SunTrust Banks
| Company type | Public |
|---|---|
| Industry | Banking, Financial services |
| Founded | September 21, 1891 in Atlanta, Georgia, United States |
| Founder | John M. Green, Joel Hurt, and other business leaders |
| Defunct | December 6, 2019 |
| Fate | Merged with BB&T to form Truist Financial Corporation |
| Successor | Truist Financial Corporation |
| Headquarters | Atlanta, Georgia , United States |
Area served | Southeastern United States and Washington, D.C. |
Key people | William H. Rogers Jr. (Chairman, President and CEO 2011–2019) |
| Products | Deposit accounts, lending services, credit cards, trust and investment management, corporate and investment banking, capital markets, mortgage banking, wealth management |
Number of employees | ~24,000 (2016) |
SunTrust Banks, Inc. was a U.S.-based bank holding company with its headquarters located in Atlanta, Georgia. Its principal subsidiary was SunTrust Bank, managing assets valued at US$199 billion as of March 31, 2018. Founded in 1891, the organization operated approximately 1,400 branches and 2,160 ATMs throughout 11 states in the southeastern United States and Washington, D.C. as of September 2016.
The company’s primary operations encompassed deposit accounts, lending services, credit card offerings, and trust and investment management. Via its subsidiaries, it also provided corporate and investment banking, capital markets activities, mortgage banking solutions, and wealth management services. Employing close to 24,000 individuals, the firm encountered regulatory scrutiny including a $1.5 billion mortgage-related settlement in 2013 and a tentative $968 million agreement with the U.S. government in 2014.
In February 2019, SunTrust revealed plans for a $28 billion all-stock merger with BB&T, resulting in the formation of the sixth-largest bank in the United States—marking the most significant banking merger since the 2008 financial crisis. This merger was finalized on December 6, 2019, creating Truist Financial Corporation.
Trust Company of Georgia
The origins of SunTrust trace back to September 21, 1891, when the Trust Company of Georgia was established by the Georgia General Assembly under the name Commercial Travelers' Savings Bank of Atlanta. Founders included notable figures such as John M. Green and Joel Hurt, among other influential business leaders.
By November 1893, the institution reorganized itself as a trust company and adopted the name Trust Company of Georgia.
Sun Bank
The earliest predecessor to Sun Bank began operations in 1911 as The People's National Bank in Orlando, Florida. It was renamed First National Bank in 1920 but succumbed during the Great Depression. It reemerged in 1934 as First National Bank at Orlando. In 1973, a merger with other Orlando-based banks led to the creation of SunBanks, which held assets totaling $1.713 billion and included three bank-affiliated subsidiaries.
During the early 1980s, SunBanks pursued strategic mergers to benefit from changes in Florida’s banking regulations. Its acquisitions included Hillsboro Bank of Plant City—one of Florida’s oldest banks with $150 million in assets—and Florida State Bank located in Tallahassee.
In May 1983, SunBanks announced a significant acquisition of Miami’s Flagship Bank Inc., which had $3.3 billion in assets. This transaction elevated SunBanks to one of Florida’s largest bank holding companies and marked its seventh acquisition within a twelve-month period.
Trust Company of Georgia merger
In 1985, a merger between Trust Company of Georgia and SunBanks resulted in the formation of SunTrust Banks, Inc., headquartered in Atlanta. Initially, operations continued under Trust Company Bank branding in Georgia and Sun Bank branding in Florida.
The following year, SunTrust acquired Third National Corporation based in Nashville, maintaining the Third National brand within Tennessee. By 1995, all operations were unified under the SunTrust name.
SunTrust broadened its regional reach by acquiring Crestar Financial Corporation from Richmond, Virginia in 1998, thereby entering markets in Virginia, Maryland, and the District of Columbia. Crestar's lineage extends back to 1865 with predecessors such as Farmers Bank of Alexandria (established in 1811).
The company gained inclusion into the S&P 500 index in 1988 as a reflection of its expanding financial stature. In 2001, it acquired institutional businesses from Robinson-Humphrey Company, leading to the creation of SunTrust Robinson-Humphrey.
A major expansion occurred in 2004 with the $7 billion purchase of Memphis-based National Commerce Financial Corporation (NCF), significantly extending SunTrust’s presence into Alabama, North Carolina, South Carolina, and West Virginia while increasing its market share across southeastern states.
In 2013, SunTrust led a consortium financing Comvest Partners’ acquisition of BEL USA—the parent company of DiscountMugs—highlighting its role in corporate investment lending.
By 2014, SunTrust introduced a medical specialty division aimed at supporting independent medical practices as part of its product diversification strategy.
On September 16, 2014, it was announced that the new stadium for the Atlanta Braves located in Cobb County would be named SunTrust Park. This $1.1 billion project included The Battery Atlanta retail and residential complex. The stadium opened for the 2017 baseball season and was renamed Truist Park beginning in 2020.
The Robinson-Humphrey Company
Recognized as one of Atlanta's most historic and influential firms, The Robinson-Humphrey Company was acquired by SunTrust in 2001. SunTrust had sought to acquire Robinson-Humphrey for more than eight decades, with its forerunner, Trust Company of Georgia, making an unsuccessful bid in 1917.
Established in 1894 by Roby Robinson as a specialist in municipal bonds, the firm officially incorporated in 1902 alongside William G. Humphrey. Under the leadership of Chairman Justus Martin Jr., Robinson-Humphrey emerged as the premier investment bank in the Southern United States, broadening its reach among corporate and international clientele. During Martin’s tenure, the Atlanta Financial Center was commissioned in the 1980s.
In 1982, American Express, under CEO James D. Robinson III (unrelated to Roby Robinson), purchased Robinson-Humphrey and merged it into Shearson Lehman Brothers Inc. Subsequently, in 1993, following a reorganization led by Sandy Weill, Robinson-Humphrey was divested to Primerica’s Smith Barney division.
Truist Financial Corporation
On February 7, 2019, BB&T revealed its plan to acquire SunTrust, resulting in the creation of Truist Financial Corporation. This merger formed the sixth-largest bank in the United States, with assets totaling $442 billion and a market value around $66 billion. While the consolidated company is headquartered in Charlotte, it retains significant operations within Atlanta.
Truist designated Atlanta as the center for wholesale banking activities and Winston-Salem for community banking services, with anticipated job growth in both locations. This consolidation marked the conclusion of SunTrust’s role as the last major banking institution headquartered in Atlanta, historically regarded as the financial capital of the South.
The merger finalized on December 6, 2019, when SunTrust Bank was integrated into BB&T’s Branch Banking and Trust Company to establish Truist Bank. During a transition period expected to last up to two years, both BB&T and SunTrust brands continue to operate concurrently, offering customers complimentary ATM access across their combined networks.
Pre-Merger operations and structure
Prior to merging, the organization was structured into three principal divisions: Consumer Banking & Private Wealth Management, Wholesale Banking, and Mortgage.
| Business Segment | Revenue Share |
|---|---|
| Consumer Banking | 32% |
| Corporate & Investment Banking | 20% |
| Commercial & Business Banking | 14% |
| Private Wealth Management | 12% |
| Mortgage | 11% |
| Consumer Lending | 8% |
| Commercial Real Estate | 3% |
By September 2016, SunTrust Bank maintained a network of approximately 1,400 branches and 2,160 ATMs spanning Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and Washington, D.C. In 2018, the bank announced plans to close its final five branches located within Kroger stores in West Virginia.
Executives
| Name | Role | Tenure |
|---|---|---|
| William H. Rogers Jr. | Chairman, President and CEO | 2011 – 2019 |
| James M. Wells III | Chairman, President and CEO | 2007 – 2011 |
| L. Phillip Humann | Chairman, President and CEO | 1998 – 2007 |
| James B. "Jimmy" Williams | Chairman, President and CEO | 1990 – 1998 |
| Robert M. Strickland | Chairman of SunTrust; president of Trust Company in 1973 | 1978 – 1990 |
William H. Rogers Jr. assumed the CEO position on June 1, 2011, after serving as Chief Operating Officer and President since 2008. Concurrently, Aleem Gillani was appointed Chief Financial Officer. Between 2015 and 2016, several corporate treasurers from SunTrust advanced to CFO roles at prominent regional banks—Kevin Blair joined Zions Bancorporation while Paul Burdiss moved to Synovus—and strategy leader Inder M. Singh took on the CFO role at IT company Unisys.
Relationship with Coca-Cola
SunTrust held a prominent partnership with The Coca-Cola Company. In 1919, Ernest Woodruff, who served as president of the Trust Company from 1904 to 1922, together with W. C. Bradley, purchased Coca-Cola for $25 million and reorganized the company. The Trust Company of Georgia played a key role in underwriting Coca-Cola’s initial public offering, receiving shares as compensation. Four years afterward, Woodruff’s son, Robert W. Woodruff, took on the role of Coca-Cola’s president until 1954 and remained on its board until 1984.
By the year 2006, SunTrust possessed 48.3 million shares—equivalent to 3.58%—of Coca-Cola stock, with a GAAP cost basis valued at $110,000. The original Coca-Cola recipe was safeguarded in a SunTrust safe deposit box located in Atlanta from 1925 until its relocation in 2011 to a specialized vault at the World of Coca-Cola museum.
Executives from Coca-Cola frequently held positions on SunTrust’s board of directors, while SunTrust leaders concurrently served on Coca-Cola’s board, underscoring their close corporate relationship.
Starting in May 2007, SunTrust began reducing its Coca-Cola holdings by selling 4.5 million shares, representing 9% of its stake. The following year, it divested an additional 10 million shares and donated 3.6 million shares to its charitable foundation, with plans for further sales slated for 2014 and 2015.
In September 2012, facing pressure from the Federal Reserve after failing a stress test and having to resubmit its capital plan (CCAR), SunTrust fully liquidated its remaining Coca-Cola shares. Basel III regulatory capital requirements classified equity holdings as unfavorable for the bank’s capital ratios, prompting an expedited sale to enhance financial stability.
2014 National Mortgage Settlement
In 2014, SunTrust Mortgage, Inc. consented to a $500 million settlement with federal authorities and state attorneys general concerning alleged improper practices in mortgage servicing and foreclosure procedures. The U.S. District Court for the District of Columbia ratified the Consent Order on September 30, 2014. As part of this agreement, SunTrust created a $40 million relief fund benefiting roughly 45,000 borrowers who experienced foreclosure between 2008 and 2013 and pledged to implement stronger homeowner protections consistent with the standards set forth in the 2012 National Mortgage Settlement applied to major banking institutions.
Controversies
In September 2015, SunTrust terminated 100 IT employees under a severance arrangement that included a clause requiring unpaid availability for two years following termination. After public criticism arose, SunTrust rescinded this provision on October 23, eliminating the obligation for former staff to remain "reasonably available" without compensation concerning previous work matters.
Buildings and branches
SunTrust’s main office is located at 200 South Orange Avenue in Orlando, Florida, standing as the tallest structure in downtown Orlando. The SunTrust Center is a 35-story building encompassing approximately 650,000 square feet, completed in 1988 at an estimated cost of $100 million. Constructed using reinforced concrete and granite accented with marble finishes, it is equipped with seventeen elevators.