NOTE 20 - BUSINESS SEGMENT REPORTING

The Company has three 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 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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Private Wealth Management 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, IIS, and GenSpring. 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. 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.

The Wholesale Banking segment includes the following five 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 larger corporate and commercial middle markets. The Investment 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 Corporate Banking 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.


•	Commercial & Business Banking (formerly named 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), and not-for-profit and government entities.

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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. Equipment lease financing solutions (through SunTrust Equipment Finance & Leasing) as well as corporate insurance premium financing (through Premium Assignment Corporation) are also managed within this business.

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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 combined with 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, plus provides clients the means to manage their accounts electronically online both domestically and internationally.

Mortgage Banking 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. Mortgage Banking services loans for itself and for other investors and 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. Additionally, it includes Enterprise Information Services, which is the primary information technology and operations group; Corporate Real Estate, 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 to make tax-exempt assets 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 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 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.



	Year Ended December 31, 2012
(Dollars in millions)	Consumer Banking and Private Wealth Management		Wholesale Banking		Mortgage Banking			Corporate Other		Reconciling Items			Consolidated
Average total assets		$46,126		$64,499		$35,154			$28,011		$2,344			$176,134
Average total liabilities	77,539		54,069		4,484			19,710		(163		)	155,639
Average total equity	—		—		—			—		20,495			20,495
Net interest income		$2,534		$1,753		$512			$387		($84	)		$5,102
FTE adjustment	—		119		—			4		—			123
Net interest income - FTE ¹	2,534		1,872		512			391		(84		)	5,225
Provision for credit losses ²	596		315		770			—		(286		)	1,395
Net interest income/(loss) after provision for credit losses	1,938		1,557		(258		)	391		202			3,830
Total noninterest income	1,369		1,543		502			1,970		(11		)	5,373
Total noninterest expense	2,930		1,964		1,379			61		(11		)	6,323
Income/(loss) before provision/(benefit) for income taxes	377		1,136		(1,135		)	2,300		202			2,880
Provision/(benefit) for income taxes ³	140		331		(433		)	770		88			896
Net income/(loss) including income attributable to noncontrolling interest	237		805		(702		)	1,530		114			1,984
Net income attributable to noncontrolling interest	—		16		—			10		—			26
Net income/(loss)		$237		$789		($702	)		$1,520		$114			$1,958



	Year Ended December 31, 2011
(Dollars in millions)	Consumer Banking and Private Wealth Management		Wholesale Banking		Mortgage Banking			Corporate Other		Reconciling Items			Consolidated
Average total assets		$43,901		$62,155		$33,719			$31,363		$1,302			$172,440
Average total liabilities	77,352		55,157		3,838			15,605		(208		)	151,744
Average total equity	—		—		—			—		20,696			20,696
Net interest income		$2,502		$1,640		$471			$496		($44	)		$5,065
FTE adjustment	—		107		—			6		1			114
Net interest income - FTE ¹	2,502		1,747		471			502		(43		)	5,179
Provision for credit losses ²	722		625		693			—		(527		)	1,513
Net interest income/(loss) after provision for credit losses	1,780		1,122		(222		)	502		484			3,666
Total noninterest income	1,507		1,402		241			297		(26		)	3,421
Total noninterest expense	2,903		2,056		1,197			106		(28		)	6,234
Income/(loss) before provision/(benefit) for income taxes	384		468		(1,178		)	693		486			853
Provision/(benefit) for income taxes ³	141		81		(457		)	237		191			193
Net income/(loss) including income attributable to noncontrolling interest	243		387		(721		)	456		295			660
Net income attributable to noncontrolling interest	—		3		—			9		1			13
Net income/(loss)		$243		$384		($721	)		$447		$294			$647



	Year Ended December 31, 2010
(Dollars in millions)	Consumer Banking and Private Wealth Management		Wholesale Banking		Mortgage Banking			Corporate Other		Reconciling Items			Consolidated
Average total assets		$41,910		$62,268		$34,792			$32,581		$824			$172,375
Average total liabilities	74,914		51,925		4,030			18,775		(103		)	149,541
Average total equity	—		—		—			—		22,834			22,834
Net interest income		$2,449		$1,475		$438			$456		$36			$4,854
FTE adjustment	—		106		—			10		—			116
Net interest income - FTE ¹	2,449		1,581		438			466		36			4,970
Provision for credit losses ²	891		777		1,187			—		(204		)	2,651
Net interest income/(loss) after provision for credit losses	1,558		804		(749		)	466		240			2,319
Total noninterest income	1,539		1,442		521			257		(30		)	3,729
Total noninterest expense	2,917		1,941		1,081			2		(30		)	5,911
Income/(loss) before provision/(benefit) for income taxes	180		305		(1,309		)	721		240			137
Provision/(benefit) for income taxes ³	65		17		(498		)	247		100			(69		)
Net income/(loss) including income attributable to noncontrolling interest	115		288		(811		)	474		140			206
Net income attributable to noncontrolling interest	—		8		1			9		(1		)	17
Net income/(loss)		$115		$280		($812	)		$465		$141			$189

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.