SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) October 14, 1999
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SunTrust Banks, Inc.
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(Exact Name of Registrant as Specified in Charter)
Georgia 001-08918 58-1575035
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
303 Peachtree Street, N.E., Atlanta, Georgia 30308
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (404) 588-7165
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(Former Name or Former Address, if Changed Since Last Report)
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Item 2.
SunTrust Banks, Inc. (NYSE: STI) today announced the sale of its $1.5 billion
SunTrust BankCard credit card portfolio to MBNA America Bank, N.A. Under the
agreement, MBNA will purchase the outstandings and will provide servicing for
over 1.4 million accounts. The sale includes personal credit card outstanding
balances from both SunTrust and Crestar Financial Corporation, acquired by
SunTrust in 1998. SunTrust estimates a pretax gain of approximately $300 million
in the fourth quarter based on the expected outstandings as of October 31, 1999.
SunTrust Chairman, President and Chief Executive Officer L. Phillip Humann said
the sale of the consumer credit card balances is a strategic decision that will
allow SunTrust to continue to offer personal credit card products that will
carry the SunTrust brand through MBNA, a proven market leader. Servicing and
pricing of those accounts will be done by MBNA. The Business, Corporate and
Purchasing card portfolios were not part of the sale and will continue to be
maintained by SunTrust as will the Merchant Services line of business.
Mr. Humann said the choice of MBNA as a partner is a good one for SunTrust and
its customers. "We looked very closely at customer focus and service as part of
our criteria. We are confident that with MBNA's market leadership and
outstanding reputation for customer service, our customers will be pleased," he
said.
"SunTrust is a first-class organization with very loyal customers. Their
endorsement is a valuable one," said Charles M. Cawley, chief executive officer
of MBNA America Bank. "In addition to a long-term agent bank relationship, this
represents a unique opportunity to acquire a fine portfolio. All of us at MBNA
are proud to be associated with a company like SunTrust."
SunTrust Banks, Inc., the nation's 9th largest commercial banking organization,
provides a wide range of financial services to meet the needs of its growing
customer base in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia and
the District of Columbia. Its primary businesses include traditional deposit and
credit services as well as trust and investment services.
MBNA Corporation (NYSE: KRB), a bank holding company and parent of MBNA America
Bank, N.A., a national bank, has $67.4 billion in managed loans. MBNA, the
largest independent credit card lender in the world, also provides retail
deposits, consumer loan and insurance products.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SunTrust Banks, Inc.
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(Registrant)
Date October 18, 1999 By /s/ Raymond D. Fortin
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Raymond D. Fortin
Senior Vice President
