SunTrust 2009 Annual Report Download - page 169

SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
created by the assets and liabilities of each segment. The mismatch between funds credits and funds charges at the
segment level resides in Reconciling Items. The change in the matched maturity funds mismatch is generally
attributable to the corporate balance sheet management strategies.
•Provision for credit losses - Represents net charge-offs by segment. The difference between the segment net
charge-offs and the consolidated provision for credit losses is reported in Reconciling Items.
•Provision/(benefit) for income taxes - Calculated using a nominal income tax rate for each segment. This
calculation includes the impact of various income adjustments, such as the reversal of the FTE gross up on
tax-exempt assets, tax adjustments, and credits that are unique to each business segment. The difference between
the calculated provision/(benefit) for income taxes at the segment level and the consolidated provision/(benefit) for
income taxes is reported in Reconciling Items.
The Company continues to augment its internal management reporting methodologies. Currently, the segment’s financial
performance is comprised of direct financial results as well as various allocations that for internal management reporting
purposes provide an enhanced view of analyzing the segment’s financial performance. The internal allocations include the
following:
•Operational Costs – Expenses are charged to the segments based on various statistical volumes multiplied by
activity based cost rates. As a result of the activity based costing process, planned residual expenses are also
allocated to the segments. The recoveries for the majority of these costs are in the Corporate Other and Treasury
segment.
•Support and Overhead Costs – Expenses not directly attributable to a specific segment are allocated based on
various drivers (e.g., number of full-time equivalent employees and volume of loans and deposits). The recoveries
for these allocations are in Corporate Other and Treasury.
•Sales and Referral Credits – Segments may compensate another segment for referring or selling certain products.
The majority of the revenue resides in the segment where the product is ultimately managed.
The application and development of management reporting methodologies is a dynamic process and is subject to 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. Whenever significant changes
to management reporting methodologies take place, the impact of these changes is quantified and prior period information is
reclassified wherever practicable.
Twelve Months Ended December 31, 2009
(Dollars in thousands)
Retail and
Commercial
Corporate
and
Investment
Banking
Household
Lending
Wealth and
Investment
Management
Corporate
Other and
Treasury
Reconciling
Items Consolidated
Average total assets $56,409,092 $30,897,635 $51,221,820 $8,984,057 $26,690,861 $1,238,958 $175,442,423
Average total liabilities 93,395,855 14,571,273 3,935,072 11,356,812 29,750,582 146,736 153,156,330
Average total equity - - - - - 22,286,093 22,286,093
Net interest income $2,345,576 $316,759 $780,190 $303,954 $419,581 $299,630 $4,465,690
Fully taxable-equivalent adjustment (FTE) 37,269 72,530 - 17 14,054 (581) 123,289
Net interest income (FTE)12,382,845 389,289 780,190 303,971 433,635 299,049 4,588,979
Provision for credit losses21,175,241 298,164 1,683,450 79,166 1,690 826,203 4,063,914
Net interest income after provision for credit losses 1,207,604 91,125 (903,260) 224,805 431,945 (527,154) 525,065
Noninterest income 1,362,990 700,073 727,682 748,551 202,155 (31,173) 3,710,278
Noninterest expense 3,292,965 559,718 1,785,327 863,061 92,908 (31,571) 6,562,408
Income/(loss) before provision/(benefit) for income taxes (722,371) 231,480 (1,960,905) 110,295 541,192 (526,756) (2,327,065)
Provision/(benefit) for income taxes3(241,060) 86,893 (593,021) 42,434 128,563 (199,303) (775,494)
Net income/(loss) including income attributable to
noncontrolling interest (481,311) 144,587 (1,367,884) 67,861 412,629 (327,453) (1,551,571)
Net income attributable to noncontrolling interest - - 2,971 (7) 9,148 - 12,112
Net income/(loss) ($481,311) $144,587 ($1,370,855) $67,868 $403,481 ($327,453) ($1,563,683)
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