Synovus Shows Why Banks Aren't Lending

SunTrust received a second helping of TARP money on Dec. 31, bringing its total capital infusion from the Treasury to $4.9 billion. After not taking the maximum allowed capital infusion of 3% of risk-weighted assets back in October, the company changed its mind in early December.

"Given the increasingly uncertain economic outlook, we have concluded that further augmenting our capital at this point is a prudent step," CEO James M. Wells III said.

Looking back, and considering the political uncertainty in light of the controversy surrounding the TARP, a prudent approach in this environment is to take the capital when you can get it.

SunTrust is scheduled to announce its fourth-quarter results before the market opens on Jan. 22. SunTrust reported a 42% sequential slide in profits to $312 million in the third quarter.

2008 was a rough year for Georgia banks, with five failing, the most recent being Haven Trust Bank, which was closed by regulators on Dec. 12. Haven was acquired by BB&T Corp. (BBT Quote), following a trend of large regional banks expanding their deposit base with dirt-cheap acquisitions of failed institutions.

SunTrust acquired the branches and insured deposits of the failed First Priority Bank of Bradenton, Fla., back in August.

Regions Financial (RF Quote) acquired Integrity Bank of Alpharetta, Ga.'s branches when it was shuttered later in August.

Fifth Third (FITB Quote) acquired all of the deposits and branches of Freedom Bank, Bradenton, Fla., on Halloween.