SunTrust 2003 Annual Report Download - page 55

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Annual Report 2003 SunTrust Banks, Inc. 53
balance of $100,000 or less. Also in 2003, SunTrust made
30,000 loans totaling over $2.1 billion to small businesses with
annual revenues of $1 million or less.
The Company continued to play a very active role in provid-
ing funding for affordable housing projects through membership
in the Federal Home Loan Bank as one of the leading lenders in
its Affordable Housing Program and Community Investment
Program. SunTrust continues to create quality housing for families
and seniors of modest means through its SunTrust Community
Development Corporation (CDC), which helps them build better
lives and preserve and enhance the quality and character of their
surrounding communities. Through the SunTrust CDC and our
investments in low-income housing tax credits, SunTrust has pro-
vided equity financing of $540 million that has created nearly
25,000 units of affordable housing throughout the Southeast.
In addition, SunTrust makes bond investments that help
finance community development initiatives such as public housing
and school construction, and invests in targeted mortgage-backed
securities providing affordable single-family and rental housing.
The Company makes grants in and equity investments to local and
regional groups providing affordable housing or promoting small
business development. Through lending, investing and services,
SunTrust continues to adhere to the principle “Build your commu-
nity and you will build your bank.”
CONTROLS AND PROCEDURES
A review and evaluation was performed by the Company’s man-
agement, including the Company’s Chief Executive Officer (the
CEO) and Chief Financial Officer (the CFO), of the effectiveness of
the design and operation of the Company’s disclosure controls
and procedures as of the end of the period covered by this Annual
Report. Based on that review and evaluation, the CEO and CFO
have concluded that the Company’s current disclosure controls
and procedures, as designed and implemented, were effective.
There have been no significant changes in the Company’s internal
controls or in other factors that could significantly affect the
Company’s internal controls subsequent to the date of their evalu-
ation. There were no significant material weaknesses identified in
the course of such review and evaluation and, therefore, no cor-
rective measures were taken by the Company.
LEGAL PROCEEDINGS
The Company and its subsidiaries are parties to numerous claims
and lawsuits arising in the course of their normal business activi-
ties, some of which involve claims for substantial amounts.
Although the ultimate outcome of these suits cannot be ascer-
tained at this time, it is the opinion of management that none of
these matters, when resolved, will have a material effect on the
Company’s consolidated results of operations or financial position.
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 flexi-
bility 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 signifi-
cantly change the competitive environment in which the Company
and its subsidiaries conduct business.
PROPERTIES
The Company’s headquarters are located in Atlanta, Georgia. As
of December 31, 2003, SunTrust Bank owned 746 of its 1,183
full-service banking offices, and leased the remaining banking
offices. (See Note 8 to the Consolidated Financial Statements.)