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Business Segment Reporting
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Business Segment Reporting
NOTE 16 - BUSINESS SEGMENT REPORTING
The Company measures business activity across three segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking, with functional activities included in Corporate Other. The business segments are determined based on the products and services provided or the type of client served, and they reflect the manner in which financial information is evaluated by management. The following is a description of the 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.
•
Consumer Banking provides services to consumers and branch-managed small business clients through an extensive network of traditional and in-store branches, ATMs, the internet (www.suntrust.com), mobile banking, and telephone (1-800-SUNTRUST). Financial products and services offered to consumers and small business clients include deposits, home equity lines and loans, credit lines, indirect auto, student lending, bank card, other lending products, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.
•
PWM provides a full array of wealth management products and professional services to both individual and institutional clients including loans, deposits, brokerage, professional investment management, and trust services to clients seeking active management of their financial resources. Institutional clients are served by the Institutional Investment Solutions business. Discount/online and full-service brokerage products are offered to individual clients through STIS. PWM also includes GenSpring, which 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 wealth across multiple generations.

The Wholesale Banking segment includes the following four businesses:
•
CIB delivers comprehensive capital markets solutions, including advisory, capital raising, and financial risk management, with the goal of serving the needs of both public and private companies in the Wholesale Banking segment and PWM business. Investment Banking and Corporate Banking teams within CIB serve clients across the nation, offering a full suite of traditional banking and investment banking products and services to companies with annual revenues typically greater than $150 million. Investment Banking serves select industry segments including consumer and retail, energy, financial services, healthcare, industrials, media and communications, real estate, and technology. Corporate Banking serves clients across diversified industry sectors based on size, complexity, and frequency of capital markets issuance. Also managed within CIB is the Equipment Finance Group, which provides lease financing solutions (through SunTrust Equipment Finance & Leasing).
•
Commercial & Business Banking offers an array of traditional banking products, including cash management services and investment banking solutions via STRH to commercial clients (generally those with average revenues $1 million to $150 million), not-for-profit organizations, and governmental entities, as well as auto dealer financing (floor plan inventory financing). Also managed within Commercial & Business Banking is the Premium Assignment Corporation, which creates corporate insurance premium financing solutions.
•
Commercial Real Estate provides a full range of financial solutions for commercial real estate developers, owners, and investors, including construction, mini-perm, and permanent real estate financing as well as tailored financing and equity investment solutions via STRH, primarily through the REIT group focused on Real Estate Investment Trusts. The Institutional Real Estate team targets relationships with institutional advisors, private funds, and insurance companies and the Regional team focuses on real estate owners and developers through a regional delivery structure. Commercial Real Estate also offers tailored financing and equity investment solutions for community development and affordable housing projects through STCC, with particular expertise in Low Income Housing Tax Credits and New Market Tax Credits.
•
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. It also provides clients the means to manage their accounts electronically online, both domestically and internationally.
Mortgage Banking offers residential mortgage products nationally through its retail 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 also services loans for itself and for other investors.
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, Communications, Procurement, and Executive Management. The financial results of RidgeWorth, including the gain on sale, are reflected in the Corporate Other segment for the nine months ended September 30, 2014. Prior to the sale of RidgeWorth in the second quarter of 2014, RidgeWorth's financial performance was reported in the Wholesale Banking segment.
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. Business segment reporting conventions are described below.
•
Net interest income – Net interest income is presented on an FTE basis to make income from tax-exempt assets comparable to other taxable products. The segment results reflect matched maturity funds transfer pricing, which ascribes 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 this mismatch is generally attributable to corporate balance sheet management strategies.
•
Provision/(benefit) for credit losses – Represents net charge-offs by segment combined with an allocation to the segments of the provision/(benefit) attributable to each segment's quarterly change in the ALLL and unfunded commitment reserve balances.
•
Provision/(benefit) for income taxes – Calculated using a blended income tax rate for each segment. This calculation includes the impact of various 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 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, residual expenses are also allocated to the segments. The recoveries for the majority of these costs are reported 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 equivalent employees, number of PCs/Laptops, and net revenue). The recoveries for these allocations are reported 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, 2015
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average loans

$40,206

 

$67,274

 

$25,299

 

$70

 

($12
)
 

$132,837

Average consumer and commercial deposits
91,016

 
51,237

 
2,918

 
84

 
(29
)
 
145,226

Average total assets
45,874

 
80,097

 
29,280

 
29,878

 
3,212

 
188,341

Average total liabilities
91,671

 
56,611

 
3,290

 
13,397

 
(12
)
 
164,957

Average total equity
—

 
—

 
—

 
—

 
23,384

 
23,384

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$688

 

$447

 

$123

 

$40

 

($87
)
 

$1,211

FTE adjustment
—

 
35

 
—

 
1

 
—

 
36

Net interest income - FTE 1
688

 
482

 
123

 
41

 
(87
)
 
1,247

Provision/(benefit) for credit losses 2
22

 
47

 
(38
)
 
—

 
1

 
32

Net interest income after provision/(benefit) for credit losses - FTE
666

 
435

 
161

 
41

 
(88
)
 
1,215

Total noninterest income
384

 
293

 
109

 
29

 
(4
)
 
811

Total noninterest expense
720

 
388

 
154

 
6

 
(4
)
 
1,264

Income before provision for income taxes - FTE
330

 
340

 
116

 
64

 
(88
)
 
762

Provision for income taxes - FTE 3
123

 
109

 
11

 
22

 
(42
)
 
223

Net income including income attributable to noncontrolling interest
207

 
231

 
105

 
42

 
(46
)
 
539

Net income attributable to noncontrolling interest
—

 
—

 
—

 
2

 
—

 
2

Net income

$207

 

$231

 

$105

 

$40

 

($46
)
 

$537

 
 
 
 
 
 
 
 
 
 
 
 


 
Three Months Ended September 30, 2014
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average loans

$41,904

 

$63,542

 

$25,261

 

$46

 

($6
)
 

$130,747

Average consumer and commercial deposits
86,194

 
43,319

 
2,664

 
83

 
(65
)
 
132,195

Average total assets
47,586

 
75,156

 
30,447

 
27,326

 
2,918

 
183,433

Average total liabilities
86,888

 
49,955

 
3,085

 
21,356

 
(42
)
 
161,242

Average total equity
—

 
—

 
—

 
—

 
22,191

 
22,191

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(Loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$666

 

$419

 

$148

 

$70

 

($88
)
 

$1,215

FTE adjustment
—

 
34

 
—

 
1

 
1

 
36

Net interest income - FTE 1
666

 
453

 
148

 
71

 
(87
)
 
1,251

Provision for credit losses 2
40

 
9

 
44

 
—

 
—

 
93

Net interest income after provision for credit losses - FTE
626

 
444

 
104

 
71

 
(87
)
 
1,158

Total noninterest income
399

 
241

 
130

 
14

 
(4
)
 
780

Total noninterest expense
720

 
367

 
166

 
12

 
(6
)
 
1,259

Income before provision/(benefit) for income taxes - FTE
305

 
318

 
68

 
73

 
(85
)
 
679

Provision/(benefit) for income taxes - FTE 3
112

 
94

 
25

 
(108
)
 
(20
)
 
103

Net income including income attributable to noncontrolling interest
193

 
224

 
43

 
181

 
(65
)
 
576

Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
—

Net income

$193

 

$224

 

$43

 

$181

 

($65
)
 

$576

1 Presented on a matched maturity funds transfer price basis for the segments.
2 Provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision/(benefit) attributable to quarterly changes in the ALLL and unfunded commitment reserve balances.
3 Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.

 
Nine Months Ended September 30, 2015
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average loans

$40,556

 

$67,547

 

$24,847

 

$59

 

($9
)
 

$133,000

Average consumer and commercial deposits
90,935

 
49,147

 
2,754

 
85

 
(52
)
 
142,869

Average total assets
46,493

 
80,777

 
28,595

 
29,469

 
3,301

 
188,635

Average total liabilities
91,578

 
54,826

 
3,139

 
15,894

 
(68
)
 
165,369

Average total equity
—

 
—

 
—

 
—

 
23,266

 
23,266

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$2,029

 

$1,321

 

$366

 

$103

 

($301
)
 

$3,518

FTE adjustment
—

 
103

 
—

 
2

 
2

 
107

Net interest income - FTE 1
2,029

 
1,424

 
366

 
105

 
(299
)
 
3,625

Provision/(benefit) for credit losses 2
101

 
73

 
(61
)
 
—

 
1

 
114

Net interest income after provision/(benefit) for credit losses - FTE
1,928

 
1,351

 
427

 
105

 
(300
)
 
3,511

Total noninterest income
1,136

 
949

 
346

 
84

 
(12
)
 
2,503

Total noninterest expense
2,167

 
1,189

 
511

 
18

 
(13
)
 
3,872

Income before provision for income taxes - FTE
897

 
1,111

 
262

 
171

 
(299
)
 
2,142

Provision for income taxes - FTE 3
334

 
371

 
45

 
61

 
(125
)
 
686

Net income including income attributable to noncontrolling interest
563

 
740

 
217

 
110

 
(174
)
 
1,456

Net income attributable to noncontrolling interest
—

 
—

 
—

 
7

 
—

 
7

Net income

$563

 

$740

 

$217

 

$103

 

($174
)
 

$1,449

 
 
 
 
 
 
 
 
 
 
 
 

 
Nine Months Ended September 30, 2014
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average loans

$41,564

 

$61,297

 

$27,106

 

$50

 

($7
)
 

$130,010

Average consumer and commercial deposits
85,190

 
42,899

 
2,260

 
85

 
(65
)
 
130,369

Average total assets
47,244

 
72,646

 
31,078

 
26,313

 
2,817

 
180,098

Average total liabilities
85,931

 
49,594

 
2,763

 
19,869

 
(31
)
 
158,126

Average total equity
—

 
—

 
—

 
—

 
21,972

 
21,972

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(Loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$1,957

 

$1,220

 

$422

 

$220

 

($190
)
 

$3,629

FTE adjustment
—

 
102

 
—

 
2

 
1

 
105

Net interest income - FTE 1
1,957

 
1,322

 
422

 
222

 
(189
)
 
3,734

Provision for credit losses 2
135

 
39

 
94

 
—

 
—

 
268

Net interest income after provision for credit losses - FTE
1,822

 
1,283

 
328

 
222

 
(189
)
 
3,466

Total noninterest income
1,141

 
828

 
350

 
222

 
(13
)
 
2,528

Total noninterest expense
2,154

 
1,180

 
717

 
95

 
(12
)
 
4,134

Income/(loss) before provision/(benefit) for income taxes - FTE
809

 
931

 
(39
)
 
349

 
(190
)
 
1,860

Provision/(benefit) for income taxes - FTE 3
297

 
296

 
(16
)
 
(41
)
 
(67
)
 
469

Net income/(loss) including income attributable to noncontrolling interest
512

 
635

 
(23
)
 
390

 
(123
)
 
1,391

Net income attributable to noncontrolling interest
—

 
—

 
—

 
11

 
—

 
11

Net income/(loss)

$512

 

$635

 

($23
)
 

$379

 

($123
)
 

$1,380


1 Presented on a matched maturity funds transfer price basis for the segments.
2 Provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments of the provision/(benefit) attributable to quarterly changes in the ALLL and unfunded commitment reserve balances.
3 Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.