SunTrust 2005 Annual Report Download - page 77

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SUNTRUST  ANNUAL REPORT 75
On December , , SunTrust entered into a stock purchase agreement
whereby the Company sold its % interest in Carswell of Carolina, Inc., a
full service insurance agency offering comprehensive insurance services to
its clients, for cash totaling . million.
On September , , SunTrust entered into a definitive agreement
to sell its % interest in First Market Bank, FSB. Although it is currently
anticipated that the sale will take place in the first quarter of , the
Company cannot give any assurance as to when, or if, the sale will occur.
During the second quarter of , AMA Holdings, Inc. (“Holdings”), a
% subsidiary of SunTrust, exercised a right to call  minority member
owned interests in AMA, LLC (“LLC”). The transaction resulted in . mil-
lion of goodwill that was deductible for tax purposes. As of December ,
, Holdings owned  member interests and  member interests
of LLC were owned by employees. The employee-owned interests may be
called by Holdings at its discretion, or put to Holdings by the holders of the
member interest.
On March , , SunTrust sold substantially all of the factoring
assets of its division, Receivables Capital Management (“RCM”), to CIT
Group, Inc. The sale of approximately  million in net assets resulted
in a gain of . million. This gain was partially offset by . million
of expenses primarily related to the severance of RCM employees and the
write-off of obsolete RCM financial systems and equipment. The net gain of
. million was recorded in the Consolidated Statements of Income as
a component of noninterest income. In the third quarter of , an addi-
tional gain of . million was recorded due to the actual expense incurred
for severance and the write-off of obsolete systems and equipment being
less than what was estimated in the first quarter of . As a result, the
gain related to the RCM factoring asset sale totaled . million for the
year ended December , .
On January , , SunTrust purchased the remaining % minor-
ity interest of Lighthouse Partners, LLC (“LHP”), a non-registered limited
liability company established to provide alternative investment strategies
for clients. The transaction resulted in . million of goodwill and .
million of other intangibles which were both deductible for tax purposes.
On May , , SunTrust acquired substantially all of the assets of
Seix Investment Advisors, Inc (“Seix”). The Company acquired approximately
 billion in assets under management. The Company paid  million
in cash, resulting in . million of goodwill and . million of other
intangible assets, all of which are deductible for tax purposes. Additional
payments may be made in  and , contingent on performance. The
additional payments are currently estimated to total approximately .
million.
On June , , SunTrust completed the acquisition of Lighthouse
Financial Services, Inc. (Lighthouse) based in Hilton Head Island, South
Carolina. The Company acquired approximately . million in assets,
. million in loans, and . million in deposits. In addition,
SunTrust paid . million in a combination of cash and SunTrust stock.
The transaction resulted in . million of goodwill and . million of
other intangible assets, which were not deductible for tax purposes.
SunTrust completed the acquisition of SunAmerica Mortgage
(SunAmerica), one of the top mortgage lenders in Metro Atlanta, on July ,
.The transaction resulted in . million of goodwill and . million
of other intangibles, all of which were deductible for tax purposes. In ,
additional payments of . million were made to SunAmerica employees
that were contingent on  performance.
NOTE  • Funds Sold And Securities Purchased Under Agreements to Resell
Funds sold and securities purchased under agreements to resell at December  were as follows:
(Dollars in thousands)  
Federal funds , ,
Resell agreements , ,,
Total funds sold and securities purchased under agreements to resell ,, ,,
Securities purchased under agreements to resell are collateralized by U.S.
government or agency securities and are carried at the amounts at which
securities will be subsequently resold. The Company takes possession of all
securities under agreements to resell and performs the appropriate margin
evaluation on the acquisition date based on market volatility, as necessary.
The Company requires collateral between % and % of the underly-
ing securities. The total market value of the collateral held was . mil-
lion and ,. million at December ,  and , of which .
million and . million was repledged, respectively.