SunTrust 2008 Annual Report Download - page 30

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Important Cautionary Statement About Forward-Looking Statements
This report may contain forward-looking statements. Statements regarding future levels of charge-offs, provision expense,
and income are forward-looking statements. Also, any statement that does not describe historical or current facts, including
statements about beliefs and expectations, is a forward-looking statement. These statements often include the words
“believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “initiatives,” “potentially,” “probably,”
“projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and
“could.” Such statements are based upon the current beliefs and expectations of management and on information currently
available to management. Such statements speak as of the date hereof, and we do not assume any obligation to update the
statements made herein or to update the reasons why actual results could differ from those contained in such statements in
light of new information or future events.
Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue
reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements.
Factors that could cause actual results to differ materially from those described in the forward-looking statements can be
found in Item 1A of Part I of this report and include risks discussed in this MD&A and in other periodic reports that we file
with the SEC. Those factors include: difficult market conditions have adversely affected our industry; current levels of
market volatility are unprecedented; the soundness of other financial institutions could adversely affect us; there can be no
assurance that recently enacted legislation ,or any proposed federal programs, will stabilize the U.S. financial system, and
such legislation and programs may adversely affect us; the impact on us of recently enacted legislation, in particular the
EESA and its implementing regulations, and actions by the FDIC, cannot be predicted at this time; credit risk; 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; weakness in the real estate market, including the secondary residential
mortgage loan markets, has adversely affected us and may continue to adversely affect us; weakness in the real estate market
may adversely affect our reinsurance subsidiary; as a financial services company, adverse changes in general business or
economic conditions could have a material adverse effect on our financial condition and results of operations; changes in
market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations,
and the availability and cost of capital or liquidity; the fiscal and monetary policies of the federal government and its
agencies could have a material adverse effect on our earnings; we may be required to repurchase mortgage loans or
indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain
borrower defaults, which could harm our liquidity, results of operations, and financial condition; clients could pursue
alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; consumers may decide not to use
banks to complete their financial transactions, which could affect net income; we have businesses other than banking which
subject us to a variety of risks; hurricanes and other natural disasters may adversely affect loan portfolios and operations
and increase the cost of doing business; negative public opinion could damage our reputation and adversely impact our
business and revenues; we rely on other companies to provide key components of our business infrastructure; we rely on our
systems, employees, and certain counterparties, and certain failures could materially adversely affect our operations; we
depend on the accuracy and completeness of information about clients and counterparties; regulation by federal and state
agencies could adversely affect our business, revenue, and profit margins; competition in the financial services industry is
intense and could result in losing business or reducing margins; future legislation could harm our competitive position;
maintaining or increasing market share depends on market acceptance and regulatory approval of new products and
services; we may not pay dividends on our common stock; our ability to receive dividends from our subsidiaries accounts for
most of our revenue and could affect our liquidity and ability to pay dividends; significant legal actions could subject us to
substantial uninsured liabilities; recently declining values of residential real estate, increases in unemployment, and the
related effects on local economics may increase our credit losses, which would negatively affect our financial results;
deteriorating credit quality, particularly in real estate loans, has adversely impacted us and may continue to adversely
impact us; disruptions in our ability to access global capital markets may negatively affect our capital resources and
liquidity; any reduction in our credit rating could increase the cost of our funding from the capital markets; we have in the
past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to realize
anticipated benefits; we depend on the expertise of key personnel. If these individuals leave or change their roles without
effective replacements, operations may suffer; we may not be able to hire or retain additional qualified personnel and
recruiting and compensation costs may increase as a result of turnover, both of which may increase costs and reduce
profitability and may adversely impact our ability to implement our business strategy; our accounting policies and processes
are critical to how we report our financial condition and results of operations, and these require us to make estimates about
matters that are uncertain; changes in our accounting policies or in accounting standards could materially affect how we
report our financial results and condition; our stock price can be volatile; our disclosure controls and procedures may not
prevent or detect all errors or acts of fraud; our financial instruments carried at fair value expose us to certain market risks;
our revenues derived from our investment securities may be volatile and subject to a variety of risks; we may enter into
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