Through its flagship subsidiary, SunTrust Bank, the Company provides deposit,
credit and trust and investment services. Additional subsidiaries provide mortgage
banking, insurance, asset management, brokerage and capital market services. SunTrust’s
customer base encompasses a broad range of individuals and families, high-net-worth
clients, businesses and institutions.
SunTrust enjoys leading market positions in some of the highest-growth markets
in the United States and also serves customers in selected markets nationally.
The Company’s priorities include consistency in financial performance, quality
in customer service and a strong commitment to all segments of the communities
it serves.
SunTrust’s 1,201 retail and specialized service branches and 2,225 ATMs are
located primarily in Florida, Georgia, Maryland, Tennessee, Virginia and the
District of Columbia. In addition, SunTrust provides customers with a selection
of technology-based banking channels, including Internet, PC and Telephone Banking.
Our Internet address is www.suntrust.com
One of SunTrust’s biggest strengths is our Southeast and Mid-Atlantic regional
franchise. Our geographic “footprint” is concentrated in some of the most economically
vibrant and fastest-growing markets in the United States. Said another way,
we think there’s no better place to be in the domestic financial services business
than exactly where we are.
We are a recognized leader in providing a broad array of financial services
to consumers and businesses of all sizes through a multi-channel, 24/7 delivery
network that emphasizes convenience to the customer and efficiency for us.
We deliver highly competitive wealth management and investment-related services
to high-net-worth clients ranging from affluent individuals to the very wealthy.
We have the demonstrated capability to meet the full range of credit, capital
markets and investment banking needs of corporate and institutional clients.
Through a comprehensive talent management process, SunTrust ensures continuity
of leadership in key management positions, recognizing the diversity of our
employee base. In addition, training and development programs are central to
our priority of equipping all employees to meet the needs of clients in a rapidly
changing business environment. SunTrust’s increasing number of classroom-style
offerings are complemented by cost-effective e-learning capabilities, which
provide employees increased flexibility as they undertake career-enhancing classes.
SunTrust Mortgage expanded market share within the SunTrust footprint through
the acquisition of Sun America Mortgage Corp. in Atlanta, and the opening of
two new mortgage offices in Alpharetta and Peachtree City, GA. Additionally,
with completion of the Lighthouse merger, SunTrust became the number-one mortgage
lender in the Hilton Head market. Through joint-venture partnerships, the mortgage
unit further expanded its presence in key markets such as Atlanta and Nashville,
TN, as well as in select out-of-footprint markets such as Indianapolis, IN.
In the normal course of business, the Company utilizes various derivative and
credit-related financial instruments to meet the needs of customers and to manage
the Company’s exposure to interest rate and other market risks. These financial
instruments involve, to varying degrees, elements of credit and market risk
in excess of the amount recorded on the balance sheet in accordance with accounting
principles generally accepted in the United States. SunTrust manages the credit
risk of its derivatives by (1) limiting the total amount of arrangements outstanding
by an individual counterparty; (2) monitoring the size and maturity structure
of the portfolio; (3) obtaining collateral based on management’s credit assessment
of the counterparty; (4) applying uniform credit standards maintained for all
activities with credit risk; and (v) entering into transactions with high quality
counterparties that are periodically reviewed by the Company’s Credit Committee.
The Company manages the market risk of its derivatives by establishing and monitoring
limits on the types and degree of risk that may be undertaken. The Company continually
measures market risk by using a value-at-risk methodology.
COMPETITION
All aspects of the Company’s business are highly competitive. The Company faces
aggressive competition from other domestic and foreign lending institutions
and from numerous other providers of financial services. The ability of nonbanking
financial institutions to provide services previously reserved for commercial
banks has intensified competition. Because nonbanking financial institutions
are not subject to the same regulatory restrictions as banks and bank holding
companies, they can often operate with greater flexibility and lower cost structures.
Securities firms and insurance companies that elect to become financial holding
companies may acquire banks and other financial institutions. This may significantly
change the competitive environment in which the Company and its subsidiaries
conduct business.
