Currently led by CEO James Wells, SunTrust Banks, Inc. is one of the oldest and largest financial institutions. Since its inception in 1891, SunTrust has grown bountifully. As of March 31^st the bank held over $170 billion in assets. SunTrust operates nearly 1,750 offices which are spread throughout 11 states in the southern and east coast regions. It also operates 5 full service office locations in the Grand Cayman.

In the second quarter of 2008, Atlanta based, SunTrust Banks, Inc. posted an earnings lost of 20.6%. Net income available to common shareholders fell from $674 million in the same period last year to $535 million. At the same time provisions for loan losses rose 328%… from $104 million in the second quarter of 07 to $448 million in the second quarter or 08.

The quality of the banks assets has also declined in the past year. The ratio of nonperforming loans to total loans increased from .64% to 2.22%. It was noted by SunTrust that the change is this ratio was due primarily to residential real estate secured loans and residential real estate commercial loans. However today, amidst the mortgage crisis, these types of changes are common place in the banking industry.

Though the losses are staggering, SunTrust does not plan to cut dividends or issue more stock to remain solvent. This is significant because analysts have long held that this was the only option. Instead the company opted to sell 10 million of its shares in Coca Cola. This is move seeks to increase its capital standing while simultaneously offsetting losses.

However, in the wake of this loss, Moody’s is posed to downgrade the banks long term debt rating. Currently the bank’s senior debt is rated at an acceptable Aa3. But before the rating is modified, Moody’s will perform a full scope analysis of the bank’s capital situation. In the event the rating is adjusted, it is likely to slip by only one notch. And there is also a negative outlook for the bank’s Standard and Poor’s and Fitch’s debt rating. However, its DBRS’s outlook is stable.

Despite its losses and debt rating outlook, the bank continues to expand its kingdom. SunTrust has taken over the one of Florida’s failing banks. The FDIC closed the First Priority, without notice, on August 1^st. As of August 4^th, First Priority Bank of Bradenton is now SunTrust. SunTrust assumed $214 million of First Priority’s $227 million in deposits and bought $42 million of its $259 million in assets.

And on top of it all, SunTrust remains a leader in customer satisfaction. A study conducted by J. D. Power and Associates ranked SunTrust number two in overall customer satisfaction. The survey focused on mortgage lenders and measured customer satisfaction with the application process, closing process, service representatives and problem resolution. Out of a possible 1,000 points, SunTrust scored 809. If they would have gotten only three more points… they could have taken first place over Bank of America.

Even when considering the loss in net income available to common shareholders, SunTrust remains dominant in it class. Its shares are trading at nearly $40 each, while its competitor’s shares aren’t trading for nearly as much. Wachovia shares are hovering about the $17 dollar mark. And Washington Mutual is barely trading at $5 a share. SunTrust has not been spared a hit within the housing bust. However they have not fallen so hard that they cannot rebound.