SunTrust Banks

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SunTrust Banks Inc.
TypePublic
Traded asNYSESTI
S&P 500 Component
IndustryBanking
Founded1985[1]
HeadquartersAtlanta, Georgia, United States
Number of locations1,659 Branches
2,899 ATMs
Area servedSoutheastern United States
Key peopleWilliam H. Rogers, Jr.
President and CEO
ProductsFinancial Services
RevenueIncrease US$8.483 Billion (FY 2011)[2]
Net incomeIncrease US$728 Million (FY 2011)[2]
Total assetsIncrease US$178 Billion (FY 2012)[3]
Total equityIncrease US$22.5 Billion (FY 2009)[3]
Employees29,182 (2012)
WebsiteSunTrust.com
 
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SunTrust Banks Inc.
TypePublic
Traded asNYSESTI
S&P 500 Component
IndustryBanking
Founded1985[1]
HeadquartersAtlanta, Georgia, United States
Number of locations1,659 Branches
2,899 ATMs
Area servedSoutheastern United States
Key peopleWilliam H. Rogers, Jr.
President and CEO
ProductsFinancial Services
RevenueIncrease US$8.483 Billion (FY 2011)[2]
Net incomeIncrease US$728 Million (FY 2011)[2]
Total assetsIncrease US$178 Billion (FY 2012)[3]
Total equityIncrease US$22.5 Billion (FY 2009)[3]
Employees29,182 (2012)
WebsiteSunTrust.com
SunTrust locations in the United States.
A SunTrust branch in Durham, North Carolina
A SunTrust Bank in Hendersonville, Tennessee

SunTrust Banks, Inc., is an American bank holding company. The largest subsidiary is SunTrust Bank. It had US$178.3 billion in assets as of June 30, 2012.[4] SunTrust Bank's most direct corporate parent was established in 1891 in Atlanta, where its headquarters remain.[1]

SunTrust operates 1,659 bank branches and 2,899 ATMs across Southern states, including Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and Washington, D.C.[5]

Contents

Products

The bank's offerings include retail and commercial banking, as well as trust services, mortgage banking, credit cards, mutual funds, insurance, equipment leasing, asset management, and securities underwriting and dealing.

Credit cards

On December 12, 2006, it was announced that SunTrust signed an agreement with InfiCorp Holdings of Atlanta to manage SunTrust's consumer credit card portfolio. The portfolio had been managed under an agreement with MBNA Corporation since 1999, but MBNA was acquired by SunTrust's competitor Bank of America on June 30, 2005. SunTrust will retain the option to purchase card assets from InfiCorp if it desires to add to its own loan portfolio. InfiCorp Holdings is a subsidiary of First National of Nebraska.[6]

History

The earliest predecessor institution, Farmers Bank of Alexandria, Virginia, was founded in 1811.[1] The most direct corporate ancestor, the Trust Company of Georgia, was founded in 1891 as the Commercial Travelers' Savings Bank. Two years later, it restructured as a trust company and renamed itself Trust Company of Georgia.[7] The current SunTrust Banks, Inc., was the result of a merger between the Trust Company of Georgia and SunBanks, Inc., of Orlando, Florida (founded in 1934 as First National Bank of Orlando) in 1985. The merged company operated as Trust Company Bank in Georgia and Sun Bank in Florida until 1995, when all banks took the SunTrust name.[1]

In 2007, the bank was one of the first major U.S. institutions to experience a stock value decline, bottoming out at $9.06/share in February 2009 from a high of $90.61/share on May 22, 2007.[8] They took part in the federal government's Troubled Asset Relief Program[9] and ultimately were investigated for executive compensation.[10] In 2012, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit that SunTrust Banks, Inc., violated federal law when a branch manager sexually harassed three female employees at its Sarasota, Fla., Gulf Gate Branch Office location. [11]

Acquisitions

In 1986, shortly after the Trust Company–SunBanks merger, SunTrust purchased Third National Corporation of Nashville, though it continued to use the Third National name in Tennessee until 1995. It purchased Crestar Financial Corporation of Richmond, Virginia (successor of Farmers Bank) in 1998.[1] In 2001, SunTrust launched a hostile takeover bid for Wachovia Corporation, after Wachovia announced its intention to merge with First Union Corporation.[12] This attempt was unsuccessful. It did, however, purchase the retail banking operations of Huntington Bancshares in Florida in 2002;[13] SunTrust and Huntington continue to compete in the Charleston, West Virginia market today.

SunTrust building in Tampa, Florida

The company bought Memphis-based National Commerce Financial Corporation (NCF) for $7 billion in 2004. The bank operated as National Bank of Commerce in South Carolina, Tennessee, Mississippi, Arkansas, Alabama, Georgia, Virginia and West Virginia and as Central Carolina Bank and Trust in North Carolina. This acquisition allowed SunTrust to enter North Carolina and West Virginia for the first time, and substantially increased its footprint in the other states.[14]

On November 2, 2007, SunTrust Bank announced that it will acquire GB&T Bancshares for $154 million. Under the agreement, GB&T shareholders would receive 0.1562 shares of SunTrust stock for each share of GB&T stock held. SunTrust doesn't anticipate the transaction, expected to close in the second quarter of 2008, to affect 2008 earnings. If completed, the merger would integrate the GB&T franchise primarily into SunTrust's Atlanta banking region, where it operates 212 branches.

Historical data

[15]

SunTrust Banks was the eighth largest bank at the end of 2008 as an individual bank. (Not including subsidiaries)

Executives

On April 21, 2011, William H. Rogers, Jr. began a transition into the CEO role held by Jim Wells, who will fully retire December 31. Formerly Suntrust's COO, Rogers assumed the title of CEO on June 1, 2011. Rogers had been named President in 2008[16]

Relationship with Coca-Cola

SunTrust Center in Orlando, Florida

SunTrust has a long-standing relationship with The Coca-Cola Company. The Trust Company of Georgia helped underwrite the initial public offering of The Coca-Cola Company in 1919.[7] As a result, the bank received some of Coke's publicly traded stock, and SunTrust retains 48.3 million shares (3.58%) of Coke as of 2006. This stake, which has a GAAP cost of $110,000, is today worth approximately $2 billion and pays $59 million a year in dividends. In addition, the original copy of the formula for Coca-Cola is stored in a safe deposit box of a SunTrust location in Atlanta.[17] Ernest Woodruff, president of the Trust Company from 1904 to 1922, was the father of Robert W. Woodruff, Coca-Cola's president from 1923 to 1954 and board member until 1984. As of 2007, two Coca-Cola executives sit on SunTrust's board of directors[18] and a former SunTrust CEO sits on Coca-Cola's board.[19]

On May 15, 2007, SunTrust announced that it had sold 4.5 million shares, or 9%, of its 48.2 million shares of Coca-Cola.[20][21] On July 22, 2008, SunTrust announced they were selling their remaining 43.6 million shares in order to raise more capital.[22]

SunTrust Center

Located at 200 South Orange Avenue, The SunTrust Center is the tallest building in downtown Orlando, Florida. The 35 story, 650,000 sq ft (60,000 m2) building was built in 1988 at a cost of approximately $100 million.[citation needed] It is constructed of reinforced concrete and granite with marble finishes and features 17 elevators.

References

  1. ^ a b c d e "SunTrust Banks, Inc. Historical Highlights" (PDF). SunTrust Banks. October 2004. https://www.suntrust.com/portal/server.pt/gateway/PTARGS_0_2_227_866_0_43/http%3B/portlet-ice.suntrust.com/Portlets/iwcc/IWCCDisplay.aspx?gid=PleRBZamgzMxbPtB8tKlh3OQ7J4wH4wArZZ. Retrieved 2006-12-10. 
  2. ^ a b SunTrust Banks (STI) annual SEC income statement filing via Wikinvest
  3. ^ a b SunTrust Banks (STI) annual SEC balance sheet filing via Wikinvest
  4. ^ "FDIC Institution Directory: SunTrust Bank". http://www2.fdic.gov/idasp/confirmation.asp?inCert1=867&AsOf=MostCurrent&Refer=ID. 
  5. ^ "SunTrust in brief". SunTrust Banks, Inc.. 2007-07-30. https://www.suntrust.com/portal/server.pt/gateway/PTARGS_0_2_227_866_0_43/http%3B/portlet-ice.suntrust.com/Portlets/iwcc/IWCCDisplay.aspx?gid=PVq7H3Qn0ICf9KFX3d7vcpbpkWKySguy4jMM1uL3XR4%2Bu4vhdkkX0TEcA%3D%3D. Retrieved 2007-10-20. 
  6. ^ "SunTrust Signs Agreement with InfiCorp for Consumer Credit Cards" (Press release). SunTrust Banks, Inc.. 2006-12-12. https://www.suntrust.com/portal/server.pt/gateway/PTARGS_0_2_224_866_0_43/http%3B/phx.corporate-ir.net/phoenix.zhtml?c=82273&p=irol-newsArticle&ID=941461&highlight=. Retrieved 2007-04-08. 
  7. ^ a b Borowsky, Bruce (2005-03-11). "SunTrust Banks (Trust Company Bank)". New Georgia Encyclopedia. Georgia Humanities Council. http://www.newgeorgiaencyclopedia.com/nge/Article.jsp?path=/BusinessIndustry/Business/BankingFinancialLegalServices-1/InsuranceCompanies&id=h-1746. Retrieved 2006-12-10. 
  8. ^ "SunTrust Banks Inc. Case Study", AFL-CIO. Accessed April 17, 2011
  9. ^ "Ten Largest Banks in the U.S", Jim Wang. Bargaineering. Accessed April 17, 2011
  10. ^ "SunTrust Banks, Inc. Under Investor Investigation Over Alleged Excessive Payouts", Shareholders Foundation. Accessed April 17, 2011
  11. ^ "SunTrust Bank Sued by EEOC in Class Sexual Harassment Lawsuit". The National Law Review. U.S. Equal Employment Opportunity Commission. 2012-06-17. http://www.natlawreview.com/article/suntrust-bank-sued-eeoc-class-sexual-harassment-lawsuit. Retrieved 2012-06-20. 
  12. ^ "Wachovia Comments On SunTrust's Unsolicited Proposal" (Press release). Wachovia Corporation. 2001-05-14. http://www.wachovia.com/inside/page/0,,134_307%5E190,00.html. Retrieved 2007-10-20. 
  13. ^ Salgat, Ken (2002-02-18). "Huntington National Bank's Tampa Bay area run over". http://www.bizjournals.com/tampabay/stories/2002/02/18/story8.html?page=all. 
  14. ^ "SunTrust to buy National Commerce Financial". Atlanta Business Chronicle. 2004-05-09. p. 1. http://atlanta.bizjournals.com/atlanta/stories/2004/05/03/daily60.html. Retrieved 2007-04-08. 
  15. ^ Money Economics Top 10 Banks Project
  16. ^ Bizjournals
  17. ^ Mikkelson, Barbara (2007-03-13). "Have a Cloak and a Smile". Urban Legends Reference Pages. http://snopes.com/cokelore/formula.asp. Retrieved 2007-04-08. 
  18. ^ "Officers & Directors". SunTrust Banks, Inc.. https://www.suntrust.com/portal/server.pt?space=Opener&control=OpenObject&cached=true&parentname=CommunityPage&parentid=4&in_hi_ClassID=512&in_hi_userid=2&in_hi_ObjectID=1487&in_hi_OpenerMode=2&. Retrieved 2007-04-08. 
  19. ^ "Board Of Directors". The Coca-Cola Company. http://www2.coca-cola.com/ourcompany/board.html. Retrieved 2007-04-08. 
  20. ^ SunTrust Sells Coca-Cola Shares It's Held 88 Years (CNBC)
  21. ^ SunTrust unloads 9% of Coke stock, may sell more (Atlanta Journal-Constitution)
  22. ^ SunTrust sells big Coke stake, profit falls 21% (USA Today)

External links