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Business Segment Reporting
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Business Segment Reporting
NOTE 21 - BUSINESS SEGMENT REPORTING
The Company has six business segments used to measure business activities: Retail Banking, Diversified Commercial Banking, CRE, CIB, Mortgage, and W&IM with the remainder in Corporate Other and Treasury. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management.
Retail Banking serves consumers and business clients with less than $5 million in annual revenue (up to $10 million in sales in larger metropolitan markets). Retail Banking provides services to clients through an extensive network of traditional and in-store branches, ATMs, the internet (www.suntrust.com), and the telephone (1-800-SUNTRUST). Financial products and services offered to consumers include consumer deposits, home equity lines, consumer lines, indirect auto, student lending, bank card, and other consumer loan and fee-based products. Retail Banking also serves as an entry point and provides services for other lines of business. When client needs change and expand, Retail Banking refers clients to our W&IM, CIB, Mortgage, Diversified Commercial Banking, CRE, and Corporate Other and Treasury lines of business.

Diversified Commercial Banking provides enterprises with a full array of financial products and services including commercial lending, financial risk management, capital raising, commercial card, and other treasury and payment solutions.  The primary client segments served by this line of business include Commercial ($5 million to $100 million in annual revenue), Middle Market ($100 million to $750 million in annual revenue), Dealer Services (financing dealer floor plan inventories) and Not-for-Profit and Government entities.  Diversified Commercial Banking also includes the Premium Assignment Corporation, which provides insurance premium financing, and Leasing, which provides equipment and lease financing; both provide services inside and outside of the SunTrust footprint.

CRE offers a broad range of financial solutions to commercial real estate developers and investors. Services include construction, mini-perm, and permanent real estate financing, capital raising services, financial risk management, treasury and payment solutions, investment advisory and management services, as well as tailored financing and equity investment solutions for community development and affordable housing projects delivered through SunTrust Community Capital.

CIB offers a full line of traditional banking and investment banking services to corporate banking and institutional investor clients.  The Corporate Banking Group generally serves clients with greater than $750 million in annual revenue and is focused on selected industry sectors:  consumer and retail, energy, financial services and technology, healthcare, and media and communications. Through STRH, CIB provides an extensive range of investment banking products and services to its clients, including strategic advice, capital raising, and financial risk management.  These investment banking products and services are also provided to Middle Market, Diversified Commercial Banking and W&IM clients. CIB also offers traditional lending, leasing, treasury management services and institutional investment management to its clients.

The Mortgage line of business offers residential mortgage products nationally through its retail, broker and correspondent channels, as well as via the internet (www.suntrust.com) and by the telephone (1-800-SUNTRUST). These products are either sold in the secondary market, primarily with servicing rights retained, or held in the Company's loan portfolio. The line of business services loans for itself, for other SunTrust lines of business, and for other investors. The line of business also includes ValuTree Real Estate Services, LLC, a tax service subsidiary.

W&IM provides a full array of wealth management products and professional services to both individual and institutional clients. W&IM's primary businesses include PWM, GenSpring, IIS, and RidgeWorth.

The PWM group offers brokerage, professional investment management, and trust services to clients seeking active management of their financial resources. PWM includes the Private Banking group which offers a full array of loan and deposit products to clients, as well as STIS, which offers discount/online and full service brokerage services to individual clients.

GenSpring provides family office solutions to ultra high net worth individuals and their families. Utilizing teams of multi-disciplinary specialists with expertise in investments, tax, accounting, estate planning, and other wealth management disciplines, GenSpring helps families manage and sustain their wealth across multiple generations.

IIS includes Employee Benefit Solutions, Foundations & Endowments Specialty Group, and Escrow Services.  Employee Benefit Solutions provides administration and custody services for defined benefit and defined contribution plans as well as administration services for non-qualified deferred compensation plans.  Foundations & Endowments services non-profit organizations by providing bundled administrative and investment solutions including planned giving, charitable trustee, and foundation grant administration.  Escrow Services services corporations, governmental entities and attorneys requiring escrow services.

RidgeWorth, an SEC registered investment advisor, serves as investment manager for the RidgeWorth Funds as well as individual clients. RidgeWorth is also a holding company with ownership in other institutional asset management boutiques offering a wide array of equity, alternative, fixed income, and liquidity management capabilities.  These boutiques include Ceredex Value Advisors, Certium Asset Management, Seix Investment Advisors, Inc., Silvant Capital Management, StableRiver Capital Management and Zevenbergen Capital Investments, LLC. On July 16, 2010, the Company reached a definitive agreement for Federated Investors, Inc. (Federated) to acquire approximately $17 billion in managed liquidity assets. SunTrust retained RidgeWorth's long-term asset management business. The transactions received the customary approvals and the migration to the Federated Funds was completed by year end 2010.

Corporate Other and Treasury includes the investment securities portfolio, long-term debt, end user derivative instruments, short-term liquidity and funding activities, balance sheet risk management, and most real estate assets. Other components include Enterprise Information Services, which is the primary data processing and operations group; the Corporate Real Estate group, Marketing, SunTrust Online, Human Resources, Finance, CRM, Legal and Compliance, Branch Operations, Corporate Strategies, Communications, Procurement, Consumer Banking Administration, and Executive Management. Additionally, Corporate Other and Treasury also includes Trustee Management, which provides treasury management and deposit services to bankruptcy trustees.
Because the business segment results are presented based on management accounting practices, the transition to the consolidated results, which are prepared under U.S. GAAP, creates certain differences which are reflected in Reconciling Items.
For business segment reporting purposes, the basis of presentation in the accompanying discussion includes the following:
•
Net interest income – All net interest income is presented on a FTE basis. The revenue gross-up has been applied to tax-exempt loans and investments to make them comparable to other taxable products. The segments have also been matched maturity funds transfer priced, generating credits or charges based on the economic value or cost created by the assets and liabilities of each segment. The mismatch between funds credits and funds charges at the segment level resides in Reconciling Items. The change in the matched maturity funds mismatch is generally attributable to corporate balance sheet management strategies.
•
Provision for credit losses - Represents net charge-offs by segment. The difference between the segment net charge-offs and the consolidated provision for credit losses is reported in Reconciling Items.
•
Provision/(benefit) for income taxes - Calculated using a nominal income tax rate for each segment. This calculation includes the impact of various income adjustments, such as the reversal of the FTE gross up on tax-exempt assets, tax adjustments, and credits that are unique to each business segment. The difference between the calculated provision/(benefit) for income taxes at the segment level and the consolidated provision/(benefit) for income taxes is reported in Reconciling Items.
The segment’s financial performance is comprised of direct financial results as well as various allocations that for internal management reporting purposes provide an enhanced view of analyzing the segment’s financial performance. The internal allocations include the following:
•
Operational Costs – Expenses are charged to the segments based on various statistical volumes multiplied by activity based cost rates. As a result of the activity based costing process, planned residual expenses are also allocated to the segments. The recoveries for the majority of these costs are in the Corporate Other and Treasury segment.

•
Support and Overhead Costs – Expenses not directly attributable to a specific segment are allocated based on various drivers (e.g., number of full-time equivalent employees and volume of loans and deposits). The recoveries for these allocations are in Corporate Other and Treasury.
•
Sales and Referral Credits – Segments may compensate another segment for referring or selling certain products. The majority of the revenue resides in the segment where the product is ultimately managed.
The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is reclassified wherever practicable.
 
Year ended December 31, 2011
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$41,071

 

$25,237

 

$7,961

 

$22,959

 

$33,719

 

$8,616

 

$31,576

 

$1,301

 

$172,440

Average total liabilities
77,458

 
21,740

 
1,568

 
17,879

 
3,838

 
13,036

 
16,432

 
(207
)
 
151,744

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
20,696

 
20,696

Net interest income

$2,543

 

$622

 

$139

 

$498

 

$492

 

$417

 

$514

 

($160
)
 

$5,065

FTE adjustment
—

 
103

 
1

 
3

 
—

 
—

 
6

 
1

 
114

Net interest income - FTE 1
2,543

 
725

 
140

 
501

 
492

 
417

 
520

 
(159
)
 
5,179

Provision for credit losses 2
784

 
92

 
422

 
(10
)
 
693

 
60

 
(1
)
 
(527
)
 
1,513

Net interest income/(loss) after provision for credit losses
1,759

 
633

 
(282
)
 
511

 
(201
)
 
357

 
521

 
368

 
3,666

Total noninterest income
1,064

 
251

 
100

 
636

 
241

 
822

 
333

 
(26
)
 
3,421

Total noninterest expense
2,521

 
460

 
448

 
587

 
1,172

 
922

 
153

 
(29
)
 
6,234

Income/(loss) before provision/(benefit) for income taxes
302

 
424

 
(630
)
 
560

 
(1,132
)
 
257

 
701

 
371

 
853

Provision/(benefit) for income taxes 3
109

 
155

 
(320
)
 
205

 
(439
)
 
94

 
245

 
144

 
193

Net income/(loss) including income attributable to noncontrolling interest
193

 
269

 
(310
)
 
355

 
(693
)
 
163

 
456

 
227

 
660

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
3

 
9

 
1

 
13

Net income/(loss)

$193

 

$269

 

($310
)
 

$355

 

($693
)
 

$160

 

$447

 

$226

 

$647

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
Year ended December 31, 2010
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$39,204

 

$24,862

 

$10,743

 

$20,039

 

$34,791

 

$9,085

 

$32,827

 

$824

 

$172,375

Average total liabilities
75,574

 
20,815

 
1,662

 
16,146

 
4,031

 
11,935

 
19,483

 
(105
)
 
149,541

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
22,834

 
22,834

Net interest income

$2,500

 

$552

 

$162

 

$381

 

$458

 

$385

 

$474

 

($58
)
 

$4,854

FTE adjustment
—

 
105

 
—

 
1

 
—

 
—

 
10

 
—

 
116

Net interest income - FTE 1
2,500

 
657

 
162

 
382

 
458

 
385

 
484

 
(58
)
 
4,970

Provision for credit losses 2
992

 
127

 
442

 
50

 
1,183

 
61

 
—

 
(204
)
 
2,651

Net interest income/(loss) after provision for credit losses
1,508

 
530

 
(280
)
 
332

 
(725
)
 
324

 
484

 
146

 
2,319

Total noninterest income
1,129

 
235

 
88

 
672

 
521

 
821

 
295

 
(32
)
 
3,729

Total noninterest expense
2,526

 
448

 
469

 
498

 
1,065

 
919

 
19

 
(33
)
 
5,911

Income/(loss) before provision/(benefit) for income taxes
111

 
317

 
(661
)
 
506

 
(1,269
)
 
226

 
760

 
147

 
137

Provision/(benefit) for income taxes 3
38

 
114

 
(332
)
 
186

 
(483
)
 
81

 
262

 
65

 
(69
)
Net income/(loss) including income attributable to noncontrolling interest
73

 
203

 
(329
)
 
320

 
(786
)
 
145

 
498

 
82

 
206

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
1

 
7

 
9

 
—

 
17

Net income/(loss)

$73

 

$203

 

($329
)
 

$320

 

($787
)
 

$138

 

$489

 

$82

 

$189

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2009
(Dollars in millions)
Retail Banking
 
Diversified
Commercial
Banking
 
CRE
 
CIB
 
Mortgage
 
W&IM
 
Corporate Other
and Treasury
 
Reconciling
Items
 
Consolidated
Average total assets

$39,249

 

$26,766

 

$13,631

 

$21,416

 

$37,295

 

$9,133

 
26,713

 

$1,239

 

$175,442

Average total liabilities
73,128

 
19,939

 
2,398

 
12,400

 
3,944

 
11,560

 
29,641

 
146

 
153,156

Average total equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
22,286

 
22,286

Net interest income

$2,295

 

$472

 

$178

 

$304

 

$500

 

$345

 

$429

 

($57
)
 

$4,466

FTE adjustment
—

 
107

 
—

 
2

 
—

 
—

 
14

 
—

 
123

Net interest income - FTE 1
2,295

 
579

 
178

 
306

 
500

 
345

 
443

 
(57
)
 
4,589

Provision for credit losses 2
1,236

 
112

 
435

 
248

 
1,125

 
79

 
2

 
827

 
4,064

Net interest income/(loss) after provision for credit losses
1,059

 
467

 
(257
)
 
58

 
(625
)
 
266

 
441

 
(884
)
 
525

Total noninterest income
1,152

 
247

 
94

 
616

 
687

 
754

 
192

 
(32
)
 
3,710

Total noninterest expense
2,536

 
467

 
730

 
486

 
1,389

 
858

 
128

 
(32
)
 
6,562

Income/(loss) before provision/(benefit) for income taxes
(325
)
 
247

 
(893
)
 
188

 
(1,327
)
 
162

 
505

 
(884
)
 
(2,327
)
Provision/(benefit) for income taxes 3
(122
)
 
90

 
(302
)
 
71

 
(355
)
 
62

 
115

 
(334
)
 
(775
)
Net income/(loss) including income attributable to noncontrolling interest
(203
)
 
157

 
(591
)
 
117

 
(972
)
 
100

 
390

 
(550
)
 
(1,552
)
Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
3

 
—

 
9

 
—

 
12

Net income/(loss)

($203
)
 

$157

 

($591
)
 

$117

 

($975
)
 

$100

 

$381

 

($550
)
 

($1,564
)
1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.