SunTrust 2009 Annual Report Download - page 36

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 (a) future levels of required mortgage repurchase
reserves, revenue, net interest margin, charge-offs, provision expense, credit quality, FDIC and other regulatory expense,
loans, LHFS, the investment portfolio, income, job losses, loan loss severities, loan loss frequency, and residential builder
nonperforming loans, (b) the expected impact of the amendments to ASC 810-10 related to the consolidation of various
VIEs; (c) expected changes in the rate or level of deposit growth, loan growth, charge-offs, loan loss frequencies, and
nonperforming loans; and (d) expected future asset quality and the performance of the commercial and industrial and
commercial real estate portfolios, are forward-looking statements. Also, statements that do not describe historical or current
facts, including statements about future levels of revenues, net interest margin, FDIC and other regulatory expense, and credit
quality are forward-looking statements. 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; recent levels of market volatility
are unprecedented; the soundness of other financial institutions could adversely affect us; recently enacted legislation or
legislation enacted in the future, or any proposed federal programs subject us to increased regulation and may adversely affect
us; we have not yet received permission to repay TARP funds; emergency measures designed to stabilize the U.S. banking
system are beginning to wind down; we are subject to 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; 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; we may continue to suffer increased losses in our loan portfolio despite
enhancement of our underwriting policies; depressed market values for our stock may require us to write down goodwill; 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 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 the 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
your 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 real estate, increases in unemployment, and the related effects on local economies 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; our allowance for loan losses may not be adequate to cover our
eventual losses; we will realize future losses if the proceeds we receive upon liquidation of nonperforming assets are less than
the carrying value of such assets; disruptions in our ability to access global capital markets may negatively affect our capital
resources and liquidity; credit rating agencies downgraded the credit ratings of SunTrust Bank and SunTrust Banks, Inc., and
these downgrades and any subsequent downgrades could adversely impact the price and liquidity of our securities and could
have an impact on our businesses and results of operations; 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
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