SunTrust 2009 Annual Report Download - page 17

PART I
Item 1. BUSINESS
General
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 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, and Note 22, “Business Segment
Reporting,” to the Consolidated Financial Statements in Item 8 of this report.
Primary Market Areas
Through its principal 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 operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina,
Tennessee, Virginia, and the District of Columbia and enjoys strong market positions in these markets. SunTrust operated
under four business segments during 2009. These business segments were: Retail and Commercial, Corporate and Investment
Banking, Household Lending, and Wealth and Investment Management. In addition, SunTrust provides clients with a
selection of technology-based banking channels, including the internet, automated teller machines, 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.
During 2009, the Company’s Wealth and Investment Management business completed three acquisitions of family office
enterprises: Epic Advisors, Inc; a division of CSI Capital Management; and Martin Kelly Capital Management LLC. 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. On May 30, 2008, we sold our interests in 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 Federal Reserve and, in limited circumstances described herein, the U.S. 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 it is regulated by the Federal Reserve, 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
holding company may not directly or indirectly acquire ownership or control of more than 5% of the voting shares or
substantially all of the assets of any bank or merge or consolidate with another bank holding company without the prior
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