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Business Segment Reporting
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Business Segment Reporting
NOTE 20 - 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. 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 primary businesses.

The Consumer Banking and Private Wealth Management segment is made up of three primary businesses:
•
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 by telephone (1-800-SUNTRUST). Financial products and services offered to consumers and small business clients include deposits and payments, loans, brokerage, and various fee-based services. Discount/online and full-service brokerage products are offered to individual clients through STIS. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.
•
Consumer Lending offers an array of lending products to consumers and small business clients via the Company's Consumer Banking and Private Wealth Management businesses, through the internet (www.suntrust.com and www.lightstream.com), as well as through various national offices and partnerships. Products offered include home equity lines, personal credit lines and loans, direct auto, indirect auto, student lending, credit cards, and other lending products.
•
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 is made up of three primary lines of business and the Treasury & Payment Solutions product group:
•
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, and technology, media and communications. 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 lending, cash management and investment banking solutions via STRH to commercial clients (generally clients with revenues between $1 million and $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 provides 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. With the acquisition of the assets of Pillar in December of 2016, commercial real estate also provides multi-family agency lending and servicing, as well as loan administration, advisory, and commercial mortgage brokerage services. The institutional real estate team targets relationships with REITs, 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 Wholesale Banking 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, 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 other investors, in addition to loans held in the Company’s loan portfolio.
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, Corporate Other includes the Company's functional activities such as marketing, SunTrust online, human resources, finance, Enterprise Risk, legal and compliance, communications, procurement, enterprise information services, corporate real estate, and executive management. The financial results of RidgeWorth, including the gain on sale, are reflected in the Corporate Other segment for the year ended December 31, 2014. Prior to the sale of RidgeWorth in the second quarter of 2014, RidgeWorth's financial performance was reported in the Wholesale Banking segment. See Note 2, "Acquisitions/Dispositions," for additional information related to the sale of RidgeWorth.
Because 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-FTE – is reconciled from net interest income and is presented on an FTE basis to make income from tax-exempt assets comparable to other taxable products. Segment results reflect matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Differences between these credits and charges are captured as reconciling items. The change in this variance 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 for the provision/(benefit) attributable to each segment's quarterly change in the ALLL and unfunded commitments reserve balances.
•
Provision for income taxes-FTE – is 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 for income taxes at the segment level and the consolidated provision for income taxes is reported as reconciling items.
The segment’s financial performance is comprised of direct financial results and allocations for various corporate functions that provide management an enhanced view of the segment’s financial performance. Internal allocations include the following:
•
Operational costs – expenses are charged to segments based on a methodical activity-based costing process, which also allocates residual expenses to the segments. Generally, recoveries 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 (number of equivalent employees, number of PCs/laptops, net revenue, etc.). 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 an active process and undergoes 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. If significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is reclassified, when practicable.

 
Year Ended December 31, 2016
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average loans

$42,723

 

$71,605

 

$26,726

 

$66

 

($2
)
 

$141,118

Average consumer and commercial deposits
95,875

 
55,293

 
2,969

 
124

 
(72
)
 
154,189

Average total assets
48,415

 
85,513

 
30,697

 
31,939

 
2,440

 
199,004

Average total liabilities
96,466

 
61,050

 
3,344

 
14,148

 
(72
)
 
174,936

Average total equity
—

 
—

 
—

 
—

 
24,068

 
24,068

Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$2,857

 

$1,849

 

$448

 

$96

 

($29
)
 

$5,221

FTE adjustment
—

 
136

 
—

 
2

 
—

 
138

Net interest income-FTE 1
2,857

 
1,985

 
448

 
98

 
(29
)
 
5,359

Provision/(benefit) for credit losses 2
185

 
272

 
(13
)
 
—

 
—

 
444

Net interest income after provision/(benefit) for credit losses-FTE
2,672

 
1,713

 
461

 
98

 
(29
)
 
4,915

Total noninterest income
1,472

 
1,234

 
559

 
136

 
(18
)
 
3,383

Total noninterest expense
3,056

 
1,693

 
732

 
5

 
(18
)
 
5,468

Income before provision for income taxes-FTE
1,088

 
1,254

 
288

 
229

 
(29
)
 
2,830

Provision for income taxes-FTE 3
404

 
387

 
105

 
59

 
(12
)
 
943

Net income including income attributable to noncontrolling interest
684

 
867

 
183

 
170

 
(17
)
 
1,887

Net income attributable to noncontrolling interest
—

 
—

 
—

 
9

 
—

 
9

Net income

$684

 

$867

 

$183

 

$161

 

($17
)
 

$1,878


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 for the provision/(benefit) attributable to quarterly changes in the ALLL and unfunded commitment reserve balances.
3 Includes regular provision for income taxes and taxable-equivalent income adjustment reversal.

 
Year Ended December 31, 2015
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average loans

$40,614

 

$67,872

 

$25,024

 

$60

 

($12
)
 

$133,558

Average consumer and commercial deposits
91,104

 
50,379

 
2,679

 
101

 
(61
)
 
144,202

Average total assets
46,513

 
80,915

 
28,692

 
29,655

 
3,117

 
188,892

Average total liabilities
91,747

 
56,050

 
3,048

 
14,771

 
(70
)
 
165,546

Average total equity
—

 
—

 
—

 
—

 
23,346

 
23,346

Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$2,728

 

$1,781

 

$483

 

$147

 

($375
)
 

$4,764

FTE adjustment
1

 
138

 
—

 
3

 
—

 
142

Net interest income-FTE 1
2,729

 
1,919

 
483

 
150

 
(375
)
 
4,906

Provision/(benefit) for credit losses 2
137

 
137

 
(110
)
 
—

 
1

 
165

Net interest income after provision/(benefit) for credit losses-FTE
2,592

 
1,782

 
593

 
150

 
(376
)
 
4,741

Total noninterest income
1,507

 
1,180

 
460

 
135

 
(14
)
 
3,268

Total noninterest expense
2,939

 
1,551

 
681

 
4

 
(15
)
 
5,160

Income before provision for income taxes-FTE
1,160

 
1,411

 
372

 
281

 
(375
)
 
2,849

Provision for income taxes-FTE 3
431

 
459

 
85

 
82

 
(151
)
 
906

Net income including income attributable to noncontrolling interest
729

 
952

 
287

 
199

 
(224
)
 
1,943

Net income attributable to noncontrolling interest
—

 
—

 
—

 
9

 
1

 
10

Net income

$729

 

$952

 

$287

 

$190

 

($225
)
 

$1,933


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 for the provision/(benefit) attributable to quarterly changes in the ALLL and unfunded commitment reserve balances.
3 Includes regular provision for income taxes and taxable-equivalent income adjustment reversal.

 
Year Ended December 31, 2014
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average loans

$41,702

 

$62,627

 

$26,494

 

$56

 

($5
)
 

$130,874

Average consumer and commercial deposits
86,046

 
43,569

 
2,333

 
112

 
(48
)
 
132,012

Average total assets
47,430

 
74,093

 
30,386

 
27,125

 
3,142

 
182,176

Average total liabilities
86,774

 
50,294

 
2,665

 
20,283

 
(10
)
 
160,006

Average total equity
—

 
—

 
—

 
—

 
22,170

 
22,170

Statements of Income/(Loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$2,628

 

$1,661

 

$552

 

$275

 

($276
)
 

$4,840

FTE adjustment
1

 
139

 
—

 
3

 
(1
)
 
142

Net interest income-FTE 1
2,629

 
1,800

 
552

 
278

 
(277
)
 
4,982

Provision for credit losses 2
191

 
71

 
81

 
—

 
(1
)
 
342

Net interest income after provision for credit losses-FTE
2,438

 
1,729

 
471

 
278

 
(276
)
 
4,640

Total noninterest income
1,527

 
1,063

 
473

 
278

 
(18
)
 
3,323

Total noninterest expense
2,904

 
1,473

 
1,048

 
134

 
(16
)
 
5,543

Income/(loss) before provision/(benefit) for income taxes-FTE
1,061

 
1,319

 
(104
)
 
422

 
(278
)
 
2,420

Provision/(benefit) for income taxes-FTE 3
390

 
423

 
(52
)
 
(26
)
 
(100
)
 
635

Net income/(loss) including income attributable to noncontrolling interest
671

 
896

 
(52
)
 
448

 
(178
)
 
1,785

Net income attributable to noncontrolling interest
—

 
—

 
—

 
11

 
—

 
11

Net income/(loss)

$671

 

$896

 

($52
)
 

$437

 

($178
)
 

$1,774

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