SunTrust 2012 Annual Report Download - page 17

1
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 20, “Business Segment
Reporting,” to the Consolidated Financial Statements in Item 8 of this Form 10-K.
Primary Market Areas
Through its principal subsidiary, SunTrust Bank, the Company offers a full line of financial services for consumers and
businesses including deposit, credit, and trust and investment services. Additional subsidiaries provide mortgage banking,
asset management, securities brokerage, and capital market services. 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 provides clients with a selection of branch-based and technology-based banking channels, including
the internet, ATMs, and twenty-four hour telebanking. SunTrust's client base encompasses a broad range of individuals and
families, businesses, institutions, and governmental agencies. Within its geographic footprint, SunTrust operated the following
business segments during 2012, with the remainder in Corporate Other: Consumer Banking and Private Wealth Management,
Wholesale Banking, and Mortgage Banking.
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. Additionally,
the Company regularly analyzes the values of and may submit bids for 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 2012, 2011, and 2010, the Company acquired the assets of an online lender, the Company's W&IM business acquired
the assets and liabilities of an asset manager, and sold $14.1 billion of managed money market funds to Federated Investors,
Inc., respectively. Additional information on these acquisitions and dispositions is included in Note 2, “Acquisitions/
Dispositions,” to the Consolidated Financial Statements in Item 8 of this Form 10-K, which is 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. 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 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 SunTrust 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.
The Dodd-Frank Act, which was enacted in 2010, imposes new regulatory requirements and oversight over banks and other
financial institutions in a number of ways, among which are (i) creating the CFPB to regulate consumer financial products
and services; (ii) creating the Financial Stability Oversight Council to identify and impose additional regulatory oversight on
large financial firms; (iii) granting orderly liquidation authority to the FDIC for the liquidation of financial corporations that
pose a risk to the financial system of the U.S.; (iv) requiring financial institutions to draft a resolution plan that contemplates