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SunTrust to Purchase Sun America Mortgage Corporation; Transaction to Expand SunTrust Mortgage Scope in Key Atlanta Markets

PRNewswire-FirstCall
ATLANTA
Jun 25, 2003

SunTrust Banks, Inc. and Sun America Mortgage Corporation today announced the signing of a definitive agreement under which SunTrust will acquire Atlanta-based Sun America Mortgage. Financial terms of the transaction were not disclosed.

With approximately $1.2 billion in total mortgage loan originations in 2002, and as one of the top five residential retail lenders in Metro Atlanta, Sun America operates from eight locations in the Greater Atlanta area, as well as an office in Charlotte, N.C. SunTrust Mortgage, Inc., SunTrust's mortgage banking subsidiary, is one of the largest mortgage lenders in the United States with 2002 originations of $31 billion and a servicing portfolio of $62 billion.

Upon closing of the transaction, expected within 60 days, Sun America Mortgage Corporation will become part of SunTrust Mortgage and will operate as a locally managed unit under its own name. The company's two principals, Bo Means and Ted Harrison, Jr., will continue to manage the day-to-day business operations.

The majority of Sun America's mortgage loan production is derived from builder-referred, move-up and first-time homebuyers. The Company is also a top originator of FHA/VA loans in the Atlanta market. The combined market share from this transaction is expected to boost SunTrust to the number three position in Atlanta and Georgia-based residential mortgage originations, one of the highest growth mortgage markets in the nation.

"Sun America's consistent focus on the builder community and originating purchase loans fits right in with our growth strategies," noted Sterling Edmunds, Jr., President and CEO of SunTrust Mortgage. "In the current mortgage environment, with refinance transactions comprising more than half of all loan originations nationally, Sun America's refinance share has been at about 20 percent or less. We look forward to supporting their continued focus on the Metro Atlanta builder community."

Mr. Means and Mr. Harrison also cited the advantages of the SunTrust Mortgage-Sun America Mortgage affiliation. "This union will provide Sun America with greater growth opportunities by giving customers a broader range of products and services, the latest technology and the link to a nationally known and respected mortgage lender," Bo Means, President of Sun America, said.

A full customer communication effort is planned prior to the conversion of customer accounts.

SunTrust Mortgage, Inc., a wholly owned subsidiary of SunTrust Bank, has roots going back to 1865, having provided mortgage loans across the nation for over 135 years. Presently, it is the nation's 15th largest mortgage originator and 13th largest servicer. Headquartered in Richmond, Virginia, SunTrust Mortgage, Inc. originates loans through 109 locations in SunTrust markets and adjacent states, maintains correspondent and broker relationships in 48 states, and services mortgage loans in 50 states and the District of Columbia. SunTrust Mortgage's internet address is www.suntrustmortgage.com.

SunTrust Banks, Inc., headquartered in Atlanta, Georgia, is one of the nation's largest commercial banking organizations. As of March 31, 2003, SunTrust had total assets of $120 billion and total deposits of $78 billion. The company operates through an extensive distribution network primarily in Florida, Georgia, Maryland, Tennessee, Virginia and the District of Columbia and also serves customers in selected markets nationally. Its primary businesses include deposit, credit, 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.

SOURCE: SunTrust Banks, Inc.

CONTACT: Hugh Suhr of SunTrust Banks, +1-404-827-6813


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