SunTrust 2015 Annual Report Download - page 34

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confidential information, are in effect across all businesses and
geographic locations.
Acquisitions
Our ability to grow through acquisitions is limited by various
regulatory approval requirements. The FRB's prior approval is
required if we wish to (i) acquire all, or substantially all, of the
assets of any bank, (ii) acquire direct or indirect ownership or
control of more than 5% of any class of voting securities of any
bank or thrift, or (iii) merge or consolidate with any other BHC.
The BHC Act enumerates the factors the FRB must consider
when reviewing the merger of BHCs, the acquisition of banks,
or the acquisition of voting securities of a bank or BHC. These
factors include the competitive effects of the proposal in the
relevant geographic markets, the financial and managerial
resources and future prospects of the companies and banks
involved in the transaction, the effect of the transaction on the
financial stability of the United States, the organizations’
compliance with anti-money laundering laws and regulations,
the convenience and needs of the communities to be served, and
the records of performance, under the CRA, of the insured
depository institutions involved in the transaction. In addition,
in cases involving interstate bank acquisitions, the FRB must
consider the concentration of deposits nationwide and in certain
individual states. Under the Dodd-Frank Act, a BHC is generally
prohibited from merging, consolidating with, or acquiring,
another company if the resulting company’s liabilities upon
consummation would exceed 10% of the aggregate liabilities of
the U.S. financial sector, including the U.S. liabilities of foreign
financial companies.
Competition
The Company faces competition from domestic and foreign
lending institutions and numerous other providers of financial
services. The Company competes using a client-centered model
that focuses on high quality service, while offering a broad range
of products and services. We believe this approach better
positions us to increase loyalty and expand existing relationships,
while attracting new customers. Furthermore, the Company
maintains a strong presence within select markets, thereby
enhancing its competitive position. While the Company believes
it is well positioned within the highly competitive industry, the
industry could become even more competitive as a result of
legislative, regulatory, economic, and technological changes, as
well as continued consolidation. The ability of non-banking
financial institutions to provide services previously limited to
commercial banks has intensified competition. Because non-
banking financial institutions are not subject to many of the same
regulatory restrictions as banks and bank holding companies,
they can often operate with greater flexibility and with lower
cost and capital structures. However, non-banking financial
institutions may not have the same access to deposit funds or
government programs and, as a result, those non-banking
financial institutions may elect, as some have done, to become
financial holding companies to gain such access. Securities firms
and insurance companies that elect to become financial holding
companies may acquire banks and other financial institutions,
which could further alter the competitive environment in which
the Company conducts business.
Employees
At December 31, 2015, the Company had 24,043 full-time
equivalent employees. None of the domestic employees within
the Company are subject to a collective bargaining agreement.
Management considers its employee relations to be in good
standing.
Additional Information
See also the following additional information which is
incorporated herein by reference: Business Segments (under the
captions “Business Segments” and "Business Segment Results"
in Item 7, in the MD&A of this Form 10-K, and “Business
Segment Reporting” in Note 20 to the Consolidated Financial
Statements in Item 8, Financial Statements and Supplementary
Data); Net Interest Income (under the captions “Net Interest
Income/Margin” in the MD&A and “Selected Financial Data”
in Item 6); Securities (under the caption “Securities Available
for Sale” in the MD&A and Note 5 to the Consolidated Financial
Statements); Loans and Leases (under the captions “Loans”,
“Allowance for Credit Losses”, and “Nonperforming Assets” in
the MD&A and “Loans” and “Allowance for Credit Losses” in
Notes 6 and 7, respectively, to the Consolidated Financial
Statements); Deposits (under the caption “Deposits” in the
MD&A); Short-Term Borrowings (under the caption “Short-
Term Borrowings” in the MD&A and “Borrowings and
Contractual Commitments” in Note 11 to the Consolidated
Financial Statements); Trading Activities and Trading Assets and
Liabilities (under the caption “Trading Assets and Liabilities and
Derivatives” in the MD&A and “Trading Assets and Liabilities
and Derivatives” and “Fair Value Election and Measurement” in
Notes 4 and 18, respectively, to the Consolidated Financial
Statements); Market Risk Management (under the caption
“Market Risk Management” in the MD&A); Liquidity Risk
Management (under the caption “Liquidity Risk Management”
in the MD&A); Credit Risk Management (under the caption
"Credit Risk Management" in the MD&A); and Operational Risk
Management (under the caption “Operational Risk
Management” in the MD&A).
The Bank's Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, and
amendments to those reports filed or furnished pursuant to
Section 13(a) or 15(d) of the Exchange Act are available free of
charge on the Company's website at www.suntrust.com, in the
Investor Relations section, as soon as reasonably practicable
after the Company electronically files such material with, or
furnishes it to, the SEC. Furthermore, within the Investor
Relations section, the Bank makes available, under the heading
Governance its: (i) codes of ethics for the Board, senior financial
officers, and employees, (ii) its Corporate Governance
Guidelines, and (iii) the charters of SunTrust Board committees.
Reports filed or furnished to the SEC are available at
www.sec.gov.
The Company's 2015 Annual Report on Form 10-K is being
distributed to shareholders in lieu of a separate annual report
containing financial statements of the Company and its
consolidated subsidiaries.