SunTrust 2005 Annual Report Download - page 22

SUNTRUST  ANNUAL REPORT20
RETAIL
The Retail line of business includes loans, deposits, and other fee-based ser-
vices for consumers and business clients with less than  million in sales (up
to  million in sales in larger metropolitan markets). Retail serves clients
through an extensive network of traditional and in-store branches, ATMs,
the Internet (www.suntrust.com) and the telephone (--SUNTRUST).
In addition to serving the retail market, the Retail line of business serves
as an entry point for other lines of business. 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 commercial lending, treasury
management, financial risk management, and corporate bankcard. The
primary client segments served by this line of business include “Diversified
Commercial” ( million to  million in annual revenue), “Middle
Market” ( million to  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 group are spe-
cialty groups that operate both inside and outside of the SunTrust footprint,
such as Premium Assignment Corporation, which provides insurance pre-
mium financing, and Affordable Housing Group (“AHG”), which manages
community development projects that generate tax credits.
CORPORATE AND INVESTMENT BANKING
CIB is comprised of the following businesses: corporate banking, invest-
ment banking, capital markets, commercial leasing, and merchant banking.
The corporate banking strategy is focused on companies with sales in excess
of  million and is organized along industry specialty and geographic
lines. Corporate banking provides a full array of traditional bank services,
capital markets capabilities, and investment banking. The investment bank-
ing strategy is focused on small-cap and mid-cap growth companies and is
organized along industry specialty lines, raising public and private equity,
and providing merger and acquisition advisory services. The debt and equity
capital markets businesses support corporate banking, investment banking
commercial clients, who are managed by the Commercial line of business,
and wealthy individuals, who are served by our Wealth and Investment
Management line of business. Commercial leasing provides equipment
leasing and financing to various entities. Merchant banking is the private
equity and mezzanine investing arm of SunTrust.
MORTGAGE
The Mortgage line of business offers residential mortgage products nation-
ally 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
captive reinsurance subsidiary (Cherokee Insurance Company).
WEALTH AND INVESTMENT MANAGEMENT
Wealth and Investment Management provides a full array of wealth man-
agement products and professional services to both individual and insti-
tutional clients. Wealth and Investment Management’s primary segments
include Private Wealth Management (“PWM”) (brokerage and individual
wealth management), and Institutional Investment Management and
Administration.
The PWM group offers professional investment management and trust
services to clients seeking active management of their financial resources.
In addition, the Private Banking unit within SunTrust was consolidated
into PWM in the first quarter of , which enables the group to offer a
full array of loan and deposit products to clients. PWM includes SunTrust
Investment Services, which operates across the Company’s footprint and
offers discount/online and full service brokerage services to individual cli-
ents. SunTrust Investment Services was formed in July of  when the
existing unit of SunTrust Securities combined with Alexander Key (a sepa-
rate division offering full service brokerage to affluent and wealthy clients
who generally do not have a pre-existing relationship with the Company).
The ultra high net worth segment of the PWM clients is serviced by Asset
Management Advisors (“AMA”). AMA provides “family office” services to
ultra high net worth clients. Acting in this capacity, AMA investment pro-
fessionals utilize sophisticated financial products and wealth manage-
ment tools to provide a holistic approach to multi-generational wealth
management.
Institutional Investment Management and Administration is com-
prised of Trusco Capital Management, Inc. (“Trusco”), retirement services,
endowment and foundation services, and corporate trust. Trusco is an
investment advisor registered with the Securities and Exchange Commission
which serves as investment manager for the STI Classic Funds and many of
Wealth and Investment Management’s clients. Seix Investment Advisors
(“Seix”), a fixed income division of Trusco, was formed following the acqui-
sition of Seix Investment Advisors, Inc. in the second quarter of .
Zevenbergen Capital Investments LLC (“ZCI”) is a % owned subsidiary of
Trusco and was consolidated in the fourth quarter of . Retirement ser-
vices provides administration and custody services for defined benefit and
defined contribution plans as well as administration services for non-quali-
fied plans. Endowment and foundation services provides administration
and custody services to non-profit organizations, including government
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.
CORPORATE/OTHER
Corporate/Other (“Other”) includes the investment securities portfolio,
long-term debt, capital, derivative instruments used by Treasury to manage
interest rate risk and duration, short-term liquidity and funding activities,
balance sheet risk management, office premises, certain support activities
not currently allocated to the aforementioned lines of business and the
incremental costs to integrate NCF’s operations (i.e., merger expense).The
major components of Other include Enterprise Information Services, which
is the primary data processing and operations group; Corporate Real Estate,
which manages the Company’s facilities; Marketing, which handles adver-
tising, product management and client information functions; Bankcard,
which handles credit card issuance and merchant discount relationships;
SunTrust Online, which handles client phone inquiries and phone sales and
manages the Internet banking function; Human Resources, which includes
the recruiting, training and employee benefit administration functions;
Finance, which includes accounting, management information, planning,
tax, and treasury. Other functions included in Other are enterprise risk
management, credit risk management, credit review, audit, internal con-
trol, legal and compliance, branch operations, corporate strategies devel-
MANAGEMENT’S DISCUSSION AND ANALYSIS continued