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Business Segment Reporting
 6 Months Ended
Jun. 30, 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 June 30, 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 June 30, 2019
(Dollars in millions)
Consumer
 
Wholesale
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
Average LHFI

$79,280

 

$76,854

 

$89

 

$1

 

$156,224

Average consumer and commercial deposits
112,824

 
44,093

 
3,179

 
(242
)
 
159,854

Average total assets
88,668

 
92,418

 
38,178

 
1,563

 
220,827

Average total liabilities
113,770

 
50,893

 
31,064

 
(109
)
 
195,618

Average total equity
—

 
—

 
—

 
25,209

 
25,209

Statements of Income:
 
 
 
 
 
 
 
 
 
Net interest income

$1,078

 

$537

 

($76
)
 

($4
)
 

$1,535

FTE adjustment
—

 
22

 
—

 
—

 
22

Net interest income-FTE 1
1,078

 
559

 
(76
)
 
(4
)
 
1,557

Provision for credit losses 2
44

 
82

 
—

 
1

 
127

Net interest income after provision for credit losses-FTE
1,034

 
477

 
(76
)
 
(5
)
 
1,430

Total noninterest income
489

 
404

 
177

 
(45
)
 
1,025

Total noninterest expense
991

 
455

 
198

 
(6
)
 
1,638

Income before provision for income taxes-FTE
532

 
426

 
(97
)
 
(44
)
 
817

Provision for income taxes-FTE 3
122

 
102

 
(50
)
 
(47
)
 
127

Net income including income attributable to noncontrolling interest
410

 
324

 
(47
)
 
3

 
690

Less: Net income attributable to noncontrolling interest
—

 
—

 
2

 
—

 
2

Net income

$410

 

$324

 

($49
)
 

$3

 

$688


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 June 30, 2018
(Dollars in millions)
Consumer
 
Wholesale
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
Average LHFI

$74,626

 

$69,443

 

$90

 

($3
)
 

$144,156

Average consumer and commercial deposits
111,532

 
44,456

 
3,204

 
(235
)
 
158,957

Average total assets
84,486

 
82,928

 
35,427

 
1,707

 
204,548

Average total liabilities
112,417

 
50,504

 
17,736

 
(204
)
 
180,453

Average total equity
—

 
—

 
—

 
24,095

 
24,095

Statements of Income:
 
 
 
 
 
 
 
 
 
Net interest income

$1,032

 

$531

 

($41
)
 

($34
)
 

$1,488

FTE adjustment
—

 
22

 
1

 
(1
)
 
22

Net interest income-FTE 1
1,032

 
553

 
(40
)
 
(35
)
 
1,510

Provision for credit losses 2
7

 
25

 
—

 
—

 
32

Net interest income after provision for credit losses-FTE
1,025

 
528

 
(40
)
 
(35
)
 
1,478

Total noninterest income
452

 
388

 
26

 
(37
)
 
829

Total noninterest expense
991

 
425

 
(23
)
 
(3
)
 
1,390

Income before provision for income taxes-FTE
486

 
491

 
9

 
(69
)
 
917

Provision for income taxes-FTE 3
110

 
117

 
13

 
(47
)
 
193

Net income including income attributable to noncontrolling interest
376

 
374

 
(4
)
 
(22
)
 
724

Less: Net income attributable to noncontrolling interest
—

 
—

 
2

 
—

 
2

Net income

$376

 

$374

 

($6
)
 

($22
)
 

$722


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.


 
Six Months Ended June 30, 2019
(Dollars in millions)
Consumer
 
Wholesale
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
Average LHFI

$78,982

 

$76,176

 

$89

 

($1
)
 

$155,246

Average consumer and commercial deposits
112,533

 
44,243

 
3,450

 
(339
)
 
159,887

Average total assets
88,351

 
91,277

 
38,001

 
1,495

 
219,124

Average total liabilities
113,473

 
50,911

 
30,129

 
(229
)
 
194,284

Average total equity
—

 
—

 
—

 
24,840

 
24,840

Statements of Income:
 
 
 
 
 
 
 
 
 
Net interest income

$2,154

 

$1,078

 

($149
)
 

($5
)
 

$3,078

FTE adjustment
—

 
44

 
1

 
—

 
45

Net interest income-FTE 1
2,154

 
1,122

 
(148
)
 
(5
)
 
3,123

Provision for credit losses 2
127

 
152

 
—

 
1

 
280

Net interest income after provision for credit losses-FTE
2,027

 
970

 
(148
)
 
(6
)
 
2,843

Total noninterest income
936

 
769

 
196

 
(91
)
 
1,810

Total noninterest expense
2,004

 
919

 
216

 
(11
)
 
3,128

Income before provision for income taxes-FTE
959

 
820

 
(168
)
 
(86
)
 
1,525

Provision for income taxes-FTE 3
219

 
195

 
(74
)
 
(87
)
 
253

Net income including income attributable to noncontrolling interest
740

 
625

 
(94
)
 
1

 
1,272

Less: Net income attributable to noncontrolling interest
—

 
—

 
5

 
(1
)
 
4

Net income

$740

 

$625

 

($99
)
 

$2

 

$1,268

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.

 
 Six Months Ended June 30, 2018
(Dollars in millions)
Consumer
 
Wholesale
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
Average LHFI

$74,733

 

$68,725

 

$87

 

($3
)
 

$143,542

Average consumer and commercial deposits
110,509

 
45,545

 
3,219

 
(210
)
 
159,063

Average total assets
84,380

 
82,329

 
35,553

 
2,079

 
204,341

Average total liabilities
111,387

 
51,476

 
17,320

 
(191
)
 
179,992

Average total equity
—

 
—

 
—

 
24,349

 
24,349

Statements of Income:
 
 
 
 
 
 
 
 
 
Net interest income

$2,030

 

$1,040

 

($65
)
 

($77
)
 

$2,928

FTE adjustment
—

 
42

 
1

 
—

 
43

Net interest income-FTE 1
2,030

 
1,082

 
(64
)
 
(77
)
 
2,971

Provision/(benefit) for credit losses 2
65

 
(5
)
 
—

 
—

 
60

Net interest income after provision/(benefit) for credit losses-FTE
1,965

 
1,087

 
(64
)
 
(77
)
 
2,911

Total noninterest income
903

 
728

 
64

 
(69
)
 
1,626

Total noninterest expense
1,994

 
873

 
(49
)
 
(11
)
 
2,807

Income before provision for income taxes-FTE
874

 
942

 
49

 
(135
)
 
1,730

Provision for income taxes-FTE 3
196

 
224

 
28

 
(87
)
 
361

Net income including income attributable to noncontrolling interest
678

 
718

 
21

 
(48
)
 
1,369

Less: Net income attributable to noncontrolling interest
—

 
—

 
5

 
(1
)
 
4

Net income

$678

 

$718

 

$16

 

($47
)
 

$1,365

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 as well as FTE income and tax credit adjustment reversals.