SunTrust Helps Customers Grow in Savannah
Monday, June 8th, 2015
Equipment financing activity has increased significantly over the past 18 to 24 months among commercial clients, according to David Camden, Savannah Region President for SunTrust Bank. Defined as companies with annual revenues of $2 million to $150 million, many of SunTrust's commercial clients are expanding their capital expenditure plans following several lean investment years during the recession.
"One of the things that companies cherish is access to capital because it allows them to grow. That's true of small businesses as well as closely-held, mid-market companies," Camden said.
"SunTrust can provide debt capital in the form of loans, of course, but we also can provide advice, ideas and access to equity capital for small and mid-market companies through our investment banking group."
According to Camden, "an extraordinary amount of capital is invested through private equity. SunTrust has a strong presence with private equity groups, both large Wall Street firms and smaller regional players."
Headquartered in Atlanta, SunTrust Banks, Inc. ended the first quarter of 2015 with total assets of $189.9 billion and total deposits of $144.4 billion. The bank serves a broad range of consumer, commercial, corporate and institutional clients, providing through its subsidiaries mortgage banking, asset management, securities brokerage and capital market services. Revenues corporate-wide and in the Savannah region are spread fairly evenly across consumer, private wealth management, mortgage banking and wholesale banking, which includes commercial, corporate and investment banking.
"We realized 18 percent growth in net income in wholesale banking in the first quarter. Fee income in investment banking was strong from mergers and acquisition activity and syndications. And net income from commercial banking grew close to 10 percent," Camden said.
Optimism rising
For the past three years, SunTrust has conducted an annual Business Pulse Survey to better understand the level of confidence business leaders have in their companies and the economy in general. In 2015, 77 percent of approximately 500 small and mid-market businesses participating in the survey felt confident about their current business strength.
"Business leaders are more optimistic about the prospects for their businesses. Their balance sheets are strong. They've made the tough decisions. And they're prepared for growth," Camden said.
"On the other hand, there is not as high a level of confidence in the overall economy. The feeling is that government regulations, uncertainty around health care laws and rising operating costs have held some companies back."
The survey results can lead to conversations with clients about their growth plans. For example, companies who deferred investment during the recession may now be confident and ready to invest in new technologies that offer significant operating efficiencies.
"Manufacturing machinery that in some cases is decades-old can be replaced by more efficient machinery that may offer five- to 10-fold cost savings. That creates a very attractive return on investment," Camden said.
Opportunities expanding
The port expansion presents the most immediate growth opportunities for companies in the Savannah region, according to Camden. Logistics – warehousing, trucking and rail – are high-growth industries.
"Getting the growing volume of freight where it needs to go is a major opportunity. We're seeing investment in warehousing, which is near capacity in the region," Camden said.
"We're also seeing more interest in exporting and importing products from clients in South Georgia and throughout Georgia. Ten years ago, maybe one or two companies out of 10 did business overseas. Now it's rare if a company is not importing or exporting."
SunTrust held a lunch event in Savannah in April for about 40 existing and potential clients that focused on the port and logistics, as well as the portfolio of solutions that the bank offers to facilitate logistics, imports and exports, and other aspects of global trade.
"It's an intentionally intimate setting so that owners and CFOs can enjoy relevant presentations, ask questions and learn more about the latest in treasury capabilities," Camden said.
Online foreign exchange services, online trade services, online treasury manager, positive pay and fraud control, and corporate card services were among the capabilities demonstrated at the event. Presentations included an overview of economic drivers of freight demand in the Savannah region and review of how to mitigate foreign currency risk at the port.
More information on SunTrust Bank is available at suntrust.com.
