SunTrust 2007 Annual Report Download - page 17

SunTrust’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to
those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (“the Exchange Act”)
are available on the Company’s website at www.suntrust.com under the Investor Relations Section as soon as reasonably
practicable after the Company electronically files such material with, or furnishes it to the SEC. The public may read and copy
any materials the Company files with the SEC at the SEC Public Reference Room at 100 F Street, NE, Washington, DC, 20549.
The public also may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC. The SEC’s website address is www.sec.gov. In addition, SunTrust makes available
on its website at www.suntrust.com under the heading Corporate Governance its: (i) Code of Ethics; (ii) Corporate Governance
Guidelines; and (iii) the charters of SunTrust Board committees, and also intends to disclose any amendments to its Code of
Ethics, or waivers of the Code of Ethics on behalf of its Chief Executive Officer, Chief Financial Officer and Chief Accounting
Officer, on its website. These corporate governance materials are also available free of charge in print to shareholders who
request them in writing to: SunTrust Banks, Inc., Attention: Investor Relations, P.O. Box 4418, Mail Code GA-ATL-634,
Atlanta, Georgia 30302-4418.
The Company’s Annual Report on Form 10-K is being distributed to shareholders in lieu of a separate annual report
containing financial statements of the Company and its consolidated subsidiaries.
Item 1A. RISK FACTORS
The risks contained in this report are not the only risks faced by us. Additional risks that are not presently known, or that we
presently deem to be immaterial, also could have a material adverse effect on our financial condition, results of operations,
business and prospects. This Report also contains forward-looking statements that may not be realized as a result of certain
factors, including, but not limited to, the risks described herein and in our other public filings with the SEC. Please refer to
the section in this Report entitled “Cautionary Statement Regarding Forward-Looking Statements”for additional
information regarding forward-looking statements.
Business Risks
Weakness in the economy and in the real estate market, including specific weakness within our geographic footprint,
has adversely affected us and may continue to adversely affect us.
If the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations
declines, or continues to decline, this could result in, among other things, a deterioration of credit quality or a reduced
demand for credit, including a resultant effect on our loan portfolio and allowance for loan and lease losses. A significant
portion of our residential mortgages and commercial real estate loan portfolios are composed of borrowers in the
Southeastern and Mid-Atlantic regions of the United States, in which certain markets have been particularly adversely
affected by declines in real estate value, declines in home sale volumes, and declines in new home building. These factors
could result in higher delinquencies and greater charge-offs in future periods, which would materially adversely affect our
financial condition and results of operations.
Weakness in the real estate market, including the secondary residential mortgage loan markets, has adversely
affected us and may continue to adversely affect us.
Significant ongoing disruptions in the secondary market for residential mortgage loans have limited the market for and
liquidity of many mortgage loans. The effects of ongoing mortgage market challenges, combined with the ongoing correction
in residential real estate market prices and reduced levels of home sales, could result in further price reductions in single
family home values, adversely affecting the value of collateral securing mortgage loans that we hold, mortgage loan
originations and profits on sale of mortgage loans. Declining real estate prices and higher interest rates have caused higher
delinquencies and losses on certain mortgage loans, particularly Alt-A mortgages and home equity lines of credit and
mortgage loans sourced from brokers that are outside our branch bank network. These trends could continue. These
conditions have resulted in losses, write downs and impairment charges in our mortgage and other lines of business,
especially in the third and fourth quarters of 2007. Continued declines in real estate values, home sales volumes and financial
stress on borrowers as a result of job losses, interest rate resets on adjustable rate mortgage loans or other factors could have
further adverse effects on borrowers that result in higher delinquencies and greater charge-offs in future periods, which
adversely affect our financial condition or results of operations. Additionally, decreases in real estate values might adversely
affect the creditworthiness of state and local governments, and this might result in decreased profitability or credit losses
from loans made to such governments.
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