LENDING (Millions $)

Reported averag

consolidation of 

conduit in conne

declined relative 

significantly from 

actions to reduc

2

of $5 million or less.

b. Originations $46 $52 $36SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities $736 $229 ‐$550 The numbers represent net purchase volume within the reporting period. These securities are

reported in SunTrust's available‐for‐sale and trading portfolios.

b. Asset Backed Securities $0 $0 $758 The numbers represent net purchase volume within the reporting period. These figures include

securities reported in SunTrust's available‐for‐sale and trading portfolios.

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 n/a n/a n/a SunTrust Bank has less than $50 billion in matched book repos. SunTrust Robinson Humphrey

“STRH”, an institutional broker dealer, is fully disclosed on the equity side through a third party

service provider and does not hold customer accounts.

b. Average Total Debit Balances2 n/a n/a n/a Although STRH self‐clears institutional fixed income transactions, STRH does not carry customer

accounts.

3. Underwriting

a. Total Equity Underwriting $28 $28 $0 Includes total dollars allocated to STRH in equity underwriting transactions that settled within the

reporting period.

b. Total Debt Underwriting $1,478 $485 $324 Includes total dollars allocated to STRH in investment grade fixed income, high yield fixed income,

and municipal debt underwriting transactions that settled within the reporting period.

SunTrust purcha

million of agenc

also purchased $

securities, result

Total debt unde

underwriting of 

Notes:3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

1. Not applicable if matched book activity does not exceed $50 billion.

2
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  SunTrust Banks, Inc.

Reporting month(s):  January 2010   

Submission date: 3/01/10

Person to be contacted regarding this report:  Barry Koling

1

PART II.  QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month.  This discussion should

include a general commentary on the lending environment, loan demand, any changes in lending

standards and terms, and any other intermediation activity.

SunTrust Banks, Inc., with total assets of $174.2 billion on December 31, 2009, is one of the nation’s

largest financial holding companies.  Through its banking subsidiaries, the Company provides deposit,

credit, trust, and investment services to a broad range of retail, business, and institutional clients. Other

subsidiaries provide mortgage banking, brokerage, investment management, equipment leasing, and

capital market services.  SunTrust operates 1,683 retail branches in Alabama, Arkansas, Florida, Georgia,

Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and the

District of Columbia.  In addition, SunTrust services clients in select markets nationally.   

Average loans in January, including loans held for sale, totaled $118.4 billion, up $492 million or 0.4%

from December.  These totals do not include loans extended to clients and sold to third parties.  This

fact is particularly relevant when considering the mortgage portfolio, since the majority of new

originations and refinanced mortgage loans are sold to third parties.  Average balances in consumer

lending categories declined $435 million, or 0.7%, from December, while the average balances in

commercial lending categories increased $928 million, or 1.7%, from December.  Reported C&I average

balances increased 3.9% from December average balances, but all of the increase was attributable to

the consolidation of our asset‐backed commercial paper conduit in connection with our adoption of ASC

810‐10, resulting in a net decline in comparable January average balances.  Commercial real estate

average balances in January declined 1.5% from December averages.

Total new loan originations, commitments, and renewals extended to all borrowers in January totaled

$4.4 billion, a decrease of 39.1% from December.  Over half of the decrease was attributable to reduced

demand for loans and lines of credit from C&I and Commercial Real Estate clients.  

Consumer Lending

Mortgage originations totaled $1.9 billion during January, representing a 29.8% decrease from

December.  Loans funded for new home purchases and refinancings in January decreased by 43.7% and

20.2%, respectively, relative to December.    Average mortgage balances decreased $519 million, or

1.6%, during January.  The balance decrease was impacted by sales into the secondary market as the

average balance of mortgage loans held for sale decreased $543 million or 16.6%.  Factors influencing

the decline in originations in January included general public uncertainty about upcoming changes in

economic stimulus programs, challenging weather conditions in many markets, and some firming of

market rates following a trend of generally declining rates in late 2009.    

During January, new home equity line and loan production decreased $25 million, or 22.7%, from

December.  The decrease in originations was primarily due to less demand for credit and the continued

impact of the decline in home values.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  SunTrust Banks, Inc.

Reporting month(s):  January 2010   

Submission date: 3/01/10

Person to be contacted regarding this report:  Barry Koling

2

Credit card balances represent a small percentage of SunTrust’s loan portfolio and drive a relatively

immaterial percentage of SunTrust’s total annual loan originations.  Beginning in 2010, all new consumer

credit card line commitments, as well as all new business and corporate credit card line commitments,

are booked by SunTrust in the month of origination.  In late December 2009, SunTrust purchased

consumer credit card accounts consisting of $717 million in new credit lines and over $100 million in

funded credit card receivables.  The full‐month impact of the purchased receivables is reflected in the

7.1% increase in January average balances over December 2009.  In January, new credit card

originations totaled $13 million, with $8 million related to new consumer accounts and $5 million

related to new business and corporate accounts.    

Other consumer loans are primarily composed of student, auto, and other loans.  January fundings for

indirect auto, student, and other consumer loans increased 33.8% from December.  January student

loan originations increased from December by 93.1% due to seasonality associated with semester

tuition payments and student enrollments.  January indirect auto production also increased 15.5% from

December, spurred by more intensive competitive marketing by auto manufacturers.

Commercial Lending

Average C&I loan balances, as reported, increased approximately 3.9% in January to $33.6 billion.  

However, considering the $1.4 billion addition to average balances in conjunction with the consolidation

of our asset‐backed commercial paper conduit, there was a decline in comparable average balances of

approximately $100 million, or 0.3%.  Renewals of existing credit facilities and stand‐alone notes totaled

$723 million in January, a decrease of 49.3% from December, which had been augmented by a large

number of commitment renewals.  New commitments and new funded loans also decreased in January

by $482 million, a 40.7% decrease compared to December, as clients sought alternative funding in the

capital markets.     

Commercial Real Estate

Average Commercial Real Estate loans decreased $338 million, or 1.5%, compared to the December

average.  New residential home builder loan demand was negligible and demand for commercial

development projects remained low as property values remained depressed and investment activity was

limited.  Average balances of commercial real estate loans secured by owner‐occupied real estate

remained stable.

Small Business Lending

Most small business loans are originated in the business banking group which primarily serves clients

with annual sales of $5 million or less.  In January, the average loan balance was $5.3 billion, down 0.4%

from December.  December originations decreased 30.8% from December to $36 million.

Other Intermediation Activities

Beyond lending to consumers and businesses, SunTrust participates in various additional intermediation

activities.  In January 2010, SunTrust added a net $758 million in asset‐backed securities, including

purchases of $763 million and sales of $4.9 million. Also, there was a net reduction of $550 million in
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution:  SunTrust Banks, Inc.

Reporting month(s):  January 2010   

Submission date: 3/01/10

Person to be contacted regarding this report:  Barry Koling

3

total agency mortgage‐backed securities during January, including a purchase of $202 million of agency

mortgage‐back securities, offset by the sale of $752 million of agency mortgage‐backed notes.  

SunTrust participated in thirteen debt issues in January with a total notional value of $13.3 billion.  

SunTrust’s allocation of underwritten debt included $247 million in investment‐grade fixed‐income

issues, $17 million in municipal debt issues, and $60 million in high‐yield fixed‐income offerings, which in

the aggregate was $161 million below December totals.