SunTrust 2008 Annual Report Download - page 13

PART I
Item 1. BUSINESS
General
SunTrust Banks, Inc. (“SunTrust”, the “Company”, “we”, “us”, or “our”), 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 clients. 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 most attractive 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 operated under four business segments during 2008. These
business segments were: Retail & Commercial, Wholesale Banking, 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, businesses, institutions, and governmental agencies.
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.
We completed the sale of our minority interest in Lighthouse Investment Partners, LLC on January 2, 2008 and effective
May 1, 2008, we acquired GB&T Bancshares, Inc. (“GB&T”). On May 30, 2008, we sold our interests in First Mercantile
Trust Company (“First Mercantile”), a retirement plan services subsidiary. Moreover, on September 2, 2008, we sold our fuel
card business, TransPlatinum to Fleet One Holdings LLC. 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”) and, in limited circumstances described
herein, the United States Department of the Treasury (the “Treasury”). The Company’s principal banking subsidiary,
SunTrust Bank, is a Georgia state chartered bank with branches in Georgia, Florida, the District of Columbia, Maryland,
Virginia, North Carolina, South Carolina, Tennessee, Alabama, West Virginia, 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 cash 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 addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal
Reserve as it attempts to control the money supply and credit availability in order to influence the economy.
Pursuant to the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, bank holding companies from any
state may acquire banks located in any other state, subject to certain conditions, including concentration limits. In addition, a
bank may establish branches across state lines by merging with a bank in another state, subject to certain restrictions. A bank
1