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Good evening hello thank you for coming tonight it's a great crowd I'm Jim Greenlee one of the assistant associate Dean's in. The business school it is my pleasure to welcome you to our executive speaker series and. Thank you sincerely for coming. This is outstanding crowd and let. Me welcome our speaker tonight beau Cummins and just say a little bit about him as you know he is the co chief operating officer for SunTrust banks and I have to say he's the first speaker that I know of who has come with a posse a group who's. Gonna heckle him he brings his own heckler Social Security welcome his team here as well he also calls him his security guard so if we get rowdy they might take care of any business with him those would be the people seated on the front row that. We reserved for them but just to tell you a little bit about beau we've had the opportunity to meet him today I think the most important thing that I should say about him I want to say first he used to figuratively sit where you sit. Right now and I think that's the most important thing we should always remember about people who join us for the executive speaker series most if not all were you once before and that's one thing I want you to remember as he delivers his message and he engages. With you think about the fact that he was you and now he is who he is and ask him about his journey as he shares his journey as you can see some fast facts there about him started his career for ask him maybe about how he. Got that job as he moved on through the banking field at Citibank and and Bank of America and then joined some trust and the various roles he's held there and currently serving as the co-ceo I think a couple of things that maybe aren't there that I find interesting I'm sort of mixed up in my head about what I. Always wanted to do and he has lots of passions as well so that made me feel good I'm a frustrated architect he's maybe a frustrated painter he said his favorite medium is acrylics I'm a skier he's a snowboarder. And he emailed the two and actually showed me a picture of a painting he did a snowboarder so maybe if were good he'll show has his artwork as well so I'm gonna turn it over to bro he's going to say a little bit about his company so join me in welcoming him and then when he's told a little bit. About himself in his background I'll come back and we'll have sort of a Q&A and discuss a few topics today about global business. About SunTrust and then his advice for you so thank you so much for being here greetings former school as my three sons greet me I will greet you so that's how we do it at home I'm delighted to be here I'll be happy to tell you about my little journey from Miami University all the way to. Atlantis persecutors throughout the Wall Street and in the car industry which sort of a non sequitur by definition it's been a very interesting journey but before I get into that what I really do is. Set the stage and. Tell you a little bit about SunTrust Bank and you know give you kind of frame the issue for you but what I'm presently doing and why you should care so let's start with SunTrust first thing I want you to know is I had a client tell me this at breakfast on Tuesday guy who runs a. Health CEO and founder of a health care company that's actually based in Cincinnati the CEO said. To me your bank is the only Purpose Driven Bank I've ever heard of you just think about that I think that's highly distinctive I want to just comment on that for a second we have a mission as a bank that is to light the way to. Financial well-being that's the phraseology we use what we mean by that is we want to help drive financial education in America and to do by doing so helping people reach financial confidence financial stress. Is one of the key forms of stress on Americans today and having financial acumen and experience and knowledge is is the mitigated so we are a force behind. That we do that for our four consumers that we bank with us but we also do it for folks that don't back with us we're. Happy to do it that way we call it our on up movement and we do it for the employees of the companies that we bank so we come at this through multiple lenses it's important to us it's core to who we are now. The bank itself you might think of us as a regional bank and I think if you did you would join many others but I would submit to you that that definition is obsolete the bank itself is organized between consumer banking and wholesale banking and as the map shows much of it is in the dark orange. Is what is our historical brick-and-mortar branch footprint so we're from Maryland on. Down to Florida and over into Tennessee that's great except that's not the only way to interact with our bank you can interact with us on your app you can interact with us through lights stream a SAN diego-based company we own you can interact. Through us with. Us through our investment bank a corporate bank a commercial bank and these banking arms are national in the wholesale which is my day job running all our teams that. That help our companies that we Bank grow we have offices in Boston in New York in Chicago in San Francisco and Los Angeles in Dallas and Houston in Atlanta not the least of it is Charlotte so it's clear it's it's completely a national footprint a national enterprise and so SunTrust is changing it's growing. And in doing so it's a it's a two hundred billion dollar asset bank and we've got good momentum so that's the story here and let me just take you to the next page which is in case you like reading annual reports for a living I've taken a Liberty to take the highlights from the last several things are. Going great and we're going great because we run a good bank we take care of our clients and part of our. Purposes we have something we call our flag it's our. Tenants it's our value statement and on it is at the top is client first so maybe Tim we can talk about that later but we put our client first everything we do puts the clients interest first their needs first everything follows so when you do that you end up with growth in earnings. Per share you also if you run a good company you can produce revenue that increasingly more efficient cost which is the middle graph the yellow in. Our industry we call that the efficiency ratio is a key metric for banks and in our capital position is. Strong and allows us to support. Our shareholders another major constituent because we work for those guys. So it's got a non-trivial now I mentioned the wholesale banking part of SunTrust let me just frame it for you out of a nine billion dollar bank were four billion dollars in revenue so called 45% of the bank's top line but. We're 65% of the bank's bottom line so we're a non-trivial contribute to her to the to son trusts success and then you say. Well you know I would I would also submit you that we were probably a third of the bank instead of two-thirds of the bank's net income. Ten years ago so things have been changing and this picture tells the story of why now if you want to go to compete with other financial services company you better know why you're better you have to be an articulate a comparative advantage to channel on Channel Porter or. Competitive advantage if you want to say it a different way. And this is ours we've seen the world before to bifurcate and we're shoot right down the center the world in wholesale banking is really bifurcated between those with full investment banking capabilities they referred. To in the in the in the jargon as bulge bracket firms or Universal Bank firms which is sort of like the Bank of America JP Morgan Citibank and there's gonna Gus and then there's the bulge bracket. Which is the traditional Goldman Sachs Morgan Stanley used to include some names that aren't existent anymore and they occupy a universe that covers publicly held companies and private equity run companies that's that space then there's this other part of the world so that we call the middle market boutiques and regional banks they're different because the regional banks do. Not have traditionally and I say traditionally all of the capabilities that you find an investment bank they have some of them in many cases none of them in lots of cases. But what if they had all. Of them that would be interesting. So to the right on that graph you see lots of names many are familiar to you but two to play in a boutique is to have some of the some of the critical inputs but not all and who plays a bulge bracket or a invest in Universal Bank. Is they have all of them the problem is when you're one of these really big banks you focus upmarket because you go for the really big situations a forty nine billion dollar telecom deal being financed is something if. You're in the telecom sector you cannot miss or you will have a bad day forty nine billion dollars is a lot of buddy if you're down in the middle market and you're doing a hundred million dollar deals it takes a lot of hundred million dollar deals to make up one miss at forty nine billion so the big. Companies focus on big fix the middle market though is dominated which I'm going to define is two billion in revenue and below companies so they're big companies but they're not you know they're not intergalactic companies and there are a lot of companies regional banks love that space they focused their but they have limited toolkits. In many cases and tend to think of the solution set is lending money making payments that sort of thing taking deposits then there are these boutiques. That pop up and they're some of the more esoteric names you see on there like a Harris Williams or what-have-you greenhill these are folks that come with intellectual capital and want to be at the table solve big problems but they have got no balance sheet so in some ways they're like in. They can tell you the right answer but they cannot affect the right answer in all cases and certainly not the whole equation we stand in between we stand right in the middle we have through our investment banks SunTrust Robinson Humphrey which we spent the better part of 20 years building out we have the full capabilities of the. Folks on the left and we compete with them every day we've taken our son Chris Robinson Humphrey business but we showed a little graph. Of the funny fun bar charts but if we. Did you'd see we took in the last 10 years a 500 million dollar business and turn into 2 billion and we did it in the last 10 years when the world had blown up and the pie was actually shrinking so that means we took a lot of. Market share and we did so by beating the people the left so that's what we that's with whom we compete every day but ironically we compete in the space the folks on the right think they own so we're right where we want to be it's a very differentiated place and in cloack wheel. Terms what it means is we show up we're nice people who are smart people we play team ball and. We put the client first and then we bring firepower to be able to do everything that client needs done and do it for their shareholders and help them achieve their growth so that's what we're doing it's fun we like it because winning is fun. So here's another way to look at the differentiation you see on the left for product capabilities industry vertical expertise middle market focus one team approach which is about culture. And then the balance sheet yeah a big balance sheet allows you to do important big things for clients so let's line them up they're the universal banks yeah they got all the products absolutely they have industry expertise and a lot of it and they have a big big bouncy some of them. Have trillion-dollar balance sheets really big but what about this idea of being focused on the middle market and not so much I've lived in those places I've worked for two of those companies when somebody in Cincinnati in the commercial banking business calls across to the capital markets desk in New York where I used. To sit I can tell you what happens they've they take the phone call you know who are you what in a company with 200,000 employees and they hang up the phone and they do without any ramifications why because that little thing on that little opportunity on the phone the time they allocated that they. Might miss the big 49 billion dollar. Deal and they can't afford to change their line of sight so that's the behavior that you see in the very big banks they're not middle-market focused as a result and I would say that they weren't acting like they're on the same team because who hangs up. On their teammate so that's why we give them an X for one team approach and you've got the boutique firms who are very one team oriented. They are very focused on the middle market and in fact they're very expert in the industries that they. Cover so they have a lot of game with one little problem they don't have all the products and they don't have the balance sheet so it's a little like having a consultant show up and tell you what to do but they. Can't do it for you you can't help you do it and then in the middle are the regional banks traditionally where they've got they love the middle market that's why they exist they love one team approach they're nice places to work and collegial they play team ball. And you'd probably like to work there and the balance sheet they've got a pretty good sized balance sheet they just have a little problem which is they don't have. All the capabilities they don't have maa departments they don't have private equity sponsor coverage teams they don't have leveraged finance capabilities. In high-yield etc those things in the middle market are really important for helping companies grow through acquisition and what-have-you and a lot. Of times they get frustrated in the clients do because we send bankers in his regional banks and we have and the client has to teach them about their industry and their. Company well that's frustrating why should you have to teach a bunch of bankers about what you do I thought they were supposed to be expert so on the right is us. Where we actually have all the capabilities we actually. Have the industry expertise and we're organized that way we are focused on the middle. Market that's why we exist and with only place we focus we are big on how we behave together and we want it to be a place we like working that's my job I'm in charge of the culture and the strategy and then like way all the guys I create the conditions for success and get. Al away and let the team rock and roll and they're great and then the last thing is bounce you 200 billion dollar balance sheet you can get a lot of things done so that's why we are achieving national recognition. It's kind of fun we've. Gotten some really great awards you see on the right there and not the least of one is the international financing reviews middle market equity house of the year for 2016 and by the way equity in ma is the hardest game to break into and be recognized in and we're doing it so really fun we weren't. Doing any of this stuff even 15 years ago so we really. Excited about the journey and by the way you. Know it pays to be a. Winner so that's fun too so to what end well here's where we're going our vision is I'm gonna work it backwards okay I'm gonna take the sentence and deconstruct. It backwards starts with how we behave so we want our team behaves with authenticity means we're real people we act like. Real people we're not posers and we're not trying to you know to become sort of big-time people I've lived in those places they're amusing and then they're not the second thing agility we have to be fast faster more agile than. These giant companies that have the giant firepower and we can do that and actually the agility is the hallmark of our scale so what looks like a 200 billion dollar bank competing with a trillion dollar right you might think we oughta we ought to have a. A challenge in our hands we might be compromised well I would submit you flip it around go hey 200 billion moves. Fast you know and we can we can get the right people together with the right preparation in front of clients in 24 hours that's not what our competitors do so agility matters one team is we all have wirless ain't even no matter which part of the bank calls which part of the bank everybody rallies. And we play ball we help each other highly differentiated I got my colleagues here which I appreciate you guys coming and don't throw anything on me they these guys two. Of them or Miami grads and and we got the market president for Cleveland here Jim guy at the raise your hand please Ben Willingham market president for Cincinnati and Mike Lincoln who's our division. President over inch in for the Midwest and corporate banking okay so these guys they can make a phone. Call and get anybody in the bank to mobilize and be on the ground and and help a client solve a problem or it capitalize on an opportunity fast that's just that's what I mean by one team and. Our objective is to to help our clients see the future and get input from. Their help them mobilize I ask clients what are you gonna look like it's six years after I understand their business and I understand who they serve what solutions and products they use where they go to market. Once I understand all that and I understand what the operating leverage is and what the comparative advantage is there's lots to learn and be curious about it's really fun seeing all these companies and see how they do it once I understand that it's a great beautiful company. I love it what's it gonna look like six years from now which is in a way Tim said I paint so let's use the art thing these CEOs these companies are artists they are creating things that didn't exist before and. It's really fun to help them do that and when you know what they're trying to create you can help them create it and I assure you they're very loyal to those who helped create it and that's our distinguishing characteristic and as we achieve that success couple things happen the bar charts go from the lower left that you saw to. The upper right that was exciting and they they. Refer us to other. People they know CEOs hang out with CEOs we get referrals we get new prospects new clients and we get recognized and it's increasingly it's national we get we a clients that are referring us everywhere all right and to that end I was in San. Francisco for two days last week on Thursday and Friday had dinner with CEOs from 11 different financial technology startup companies and and it's just interesting because our bankers out there are fin fin tech. Experts and they can immediately bring eleven CEOs. Together for a nice dinner and we had a chat about the future of technology and the convergence with. That and banking it's a pretty interesting conversation so with that James let's light this candle everything working God there we go he said I have to hold it really close so this is really close I'm so glad we got the chairs yeah I don't know if he's. Gonna stay in his chair Dino never noon yep good all right so I've got just a few questions I broke him down. Into three groups Mort start low with a global big-picture look and we'll talk a little bit about SunTrust more in detail and then he has some advice he wants to give to students who might be interested in finance but won't be more specifically in banking but but I. Thought maybe what we would start with first is maybe I've noticed when I listen to financial news a lot of the big players that you mentioned and often have. Advice or an outlook. On where the economy's going and maybe what's SunTrust perspective on that okay so one learns as they go through their life in a draw on experiences so I'm going to tell you what my outlook is I think it's 1988 right now you go huh what do I do with that the answer is the. Baby-boom were a generation that preceded you of which I'm a proud member and in 1982 and 83 we had a big. Recent very difficult recession it was short. But tough and it's really hard to get a job out of this place companies weren't showing up and we were all scrambling and I was a sophomore a junior and I'm watching the senior struggle so I got my act together. Trying to figure out this isn't so easy I need to get tight I need to have a plan and I organized but what I saw happen after that was economy picked up. Why because interest rates are cut regulations were cut taxes were cut and a a beam of young people came into the marketplace had household formation bought homes and had careers launched and that group created a market phenomenon is a stock market. Boom that went on from 84 to 1999 when the tech world blew up all right so a 15-year virtuous one I like if you guys will hey you're just doing the same there's many of you there are more of you than there. Are the baby boomers and you know all right so. That's pretty interesting as you all enter and there's ahead of. You or in the workforce today many working for us in the Miami. Guys are doing great job the kids very nice we have a number of you of your peers that are honored company yet I think I'm seeing Tim is this a virtuous 15 year run that looks. A lot like and when the first five years of the 15 year run and it looks a lot like the 80s and 90s and that doesn't mean there won't be crashes. There were there was an 87 crash there was a 1989 Resolution Trust there's an 87 Russia thing or another of big pullback but the secular trend was demographically driven and it repeats us. Something I'm curious how much you think the students should be paying attention. To the world's central banks of various countries whether. It's the Fed or the European Central Bank Bank of Japan Bank of England should they pay attention to this do you pay attention to it does your team pay attention to it what advice do you have or what other economic indicators should they be paying attention. To yeah that's why it's a great question so the short answer is I'd pay attention to it I pay attention personally but it's kind of a satiric stuff it's you know it's you standing here on the ground and we're talking 50,000 foot but I would submit to you that I pay attention for the following reason there. Is a war for jobs going on on the. Globe today and the war is being waged in the currency market in the currency market is. Being is currencies trade as a function of interest rate differentials and so interest rates are being manipulated by central banks to create advantage so that exports are their exports could be advantaged over our exports so they get the jobs of creating manufacturing the stuff that other people buy that's what's happening out there that's the big game I. Would suggest that understanding what central banks are doing everything from zero interest rate policies or to quantitative easing to this theory of currency debasement non-trivial issues that affect your life right now it will show up in inflation down the road and those. With balint assets on the balance sheet would inflate right along and be happy those who do not have assets in our and are just taking their wages and make and using them to pay for goods and services are going to find that the goods and services great more expensive at a. Rate that exceeds their wages and they will in real terms feel. Less prosperous so there's a lot going on you can't fight that wave but you can surf that wave. If you might want to learn about it thank you for that the related many economic those who study. And predict Sall 2018 as a year of a lot of elections around the world would go a long way in predicting what was going to happen in the near future if you look at Mexico Colombia Brazil will all elect presidents this year midterm elections. In the u.s. at China what they recently did extending their president in Russia and in their anointing of a president so I heard that might have been going to that but I wonder what advice do you have gar students as they think about these events should they pay attention to that not just what central banks are doing. But what's happening in the in the political world as well well at the end of this we're going to talk about how do you get a job right and so are things I would say to answer two terms question is it pays to be intellectually curious and to see the big picture that to to a. Prospective employer looks like intelligence on display and we like to hire smart people so paying attention to what's happening globally is just smart and then trying to learn I mean there's two ways you can learn you can learn from the mistakes. Of others and the. Great decisions of others or you could just stumble on and learn from the school of hard knocks I submit the former is advantageous and cost less in terms of tuition. Let's switch this question from you and it. Switched it out to the audience maybe I can do a quick poll how many of you use then though okay all right second question can you find me on it send me a few bucks that'd be nice. Everybody see uptown that sounds good yeah just tell them where to go right so my question of asking that I I assumed I knew the answer was going to be positive from you on demo what do you see is the I don't know the challenges or the disruptions in the financial services. Industry and given that this group uses venmo quite heavily how has they'll tried to counter that and have they done it and what do you see coming in that area yes innovation going on in financial services especially through the FinTech and the FinTech side of the oil is fantastic and. It's really exciting if you think about it I had a a guy who was is CEO of a startup company and actually did another company called s1 which got sold and so this guy's in a second or third. Or lap of starting companies selling companies and I tend to meet with startups and incubators and we'll make equity investments in them and we'll hire them is is if they hold onto our financial services offering and help us get better and so I'm kind of interested in this and this one guy was. Saying what though do you know what a payment is why we're moving money from point A to point B he goes it's very simple it's a debit and a credit that's. All a payment is he said so in the future world they will happen simultaneously because that's how is they actually happened in real accounting land you do them at. The same time they avoid this idea that when you move money for month I move money for me to you that it. Should take anymore the speed of light is is is updated and that it should cost much is outdated so all everything is converging to real-time payments and there are a number. Of different court in the vernaculars rails how do you do it so then no does it through the debit rails there are other rails such as ACH and wire. And they all have different constraints and benefits so I think what you're going to see those technology converging to make it the best client experience is right now. And cheaper and we all have to be on board of that because that's good for our clients and it's fantastic and right now my phone's lighting up thank. You figure off in five bucks I think I'm good to go here I'm not like a hundred grand right now the last question in the big section just if we moved. Away maybe from knowing back to Investment Banking how do you see the broader investment banking area evolving well you know detect I'm gonna take a the FinTech this conversation and converge it with the investment question which is disruption is. The way the future the word change I don't even think captures that anymore you know there's somebody said change is a constant I agree with that so it really changes a constant state of evolution. It's a constant state of getting better and those who don't want to play that game need to get off the playing field because that's where we live so in investment banking what I showed you that the circle isn't where we. Are in the center I actually think we're really disruptive first in the investment. Banking landscape now it would be immodest of me to sit here and say that to you which it is and I'm happy to be immodest but the other thing is I have I have external third-party evidence of that we had the equity analyst who covers banks at JP Morgan Jenaya Jenaya come and speak to our board and. He said to the board you have to know that every consulting company in America has. A presentation on SunTrust Robinson Humphrey and they're shopping it to every bank regional bank in the country because that is your killer app and every else has to have it and that is the most disruptive thing. Happening in wholesale banking today so it's a great compliment to us and thousands of us who are doing this together but it's it's it's actually a legit and and kind of fun to get the accolade thank you for the big-picture questions I'm gonna. Shift ass unquote sorry SunTrust a little bit and move into how do you segment your customer markets and where do you see the. Opportunities well segmentation is inherently an exercise in lumping clients with the similar need profiles together and making sure that you deliver to them what they need so I'll give you a broad brushstroke there is a age old zeitgeist in the in the banking well that says. Commercial banking clients and I'm going to tell you what that means it means clients that are usually family owned businesses privately held closely held businesses they they don't pay enough to banks to warrant the expensive advice laid. An industry expert model that you see up in corporate banking land and Investment Banking land therefore you can't deliver that that expertise down to the private companies and. Make it economic for your shareholder ergo don't do it that has been going. On for a long time that's why. The boutique are we talked about popped up that's why companies like. General GE Capital now gone but that's why I popped up hello Financial now god but that's why you popped up to fill the void give you some numbers the average Investment Banking client at our company will pay us in fees and interesting car bill will pass in revenue knowing they. Pay us happy to pass seven figures a year per corporate banking kleiner best Bank like okay the average. Commercial banking client so I'm going to say that might be I might be a company up there the high-end time that that might be a billion dollars in revenue the average commercial banking client who may be seventy million dollars in revenue will pay us on average seventy five thousand dollars okay so probably a bunch. Of expensive people in to solve complex problems to get paid and it cost me $200,000 to deliver that solution and I get paid. 75 that's a that's not good business but the question you have I had asked myself is is the $75,000 a given is it the chicken or the egg in other words is it 75 grand because nobody's adding any value and they're not and therefore that's all they deserve. Or is it 75 grand because. That's all they can afford and I've always tried in and it's a and don't don't be silly it can't work so we decided to test the theory and that's what these guys are doing here is we're not we think if. We actually hire expert bankers and input arsenal of product experts behind them and make them into the conductors of the virtuoso product Symphony that if they're they will. Be at because of their expertise be able to see where the clients trying to go they will pivot internally and determine what can we do to help that client achieve that in effect that and in doing so we can actually help create value for the. Client we up create value so we can take an enterprise that might have. An economic value an enterprise value of twenty five million dollars if we happen grow we could turn it. Into sixty million dollars I would submit to you that if you we could help a family grow their business by thirty five million dollars of value that they could sell they wouldn't have any problem paying take 75. Grand up there 175 grand or so if I agree they'd be happy that's a pretty good trade in other words would you ever if I could deliver 30 million dollars of value to you and you had to pay me to and again would you do it I think the answer is yes so that's our journey and. It turns out what's interesting is we have three kinds of expertise industry expertise well maybe for relationship expertise who lives in that town. With those people and them. Well a bee industry expertise do you really understand the logistics business for food service for example or the healthcare billing practices or healthcare staffing industry do you understand that if. You do then yet client wants to talk to you third see the expertise on structuring the company a wants to buy Company B how they do that how do you do it how do you finance it what's the capital structure need to look like there are ways conversations be formed a blow companies up there are. Ways that empower them to go reload and do it again Smart Growth is doing it right so we if we get structure answer each piece on the ground that's helpful and then in the last ones product expertise which the structure basically says I need two units of. That for those and let's bring it together and the banker is it is the driver so four films of expertise converging on a client but now what happens to have seventy five thousand bucks what turns out we know the answer now and the answer is it goes up when we introduce the corporate finance. Structuring or society the the industry experts to the client and we add value that client pays us on average anywhere I guess seventy five grands the base we get paid for adding value actually pay us on average $40,000 now says a 10% increase would be seventy five hundred. Bucks more that's a easy multiplier that's huge operating leverage in and we find that there will do it because they've never seen it before you tell Tim they say I've never said never had a conversation with a banker like this before and I say what I sit in Friday's clients and so what are your bankers. And I'll ask him already question go never nobody asked me questions like that now my business so what do they ask you they say they asked me if I want a loan and you know. That's the dumbest question really I mean that's like working at the drive-thru window asking if you want to supersize it there's not a lot intellectual capital being exchanger so our model is. Know let's figure out how. To drive value for the client and they will gladly pay shareholders. And if the shareholders get value they will gladly play our teammates everybody wins and it's geared to the clients favor so I love that so it turns 75 grand turns into 400 and when we put the corporate finance structure on top because we're helping on an M&A transaction or in organic growth strategy. It goes up to six. Hundred and some thousand dollars so that's. Like nine times multiplier from the from the old assumption that no there's no rate you can make any money bringing really. Smart experienced bankers into the middle market we we blown up that myth it turns out the clients would pay for value if you had value they're happy to pay and that's what. We're doing your comments there in an earlier slide to had the phrase on up can you maybe share with us where that originated him and what does it mean well this is a tip of the hat to the. Marketing professionals and our chief marketing officer Susan summers soul johnson came up the idea and she said it was important to her that we pursue this idea of driving financially confidence into our our client base and helping people understand this complex role of financial services and that they could navigate their. Lives with less stress and have a a better life if we mning and i promise you and some of you grew up in households where you know everything is a crisis when you're spending a little bit of money because money's tight that's what it feels like I used to back in the day before cell. Phones we'd be on the phone I don't be aware of the experience. Of my dad would yell that's no I'm just it's hang up no I know what's going on here why just go make some more money we all have to worry about this but it turns out that our is that financial stress is real so our so on up is a movement we. Started to to help the education process through eight modules for anybody you can do it you can go to on up calm and I ask you to consider doing that and you can you can walk through this and you go yeah I got to some a finance major I add there's. No need to go in your silly website I promise you there's Stephanie you've never thought about so yeah there's a check balance check accounts great that's academic but what if you get to the part about about insurance what do you know. That insurance needs what are you about rules where you about estate planning. It takes you. All the way through how to bulletproof yourself future-proof yourself personally against all the potholes in your life ahead and the unknowns so I check. It out it's free we don't try to make a penny off it we just do. It because we think as a corporate citizen that's who's going to do it now it's fun if I may is weeks because we've done the research the research says 53 percent of Americans do not have gravis two thousand bucks in saved up in case they hit. A pothole and emergency ain't tell you if your air conditioner blows out and it's going to cost him one two thousand bucks there's a lot of ways to make two thousand dollars disappear that you didn't plan for and more than half Americans don't have. To then so they're just sitting there waiting to get have massive wave of stress blow model are and we could help these. People so that's what the plan was that it came from this which is holy cow so I would say wants this thing a notice it well we could have 25,000 teammates at SunTrust and we're asking them to help our customers become financially. Confident but before we can ask our own teammates to do. That shouldn't we know whether they're in a stable strong position in fact themselves financially confident how in the heck they can help some else so we we made a program. Available to our clients I'm sorry to our teammates and we're like this hey if you got a sign up and you complete the eight modules we will make a deal with you we'll put that this is twenty five thousand people will put a thousand dollars in you open account we'll put. A grand Ian you put a grant and you have your two grand and. We'll put a floor under everybody if if you need that so we make it right now we had 20,000 of them sign up and 16,000 have complete the program or so and we've spent over ten million dollars supporting our teammates to get them in a position to support our clients so that's pretty cool but it's even cooler which is. That's all the consumer stuff but you know we cover companies right so we we got we see owners of companies and I was calling on these two brothers in Tennessee or a packaging company they make the boxes that you when you get goods and services from big Amazon they make the boxes so I'm talking these two brothers there a. Third generation company. I asked him about their employees how's your. Turnover is it hard to find people that are skilled etc and mace and I told him what. We're doing for our people and I remember the brother said two things to me one is most of. Our people have worked here for two and three generations. Their family to us there's or the quarry life is important to us and then when they heard a story about what we're doing for two months I said I gotta have that can I get that I need that I want to give that to my people and say we're like. Well we're not ready for that yet and we went back and I had three or four clients right out of box cuz I only tried a few of them about it and they obviously reactions I gotta have that for my people my people you know they they don't know how to manage money. They know they need help with navigating the complexities of this landscape so we now have 90 90 companies multiplied by the number of. People who's going to signed up doing this stuff and we ask the companies to make the pledge to make a contribution to the chunk edge just like we did and it can range. From 100 Baxter thousand I say it should be all 9000 M but it happens about 470 bucks. Per person that we've got 90 companies signed up in 75 complete 76 that are actually doing that for their people which is pretty cool so we think we - so our marketing heads Susan she started a movement we've got on. We got on up at 3 million people in America have signed up on up , begun a journey so pretty cool we're trying to we're trying to help out where we can so I better move on up then all right yeah save yourself from yourself exactly. I want to move to the final set of questions before we open it to you to ask questions I wouldn't know what advice do you have. For our students maybe who are interested or thinking about financial services as a career just in general what advice do you have for them. Well I have to start with a confession I have no intention to be a banker when I was sitting in your chair right now I know I didn't want to be. A banker they know the bankers did know today it did seem kind of boring to me and and I was uneducated so I didn't go into banking I went into the automobile industry because I think cars are cool and that's where I wanted to be it turns out I went to work at. Ford Motor Company and it turns out what was cool wasn't what I was doing what was cool is designing a car or engineering a car or maybe even manufacturing car but not representing somebody else's body of work in his. In his cool three-dimensional kinetic structure and escorting it to a dealership oh yeah that's a feel like I don't really feel like a man of any value I feel like I'm making a difference this feels bad and so I go to grad school and then a God Squad. Discovered this banking thing and go what is this all about and it turns out the differences in banking you are the product. Not the car because when you show up on the client it's your actual capital that is the product it's what you can you think through do you know what data you have to learn the facts on the ground you. Need to learn so that you can figure out where this client wants to go and how what how to help you get there any of you in suddenly you're the product it's. Super cool and I liked it because I I felt like eyes make a difference and when you when you're helping a company when we have a company as consumer goods company that's sold the patriarch died the kids inherited if we we went to them said how can we help. You we give a range of options from do nothing to bold on some other products to sell your company though so how much is the company with we said. We did the math their eyes got really big because it was. Hundreds of millions of dollars more than a hundred million dollars per kid that was. Good and they said we'd like to go about selling and we found the ball we financed the buyer who had already won humbly I gotta forth and sold it and now we've had those assets in the private bank we're helping that family. Run their money well up in the near owner grow the company and it's all it's all beautiful so you didn't send over the big top with cool stuff and I didn't know I didn't know that maybe maybe. I should take a more finance classes when I was here I don't there's still time right yeah I'm still learning he's gonna come back and teach course he's already told me that as we were walking down but I'll have to learn something before. My last question for both for for to answer for you and then we'll open it up as as you you know sort of climb the corporate ladder. You've certainly seen more complex organizations you've seen the importance of certainly some of the tenants and pillars that we talked about here ethical decision making and team based decisions and diverse teams how do you how do you manage that you've moved through these big organizations how do you ensure that your as you rise up that that. Your fingers on the tip of all this and you ensure that those things are being handled yeah yep there's a lot in that some we unpack it a little bit you know. Ethics means doing the right thing even when nobody's looking I think I mean it's not really that complex and so when we say we're client first that's that that's like hey I don't care anything else let's do the right thing for the client. And deliver on that and we'll. Sort everything else out on the inside of the company but we got to do a we got to do because our clients are counting on us and they'll remain our clients if we do that so that's sort of the ethics piece it gets difficult though when your competitors don't do it that way and I'll give. You a concrete example when we're helping a client finance do a cynic a loan deal and there's a lot of structuring. That goes into it and we're saying here's the best way for you to do that and here are the different constraints we were put in place on that and here's the here's the price. You should pay and here's our strategy for going the market that we think will get you the best deal and and let's say and we think that the market clearing price is going to be X and our competitor comes in and says no it's going to be Y and you don't need to do all those bells. And whistles that those guys told you to and we write that the deal that the other. Bank put on the table looks more attractive they wish for it to be the deal that we know. That at the Asian idea is is seduce. Them with the illusory shiny object to get hired to do it and then ultimately end up with our deal that said well we really try to do it this way but the market wouldn't let us know we won't tell the client straight up this is where it's going to go and. Then telling your story and in your like a story that's great but we're not going to tell your story and if you want to hire them that's fine but we're going to tell. It straight and that's how we roll and it turns out that one of our very first clients in since actually our first planet had a problem with another Bank and they completely butchered acidic a low down and we've been hired and been steamed to to fix that problem created by the bank. Because they actually weren't expert enough in sync your loan Markinson together well and so guess what we now have a very loyal client for life because we did that get one chance to make it right yeah yeah well thank you for answering my questions I want to open it up to our audience. Does anyone want to ask phone a specific question general question thoughts on your mind yeah I'll try to repeat your question so everybody can hear it so. Go ahead or you can use the mic if you'd like you talked about disrupting the middle market banking space with bringing like a full set of options that a larger bank. Would have to smaller clients so that they still get the same amount of care but with more options available to them do you foresee maybe in. The very long runs SunTrust also trying to disrupt other areas of financial services like you know insurance or asset management yeah so the you guys heard the question. So yeah disruption is sort of the ultimate form of competitive advantage and and so every one of our business owners line we have multiple lines of business where where the process were there to come in. And after the call with the competitive advantages which decoded is to say all right so a client is going to deal with SunTrust bankers and bankers. From all these other banks why should they hire SunTrust what you what's the advantage to the client what do you what makes you better and a lot of times I come up with these fancy long paragraphs that are you know sparkly and nice but they're already content and let's be us and. I buy it it's not good you got to go back if you're not good enough I mean if you're leaving your business tells. You they don't have an advantage you probably need a new leader so they are so we put a little performance tension in the system to encourage people to do that and then disruption is is part vision and not everybody's got a vision frankly but some people can just be more. Efficient they can you know this one team thing isn't it's it's maybe a little bit vision it's not really complex how you engineer it's complex but yeah so yeah we don't you our objective would be disrupt any place we. Can you know enlightenment doesn't come to every leader in every line of business on the. Same day so I wouldn't expect them to all be sort of parallel pathing if that makes any sense if you have any great vision we need to talk next question our questions were so good so good right we okay so I'm a. Little career advice for you when you opportunity to assert asserting the sort of behavior is a winning behavior passive behavior the losing behavior I would recommend asserting let's try again that's one why you think about one cuz I had so many that I wanted to. Ask but I wanted to save you time it is baseball season yeah and you guys are in sort of a partnership with the Braves your home team from the South where I grew up so. How did you guys make that decision well with SunTrust Park up yeah so SunTrust Park if you come to Atlanta Galgo SunTrust Park it's actually the coolest. Stadium in Major League Baseball and it sounds like you know I would say that but the fact matter is every other major league baseball teams owners have come through Atlanta to see it to understand and what's unique about it is it isn't just a stadium it's actually an entire town and we we have. The naming rights and we parked in with the folks you built the town we financed it we financed the stadium we partnered the Braves Liberty Media owns the Braves and so we're so we're in this together but why is the question and the answer is because we are. A regional bank with a certain with the disadvantages and advantages of scale meaning you know we're competing with banks ten times our size who have marketing budgets ten times our size and there's scalability to marketing and advertising and social media dollars and we had to find an innovative way. To be known without trying to spend the same limited so SunTrust Park by the way puts us in ever and replaced the Braves go and well what every time we play there on TV you might. Notice if you watch a Braves game or if you watch Reds game when the planner is us see our signage is. Unbelievable and when our team in LA report yeah we want that we never have to tell anybody who's SunTrust Bank. They don't ask Sam Seaborn ask everyone else because of theirs so it's really um it's already it's are accomplishing the mission that's pretty exciting and it's. A world-class venue for entertaining our clients so every game we have a suite there and it's a suite suite if you will and then we took a client's. There and it's with they loved it. We have the seats right for a home plate and we got multiple sections of seats like. That so it's an experience unlike. Any other and anytime we turn on the TV to watch a Braves game I get to see who's sitting in the seat so I get to see who's working tonight taking client suppose well yeah that's really nice keep that in mind I have one last question but I'll give it. To you if you would like it can you speak loudly until I get there with the mic I'll get there really fast I promise yeah you want the mic on the diagram in the beginning you said. That you guys were between the Bulge and the middle bracket yeah what other banks aren't you pilots same space is you guys or are there any well so I painted it is a binary equation if you're in or you're out with there's a little more a. Continuum there so one of the banks that is running this same play if you will is key core I you know by the way it's a. It's a friend of mine and ours who built that also a fraternity brother if we have to go there and so yeah we're all banking in the blood here and this it's pretty well run it's a pretty good it's a good version of that but I know because we've hired some bankers from keycode that they. Have like boarded. Our entire thing and they're trying to emulate us and trying to run is it because we're actually more effective at it and all the numbers would say that so maybe I go in I would put us at the leader in the pack but they're doing it other companies that are trying to do PNC. Is run by a guy who is an investment banker by background they'll jump check he's any so he understands this plane. And would like to run it is they've got a capital markets unit but they are not really wired at the same way in my opinion US bank has tried to do the same thing and I know the people that are doing it over there and you know they tend to they tend to be more focused on. The investment grade space which is way up market and not down in the leveraged finance space which is where the well the private companies live so there are variations of permutations across the landscape of. Trying to run this and. Yeah five years ago everybody will be running it I would submit you just. It's really hard to do history tells you that you could look at US bank used to own Piper Jaffray they don't own Piper Jaffray anymore because it had in my vernacular organ rejection investment bankers in commercial banker slash retail values often. Don't coexist very well especially when the commercial and retail bankers are in charged it causes problems so that happened there and you know v thirty locally is China it is playing of those in US but they don't have all the capabilities it's very hard if you think about the core tenant of the. Strategy is to have Investment Banking capabilities that are fully competitive with Goldman Sachs and JP Morgan resident at your company well it's pretty hard to get all those folks to move Cincinnati Ohio frankly it's pretty hard to get them all to move. A Cleveland although they've done a pretty good job if you look at where they have their teams they're distributed US bank has people in New York and Chicago had shoulders that patch worked it together to try to build the team we've actually took advantage of a little bit of luck and luck matters a lot in cruise you know matters. A lot of strategy but. The lot was in Charlotte North Carolina back in 1990 or so a couple banks there decided to take on Wall. Street and build these in a regional bank build investment banking platforms it was nations Bank they were Spurs Union subsequently wells trivia and they they. Brought in hundreds and hundreds of people from New York and parted them in to show it where I was among that wave of people in they the people came down I get he already killed me my compensation doubled in my housing prices have this is beautiful and so standard of living. Skyrocketed so it was a great trade for the people and then what happened though he was fast forward 20 years later was those turned into Bank of America and Wells Fargo and then those guys also hey well what are you doing at soil that's ridiculous. We're reconstituting ourselves in New York which led left a installed base of highly trained highly tenured talent sitting in Charlotte when what happened where'd the game ago and that was gonna last for only so time for they all fat supposed to do and so that's why I kind of hatched the scheme of. Let's do this in Atlanta it's in the southeast we kept our get a whole bunch of those folks to move from Charlotte Atlanta and we kind of had up maybe an 80 percent yield but then again let's open up a trading floor in an office in Charlotte and. We'll dig up the rest of when we did and so we're like building first movie advance and we had we had some that's difficult to repeat which is an installed base of talent. Hundreds of people that we could lift out who we don't need. To train who were expert hope that's a answers your question blow is the native of North Carolina I thank you. For helping my state and I thank you for coming back to Miami. That's all join me and thank you thank you. And always know you're welcome home thank.

 


SunTrust Banks Inc Company News

Thu, 09 May 2019 09:47:37 GMT
Pennsylvania Trust Co Acquires 8,598 Shares of SunTrust Banks, Inc. (STI) - Finance Daily
<ol><li> Pennsylvania Trust Co Acquires 8,598 Shares of SunTrust Banks, Inc. (STI) Finance Daily</font></li><li><a href="/url/?u=https://www.gvtimes.com/2019/05/09/this-many-analysts-cant-be-wrong-about-suntrust-banks-inc-sti-intuit-inc-intu/" target="_blank">This Many Analysts Can’t Be Wrong About SunTrust Banks, Inc. (STI), Intuit Inc. (INTU) GV Times</font></li><li><a href="/url/?u=https://finbulletin.com/2019/05/08/suntrust-banks-inc-sti-showing-its-operating-strength-just-isnt-stroke-of-luck/" target="_blank">SunTrust Banks, Inc. (STI) showing its operating strength just isn’t stroke of luck FinBulletin</font></li><li><a href="/url/?u=https://mayfieldrecorder.com/2019/05/09/suntrust-banks-inc-sti-shares-sold-by-oppenheimer-asset-management-inc.html" target="_blank">Oppenheimer Asset Management Inc. Sells 23,785 Shares of SunTrust Banks, Inc. (STI) Mayfield Recorder</font></li><li><a href="/url/?u=https://techknowbits.com/2019/05/09/suntrust-banks-inc-sti-receives-70-64-average-target-price-from-analysts.html" target="_blank">SunTrust Banks, Inc. (STI) Receives $70.64 Average Target Price from Analysts Tech Know Bits</font></li><li><strong><a href="/url/?u=https://news.google.com/stories/CAAqOQgKIjNDQklTSURvSmMzUnZjbmt0TXpZd1NoTUtFUWpVMm9uempZQU1FZVJxREtmRlBwX2hLQUFQAQ?oc=5" target="_blank">View full coverage on Google News</a></strong></li></ol>
Tue, 30 Apr 2019 07:00:00 GMT
Merged SunTrust/BB&T ranked 8th largest in U.S. - Triad Business Journal
Merged SunTrust/BB&T ranked 8th largest in U.S. Triad Business Journal SunTrust and BB&T have a combined $441.2 billion in assets, according to the rankings from S&P Global Market Intelligence.
Thu, 18 Apr 2019 07:00:00 GMT
SunTrust Banks, Inc.'s (STI) CEO Bill Rogers on Q1 2019 Results - Earnings Call Transcript - Seeking Alpha
SunTrust Banks, Inc.'s (STI) CEO Bill Rogers on Q1 2019 Results - Earnings Call Transcript Seeking Alpha SunTrust Banks, Inc. (NYSE:STI) Q1 2019 Results Earnings Conference Call April 18, 2019, 11:00 AM ET Company Participants Ankur Vyas - Investor Relations ...
Thu, 09 May 2019 11:22:14 GMT
Candriam Luxembourg S.C.A. Has $7.59 Million Position in SunTrust Banks, Inc. (STI) - Finance Daily
Candriam Luxembourg S.C.A. Has $7.59 Million Position in SunTrust Banks, Inc. (STI) Finance Daily Candriam Luxembourg S.C.A. reduced its holdings in SunTrust Banks, Inc. (NYSE:STI) by 13.6% in the 1st quarter, according to its most recent disclosure with ...
Mon, 22 Apr 2019 07:00:00 GMT
Cultural fit concerns cast shadow over BB&T-SunTrust merger - Winston-Salem Journal
Cultural fit concerns cast shadow over BB&T-SunTrust merger Winston-Salem Journal The BB&T Corp.-SunTrust Banks Inc. $66 billion megadeal has been touted as the largest bank transaction in at least a decade and potentially transformative for ...
Mon, 06 May 2019 17:52:00 GMT
SunTrust Banks, Inc. [STI] Price Aside, STI Fundamentals Booming Beyond Compare - The Dwinnex
SunTrust Banks, Inc. [STI] Price Aside, STI Fundamentals Booming Beyond Compare The Dwinnex Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding SunTrust Banks, Inc. [STI] ...
Thu, 09 May 2019 12:29:04 GMT
SunTrust Banks Comments on WellCare Health Plans, Inc.’s Q2 2019 Earnings (WCG) - Finance Daily
SunTrust Banks Comments on WellCare Health Plans, Inc.’s Q2 2019 Earnings (WCG) Finance Daily WellCare Health Plans, Inc. (NYSE:WCG) – Equities research analysts at SunTrust Banks raised their Q2 2019 earnings per share estimates for WellCare Health ...
Thu, 09 May 2019 12:34:24 GMT
SunTrust Banks Analysts Cut Earnings Estimates for BioTelemetry Inc (BEAT) - Finance Daily
SunTrust Banks Analysts Cut Earnings Estimates for BioTelemetry Inc (BEAT) Finance Daily BioTelemetry Inc (NASDAQ:BEAT) – SunTrust Banks decreased their Q2 2019 earnings estimates for BioTelemetry in a research note issued to investors on ...
Thu, 18 Apr 2019 07:00:00 GMT
BB&T-SunTrust plan shareholder votes in early third quarter, new brand by June 30 - Winston-Salem Journal
BB&T-SunTrust plan shareholder votes in early third quarter, new brand by June 30 Winston-Salem Journal Shareholder votes on the $66 billion megadeal between BB&T Corp. and SunTrust Banks Inc. are projected for early in the third quarter, the banks said ...
Thu, 09 May 2019 15:35:06 GMT
SunTrust Banks Comments on Leidos Holdings Inc’s Q2 2019 Earnings (LDOS) - Finance Daily
SunTrust Banks Comments on Leidos Holdings Inc’s Q2 2019 Earnings (LDOS) Finance Daily Leidos Holdings Inc (NYSE:LDOS) – Analysts at SunTrust Banks dropped their Q2 2019 EPS estimates for shares of Leidos in a report issued on Tuesday, April ...