NOTE 14 - BUSINESS SEGMENT REPORTING

The Company has three business segments used to measure business activity: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking, with the remainder in Corporate Other. 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. The segment structure was revised during the first quarter of 2012 from the six segments the Company utilized during 2011. The revised segment structure was in conjunction with organizational changes made throughout the Company that were announced during the fourth quarter of 2011 and implemented in the first quarter of 2012. The following is a description of the new segments and their composition.

The Consumer Banking and Private Wealth Management segment is made up of two primary businesses: Consumer Banking and Private Wealth Management.

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Consumer Banking provides services to consumers through an extensive network of traditional and in-store branches, ATMs, the internet (www.suntrust.com), and 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. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.

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The Private Wealth Management business provides a full array of wealth management products and professional services to both individual and institutional clients including brokerage, professional investment management, and trust services to clients seeking active management of their financial resources. Private Wealth Management's primary businesses include Private Banking, STIS and IIS. Private Banking offers a full array of loan and deposit products to clients. STIS offers discount/online and full service brokerage services to individual clients. IIS includes Employee Benefit Solutions, Foundations & Endowments Specialty Group, and Escrow Services. See the GenSpring discussion in the Wholesale Banking section below for recent developments.

The Wholesale Banking segment includes the following six businesses:

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CIB offers a wide array of traditional banking products (lending and treasury management services) and investment banking services. CIB serves clients in the large, middle corporate and commercial markets. The Corporate Banking Group generally serves clients with greater than $750 million in annual revenues and is focused on selected industry sectors: consumer and retail energy, financial services and technology, healthcare, and media and communications. The Middle Market Group generally serves clients with annual revenue ranging from $100 million to $750 million. Comprehensive investment banking products and services are provided by STRH to clients in both Wholesale Banking and Private Wealth Management, including strategic advice, raising capital, and financial risk management.


•	Diversified Commercial Banking offers an array of traditional banking products and investment banking services as needed for the Company's small business clients, commercial clients, dealer services (financing dealer floor plan inventories), not-for-profit and government entities, and insurance premium financing through Premium Assignment Corporation.

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Commercial Real Estate provides financial solutions for commercial real estate developers and investors, including construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions for community development and affordable housing projects delivered through SunTrust Community Capital. Leasing, offering equipment lease financing solutions, is also managed within this segment.

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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. During October 2012, management responsibility for GenSpring was transferred to the Consumer Banking and Private Wealth Management segment, and accordingly, will be reflected in that segment in the future.

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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 and fixed income capabilities. These boutiques include Ceredex Value Advisors, Certium Asset Management, Seix Investment Advisors, Silvant Capital Management, StableRiver Capital Management, and Zevenbergen Capital Investments.

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Treasury & Payment Solutions provides all SunTrust business clients with services required to manage their payments and receipts, and the ability to manage and optimize their deposits across all aspects of their business. Treasury & Payment Solutions operates all electronic and paper payment types, including card, wire transfer, ACH, check and cash, while providing clients the means to manage their accounts electronically online both domestically and internationally.

The Mortgage Banking segment offers residential mortgage products nationally through its retail, broker, and correspondent channels, as well as via the internet (www.suntrust.com) and by 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.

Corporate Other includes management of the Company's 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 information technology and operations group; the Corporate Real Estate group, Marketing, SunTrust Online, Human Resources, Finance, Corporate Risk Management, Legal and Compliance, Branch Operations, Communications, Procurement, and Executive Management.

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:

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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.

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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.


•	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.


•	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.



	Three Months Ended September 30, 2012
(Dollars in millions)	Consumer Banking and Private Wealth Management		Wholesale Banking		Mortgage Banking			Corporate Other		Reconciling Items			Consolidated
Average total assets		$46,420		$65,105		$35,372			$26,800		$1,585			$175,282
Average total liabilities	76,978		52,746		4,890			19,937		112			154,663
Average total equity	—		—		—			—		20,619			20,619
Net interest income		$641		$441		$130			$79		($20	)		$1,271
FTE adjustment	—		29		—			1		—			30
Net interest income - FTE ¹	641		470		130			80		(20		)	1,301
Provision for credit losses ²	163		78		270			—		(61		)	450
Net interest income/(loss) after provision for credit losses	478		392		(140		)	80		41			851
Total noninterest income	308		402		(75		)	1,910		(3		)	2,542
Total noninterest expense	706		585		371			64		—			1,726
Income/(loss) before provision/(benefit) for income taxes	80		209		(586		)	1,926		38			1,667
Provision/(benefit) for income taxes ³	30		57		(198		)	658		34			581
Net income/(loss) including income attributable to noncontrolling interest	50		152		(388		)	1,268		4			1,086
Net income attributable to noncontrolling interest	—		7		—			3		(1		)	9
Net income/(loss)		$50		$145		($388	)		$1,265		$5			$1,077



	Three Months Ended September 30, 2011
(Dollars in millions)	Consumer Banking and Private Wealth Management		Wholesale Banking			Mortgage Banking			Corporate Other			Reconciling Items			Consolidated
Average total assets		$43,507		$62,659			$33,158			$31,203			$1,549			$172,076
Average total liabilities	77,574		55,466			3,903			15,443			(310		)	152,076
Average total equity	—		—			—			—			20,000			20,000
Net interest income		$630		$414			$116			$128			($25	)		$1,263
FTE adjustment	—		28			—			1			1			30
Net interest income - FTE ¹	630		442			116			129			(24		)	1,293
Provision for credit losses ²	181		167			144			—			(145		)	347
Net interest income/(loss) after provision for credit losses	449		275			(28		)	129			121			946
Total noninterest income	378		320			115			94			(4		)	903
Total noninterest expense	729		526			314			(5		)	(4		)	1,560
Income/(loss) before provision/(benefit) for income taxes	98		69			(227		)	228			121			289
Provision/(benefit) for income taxes ³	36		5			(89		)	77			46			75
Net income/(loss) including income attributable to noncontrolling interest	62		64			(138		)	151			75			214
Net income attributable to noncontrolling interest	—		(4		)	—			2			1			(1		)
Net income/(loss)		$62		$68			($138	)		$149			$74			$215

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.



	Nine Months Ended September 30, 2012
(Dollars in millions)	Consumer Banking and Private Wealth Management		Wholesale Banking		Mortgage Banking			Corporate Other		Reconciling Items			Consolidated
Average total assets		$46,306		$64,341		$35,465			$29,145		$1,422			$176,679
Average total liabilities	77,559		53,724		4,357			20,767		(178		)	156,229
Average total equity	—		—		—			—		20,450			20,450
Net interest income		$1,905		$1,303		$388			$300		($40	)		$3,856
FTE adjustment	—		90		—			3		—			93
Net interest income - FTE ¹	1,905		1,393		388			303		(40		)	3,949
Provision for credit losses ²	435		246		602			—		(216		)	1,067
Net interest income/(loss) after provision for credit losses	1,470		1,147		(214		)	303		176			2,882
Total noninterest income	971		1,164		261			1,971		(9		)	4,358
Total noninterest expense	2,097		1,617		1,053			56		(10		)	4,813
Income/(loss) before provision/(benefit) for income taxes	344		694		(1,006		)	2,218		177			2,427
Provision/(benefit) for income taxes ³	126		194		(367		)	761		89			803
Net income/(loss) including income attributable to noncontrolling interest	218		500		(639		)	1,457		88			1,624
Net income attributable to noncontrolling interest	—		14		—			7		1			22
Net income/(loss)		$218		$486		($639	)		$1,450		$87			$1,602



	Nine Months Ended September 30, 2011
(Dollars in millions)	Consumer Banking and Private Wealth Management		Wholesale Banking		Mortgage Banking			Corporate Other			Reconciling Items			Consolidated
Average total assets		$43,393		$62,070		$33,681			$31,120			$1,622			$171,886
Average total liabilities	77,394		54,790		3,675			15,285			(119		)	151,025
Average total equity	—		—		—			—			20,861			20,861
Net interest income		$1,869		$1,203		$348			$367			($16	)		$3,771
FTE adjustment	—		79		—			5			—			84
Net interest income - FTE ¹	1,869		1,282		348			372			(16		)	3,855
Provision for credit losses ²	560		488		520			—			(382		)	1,186
Net interest income/(loss) after provision for credit losses	1,309		794		(172		)	372			366			2,669
Total noninterest income	1,109		1,110		271			229			(21		)	2,698
Total noninterest expense	2,170		1,611		837			(29		)	(22		)	4,567
Income/(loss) before provision/(benefit) for income taxes	248		293		(738		)	630			367			800
Provision/(benefit) for income taxes ³	91		44		(287		)	229			143			220
Net income/(loss) including income attributable to noncontrolling interest	157		249		(451		)	401			224			580
Net income attributable to noncontrolling interest	—		—		—			7			—			7
Net income/(loss)		$157		$249		($451	)		$394			$224			$573

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.