EXHIBIT 99.1
News
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[LOGO]SunTrust
Contacts:
Investors: Media:
Gary Peacock Barry Koling In Florida: Carolyn Gosselin
(404) 658-4879 (202) 879-6101 (407) 237-4861
For Immediate Release
SunTrust to Expand Florida Banking Franchise
Purchase of Huntington Florida Units Enhances Position in Key Growth Markets
ATLANTA, Sept. 26, 2001 -- SunTrust Banks, Inc. today announced an expansion of
its Florida banking activities through the acquisition of the Florida banking
franchise of The Huntington National Bank. Specifically, SunTrust and Huntington
have signed a definitive agreement under which SunTrust will acquire
Huntington's retail, small business, commercial, treasury management and
investment-related businesses in Florida. Included are:
. 106 branches, plus 35 smaller supermarket banking outlets and five Private
Client Services offices.
. Deposits of $4.7 billion.
. Approximately $2.6 billion in loan assets, primarily consumer, small
business and commercial loans;
. Approximately $860 million in trust assets under management;
. 453 ATMs;
. Some 1,400 employees.
Under the terms of the definitive agreement, SunTrust will pay Huntington a
premium of 15 per cent of Huntington's average deposits prior to the transaction
closing, which is expected to take place in February, 2002 subject to regulatory
approvals. Based on Huntington deposits on July 31, 2001, the premium would be
$705 million.
SunTrust said it expects to incur one-time charges associated with the
Huntington transaction of approximately $100 million in 2002, and that the
transaction will add to earnings beginning in 2003. Additionally, SunTrust will
add $40 million to its loans loss reserve.
"From a corporate perspective, this move fits perfectly with our strategic
priority of efficiently leveraging SunTrust's existing position in high growth,
demographically attractive markets," said L. Phillip Humann, SunTrust Chairman,
President and CEO. "This particular transaction represents a unique opportunity
to achieve meaningful cost reductions without impacting customer service levels
or sales momentum."
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SunTrust expects to reduce annual operating expenses relative to the acquired
business by about $48 million, approximately 36 per cent of the current expense
base. About 65 per cent of the expense reduction will be phased in during 2002,
with the full level of savings realized the following year.
Following completion of a structured business integration process that gets
underway immediately, the acquired Huntington franchise will be integrated into
SunTrust's existing Florida banking organization, which currently encompasses
370 branches throughout the State and some 9,500 employees.
"The addition of the Huntington business not only enhances our position in some
high opportunity markets, especially in eastern and western Florida, but also
solidifies our long-standing position as a leading bank in Florida overall,"
said George W. Koehn, Chairman and CEO of SunTrust Banks of Florida. "We look
forward to welcoming Huntington customers and employees to SunTrust."
Mr. Koehn noted that the addition of the Huntington business would move SunTrust
into the number one market share position in the highly attractive Orlando and
Lakeland/Winter Haven markets, and to a solid number two position in both
Daytona and the Tampa Bay area.
Since many SunTrust and Huntington branches are in close proximity, Mr. Koehn
said the proposed combination of the two networks "will permit us to achieve
substantial operating efficiencies while offering Huntington customers access to
additional banking locations, a broader range of products, more choice of
delivery channels and SunTrust's recognized brand of quality service."
Mr. Koehn said SunTrust anticipates retaining 65 of Huntington's branches and
consolidating 45 offices of both SunTrust and Huntington, almost all of which
are less than a half mile away from one another. Plans concerning the 35
Huntington supermarket outlets, primarily in Albertson's supermarkets, will be
announced within 30 days.
Mr. Koehn said normal attrition patterns are expected to account for the bulk of
job eliminations associated with the business integration. As a result, any
actual layoffs among Huntington's approximately 1,400 Florida employees are
expected to be "very limited in number." SunTrust has already committed to offer
positions to all satisfactorily performing Huntington tellers in traditional
branches, plus certain other customer contact personnel.
Conversion of Huntington customer accounts is expected to take place coincident
with the transaction closing in February 2002. An extensive customer
communication effort is planned prior to any changes being implemented. "In the
end, this transaction is all about keeping customers happy," said Mr. Koehn. "A
smooth and seamless customer conversion is our number one priority."
SunTrust Banks, Inc., headquartered in Atlanta, Georgia, is the nation's
ninth-largest commercial banking organization. As of June 30, 2001, SunTrust had
total assets of $100.8 billion and total deposits of $63.3 billion. The company
operates through an extensive distribution network in Alabama, Florida, Georgia,
Maryland, Tennessee, Virginia and the District of Columbia and also serves
customers in selected markets nationally. Its primary businesses include
deposit, credit,
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trust and investment services. Through various subsidiaries the company provides
credit cards, mortgage banking, insurance, brokerage and capital markets
services. SunTrust's Internet address is www.suntrust.com.
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Note to Analysts and Investors: SunTrust Banks, Inc. will host a conference call
on Wednesday, September 26, at 9:00 A.M. to discuss this announcement.
Individuals may access the call by dialing 888-469-0641 and by entering passcode
74325. Alternatively, individuals may listen to a live webcast of the
presentation by visiting the SunTrust website at www.suntrust.com. The webcast
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will be hosted on the "Investor Relations" page located under "About SunTrust"
and may be accessed by clicking on the blue phrase "Click here for Webcast."
Note to Media: SunTrust Banks Florida CEO George W. Koehn will host a media
briefing at SunTrust's Florida headquarters at 11:30 today, Wednesday, September
26. The briefing will be held on the third floor of the Park Building, in the
Bankers' Guest Club, 200 South Orange Avenue, Orlando, Florida. For those who
would like to participate in the media briefing via conference call, please dial
888-790-1752, pass code George Koehn.