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22 SUNTRUST 2004 ANNUAL REPORT
MANAGEMENT’S DISCUSSION continued
BUSINESS SEGMENTS
Beginning in January 2001, the Company implemented significant
changes to its internal management reporting system to begin to
measure and manage certain business activities by line of business.
For more financial details on business segment disclosures, please
see Note 22 – Business Segment Reporting in the Notes to the
Consolidated Financial Statements.The lines of business which are
the Company’s segments, are defined as follows:
RETAIL
The Retail line of business includes loans, deposits, and other fee-
based services for consumer and private banking clients, as well as
business clients with less than $5 million in sales. Retail serves
clients through an extensive network of traditional and in-store
branches, ATMs, the Internet (suntrust.com) and the telephone
(1-800-SUNTRUST). In addition to serving the retail market, the
Retail line of business serves as an entry point for other lines of busi-
ness.When client needs change and expand, Retail refers clients to
SunTrust’s Wealth and Investment Management, Mortgage and
Commercial lines of business.
COMMERCIAL
The Commercial line of business provides enterprises with a full
array of financial products and services including traditional com-
mercial lending, treasury management, financial risk management,
and corporate bankcard.The primary client segments served by this
line of business include “Commercial” ($5 million to $50 million in
annual revenue),“Middle Market” ($50 million to $250 million in
annual revenue),“Commercial Real Estate” (entities that specialize
in commercial real estate activities), and “Government/Not-for-
Profit” entities. Also included in this segment are specialty groups
that operate both inside and outside of the SunTrust footprint, such
as Affordable Housing (tax credits related to community develop-
ment) and Premium Assignment Corporation (insurance premium
financing).
CORPORATE & INVESTMENT BANKING
CIB is comprised of the following businesses: corporate banking,
investment banking, capital markets businesses, commercial leas-
ing, receivables capital management and merchant banking. The
corporate banking strategy is focused on companies with sales in
excess of $250 million and is organized along industry specialty and
geographic lines, providing along with credit, a full array of tradi-
tional bank services, capital markets capabilities, and investment
banking.The investment banking strategy is focused on small- and
mid-cap growth companies and is organized along industry spe-
cialty lines, raising public and private equity, and providing merger
and acquisition advisory services.The debt and equity capital mar-
kets businesses support both the corporate banking and investment
banking relationships, as well as the smaller commercial clients,
who are covered by our Commercial line of business and wealthy
individuals, who are served by our Wealth and Investment
Management line of business. Commercial leasing provides equip-
ment leasing and financing to various entities. Receivables Capital
Management provides traditional factoring services as well as other
value-added receivables management services.
MORTGAGE
The Mortgage line of business offers residential mortgage products
nationally through its retail, broker and correspondent channels.
These products are either sold in the secondary market primarily
with servicing rights retained or held as whole loans in the
Company’s residential loan portfolio.The line of business services
loans for its own residential mortgage portfolio as well as for others.
Additionally, the line of business generates revenue through its tax
service subsidiary (ValuTree Real Estate Services, LLC) and its cap-
tive reinsurance subsidiary (Cherokee Insurance Company).
WEALTH AND INVESTMENT MANAGEMENT
Wealth and Investment Management, the segment formerly known
as Private Client Services, provides a full array of wealth manage-
ment products and professional services to both individual and
institutional clients.Wealth and Investment Management’s primary
segments include brokerage, individual wealth management, and
institutional investment management and administration. SunTrust
Securities, Inc. operates across the Company’s footprint and offers
discount/online and full service brokerage services to individual
clients. Alexander Key offers full service brokerage services to afflu-
ent and wealthy clients who generally do not have a pre-existing
relationship with the Company. Alexander Key is currently located
in Atlanta, GA, Nashville, TN, Washington,DC, Jacksonville, FL,
Orlando, FL, and Richmond,VA. Wealth and Investment Manage-
ment also offers professional investment management and trust
services to clients seeking active management of their financial
resources.The ultra high net worth segment of these clients is serv-
iced by Asset Management Advisors (AMA).AMA provides “family
office” services to ultra high net worth clients. Acting in this capac-
ity, AMA investment professionals utilize sophisticated financial
products and wealth management tools to provide a holistic
approach to multi-generational wealth management. AMA is cur-
rently located in Atlanta, GA, Orlando, FL, West Palm Beach, FL,
Miami, FL, St. Petersburg, FL, Washington,DC, Charlotte, NC, and
Greenwich, CT. Institutional investment management and adminis-
tration is comprised of Trusco Capital Management, Inc. (Trusco),
retirement services, endowment and foundation services, corporate
trust, and stock transfer. Retirement services provides administra-
tion and custody services for 401(k) and employee defined benefit
plans. Endowment and foundation services provides administration
and custody services to non-profit organizations, including govern-
ment agencies, colleges and universities, community charities and
foundations, and hospitals. Corporate trust targets issuers of tax-
exempt and corporate debt, and asset-based securities, as well as
corporations and attorneys requiring escrow and custodial services.
Trusco is a registered investment advisor that acts as the invest-