SunTrust 2010 Annual Report Download - page 38

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 expectations regarding changes in the ALLL,
charge-offs, nonperforming assets, NPLs, provision expense, early-stage delinquencies, service charge income; expectations
regarding future levels of net interest margin, future repurchase related losses and reserves, our expense base, home prices,
default frequency, loss severity, commercial loan growth; expectations regarding the effect on us over time of changes in the
FDIC’s method of assessing deposit insurance premiums; and expectations regarding the impact to us of changes to our
foreclosure processes and certain remediation actions, are forward-looking statements. Also, any statement that does not
describe historical or current facts 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; concerns over market
volatility continue; recently enacted legislation, legislation enacted in the future, and certain proposed federal programs
subject us to increased regulation and may adversely affect us; we have not yet received permission to repay TARP funds;
the Dodd-Frank Act makes fundamental changes to the regulation of the financial services industry, some of which may
adversely affect our business; SunTrust Bank may be subject to higher deposit insurance assessments; we are subject to
capital adequacy and liquidity guidelines and, if we fail to meet these guidelines, our financial condition would be adversely
affected; emergency measures designed to stabilize the U.S. banking system are beginning to wind down; we are subject to
credit risk; our ALLL 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; 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; we are subject to certain risks from originating,
selling, and holding mortgages, including the risk that 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 are subject to risks related to
delays in the foreclosure process; we may continue to suffer increased losses in our loan portfolio despite enhancement of our
underwriting policies; 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; 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 or man-made 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; the soundness of other financial institutions could adversely affect us; 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 margin declines; 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 could affect our liquidity and ability to pay dividends; 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
22