SunTrust 2011 Annual Report Download - page 210
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Please find page 210 of the 2011 SunTrust annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to Consolidated Financial Statements (Continued)
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The PWM group offers brokerage, professional investment management, and trust services to clients seeking active management
of their financial resources. PWM includes the Private Banking group which offers a full array of loan and deposit products to
clients, as well as STIS, which offers discount/online and full service brokerage services to individual clients.
GenSpring provides family office solutions to ultra high net worth individuals and their families. Utilizing teams of multi-
disciplinary specialists with expertise in investments, tax, accounting, estate planning, and other wealth management disciplines,
GenSpring helps families manage and sustain their wealth across multiple generations.
IIS includes Employee Benefit Solutions, Foundations & Endowments Specialty Group, and Escrow Services. Employee Benefit
Solutions provides administration and custody services for defined benefit and defined contribution plans as well as administration
services for non-qualified deferred compensation plans. Foundations & Endowments services non-profit organizations by
providing bundled administrative and investment solutions including planned giving, charitable trustee, and foundation grant
administration. Escrow Services services corporations, governmental entities and attorneys requiring escrow services.
RidgeWorth, an SEC registered investment advisor, serves as investment manager for the RidgeWorth Funds as well as individual
clients. RidgeWorth is also a holding company with ownership in other institutional asset management boutiques offering a wide
array of equity, alternative, fixed income, and liquidity management capabilities. These boutiques include Ceredex Value Advisors,
Certium Asset Management, Seix Investment Advisors, Inc., Silvant Capital Management, StableRiver Capital Management and
Zevenbergen Capital Investments, LLC. On July 16, 2010, the Company reached a definitive agreement for Federated Investors,
Inc. (Federated) to acquire approximately $17 billion in managed liquidity assets. SunTrust retained RidgeWorth's long-term asset
management business. The transactions received the customary approvals and the migration to the Federated Funds was completed
by year end 2010.
Corporate Other and Treasury includes the 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. Other components include
Enterprise Information Services, which is the primary data processing and operations group; the Corporate Real Estate group,
Marketing, SunTrust Online, Human Resources, Finance, CRM, Legal and Compliance, Branch Operations, Corporate Strategies,
Communications, Procurement, Consumer Banking Administration, and Executive Management. Additionally, Corporate Other
and Treasury also includes Trustee Management, which provides treasury management and deposit services to bankruptcy trustees.
Because the business segment results are presented based on management accounting practices, the transition to the consolidated
results, which are prepared under U.S. GAAP, creates certain differences which are reflected in Reconciling Items.
For business segment reporting purposes, the basis of presentation in the accompanying discussion includes the following:
• Net interest income – All net interest income is presented on a FTE basis. The revenue gross-up has been applied to
tax-exempt loans and investments to make them comparable to other taxable products. The segments have also been
matched maturity funds transfer priced, generating credits or charges based on the economic value or cost 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 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 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.