SunTrust 2013 Annual Report Download - page 42

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Our financial instruments carried at fair value expose us to certain market risks.
We maintain at fair value a securities AFS portfolio and trading assets and liabilities and derivatives, which include various
types of instruments and maturities. Additionally, we elected to record selected fixed-rate debt, mortgage loans, MSRs and
other financial instruments at fair value. The changes in fair value of the financial instruments carried at fair value are recognized
in earnings. The financial instruments carried at fair value are exposed to market risks related to changes in interest rates,
market liquidity, and our market-based credit spreads, as well as to the risk of default by specific borrowers. We manage the
market risks associated 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, 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
Our principal executive offices are located in SunTrust Plaza, Atlanta, Georgia. The 60-story office building is majority-owned
by SunTrust Banks, Inc. At December 31, 2013, the Bank operated 1,497 full-service banking offices, of which 590 were
owned and the remainder were leased. The full-service banking offices are located primarily in Florida, Georgia, Maryland,
North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. See Note 8, “Premises and Equipment,”
to the Consolidated Financial Statements in this Form 10-K for further discussion of our properties.
Item 3. LEGAL PROCEEDINGS
For information regarding the Company's legal matters, see Note 19, “Contingencies,” to the Consolidated Financial Statements
in this Form 10-K, which is incorporated herein by reference.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.