SunTrust 2012 Annual Report Download - page 42

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with these instruments through active hedging arrangements or broader ALM strategies. Changes in the market values of these
financial instruments could have a material adverse impact on our financial condition or results of operations. We may classify
additional financial assets or financial liabilities at fair value in the future.
Our revenues derived from our investment securities may be volatile and subject to a variety of risks.
We generally maintain investment securities and trading positions in the fixed income, currency, commodity, and equity
markets. Unrealized gains and losses associated with our investment portfolio and mark-to-market gains and losses associated
with our trading portfolio are affected by many factors, including interest rate volatility, volatility in capital markets, and other
economic factors. Our return on such investments and trading have in the past experienced, and will likely in the future
experience, volatility and such volatility may materially adversely affect our financial condition and results of operations.
Additionally, accounting regulations may require us to record a charge prior to the actual realization of a loss when market
valuations of such securities are impaired and such impairment is considered to be other than temporary.
We may enter into transactions with off-balance sheet affiliates or our subsidiaries.
We engage in a variety of transactions with off-balance sheet entities with which we are affiliated. While we have no obligation,
contractual or otherwise, to do so, under certain limited circumstances, these transactions may involve providing some form
of financial support to these entities. Any such actions may cause us to recognize current or future gains or losses. Depending
on the nature and magnitude of any transaction we enter into with off-balance sheet entities, accounting rules may require us
to consolidate the financial results of these entities with our financial results.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Item 2. PROPERTIES
The Company’s headquarters is located in Atlanta, Georgia. As of December 31, 2012, the Bank owned 600 of its 1,616 full-
service banking offices and leased the remaining banking offices. (See Note 8, “Premises and Equipment,” to the Consolidated
Financial Statements in this Form 10-K for further discussion of its properties.)
Item 3. LEGAL PROCEEDINGS
The Company and its subsidiaries are parties to numerous claims and lawsuits arising in the normal course of its business
activities, some of which involve claims for substantial amounts. Although the ultimate outcome of these suits cannot be
ascertained at this time, it is the opinion of management that none of these matters, when resolved, will have a material effect
on the Company’s consolidated results of operations, cash flows, or financial condition. For additional information, see Note
19, “Contingencies,” to the Consolidated Financial Statements in this Form 10-K, which is incorporated into this Item 3 by
reference.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.