Suntrust Banks, Inc.

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.