SunTrust 2015 Annual Report Download - page 50

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION
Important Cautionary Statement About Forward-Looking Statements
This report contains forward-looking statements. Statements
regarding: (1) future levels of net interest margin, service charges
on deposit accounts, expenses, including compensation expenses
and marketing and customer development costs, revenue, swap
interest income, LIBOR and interest rates, the provision for loan
losses, the ratio of ALLL to period end LHFI, the ratio of NPLs
to period end LHFI, NPLs and net charge-offs, the net charge-
off ratio, share repurchases, sales of lower-yielding loans, and
pension costs; (2) future asset and credit quality; (3) whether we
will realize DTAs and our future liability regarding UTBs; (4)
the size and composition of the securities AFS portfolio; (5)
future actions taken regarding the LCR and related effects, and
our ability to comply with future regulatory requirements within
regulatory timelines; and (6) efficiency goals 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. They 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 Part
I, Item 1A., "Risk Factors" of this Form 10-K and also include
risks discussed in this report and in other periodic reports that
we file with the SEC. Additional factors include: current and
future legislation and regulation could require us to change our
business practices, reduce revenue, impose additional costs, or
otherwise adversely affect business operations or
competitiveness; we are subject to increased capital adequacy
and liquidity requirements and our failure to meet these would
adversely affect our financial condition; the fiscal and monetary
policies of the federal government and its agencies could have
a material adverse effect on our earnings; our financial results
have been, and may continue to be, materially affected by general
economic conditions, and a deterioration of economic conditions
or of the financial markets may materially adversely affect our
lending and other businesses and our financial results and
condition; changes in market interest rates or capital markets
could adversely affect our revenue and expenses, the value of
assets and obligations, and the availability and cost of capital
and liquidity; our earnings may be affected by volatility in
mortgage production and servicing revenues, and by changes in
carrying values of our MSRs and mortgages held for sale due to
changes in interest rates; disruptions in our ability to access
global capital markets may adversely affect our capital resources
and liquidity; we are subject to credit risk; we may have more
credit risk and higher credit losses to the extent that our loans
are concentrated by loan type, industry segment, borrower type,
or location of the borrower or collateral; we rely on the mortgage
secondary market and GSEs for some of our liquidity; loss of
customer deposits could increase our funding costs; we are
subject to 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 inadvertent or unintentional violations; 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, or borrower fraud, and this
could harm our liquidity, results of operations, and financial
condition; we face certain risks as a servicer of loans; we are
subject to risks related to delays in the foreclosure process; clients
could pursue alternatives to bank deposits, causing us to lose a
relatively inexpensive source of funding; consumers and small
businesses 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; 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; competition in the financial services industry is
intense and we could lose business or suffer margin declines as
a result; maintaining or increasing market share depends on
market acceptance and regulatory approval of new products and
services; our ability to receive dividends from our subsidiaries
or other investments could affect our liquidity and ability to pay
dividends; 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 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 framework for managing risks may not be
effective in mitigating risk and loss to us; our controls and
procedures may not prevent or detect all errors or acts of fraud;
we are at risk of increased losses from fraud; 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; our accounting