SunTrust 2006 Annual Report Download - page 66

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BUSINESS SEGMENTS
The Company has five primary lines of business (“LOBs”): Retail, Commercial, Corporate and
Investment Banking (“CIB”), Wealth and Investment Management, and Mortgage. In this section, the
Company discusses the performance and financial results of its business segments. For more financial
details on business segment disclosures, please see Note 22 – “Business Segment Reporting” to the
Consolidated Financial Statements.
Retail
The Retail line of business includes loans, deposits, and other fee-based services for consumers and
business clients with less than $5 million in sales (up to $10 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 (1-800-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, financial risk management, and treasury and payment solutions including
commercial card services. The primary client segments served by this line of business include
“Diversified 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 Premium
Assignment Corporation, which provides insurance premium financing, and Affordable Housing Group,
which manages community development projects that generate tax credits.
Corporate and Investment Banking
CIB serves issuer clients in the middle and large corporate markets. In addition to a large diversified
client base, CIB is focused on these key industry sectors: business services, consumer and retail,
financial services and technology, energy and healthcare. CIB provides an extensive range of investment
banking products and services, including mergers and acquisitions advice, capital raising in debt and
equity markets, financial risk management, asset securitization and market making in cash securities and
derivative instruments. These investment banking products and services are provided to CIB’s issuer
clients, Commercial clients and Wealth and Investment Management clients. CIB also offers traditional
lending, leasing, treasury management services and institutional investment management to its clients.
In addition, CIB serves investor clients through proprietary product flow in fixed income and equity
markets, secondary trading capabilities and equity research.
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 captive reinsurance subsidiary (Cherokee Insurance Company).
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