SunTrust 2012 Annual Report Download - page 47

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if the proceeds we receive upon liquidation of nonperforming assets are less than the carrying value of such assets; a downgrade
in the U.S. government's sovereign credit rating, or in the credit ratings of instruments issued, insured or guaranteed by related
institutions, agencies or instrumentalities, could result in risks to us and general economic conditions that we are not able to predict;
the failure of the European Union to stabilize the fiscal condition and creditworthiness of its weaker member economies could
have international implications potentially impacting global financial institutions, the financial markets, and the economic recovery
underway in the U.S.; 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 related to originating and selling mortgages,
and may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations
and warranties, borrower fraud, or as a result of certain breaches of our servicing agreements, and this could harm our liquidity,
results of operations, and financial condition; financial difficulties or credit downgrades of mortgage and bond insurers may
adversely affect our servicing and investment portfolios; we may face certain risks as a servicer of loans, or also may be terminated
as a servicer or master servicer, be required to repurchase a mortgage loan or reimburse investors for credit losses on a mortgage
loan, or incur costs, liabilities, fines and other sanctions if we fail to satisfy our servicing obligations, including our obligations
with respect to mortgage loan foreclosure actions; 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 and practices; our
mortgage production and servicing revenue can be volatile; as a financial services company, 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 and liquidity; changes in interest rates could also reduce the value of our MSRs and mortgages held
for sale, reducing our earnings; changes which are being considered in the method for determining LIBOR may affect the value
of debt securities and other financial obligations held or issued by SunTrust that are linked to LIBOR, or may affect the Company's
financial condition or results of operations; 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 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; a failure in or breach of our
operational or security systems or infrastructure, or those of our third party vendors and other service providers, including as a
result of cyber attacks, could disrupt our businesses, result in the disclosure or misuse of confidential or proprietary information,
damage our reputation, increase our costs and cause losses; the soundness of other financial institutions could adversely affect us;
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 might 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 adversely 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 are subject to certain litigation, and our expenses related
to this litigation may adversely affect our results; we may incur fines, penalties and other negative consequences from regulatory
violations, possibly even from inadvertent or unintentional violations; we depend on the expertise of key personnel, and 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 strategies; our accounting
policies and processes are critical to how we report our financial condition and results of operations, and they require management
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; and we may enter into
transactions with off-balance sheet affiliates or our subsidiaries.
INTRODUCTION
We are one of the nation’ s largest commercial banking organizations and our headquarters is located in Atlanta, Georgia. Our
principal banking subsidiary, SunTrust Bank, offers a full line of financial services for consumers and businesses through its
branches located primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District
of Columbia. Within our geographic footprint, we operate under three business segments: Consumer Banking and Private Wealth
Management, Wholesale Banking, and Mortgage Banking, with the remainder in Corporate Other. See Note 20, "Business Segment