SunTrust 2015 Annual Report Download - page 179

Notes to Consolidated Financial Statements, continued
151
NOTE 20 - BUSINESS SEGMENT REPORTING
The Company measures business activity across three segments:
Consumer Banking and Private Wealth Management, Wholesale
Banking, and Mortgage Banking, with functional activities
included in Corporate Other. The business segments are
determined based on the products and services provided or the
type of client served, and they reflect the manner in which
financial information is evaluated by management. The
following is a description of the segments and their composition.
The Consumer Banking and Private Wealth Management
segment is made up of two primary businesses: Consumer
Banking and Private Wealth Management.
• Consumer Banking provides services to consumers and
branch-managed small business clients through an
extensive network of traditional and in-store branches,
ATMs, the internet (www.suntrust.com), mobile banking,
and telephone (1-800-SUNTRUST). Financial products and
services offered to consumers and small business clients
include deposits, home equity lines and loans, credit lines,
indirect auto, student lending, bank card, other lending
products, and various fee-based services. Consumer
Banking also serves as an entry point for clients and provides
services for other lines of business.
• PWM provides a full array of wealth management products
and professional services to both individual and institutional
clients including loans, deposits, brokerage, professional
investment management, and trust services to clients
seeking active management of their financial resources.
Institutional clients are served by the Institutional
Investment Solutions business. Discount/online and full-
service brokerage products are offered to individual clients
through STIS. PWM also includes GenSpring, which
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
wealth across multiple generations.
The Wholesale Banking segment includes the following four
businesses:
• CIB delivers comprehensive capital markets solutions,
including advisory, capital raising, and financial risk
management, with the goal of serving the needs of both
public and private companies in the Wholesale Banking
segment and PWM business. Investment Banking and
Corporate Banking teams within CIB serve clients across
the nation, offering a full suite of traditional banking and
investment banking products and services to companies
with annual revenues typically greater than $150 million.
Investment Banking serves select industry segments
including consumer and retail, energy, financial services,
healthcare, industrials, and technology, media and
communications. Corporate Banking serves clients across
diversified industry sectors based on size, complexity, and
frequency of capital markets issuance. Also managed within
CIB is the Equipment Finance Group, which provides lease
financing solutions (through SunTrust Equipment Finance
& Leasing).
• Commercial & Business Banking offers an array of
traditional banking products, including lending, cash
management and investment banking solutions via STRH
to commercial clients (generally those with revenues $1
million to $150 million), not-for-profit organizations, and
governmental entities, as well as auto dealer financing (floor
plan inventory financing). Also managed within
Commercial & Business Banking is the Premium
Assignment Corporation, which provides corporate
insurance premium financing solutions.
• Commercial Real Estate provides a full range of financial
solutions for commercial real estate developers, owners, and
investors, including construction, mini-perm, and
permanent real estate financing, as well as tailored financing
and equity investment solutions via STRH. The Institutional
Real Estate team targets relationships with institutional
advisors, private funds, and insurance companies and the
Regional team focuses on real estate owners and developers
through a regional delivery structure. Commercial Real
Estate also offers tailored financing and equity investment
solutions for community development and affordable
housing projects through STCC, with particular expertise in
Low Income Housing Tax Credits and New Market Tax
Credits.
• Treasury & Payment Solutions provides all SunTrust
business clients with services required to manage their
payments and receipts, combined with the ability to manage
and optimize their deposits across all aspects of their
business. Treasury & Payment Solutions operates all
electronic and paper payment types, including card, wire
transfer, ACH, check, and cash. It also provides clients the
means to manage their accounts electronically online, both
domestically and internationally.
Mortgage Banking offers residential mortgage products
nationally through its retail and correspondent channels, as well
as via the internet (www.suntrust.com) and by telephone (1-800-
SUNTRUST). These products are either sold in the secondary
market, primarily with servicing rights retained, or held in the
Company’s loan portfolio. Mortgage Banking also services loans
for itself and for other investors.
Corporate Other includes management of the Company’s
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. Additionally, it includes Enterprise Information Services,
which is the primary information technology and operations
group; Corporate Real Estate, Marketing, SunTrust Online,
Human Resources, Finance, Corporate Risk Management, Legal
and Compliance, Communications, Procurement, and Executive
Management. The financial results of RidgeWorth, including the
gain on sale, are reflected in the Corporate Other segment for
the years ended December 31, 2014 and 2013. Prior to the sale
of RidgeWorth in the second quarter of 2014, RidgeWorth's