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PART I
Item 1. BUSINESS
General
SunTrust Banks, Inc. (“SunTrust” or the “Company”) one of the nation’s largest commercial banking organizations is a
diversified financial services holding company whose businesses provide a broad range of financial services to consumer and
corporate customers. SunTrust was incorporated in 1984 under the laws of the State of Georgia. The principal executive
offices of the Company are located in the SunTrust Plaza, Atlanta, Georgia 30308.
Additional information relating to our businesses and our subsidiaries is included in the information set forth in Item 7,
Management’s Discussion and Analysis of Financial Condition and Results of Operations (the “MD&A”), and Note 22,
“Business Segment Reporting,” to the Consolidated Financial Statements in Item 8 of this report.
Primary Market Areas
Through its flagship subsidiary SunTrust Bank, the Company provides deposit, credit, and trust and investment services.
Additional subsidiaries provide mortgage banking, asset management, securities’ brokerage, capital market services and
credit-related insurance. SunTrust enjoys strong market positions in some of the highest-growth markets in the United States
and operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the
District of Columbia. Within the geographic footprint, SunTrust strategically operated under five business segments during
2007. These business segments were: Retail, Commercial, Corporate and Investment Banking (“CIB”), Mortgage, and
Wealth and Investment Management. In addition, SunTrust provides clients with a selection of technology-based banking
channels, including the Internet, automated teller machines, PC and twenty-four hour telebanking. SunTrust’s client base
encompasses a broad range of individuals and families, high net-worth clients, businesses, and institutions.
Acquisition and Disposition Activity
As part of its operations, the Company regularly evaluates the potential acquisition of, and holds discussions with, various
financial institutions and other businesses of a type eligible for financial holding company ownership or control. In addition,
the Company regularly analyzes the values of, and may submit bids for, the acquisition of customer-based funds and other
liabilities and assets of such financial institutions and other businesses. The Company may also consider the potential
disposition of certain of its assets, branches, subsidiaries or lines of businesses.
On March 31, 2005, SunTrust sold the Receivables Capital Management factoring division and, in December of 2005, sold
Carswell of Carolina, Inc., a full service insurance agency. In 2006, SunTrust sold its Bond Trustee business and acquired 11
Florida Wal-Mart banking branches. In 2007, GenSpring Family Offices, LLC, a wholly owned subsidiary of SunTrust
Banks, Inc., acquired Inlign Wealth Management Investments, Inc. and TBK Investments, Inc. We also completed the sale of
our minority interest in Lighthouse Investment Partners, LLC on January 2, 2008 and expect to complete the acquisition of
GB&T Bancshares, Inc. during the second quarter of 2008. Additional information on these and other acquisitions and
dispositions is included in Note 2, “Acquisitions/Dispositions,” to the Consolidated Financial Statements in Item 8 which are
incorporated herein by reference.
Government Supervision and Regulation
As a bank holding company and a financial holding company, the Company is subject to the regulation and supervision of
the Board of Governors of the Federal Reserve System (the “Federal Reserve”). SunTrust Bank is a Georgia state bank which
has branches in Georgia, Florida, Tennessee, Alabama, Virginia, West Virginia, Maryland, North Carolina, South Carolina,
the District of Columbia, Mississippi and Arkansas. SunTrust Bank is a member of the Federal Reserve System, and is
regulated by the Federal Reserve, the Federal Deposit Insurance Corporation (the “FDIC”) and the Georgia Department of
Banking and Finance.
The Company’s banking subsidiary is subject to various requirements and restrictions under federal and state law, including
requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be made and the
interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services
that may be offered. Various consumer laws and regulations also affect the operations of the bank and its subsidiaries. In
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