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Business Segment Reporting
 3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Business Segment Reporting NOTE 19 - BUSINESS SEGMENT REPORTING
The Company operates and measures business activity across two segments: Consumer and Wholesale, with functional activities included in Corporate Other. The Company's business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served.
The following is a description of the segments and their primary businesses at March 31, 2019.

The Consumer segment is made up of three primary businesses:
•
Consumer Banking provides services to individual consumers and business banking clients through an extensive network of traditional and in-store branches, ATMs, online banking (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, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other businesses.
•
Consumer Lending Solutions offers an array of lending products to individual consumers and business banking clients via the Company's Consumer Banking and PWM businesses, correspondent channels, the internet (www.suntrust.com and www.lightstream.com), telephone (1-800-SUNTRUST), as well as through various national offices and partnerships. Products offered include
mortgages, home equity lines, personal credit lines and loans, direct auto, indirect auto, student lending, credit cards, and other lending products. Mortgage products are either sold in the secondary market, generally with servicing rights retained, or held in the Company’s LHFI portfolio. Consumer Lending Solutions also services mortgage loans for other investors in addition to loans held in the Company’s LHFI portfolio.
•
PWM provides a full array of wealth management products and professional services to individual consumers and institutional clients, including loans, deposits, brokerage, professional investment advisory, 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. Investment advisory products and services are offered to clients by STAS, an SEC registered investment advisor. PWM also includes GFO Advisory Services, LLC, which provides family office solutions to clients and their families to help them manage and sustain wealth across multiple generations, including family meeting facilitation, consolidated reporting, expense management, specialty asset management, and business transition advice, as well as other wealth management disciplines.
The Wholesale segment is made up of three primary businesses 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 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, technology, financial services, healthcare, industrials, and media and communications. Corporate Banking serves clients across diversified industry sectors based on size, complexity, and frequency of capital markets issuance. CIB also includes the Company's Asset Finance Group, which offers a full complement of asset-based financing solutions such as securitizations, asset-based lending, equipment financing, and structured real estate arrangements.
•
Commercial Banking offers an array of traditional banking products, including lending, cash management, and investment banking solutions via CIB, to commercial clients (generally clients with revenues between $5 million and $250 million), including not-for-profit organizations, governmental entities, healthcare and aging services, and auto dealer financing (floor plan inventory financing). Local teams deliver these solutions along with the Company's industry expertise to commercial clients to help them achieve smart growth.
•
Commercial Real Estate provides a range of credit and deposit services as well as fee-based product offerings on a regional delivery basis to privately held developers, operators, and investors in commercial real estate properties through its National Banking Division. Commercial Real Estate also provides multi-family agency lending and servicing, advisory, and commercial mortgage brokerage services via its Agency Lending division. Additionally, Commercial Real Estate 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. Real Estate Corporate and Investment Banking targets relationships with REITs and homebuilders, both publicly-traded and privately owned. The Investor Services Group offers loan administration, special servicing, valuation, and advisory services to third party clients.
•
Treasury & Payment Solutions provides business clients in the Wholesale segment 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.

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, as well as the Company's functional activities such as marketing, finance, enterprise risk, legal, enterprise information services, and executive management, among others.
Because business segment results are presented based on management accounting practices, the transition to the consolidated results 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 grossed-up 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.
•
Provision for credit losses – represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to each segment's quarterly change in the ALLL and unfunded commitments reserve balances.
•
Noninterest income – includes federal and state tax credits that are grossed-up on a pre-tax equivalent basis, related primarily to certain community development investments.
•
Provision for income taxes-FTE – is calculated using a blended income tax rate for each segment and includes reversals of the tax adjustments and credits described above. 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 an 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.
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 revised, when practicable.
 
Three Months Ended March 31, 2019
(Dollars in millions)
Consumer
 
Wholesale
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
Average LHFI

$78,683

 

$75,488

 

$88

 

($1
)
 

$154,258

Average consumer and commercial deposits
112,245

 
47,850

 
259

 
(433
)
 
159,921

Average total assets
88,033

 
90,122

 
37,822

 
1,426

 
217,403

Average total liabilities
113,180

 
54,384

 
25,720

 
(347
)
 
192,937

Average total equity
—

 
—

 
—

 
24,466

 
24,466

Statements of Income:
 
 
 
 
 
 
 
 
 
Net interest income

$1,076

 

$546

 

($78
)
 

$—

 

$1,544

FTE adjustment
—

 
22

 
1

 
—

 
23

Net interest income-FTE 1
1,076

 
568

 
(77
)
 
—

 
1,567

Provision for credit losses 2
83

 
70

 
—

 
—

 
153

Net interest income after provision for credit losses-FTE
993

 
498

 
(77
)
 
—

 
1,414

Total noninterest income
446

 
364

 
19

 
(45
)
 
784

Total noninterest expense
1,017

 
462

 
14

 
(4
)
 
1,489

Income before provision for income taxes-FTE
422

 
400

 
(72
)
 
(41
)
 
709

Provision for income taxes-FTE 3
96

 
95

 
(24
)
 
(40
)
 
127

Net income including income attributable to noncontrolling interest
326

 
305

 
(48
)
 
(1
)
 
582

Less: Net income attributable to noncontrolling interest
—

 
—

 
2

 
—

 
2

Net income

$326

 

$305

 

($50
)
 

($1
)
 

$580

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 for income taxes as well as FTE income and tax credit adjustment reversals.


 
 Three Months Ended March 31, 2018 1
(Dollars in millions)
Consumer
 
Wholesale
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
Average LHFI

$74,840

 

$68,000

 

$84

 

($4
)
 

$142,920

Average consumer and commercial deposits
109,469

 
49,687

 
197

 
(184
)
 
159,169

Average total assets
84,272

 
81,726

 
35,680

 
2,454

 
204,132

Average total liabilities
110,341

 
55,499

 
13,864

 
(177
)
 
179,527

Average total equity
—

 
—

 
—

 
24,605

 
24,605

Statements of Income:
 
 
 
 
 
 
 
 
 
Net interest income

$998

 

$514

 

($30
)
 

($41
)
 

$1,441

FTE adjustment
—

 
20

 
1

 
(1
)
 
20

Net interest income-FTE 2
998

 
534

 
(29
)
 
(42
)
 
1,461

Provision/(benefit) for credit losses 3
58

 
(30
)
 
—

 
—

 
28

Net interest income after provision/(benefit) for credit losses-FTE
940

 
564

 
(29
)
 
(42
)
 
1,433

Total noninterest income
450

 
340

 
38

 
(32
)
 
796

Total noninterest expense
1,001

 
450

 
(29
)
 
(5
)
 
1,417

Income before provision for income taxes-FTE
389

 
454

 
38

 
(69
)
 
812

Provision for income taxes-FTE 4
87

 
107

 
16

 
(43
)
 
167

Net income including income attributable to noncontrolling interest
302

 
347

 
22

 
(26
)
 
645

Less: Net income attributable to noncontrolling interest
—

 
—

 
2

 
—

 
2

Net income

$302

 

$347

 

$20

 

($26
)
 

$643


1 
During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
2 
Presented on a matched maturity funds transfer price basis for the segments.
3 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.
4 Includes regular provision for income taxes as well as FTE income and tax credit adjustment reversals.