...SunTrust Banks, Inc. SunTrust Banks, Inc., with year-end 2008 assets of $189.1 billion, is one of the nation’s largest and strongest financial services holding companies. Through its flagship subsidiary, SunTrust Bank, the Company provides deposit, credit, and trust and investment services to a broad range of retail, business, and institutional clients. Other subsidiaries provide mortgage banking, insurance, brokerage, investment management, equipment leasing, and capital market services. SunTrust enjoys leading market positions in some of the most attractive markets in the United States and also serves clients in selected markets nationally. The Company’s mission is to help people and institutions prosper by providing financial services that meet the needs, exceed the expectations, and enhance the lives of colleagues, clients, communities, and ultimately shareholders. SunTrust’s 1,692 retail branches and 2,582 ATMs are located primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. In addition, SunTrust provides clients with a full selection of technology-based banking channels including online, 24-hour customer services centers and the latest mobile devices. As of December 31, 2008, SunTrust had total assets under advisement of $192.0 billion. Total loans serviced by SunTrust Mortgage reached $162.0 billion by year-end. (Annual Report, 2008) In order to maintain and grow households, SunTrust...
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...SunTrust Acquisition of National 1. What is the rationale behind the merger between SunTrust and National Commerce? Does it make sense for SunTrust? The merger makes sense for SunTrust. SunTrust would gain nearly 500 retail locations in the high-growth markets of the Carolinas, while solidifying its positions in Virginia and Tennessee. This growth would give them the opportunity to have a comparable footprint to Wachovia in the southeast. The combined companies would be projected to gain 14 basis points in yield on the loan portfolio with an increase of only 7 bps in funding cost. 2. What is the role of capital for a bank and what levers can use to arrive at an “optimal” capital ratio? What trade-offs in terms of the level of capital (high vs. low) are faced by SunTrust as it pursues this acquisition? Capital provides banks with a cushion against risk, promotes public confidence, and funds growth. It is also used as a regulatory tool to limit the amount of risk a bank is exposed to. If SunTrust’s acquisition were funded with 100% stock and zero cash it would increase the tangible capital ratio by approximately 16bps, from the current level of 7.13% to 7.29%. However, SunTrust will be faced with a trade off between dilution of anticipated earnings and its capital ratio. The percentage between cash and stock used in the acquisition will affect the trade off. The greater the amount of cash that is used in the acquisition, the lower the capital ratio and the dilution of...
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...Rivalry Among Established Companies This force is strong due to high competition among established firms. The banking industry in the United States is becoming more consolidated then ever due to fierce competition of market leadership. For example, SunTrust bank as of 2010 has grown to“1700 branches and $118.8 billion in deposits. (1) Also, the low switching cost of consumers switching bank poses another threat to banks. If a customer is not happy with their current bank they can simply move their assets to another at no cost. In addition, the Federal and state agencies regulation has made major effects on business profit margins resulting in further pressure on maintaining and increasing market share. STI expects Regulation E, which requires banks to allow consumer to opt out at the time of the transaction in order to protect consumers from overdraft charges will “reduce the deposit services income by 10% to 20%”(2). Also the Dodd-Frank Bill will “lead to more bank costs.” (3)Therefore, the intensive rivalry amongst banks has threatened industry profits. The Bargaining Power of Suppliers This force is neutral in the banking industry. The supply that banks need in order to operate is capital (money) from its customers and the interest rate set by the FED (Federal Reserve Bank) therefore “set targets for money supply growth”(4). This supply is vital to banks since there are no substitutes. However, the bank industry is just as important to customers. Costumers need banks...
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...Detrimental Reliance Detrimental Reliance occurs when someone takes action or fails to take action because of what appeared to be a promise made by another individual, without knowing if true or untrue. It is very similar to Promissory Estoppel in that the other party is "estopped" or legally prevented from denying liability, even though no formal contract was formed, because of its promise. An estoppel by representation [of fact] will arise between A and B if the following elements are made out. First, A makes a false representation of fact to B or to a group of which B was a member. [It is not necessary to demonstrate A knew that the representation was untrue.] Second, in making the representation, A intended or [in the alternatively,] knew that it was likely to be acted upon. Third, B, believing the representation, acts to its detriment in reliance on the representation. [It must have been reasonable to rely on the representation.] Fourth, A subsequently seeks to deny the truth of the representation. Fifth, no defense to the estoppel can be raised by A. (The Law of Waiver, Variation and Estoppel) Section 90 of the Restatement (Second) of the Law of Contracts reads, “Promise Reasonably Inducing Action or Forbearance: A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise...
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... Describe the organization The Organization I have chosen to Audit will be SunTrust Bank, Inc. SunTrust Banks, Inc., with total assets of $170.8 billion on March 31, 2011, is one of the nation’s largest financial services holding companies. Through its flagship subsidiary, SunTrust Bank, the company provides deposit, credit, trust, and investment services to a broad range of retail, business, and institutional clients. Other subsidiaries provide mortgage banking, brokerage, investment management, equipment leasing, and investment banking services. Atlanta-based SunTrust enjoys leading positions in some of the most attractive markets in the United States and also serves clients in selected markets nationally. The Company’s mission is to help people and institutions prosper by providing financial services that meet the needs, exceed the expectations, and enhance the lives of our clients, communities, colleagues, and ultimately our shareholders. SunTrust’s 1,665 retail branches and 2,924 ATMs are located primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. In addition, SunTrust provides clients with a full selection of technology-based banking channels including online, 24-hour customer services centers, and the latest mobile devices. I am currently an employee of SunTrust Mortgage and the only African –American employee out of 25 people. The prior 2 other African American employees...
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...Interview Project My person of choice to interview for this project was my mother. She has personally in business for well over 15 years. She is talented and knows what she is doing through and through, and has helped lead her team to the top many times. My mother Jill works as an area manager for SunTrust in the Charlotte area. I decided to pick her, not only to have someone to interview, but also to get to know her on a more personal level and to see personally how she truly feels about what she does. I set up the interview via email. It becomes difficult trying to get together and be able to sit down and personally conduct the interview when she is out and about working. I attempt to visit as often as I can, but there are some nights that she doesn’t get home until really late. She was welcome and willing to do it, and her answers gave me more of an insight of what she really does. Here are the following questions, as well as answers. 1.) a. How do you measure success? In many ways… as a leader I measure success by how well my team achieves various key measures. My personal success is when my team is considered successful by others. b. Where does that measurement stand now? Currently we are exceeding key metrics and a majority of the 18 branches I lead are at or above target for the 4th quarter. c. What actions are you taking to change the measurement(s) (in the right direction)? My goal is to have all branches achieve their goals so for those that are not at...
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...time and money. There are so many ways that thieves can access your information whether it is your credit cards, savings accounts or checking accounts. Banks spend countless hours trying to find the most ways to fight and prevent identity theft. Banks must constantly update their computer software and use programs that will not only send red flags to the banks but will also block the use of the information or cards. Team B has chosen to see what changes SunTrust Bank needs to make to combat identity theft or improve on what is already in place. Continuous Versus the Discontinuous Changes SunTrust Bank currently offers 24 hour around the clock monitoring for identity thief. To provide additional identity theft protection, SunTrust has partnered with the Identity Theft Assistance Center (ITAC), a non-profit agency that provides assistance to customers that have fallen victim to identity theft (SunTrust, 2015). If any kind of red flags pop up, like a purchase that was made over a certain limit, immediately notification from SunTrust to the individual account...
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...Strength of SunTrust Bank Sun Trust bank have many kinds of strength when compare to other competitors. The first competitive strength of Sun Trust Bank is the financial strength because it has done a relatively good job of avoiding the brunt of the crisis. The detail is that the Sun Trust Bank has a relative large volume of mortgages in foreclosure or foreclosed with $3,216 million. In addition, it has $4,147 in mortgages past due. The second strength of Sun Trust is that the diversity policies and procedures that foster inclusiveness are critical to sustaining a strong competitive advantage. According to James M. Wells, III who is the SunTrust Chairman and CEO, diversity is an important issue to their clients and our teammates. Demographic trends clearly link long-term corporate success to an ability to operate in increasingly diverse markets. Diversity policies and procedures that foster inclusiveness are critical to sustaining a strong competitive advantage. He is challenging all SunTrust teammates to continue their success in ensuring an inclusive environment. In addition, SunTrust Banks, Inc. is also a diversified financial services holding company. SunTrust offers a wide range of financial services to retail, business and institutional clients. The company, through its principal subsidiary, SunTrust Bank, offers deposit, credit, trust, investment services, mortgage banking and brokerage services. In addition, the company provides investment banking, asset management...
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...Describe the organization The Organization I have chosen to Audit will be SunTrust Bank, Inc. SunTrust Banks, Inc., with total assets of $170.8 billion on March 31, 2011, is one of the nation’s largest financial services holding companies. Through its flagship subsidiary, SunTrust Bank, the company provides deposit, credit, trust, and investment services to a broad range of retail, business, and institutional clients. Other subsidiaries provide mortgage banking, brokerage, investment management, equipment leasing, and investment banking services. Atlanta-based SunTrust enjoys leading positions in some of the most attractive markets in the United States and also serves clients in selected markets nationally. The Company’s mission is to help people and institutions prosper by providing financial services that meet the needs, exceed the expectations, and enhance the lives of our clients, communities, colleagues, and ultimately our shareholders. SunTrust’s 1,665 retail branches and 2,924 ATMs are located primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. In addition, SunTrust provides clients with a full selection of technology-based banking channels including online, 24-hour customer services centers, and the latest mobile devices. I am currently an employee of SunTrust Mortgage and the only African –American employee out of 25 people. The prior 2 other African American employees one left the company after...
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...security threats dealing with SunTrust Bank. SunTrust bank headquartered in Atlanta, Ga operates 1,497 branches and over 2, 200 ATMs in the South and some in the North. SunTrust bank has over $175 billion in assets in the US and the money is increasing even more. The major assets that SunTrust has invested needs to be fully protected against potential information security threats from people trying to steal money or do harm to the organization. One of the major threats that SunTrust bank and other banks have to be cautious of is distributed-denial-of-service attacks or DDoS. A DDoS attack is designed for an attack on a single target by a group of compromised system infecting the target with a Trojan. There are two types of attacks associated with DDoS attacks, which are network-centric and application layer attack. There are two types of DDos attacks a network centric attack which overloads a service by using up bandwidth and an application-layer attack which overloads a service or database with application calls (Rouse, 2013). The most well known DDoS attack was committed by the Izz ad-Din al-Zassan Cyber fighters in 2012. These attacks were distributed in two phases: First phase they only attacked top-tier banks and the second phase they attacked credit unions and mid-tier banks. SunTrust was one of these banks and suffered intermittent outages and caused the website to suffer outages and glitches. The DDoS attack caused the servers at SunTrust to over load and this caused...
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...E-Business Assignment # 2 Project 4-1 Find the URL for your bank in your community and visit the site. Why do you think the bank has an Internet presence? Does it offer online services? Make a list of them. How does a current customer access these services? If the bank doesn’t offer online services, why do you suppose it has a web site? The community bank I used was Suntrust. The bank has a internet presence to provide information on all its several banking options. Many questions that could be asked and answered at a banking center could be answered online. The bank internet presence is used a marketing tool to entice and enhance customers. Banks have to compete for business so Suntrust website meets its competitors. The website provides customers to do the majority of there banking from the comforts of there home. Online service is offered at Suntrust web site with many options to choose. • Online Banking • Apply for Bank Credit Card • Transfer Funds • Open a bank account without going into the banking center • Apply for business, personal, mortgage, education and car loans • Chat live with a real time banking consultant to know your options and eligibility • Pay bills online via online bill pay • Mangage overdraft protection • Print monthly bank statements Current customers access these banking options by loging into a secure web web link. The log –in is a personalize and unique user name and password created...
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...southern branch started to encounter financial crisis and as an end result Wachovia was sold to Wells Fargo and company in 2011. Time line of Events that led to failure After Wachovia National Bank establishment in Winston-Salem, North Carolina in the year 1879, Wachovia saw an opportunity to expand its operation in the banking industry and by 1911 it began merger with the Wachovia Loan and Trust. Wachovia did not stop there as many more opportunities waited in 1958 and 1998 it merges respectively in Asheville and Philadelphia and had also purchased The Money Store in 1998. In 2001 Wachovia merged with Charlotte and created Wachovia Corporation however, May of that same year the SunTrust Bank in Atlanta launched an unsolicited bid to purchase Wachovia. SunTrust Bank unsolicited bid only made Wachovia stronger as they combined the Wachovia Securities and the Prudential Securities Division of Prudential Financial, Inc. Combined and form Wachovia Securities LLC in July of 2003. In the latter part of 2003 the Bank saw another opportunity which was to acquire...
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...level at the height of the global financial collapse. The 2008 financial crisis set into play a new tone of what it means to be financially confident. The once robust economy fueled by banking professionals who leveraged expertise and client banker relationship suddenly was overshadowed with fear and mistrust. The banking industry has invested significantly in rebuilding consumer financial confidence (Wood & Berg 2011) Client experience and exceeding consumer expectation is a critical component in banking success. How can banks exceed client’s expectations as it relates to their banking experience? Statement of the Problem As I continued my research to understand the scope of how to approach the challenge at hand, I interviewed a SunTrust Branch Bank Manager. During the interview, she stated that the client’s response to customer service is a key metric that has a direct effect on her business. She further explained how lobby traffic had decreased significantly due to the increase channels available to consumers’ to access their accounts and banking services. Consequently, staffing models have been updated. Employees share increased responsibilities and duties directly effecting execution of exceptional customer service. In an article written by Duena Blomstrom (2015), Owner and Digital Experience Expert stated that “Customer experience in banking has been relegated to a subservient position, responsible for...
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...risks that Sun Trust Bank has to deal with in a day to day struggle are Compliance, Operational, Financial, and Reputational risk. The risk trends for Sun Trust depend on the market changes daily, as well as barrowers and payments made on time. Risk Mitigation for Sun Trust is controlled through enhanced policies, processes and procedures to manage adequately. The credit risk of Sun Trust would be jolted by interest rates rising or falling, and the customer’s timely pay back of money loaned. Sun Trust lending process is determined by capitalization, as well as solvency and is determined by the economic growth or down swings. (http://www.federalreserve.gov, pg. 1) References http://investors.suntrust.com/news-detail/2016/Suntrust-to-speak-at-the-bernstein-strategic-decisions-conference/default.aspx...
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...Trinity Oaks & small bridge Turn (R) into Klumac Square Proceed to (L) corner Walnut Cove Office 235 North Main Street (PO Box 683, Walnut Cove 27052) 336-591-1124 52 North Take the Germanton (Route 8) exit, turn (L) Continue through Germanton Turn (L) at the Shell Station onto Route 8 towards Danbury Turn right on Brook Cove Go to the end of Brook Cove; the office is located on the right at the intersection of Brook Cove and North Main Street OR 40East, 52 North, Take Germanton Rd Exit and turn (L) continue to follow this road until you come to end, Turn (L) onto Hwy 311. At next stop light turn (L) onto Brook Cove Rd., then immediately (L) into parking area. Office is located directly across the street from SunTrust...
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