Can SunTrust keep shining?

ORLANDO -- Ray Sandhagen loves surprising his employees.

So when he recently interrupted a 9 a.m. Monday sales meeting to deliver colorful balloons, baskets and news to Jason Smith and his manager David Evans that they won trips to Puerto Rico for their top 2005 commercial lending and management performances within SunTrust Banks, it brought a wide, proud smile to Sandhagen's face.

He then went to another office to deliver a third gift to Karen Harrington, as her reward for being named a top commercial relationship manager.

These days, Sandhagen has plenty to smile about. The chief executive officer, chairman and president of SunTrust Central Florida, part of Atlanta-based SunTrust Banks Inc. (NYSE: STI), just received word that the Central Florida region ranked as the top performer in the entire company in 2005.

Indeed. SunTrust Bank Central Florida also ranks No. 1 in metro Orlando market share, capturing 20.57 percent of the region with $6.1 billion in deposits. But with Bank of America ever so close behind, with a 20.24 percent share and $6 billion in deposits, and other players growing fast, can Sandhagen keep smiling?

The local CEO doesn't hesitate: "We stay No. 1 by continuing to provide top-quality service."

Entrenched in the community

Sandhagen assumed his new position a little more than a year ago when he replaced the retiring Tom Yochum.

The new boss oversees 140 full-service offices located throughout Orange, Osceola, Seminole, Lake, Brevard, Highlands, Polk, DeSoto, Okeechobee, Volusia and Flagler counties.

Local business leaders knew Yochum for raising the bank's profile while amassing $100 million for local causes. He left large shoes for Sandhagen to fill.

But, colleagues say, Sandhagen is well on his way to filling those shoes -- and then some.

Upon his arrival, Sandhagen joined the Metro Orlando Economic Development Commission's Governor's Council, executive committee and board of directors.

In addition, Sandhagen joined the executive committee and board of directors of United Arts of Central Florida Inc. He also serves on the board of trustees of Florida Southern College, his alma mater.

In addition to serving on boards, Sandhagen has provided donations on behalf of the bank and its employees to community organizations, including $100,000 to United Arts and $750,000 to Heart of Florida United Way.

He exemplifies Yochum-like qualities, several industry observers say.

What Ray Gilley, executive director of the EDC, likes about Sandhagen is his ability to relate to all people at all levels. "When he's talking to you, you get the feeling that he's really focused on you," he says.

Others are equally impressed with his abilities.

"I am very impressed with the depth of his knowledge about so many issues," adds Florida Southern College President Anne Kerr, who also serves on SunTrust's Lakeland board.

"His decisions are well thought out, and he has broad scope of understanding. He's so ethical, aboveboard and honest. And that just comes through so clearly in everything he does."

Team player, mentor, leader

A 34-year banking veteran, Sandhagen began his career with Trust Co. Bank in Atlanta (now SunTrust Bank, Atlanta) in 1971 as a commercial banking trainee.

He held managerial positions in several banking companies in commercial lending, commercial real estate, corporate banking and credit policy.

In 1993, he joined SunTrust Bank Southwest Florida in Sarasota as its executive vice president and chief credit officer. He was named president and was elected to the board of directors in 1996. He was promoted to chairman, president and CEO in 2000, where he remained until he took on his current role with SunTrust Central Florida.

Sandhagen's style is hands-on. He's out of the office two days a week visiting branch locations and clients. "You can't be a good manager just sitting in your office," he says.

SunTrust insiders admire his team approach.

"He really makes the effort to make sure that everyone in the room is on the same page and has the opportunity to participate in discussion of the topic at hand," says Ann McGee, president of Seminole Community College, who serves on SunTrust's local board. "He has a very inclusive management style, which I find very appealing, particularly as the only woman on that board."

He's also a mentor.

"Excellence is pervasive in everything he does," Kerr says. "He cares deeply about his organization and the people who are in it and takes pride in the accomplishments of others. He's very quick to acknowledge the successes of his team. "

Finally, many admirers say, Sandhagen is a great leader.

"Building upon success is a hallmark of great leadership, and Ray has done precisely that, guiding his team of bankers to provide outstanding banking services for all of our customers," says Tom Kuntz, Sandhagen's boss as chairman, president and CEO of SunTrust Bank Florida.

Can he keep top spot?

Still, the big question remains: Can Sandhagen keep SunTrust tops in Central Florida?

Dick Bove, an analyst with Punk Ziegel in St. Petersburg, believes the banking giant possibly could be losing its market-share grip.

"SunTrust has had some dislocations in that market (Central Florida) with a change in people running the business there, and SunTrust seems to be losing market share in most places where it does business around the Southeast."

Sandhagen, however, is undeterred by such skepticism.

He says the bank intends to expand its banking services through additional offices, pointing to the fact the bank will open 15 locations in the Central Florida region this year, three more than last year.

A major driver is the purchase of 11 Wal-Mart in-store bank locations from Community Bank of Florida in December 2005. As many as nine of SunTrust's new locations will be in Wal-Mart stores, seven of which are in Central Florida, Sandhagen says.

Other plans include adding and enhancing delivery channels; putting more emphasis on Hispanic banking; and continuing to focus on residential mortgage lending, commercial lending, and wealth and investment management.

"We don't want to be a niche player," Sandhagen explains. "We want small and big business and broad-based consumers. The strategy -- and my goal -- is just to ensure we are providing the very best client service we can provide and make sure we're providing that service to all segments."

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.