EX-99.1 4 file002.htm SLIDE PRESENTATION

Mark Chancy

Chief Financial Officer

Citigroup Financial Services Conference

January 2006

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995.  Such statements include, but are not limited to, statements about the benefits of the
merger between SunTrust Banks, Inc. (“SunTrust”) and National Commerce Financial Corporation (“NCF”),
including future financial and operating results, SunTrust’s plans, objectives, expectations and intentions and
other statements that are not historical facts.  Such statements are based upon the current beliefs and
expectations of SunTrust’s management and are subject to significant risks and uncertainties.  Actual results
may differ from those set forth in the forward-looking statements.  The following factors, among others, could
cause actual results to differ from those set forth in the forward-looking statements: the risk that the cost
savings and any revenue synergies from the merger may not be fully realized or may take longer to realize
than expected; disruption from the merger making it more difficult to maintain relationships with clients,
employees or suppliers; increased competition and its effects on pricing, spending, third-party relationships
and revenues; the risk of new and changing regulation in the U.S. and internationally.  Additional factors that
could cause SunTrust’s results to differ materially from those described in the forward-looking statements
can be found in SunTrust’s 2004 Annual Report on Form 10-K, and in the Quarterly Reports on Form 10-Q
and 10-Q/A of SunTrust and NCF filed with the Securities and Exchange Commission and available at the
Securities and Exchange Commission’s internet site (http://www.sec.gov).  The forward-looking statements
in this presentation speak only as of the date of the filing, and SunTrust does not assume any obligation to
update the forward-looking statements or to update the reasons why actual results could differ from those
contained in the forward-looking statements.

This presentation includes some non-GAAP measures to describe SunTrust’s performance. The
reconciliation of those measures to GAAP measures can be found in the appendix of this presentation, as
well as in SunTrust’s earnings press releases, which can be found on SunTrust’s website in the news section
of the investor relations pages.

SunTrust Overview

7^th largest commercial banking
organization in the U.S. with $180
billion in assets

We believe the National Commerce
transaction made the “Best Footprint
in Banking” even better

1,657 full service branches including
in-store branches and nearly 2,800
ATMs

2005-2010
Projected
Weighted
Average
Population
Growth

SunTrust Branches

National Commerce Branches

1 Source: SNL Financial.  Note: the data reflects the 25 U.S. banks and thrifts by assets as
   of December 31, 2005.  Weighted average population growth is based on MSA deposits
   pro forma for pending and completed acquisitions.

SunTrust Transformation

2005 and beyond

1998/99

Focused on
efficiency,
ability to
deliver
common
customer
experience

Implemented
series of
operational
initiatives and
common
systems
platform

Implemented sales
strategy referred to
as S³ + E² = Selling,
Serving, Sustaining
client relationships
through Excellence
in Execution

Placed highest
priority on sales,
cross LOB referrals
& client retention

Established high
performance
standards for LOB’s
and geographic units

Introduced
new
geographic
structure and
operating
model

Aligned top
talent to key
leadership
positions

Intensified
local market,
client and
sales focus

Extended
footprint into
key growth
markets with
Crestar
merger

Collapsed 28
bank
charters

Streamlined
functional
organization

Implemented
new revenue
initiatives in
key
businesses

Created
process
efficiencies
and
consistency
in key
business
lines

Enhanced
Franchise

One
Bank

Take the
Lead

Profit
Acceleration

Sales Culture
Transformation

Operating Model Differentiation

LOB’s design business and
product strategies with direct
feedback from the geographic
partners

Geographic partners are led by
regional leaders who have solid
line reporting relationships
with the local Retail,
Commercial and Wealth &
Investment Management
heads. They are empowered to
deliver services, products and
pricing to local customers

Our specialty businesses that
are centrally managed
effectively use this same
geographic power in our
footprint (e.g., mortgage)

Focused on delivering the
whole institution to customers
on an integrated basis

Key to SunTrust’s on-going
success

Mid-Atlantic

Carolinas

Central

Florida

Invested in, and optimized ,
the Retail Delivery
Networks

2005 LOB Accomplishments

Streamlined consumer
products and increased
the focus on service quality
at branch locations

New personal checking account sales
up 21%

Successful CD campaign helped drive
a 157% increase in new CD/IRA
accounts

Key Initiatives

Results¹

¹ Includes only legacy SunTrust data for 2005 as compared to 2004. New account sales include both legacy SunTrust and NCF.

New business checking account sales
up 53%

New business banking loan production
up 23%

Business banking deposits up 15%
and loans up 9%

New Home Equity production
increased 31%

Improvements have increased speed
31%

Opened 75 branches

Upgraded ATMs

Enhanced Online Banking

Built a world class Home
Equity Business and
invested in technology and
process improvements

Launched products and
initiatives to enhance the
business banking client
experience

Retail

Loans +10%

Deposits +7%

Execution¹

Independent research results through
2004:

Hold a #1 or #2 ranking for lead
relationships among companies with
$5MM - $250MM in revenue in 80%
of the Company’s geographic
markets

From 2000 to 2004 increased lead
relationships by 60% in the middle
market commercial segment

Accelerated speed new products are
rolled out to market

Capital Markets fees up 64%

Wealth & Investment Management
fees up 17%

2005 LOB Accomplishments

Key Initiatives

Adopted sales
management process
and installed new
technology to support the
operating model

Sustained market share
gains through our strategy
of relationship planning
and use of strategic
reviews for key client
segments

Implemented Treasury
Management product,
sales and service
enhancements

Commercial

¹ Includes only legacy SunTrust data for 2005 as compared to 2004.

Loans +9%

Deposits +9%

Results¹

Execution¹

2005 LOB Accomplishments

Drove the cross-sell of
Capital Markets products
to the Commercial,
Wealth & Investment
Management and
Corporate Banking client
bases

Invested in Debt
Capital Markets
product capabilities,
both new and existing

Focused initiative to
enhance risk adjusted
returns of corporate
clients

Delivered ‘best in
class’ credit
performance

Capital Markets Revenue cross-sold to:

Corporate Banking clients = $192 MM, up
$31 MM or 19%

Commercial clients = $61 MM, up $23 MM or
64%

Wealth & Investment Management clients =
$17 MM, up $8 MM or 99%

Increased product specialists

Debt Capital Markets Revenue = $322 MM,
up $53 MM or 20%

Corporate Banking’s economic profit for
2005 increased 14%

Non-accrual loans = $15 MM, down $40
MM or 73%. Represents 0.1% of total loans

Net charge-offs = $15 MM, down $2 MM or
12%. Net charge-off ratio was 0.10%

Corporate and Investment Banking

Key Initiatives

Loans +11%

Deposits +4%

¹ Includes only legacy SunTrust data for 2005 as compared to 2004.

Results¹

Execution¹

2005 LOB Accomplishments

Rolled out and implemented
new client management
operating model in Private
Wealth Management

Continued to ensure our
offerings of products and
services exceeds those of
our competitors

Implemented initiatives which
increased penetration into
existing STI client base

Integrated NCF and First
Mercantile into business units,
expanding opportunities for
cross selling

Institutional new trust business
up 31%

Capital Markets referral $ up
176%

Discretionary assets under
management increased 7%
12/31/05 over 12/31/04

Brokerage assets increased
27% 12/31/05 over 12/31/04

Personal Trust retention
improved by 15%

Wealth & Investment Management

Key Initiatives

¹ Includes only legacy SunTrust data for 2005 as compared to 2004.

Loans +14%

Deposits +15%

Results¹

Execution¹

Total cross-sold products up
172%, an increase of over
61,000 products sold over the
same period in 2004

2005 LOB Accomplishments

Grow Market Share

Grow purchase originations
faster than peer average

Increased the size of the
mortgage sales force

Opened 51 new offices to
expand national footprint to
176 total Retail offices and 19
total Wholesale offices

Strong emphasis on Mortgage
cross-sell program

Focused on home equity,
deposit, credit/debit card
and other consumer
products

Over $66 billion in total
applications, up 45% over 2004

Over $40 billion in purchase
applications, up 51%

$45 billion in total closings, up
49% over 2004

Over $26 billion in purchase
closings, up 54%

Key Initiatives

Mortgage

Loans +31%

¹ Includes only legacy SunTrust data for 2005 as compared to 2004.

Results¹

Execution¹

360 ^o Relationship Focus

Retail referred $3.7 billion in closed
Mortgages – up over 52%, and made
80,000 referrals to Wealth & Investment
Management ¹

Commercial generated $61.9 million in
Capital Markets fees – up 67%²

Mortgage cross-sold nearly 97,000 total
products – up 172%¹

Wealth & Investment Management
made 28,000 referrals to Retail ²

Cross-LOB Referrals Driving Revenue Growth

¹STI legacy only vs 2004.

² Includes NCF.

CIB

Wealth

Invest

Mgmt

Retail

Cmml

Mortgage

SunTrust

Customer

2005

Initiatives Driving Improved Results

Operating Model Well
Established

Sales Culture Firmly in
Place

Sales, Cross-sales and
Retention Initiatives
Producing Meaningful
Impact

Improved Financial Results

¹ Deposits = Consumer and Commercial Deposits.

Loan and Deposit Growth ¹

($ in millions)

3.25%

(1)

¹ NCF added 9 b.p., organic margin improved 1 b.p. from 3Q 04.

(2)

3.21%

²Day count added 4 b.p., organic margin was flat from 4Q 04.

Net Interest Margin Trend

Net interest margin has been relatively stable over a two-year horizon

Net Interest Margin Compared to Peers

* Peers include Amsouth, Bank of America, BB&T, Comerica, Fifth Third, First Horizon, Keycorp, M&T Bank, Mellon, National City, Northern Trust, PNC,
Regions, US Bancorp, Wachovia and Wells Fargo. Numbers presented for peers are averages.

Source: SNL Financial

Relatively stable NIM over the two-year horizon has brought SunTrust closer to the peer group

NCOs/Average Loans Compared to Peers

* Peers include AmSouth, Bank of America, BB&T, Comerica, Fifth Third, First Horizon, Keycorp, M&T Bank, Mellon, National City, Northern Trust, PNC, Regions,
US Bancorp, Wachovia and Wells Fargo. Numbers presented for peers are averages.

Source: SNL Financial

Net charge-offs continue to compare favorably vs. peer group average

Change in bankruptcy
laws in Q4 negatively
impacted peer group,
but had insignificant
effect on SunTrust

Fee Income Growth

Deposits and Other Fees

Trust and Investment Mgmt.

Broker Dealer Revenue

Other Noninterest Income

Noninterest Income

($ in thousands)

$1,439,779

673,720

567,438

450,394

$3,131,331

$1,403,103

635,197

599,155

354,375

$2,991,830

$36,676

38,523

(31,717)

96,019

$139,501

2005

$ Growth

2004

(Estimated Historical

Combined)

(5)%

27%

% Growth

⁴Noninterest Income excludes securities gains/(losses) and net gain on sale of RCM assets.

²Includes retail investment services, investment banking income and trading account profits and commissions.

¹Includes service charges on deposits, card fees and other charges and fees.

Total noninterest income increased 5% over 2004

³The increase in other noninterest income was largely driven by an increase in mortgage related fees.

¹ Based on estimated historical combined numbers.

²SunTrust presents total revenue excluding realized securities gains/losses and the net gain on sale of RCM assets for 2005.

³ Core expense growth excludes merger related expenses, amortization of intangibles and impairment charge on Affordable Housing Properties.

Operating Leverage

Core Expense Growth

Core Revenue Growth

Annual Growth Trends

15%

Concerted effort to improve operating leverage is paying off

2004

2005

2003

2002

Achieved Positive
Operating Leverage

Excluding merger related expenses and the impact of net gain on sale of RCM aasets for 2005.

Focus on Efficiency

Positive operating leverage drove operating efficiency ratio improvement over 2004

¹EPS as originally reported and adjusted for stock splits. There are no adjustments for merger pooling.

²CAGR based on GAAP EPS excluding merger-related charges.

GAAP EPS

EPS ⁽¹⁾

Reduction in EPS due to merger-related charges

CAGR ⁽²⁾ = 10.0%

CAGR ⁽²⁾ = (0.6)%

CAGR ⁽²⁾ = 9.0%

EPS Growth Back on Track in 2005

EPS growth back in line with the long-term trend despite the dilution effect from the NCF merger

Improving EPS Trends ¹

Strong operating trends translating into quarterly EPS growth despite dilution

¹ EPS excludes after-tax merger expense. Reconcilement of reported EPS to operating EPS is contained in the appendix.

1.37

The impact of net gain on sale of RCM assets

Line of Business Goals

Leverage merger to capture market share

Grow branch network, emphasis on in-store
opportunities

Improve partnership between business banking
and other LOBs to ensure proper client
segmentation, enhance service and improve retention

Capitalize on
opportunities in legacy
NCF footprint to grow
diversified commercial, auto
dealer, middle market and
institutional/government
segments

Make significant
investments in Treasury
Management products,
sales and service to
capture emerging
opportunities in the
payments business

GOALS

Continue to enhance
capital markets sales into
Commercial and Wealth &
Investment Management client
base

Invest in developing new
and existing Debt Capital
Market product
capabilities

Aggressively expand and
retain share of emerging wealth
segments

Integrate successful private
banking units into private wealth
management for a more
comprehensive approach

Integrate Alexander Key and
SunTrust Securities into SunTrust
Investment Services to leverage
broker platform and achieve
efficiencies

Partner with Retail to
improve
penetration

Continue to
strengthen
product offerings
and distribution
capabilities

Long Term Growth Initiatives

SunTrust Today

Our foundation is firmly in place:

Fully functioning operating model with clear allocation of responsibilities

Key components of sales organization in place: frequent sales meetings,
sales and referral goals and linked incentives

We have clear strategy and focused initiatives to drive performance:

Deliver “Big Bank” capabilities with local decision making and
responsiveness

Focus on customer acquisition and retention

Drive cross-LOB referrals

Key initiatives are generating tangible results

Capitalizing on opportunities provided by the National Commerce
Financial merger

APPENDIX

Average Loan Growth

Commercial

Mortgages

RE Commercial and Construction

Real Estate Equity

Consumer

Other

Total Loans

($ in millions)

$774

7,432

4,338

2,052

(1,032)

126

$13,690

$32,223

22,461

18,602

11,016

15,369

467

$100,138

$32,997

29,893

22,940

13,068

14,337

593

$113,828

2.4%

33.1%

23.3%

18.6%

(6.7)%

27.0%

13.7%

4Q 2005

$ Growth

4Q 2004

% Growth

Average Consumer and Commercial Deposit Growth

DDA

NOW

MMA

Savings

Consumer Time

Total Consumer and
Commercial Deposits

$511

1,291

(2,666)

5,451

$4,657

$24,182

16,941

24,507

8,139

16,832

$90,601

$24,693

17,011

25,798

5,473

22,282

$95,257

2.1%

0.4%

5.3%

(32.8)%

32.4%

5.1%

($ in millions)

4Q 2005

$ Growth

4Q 2004

% Growth

Net Charge-offs

Net Charge-offs to Avg.
Loans

NPAs

NPAs to
Loans/OREO/Other repo

Allowance for loan
losses

Allowance to Non-
performing loans

Allowance to Charge-
offs (Years Coverage)

4Q 2005

4Q 2004

3Q 2005

$76,711

0.27%

$362,737

0.32%

$1,029,855

312.4%

3.4

$49,853

0.17%

$334,215

0.29%

$1,028,128

346.9%

5.2

$53,893

0.21%

$410,658

0.40%

$1,050,024

281.3%

4.9

$35,384

0.13%

$380,303

0.35%

$1,036,173

296.7%

7.3

2Q 2005

($ in thousands)

1Q 2005

$36,834

0.14%

$392,345

0.37%

$1,023,746

286.7%

6.9

Strong Credit Quality

SunTrust Banks, Inc. and Subsidiaries
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A
(Dollars in thousands)


	Three Months Ended															Twelve Months Ended
	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004			December 31
	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004			2005			2004
NON-GAAP MEASURES PRESENTED
Net income	$	513,806		$	510,774		$	465,700		$	492,294		$	455,729		$	1,982,574		$	1,572,901
Securities (gains)/losses, net of tax		(372	)		1,283			17			3,509			12,595			4,436			27,099
Net income excluding securities gains and losses		513,434			512,057			465,717			495,803			468,324			1,987,010			1,600,000
The Coca-Cola Company dividend, net of tax		(12,027	)		(12,028	)		(12,027	)		(12,028	)		(10,739	)		(48,112	)		(42,957	)
Net income excluding securities (gains)/losses and The Coca-Cola Company dividend	$	501,407		$	500,029		$	453,690		$	483,775		$	457,585		$	1,938,898		$	1,557,043
Total average assets	$	175,769,140		$	169,933,960		$	165,253,589		$	161,218,222		$	156,570,092		$	168,088,771		$	133,754,293
Average net unrealized securities gains		(1,871,230	)		(2,102,257	)		(1,791,566	)		(2,032,787	)		(2,056,737	)		(1,949,436	)		(2,372,246	)
Average assets less net unrealized securities gains	$	173,897,910		$	167,831,703		$	163,462,023		$	159,185,435		$	154,513,355		$	166,139,335		$	131,382,047
Total average equity	$	16,875,645		$	16,822,919		$	16,275,567		$	16,119,430		$	15,818,968		$	16,526,282		$	11,469,482
Average accumulated other comprehensive income		(1,126,701	)		(1,331,103	)		(1,139,477	)		(1,285,278	)		(1,304,553	)		(1,220,508	)		(1,517,227	)
Total average realized equity	$	15,748,944		$	15,491,816		$	15,136,090		$	14,834,152		$	14,514,415		$	15,305,774		$	9,952,255
Return on average total assets		1.16	%		1.19	%		1.13	%		1.24	%		1.16	%		1.18	%		1.18	%
Impact of excluding net realized and unrealized securities gains/losses and The Coca-Cola Company dividend		(0.02	)		(0.01	)		(0.02	)		(0.01	)		0.02			(0.01	)		0.01
Return on average total assets less net unrealized securities gains¹		1.14	%		1.18	%		1.11	%		1.23	%		1.18	%		1.17	%		1.19	%
Return on average total shareholders' equity		12.08	%		12.05	%		11.48	%		12.39	%		11.46	%		12.00	%		13.71	%
Impact of excluding net realized and unrealized securities gains/ losses and The Coca-Cola Company dividend		0.55			0.76			0.54			0.84			1.08			0.67			1.94
Return on average realized shareholders' equity²		12.63	%		12.81	%		12.02	%		13.23	%		12.54	%		12.67	%		15.65	%
Noninterest income	$	790,437		$	832,398		$	770,909		$	753,814		$	759,003		$	3,147,558		$	2,604,446
Securities (gains)/losses		(600	)		2,069			27			5,659			19,377			7,155			41,691
Gain on sale of RCM assets, net of related expenses		—			(3,508	)		—			(19,874	)		—			(23,382	)		—
Total noninterest income excluding securities (gains)/losses and net gain on sale of RCM assets³	$	789,837		$	830,959		$	770,936		$	739,599		$	778,380		$	3,131,331		$	2,646,137
Net interest income	$	1,187,036		$	1,156,661		$	1,123,709		$	1,111,560		$	1,084,204		$	4,578,966		$	3,685,155
FTE adjustment		20,025			19,081			18,720			17,666			16,684			75,492			58,398
Net interest income — FTE		1,207,061			1,175,742			1,142,429			1,129,226			1,100,888			4,654,458			3,743,553
Noninterest income		790,437			832,398			770,909			753,814			759,003			3,147,558			2,604,446
Total revenue		1,997,498			2,008,140			1,913,338			1,883,040			1,859,891			7,802,016			6,347,999
Securities (gains)/losses		(600	)		2,069			27			5,659			19,377			7,155			41,691
Gain on sale of RCM assets, net of related expenses		—			(3,508	)		—			(19,874	)		—			(23,382	)		—
Total revenue excluding securities (gains)/losses and net gain on sale of RCM assets³	$	1,996,898		$	2,006,701		$	1,913,365		$	1,868,825		$	1,879,268		$	7,785,789		$	6,389,690
	Three Months Ended
	December 31 2005			September 30 2005			%⁴ Change			December 31 2005			December 31 2004			% Change
AVERAGE LOW COST CONSUMER AND COMMERCIAL DEPOSIT RECONCILEMENT
Noninterest bearing deposits	$	24,693,026		$	24,521,452			0.7		$	24,693,026		$	24,181,729			2.1
NOW accounts		17,011,346			16,853,139			0.9			17,011,346			16,940,751			0.4
Savings		5,472,928			5,865,099			(6.7	)		5,472,928			8,139,263			(32.8	)
Total average low cost consumer and commercial deposits	$	47,177,300		$	47,239,690			(0.1	)	$	47,177,300		$	49,261,743			(4.2	)

SunTrust presents a return on average assets less net unrealized gains on securities. The foregoing numbers reflect primarily adjustments to remove the effects of the Company's securities portfolio which includes the ownership by the Company of 48.3 million shares of The Coca-Cola Company. The Company uses this information internally to gauge its actual performance in the industry. The Company believes that the return on average assets less the net unrealized

securities gains is more indicative of the Company's return on assets because it more accurately reflects the return on the assets that are related to the Company's core businesses which are primarily customer relationship and customer transaction driven. The return on average assets less net unrealized gains on securities is computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average assets less net unrealized securities gains.

The Company also believes that the return on average realized equity is more indicative of the Company's return on equity because the excluded equity relates primarily to a long term holding of a specific security. The return on average realized shareholders' equity is computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, by average realized shareholders' equity.

SunTrust presents total noninterest income and total revenue excluding realized securities gains/losses and the net gain on the sale of RCM assets. The Company believes total noninterest income and total revenue without securities gains/losses is more indicative of the Company's performance because it isolates income that is primarily customer relationship and customer transaction driven. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain is more indicative of normalized operations.


⁴	Multiply by 4 to calculate sequential annualized growth or reductions discussed in the earnings call.

SunTrust Banks, Inc. and Subsidiaries
RECONCILEMENT OF NON-GAAP MEASURES
APPENDIX A, continued
(Dollars in thousands)


	Three Months Ended									Twelve Months Ended
	December 31 2005			September 30 2005			December 31 2004			December 31 2005			December 31 2004
SELECTED NON-GAAP MEASURES PRESENTED ¹
Net income	$	513,806		$	510,774		$	455,729		$	1,982,574		$	1,572,901
Merger expense, net of tax		4,053			7,505			18,461			61,158			18,461
Net income excluding merger expense		517,859			518,279			474,190			2,043,732			1,591,362
Net gain on sale of RCM assets, net of tax		—			(2,175	)		—			(14,497	)		—
Net income excluding merger expense and net gain on sale of RCM assets	$	517,859		$	516,104		$	474,190		$	2,029,235		$	1,591,362
Diluted earnings per share	$	1.41		$	1.40		$	1.26		$	5.45		$	5.19
Impact of excluding merger expense		0.02			0.02			0.05			0.17			0.06
Diluted earnings per share excluding merger expense		1.43			1.42			1.31			5.62			5.25
Impact of net gain on sale of RCM assets		—			—			—			(0.04	)		—
Diluted earnings per share excluding merger expense and net gain on sale of RCM assets	$	1.43		$	1.42		$	1.31		$	5.58		$	5.25
Total revenue	$	1,997,498		$	2,008,140		$	1,859,891		$	7,802,016		$	6,347,999
Securities (gains)/losses		(600	)		2,069			19,377			7,155			41,691
Net gain on sale of RCM assets		—			(3,508	)		—			(23,382	)		—
Total revenue excluding securities (gains)/losses and net gain on sale of RCM assets	$	1,996,898		$	2,006,701		$	1,879,268		$	7,785,789		$	6,389,690
Noninterest income	$	790,437		$	832,398		$	759,003		$	3,147,558		$	2,604,446
Net gain on sale of RCM assets		—			(3,508	)		—			(23,382	)		—
Noninterest income excluding net gain on sale of RCM assets	$	790,437		$	828,890		$	759,003		$	3,124,176		$	2,604,446
Noninterest expense	$	1,206,927		$	1,177,071		$	1,148,992		$	4,690,729		$	3,897,038
Merger expense		(6,538	)		(12,104	)		(28,401	)		(98,642	)		(28,401	)
Noninterest expense excluding merger expense	$	1,200,389		$	1,164,967		$	1,120,591		$	4,592,087		$	3,868,637
Efficiency ratio		60.42	%		58.62	%		61.78	%		60.12	%		61.39	%
Impact of excluding merger expense		(0.33	)		(0.61	)		(1.53	)		(1.26	)		(0.45	)
Efficiency ratio excluding merger expense		60.09			58.01			60.25			58.86			60.94
Impact of net gain on sale of RCM assets		—			0.10			—			0.17			—
Efficiency ratio excluding merger expense and net gain on sale of RCM assets		60.09	%		58.11	%		60.25	%		59.03	%		60.94	%
Return on average total assets		1.16	%		1.19	%		1.16	%		1.18	%		1.18	%
Impact of excluding merger expense		0.01			0.02			0.04			0.04			0.01
Return on average total assets excluding merger expense ²		1.17	%		1.21	%		1.20	%		1.22	%		1.19	%
Return on average total shareholders' equity		12.08	%		12.05	%		11.46	%		12.00	%		13.71	%
Impact of excluding merger expense		0.09			0.17			0.47			0.37			0.16
Return on average total shareholders' equity excluding merger expense ³		12.17	%		12.22	%		11.93	%		12.37	%		13.87	%

SunTrust presents selected financial data on a basis that excludes merger expense, which represent incremental costs to integrate the operations of National Commerce Financial (‘‘NCF’’). The Company also presents selected financial data that further excludes the net gain related to the sale of RCM assets. The Company believes the exclusion of these two measures is more reflective of normalized operations.


²	Computed by dividing annualized net income excluding merger expense by average total assets.


³	Computed by dividing annualized net income excluding merger expense by average total shareholders' equity.

SunTrust Banks, Inc. and Subsidiaries
QUARTER-TO-QUARTER COMPARISON — ACTUAL
APPENDIX B


	Three Months Ended
	December 31 2005		September 30 2005			Increase/ (Decrease)						Sequential Annualized¹%			December 31 2005		December 31 2004			Increase/ (Decrease)
	December 31 2005		September 30 2005			Amount			%			Sequential Annualized¹%			December 31 2005		December 31 2004			Amount			%
STATEMENTS OF INCOME (Dollars in thousands)
NET INTEREST INCOME	$	1,187,036	$	1,156,661		$	30,375			2.6	%		10.5	%	$	1,187,036	$	1,084,204		$	102,832			9.5	%
Provision for loan losses		48,126		70,393			(22,267	)		(31.6	)		NM			48,126		37,099			11,027			29.7
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		1,138,910		1,086,268			52,642			4.8			19.4			1,138,910		1,047,105			91,805			8.8
NONINTEREST INCOME
Deposit and other fees ²		369,987		368,613			1,374			0.4			1.5			369,987		356,777			13,210			3.7
Trust and investment management income		172,900		168,802			4,098			2.4			9.7			172,900		160,526			12,374			7.7
Broker / dealer revenue³		132,909		147,184			(14,275	)		(9.7	)		(38.8	)		132,909		158,888			(25,979	)		(16.4	)
Other noninterest income		114,041		146,360			(32,319	)		(22.1	)		(88.3	)		114,041		102,189			11,852			11.6
Noninterest income before securities gains/(losses) and net gain on sale of RCM assets ⁴		789,837		830,959			(41,122	)		(4.9	)		(19.8	)		789,837		778,380			11,457			1.5
Gain on sale of RCM assets, net of related expenses		—		3,508			(3,508	)		(100.0	)		NM			—		—			—			—
Noninterest income before securities gains/(losses)		789,837		834,467			(44,630	)		(5.3	)		(21.4	)		789,837		778,380			11,457			1.5
Securities gains/(losses)		600		(2,069	)		2,669			(129.0	)		NM			600		(19,377	)		19,977			(103.1	)
Total noninterest income		790,437		832,398			(41,961	)		(5.0	)		(20.2	)		790,437		759,003			31,434			4.1
NONINTEREST EXPENSE
Personnel expense		643,801		632,333			11,468			1.8			7.3			643,801		612,861			30,940			5.0
Net occupancy expense		83,217		79,519			3,698			4.7			18.6			83,217		78,218			4,999			6.4
Outside processing and software		92,305		92,952			(647	)		(0.7	)		(2.8	)		92,305		81,368			10,937			13.4
Equipment expense		49,494		50,083			(589	)		(1.2	)		(4.7	)		49,494		50,765			(1,271	)		(2.5	)
Marketing and customer development		50,133		38,651			11,482			29.7			NM			50,133		34,389			15,744			45.8
Other noninterest expense		245,197		216,020			29,177			13.5			54.0			245,197		231,231			13,966			6.0
Noninterest expense before Affordable Housing impairment charge, amortization of intangible assets and merger expense⁵		1,164,147		1,109,558			54,589			4.9			19.7			1,164,147		1,088,832			75,315			6.9
Impairment charge on Affordable Housing Properties		8,050		25,672			(17,622	)		(68.6	)		NM			8,050		—			8,050			100.0
Amortization of intangible assets		28,192		29,737			(1,545	)		(5.2	)		(20.8	)		28,192		31,759			(3,567	)		(11.2	)
Merger expense		6,538		12,104			(5,566	)		(46.0	)		NM			6,538		28,401			(21,863	)		(77.0	)
Total noninterest expense		1,206,927		1,177,071			29,856			2.5			10.1			1,206,927		1,148,992			57,935			5.0
INCOME BEFORE INCOME TAXES		722,420		741,595			(19,175	)		(2.6	)		(10.3	)		722,420		657,116			65,304			9.9
Provision for income taxes		208,614		230,821			(22,207	)		(9.6	)		(38.5	)		208,614		201,387			7,227			3.6
NET INCOME		513,806		510,774			3,032			0.6			2.4			513,806		455,729			58,077			12.7
Merger expense, net of tax		4,053		7,505			(3,452	)		(46.0	)		NM			4,053		18,461			(14,408	)		(78.0	)
NET INCOME EXCLUDING MERGER EXPENSE		517,859		518,279			(420	)		(0.1	)		(0.3	)		517,859		474,190			43,669			9.2
Net gain on sale of RCM assets, net of tax		—		(2,175	)		2,175			(100.0	)		NM			—		—			—			—
NET INCOME EXCLUDING MERGER EXPENSE AND NET GAIN ON SALE OF RCM ASSETS	$	517,859	$	516,104		$	1,755			0.3	%		1.4	%	$	517,859	$	474,190		$	43,669			9.2	%
REVENUE (Dollars in thousands)
Net interest income	$	1,187,036	$	1,156,661		$	30,375			2.6	%		10.5	%	$	1,187,036	$	1,084,204		$	102,832			9.5	%
FTE adjustment		20,025		19,081			944			4.9			19.8			20,025		16,684			3,341			20.0
Net interest income — FTE		1,207,061		1,175,742			31,319			2.7			10.7			1,207,061		1,100,888			106,173			9.6


	Three Months Ended
	December 31 2005			September 30 2005			Increase/ (Decrease)						Sequential Annualized¹%			December 31 2005			December 31 2004		Increase/ (Decrease)
	December 31 2005			September 30 2005			Amount			%			Sequential Annualized¹%			December 31 2005			December 31 2004		Amount			%
Noninterest income		790,437			832,398			(41,961	)		(5.0	)		(20.2	)		790,437			759,003		31,434			4.1
Total revenue		1,997,498			2,008,140			(10,642	)		(0.5	)		(2.1	)		1,997,498			1,859,891		137,607			7.4
Securities (gains)/losses		(600	)		2,069			(2,669	)		(129.0	)		NM			(600	)		19,377		(19,977	)		(103.1	)
Net gain on sale of RCM assets		—			(3,508	)		3,508			(100.0	)		NM			—			—		—			—
Total revenue excluding securities gains/losses and net gain on sale of RCM assets	$	1,996,898		$	2,006,701			($9,803	)		(0.5	)%		(2.0	)%	$	1,996,898		$	1,879,268	$	117,630			6.3	%
SELECTED AVERAGE BALANCES (Dollars in millions)
Average Loans⁶
Commercial	$	33,080		$	32,713		$	367			1.1	%		4.5	%	$	33,080		$	32,343	$	737			2.3	%
Real estate 1-4 family		30,014			28,366			1,648			5.8			23.2			30,014			22,535		7,479			33.2
Real estate commercial and construction		23,021			22,484			537			2.4			9.5			23,021			18,660		4,361			23.4
Real estate equity		13,068			12,649			419			3.3			13.2			13,068			11,016		2,052			18.6
Consumer⁷		14,373			14,382			(9	)		(0.1	)		(0.3	)		14,373			15,390		(1,017	)		(6.6	)
Credit cards		272			224			48			21.4			85.4			272			193		79			41.1
Total loans	$	113,828		$	110,818		$	3,010			2.7	%		10.9	%	$	113,828		$	100,137	$	13,691			13.7	%
Average deposits
Noninterest bearing deposits	$	24,693		$	24,522		$	171			0.7	%		2.8	%	$	24,693		$	24,182	$	511			2.1	%
NOW accounts		17,011			16,853			158			0.9			3.8			17,011			16,941		70			0.4
Money market accounts		25,798			26,300			(502	)		(1.9	)		(7.6	)		25,798			24,507		1,291			5.3
Savings		5,473			5,865			(392	)		(6.7	)		(26.7	)		5,473			8,139		(2,666	)		(32.8	)
Consumer and other time		22,282			20,536			1,746			8.5			34.0			22,282			16,832		5,450			32.4
Total consumer and commercial deposits		95,257			94,076			1,181			1.3			5.0			95,257			90,601		4,656			5.1
Brokered and foreign deposits		21,010			17,969			3,041			16.9			67.7			21,010			10,671		10,339			96.9
Total deposits	$	116,267		$	112,045		$	4,222			3.8	%		15.1	%	$	116,267		$	101,272	$	14,995			14.8	%
SELECTED CREDIT DATA (Dollars in thousands)
Nonaccrual loans	$	271,974		$	307,788			($35,814	)		(11.6	)%		(46.5	)%	$	271,974		$	354,241		($82,267	)		(23.2	)%
Restructured loans		24,399			21,876			2,523			11.5			46.1			24,399			19,049		5,350			28.1
Total nonperforming loans		296,373			329,664			(33,291	)		(10.1	)		(40.4	)		296,373			373,290		(76,917	)		(20.6	)
Other real estate owned (OREO)		30,682			26,013			4,669			18.0			71.8			30,682			28,619		2,063			7.2
Other repossessed assets		7,160			7,060			100			1.4			5.6			7,160			8,749		(1,589	)		(18.2	)
Total nonperforming assets	$	334,215		$	362,737			($28,522	)		(7.9	)%		(31.5	)%	$	334,215			410,658		($76,443	)		(18.6	)%
Allowance for loan and lease losses	$	1,028,128		$	1,029,855			($1,727	)		(0.2	)%		(0.7	)%	$	1,028,128		$	1,050,024		($21,896	)		(2.1	)%


¹	Multiply percentage change by 4 to calculate sequential annualized change. Any sequential annualized change over 100 percent is labeled as ‘‘NM’’. Those changes over 100 percent were not considered to be meaningful.


²	Includes service charges on deposits, card fees and other charges and fees.


³	Includes retail investment services, investment banking income and trading account profits and commissions.

⁴

SunTrust presents noninterest income before securities gains/(losses) and net gain on the sale of RCM assets. The Company believes noninterest income before securities gains/(losses) is more indicative of the Company's performance because it isolates income that is primarily customer relationship and customer transaction driven. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain provides better comparability and is more indicative of normalized operations.


⁵	The Company presents noninterest expense before an impairment charge on Affordable Housing Properties, amortization of intangible assets and merger expense. The Company believes the exclusion of these measures provides better comparability and is more reflective of normalized operations.


⁶	SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.


⁷	Includes consumer direct and consumer indirect loans.

SunTrust Banks, Inc. and Subsidiaries
YEAR-TO-YEAR COMPARISON — HISTORICAL COMBINED GROWTH
APPENDIX B, continued

The year-to-date 2004 figures represent SunTrust and NCF on a historical combined basis.

See next page for a reconcilement of these historical combined amounts.


	HISTORICAL COMBINED
	Twelve Months Ended
	December 31						Increase/(Decrease)
	2005			2004			Amount			%
STATEMENTS OF INCOME (Dollars in thousands)
NET INTEREST INCOME	$	4,578,966		$	4,265,027		$	313,939			7.4	%
Provision for loan losses		176,886			179,514			(2,628	)		(1.5	)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		4,402,080			4,085,513			316,567			7.7
NONINTEREST INCOME
Deposit and other fees ¹		1,439,779			1,403,103			36,676			2.6
Trust and investment management income		673,720			635,197			38,523			6.1
Broker / dealer revenue²		567,438			599,155			(31,717	)		(5.3	)
Other noninterest income		450,394			354,375			96,019			27.1
Noninterest income before securities gains/(losses) and net gain on sale of RCM assets ³		3,131,331			2,991,830			139,501			4.7
Gain on sale of RCM assets, net of related expenses		23,382			—			23,382			100.0
Noninterest income before securities gains/(losses)		3,154,713			2,991,830			162,883			5.4
Securities losses		(7,155	)		(29,079	)		21,924			(75.4	)
Total noninterest income		3,147,558			2,962,751			184,807			6.2
NONINTEREST EXPENSE
Personnel expense		2,534,211			2,402,832			131,379			5.5
Net occupancy expense		312,070			308,401			3,669			1.2
Outside processing and software		357,387			306,713			50,674			16.5
Equipment expense		204,038			206,921			(2,883	)		(1.4	)
Marketing and customer development		156,711			138,400			18,311			13.2
Other noninterest expense		874,984			905,595			(30,611	)		(3.4	)
Noninterest expense before Affordable Housing impairment charge, amortization of intangible assets and merger expense ⁴		4,439,401			4,268,862			170,539			4.0
Impairment charge on Affordable Housing Properties		33,722			9,001			24,721			274.6
Amortization of intangible assets		118,964			116,661			2,303			2.0
Merger expense		98,642			28,401			70,241			247.3
Total noninterest expense		4,690,729			4,422,925			267,804			6.1
INCOME BEFORE INCOME TAXES		2,858,909			2,625,339			233,570			8.9
Provision for income taxes		876,335			809,466			66,869			8.3
NET INCOME		1,982,574			1,815,873			166,701			9.2
Merger expense, net of tax		61,158			18,461			42,697			231.3
NET INCOME EXCLUDING MERGER EXPENSE		2,043,732			1,834,334			209,398			11.4
Net gain on sale of RCM assets, net of tax		(14,497	)		—			(14,497	)		(100.0	)
NET INCOME EXCLUDING MERGER EXPENSE AND NET GAIN ON SALE OF RCM ASSETS	$	2,029,235		$	1,834,334		$	194,901			10.6	%
REVENUE (Dollars in thousands)
Net interest income	$	4,578,966		$	4,265,027		$	313,939			7.4	%
FTE adjustment⁵		75,492			65,125			10,367			15.9


	HISTORICAL COMBINED
	Twelve Months Ended
	December 31						Increase/(Decrease)
	2005			2004			Amount			%
Net interest income — FTE		4,654,458			4,330,152			324,306			7.5
Noninterest income		3,147,558			2,962,751			184,807			6.2
Total revenue		7,802,016			7,292,903			509,113			7.0
Securities losses		7,155			29,079			(21,924	)		(75.4	)
Net gain on sale of RCM assets		(23,382	)		—			(23,382	)		(100.0	)
Total revenue excluding securities gains/losses
and net gain on sale of RCM assets	$	7,785,789		$	7,321,982		$	463,807			6.3	%
Noninterest expense	$	4,690,729		$	4,422,925		$	267,804			6.1	%
Merger expense		(98,642	)		(28,401	)		(70,241	)		247.3
Noninterest expense excluding merger expense	$	4,592,087		$	4,394,524		$	197,563			4.5	%
Efficiency ratio		60.12	%		60.65	%		(0.53	)		(0.9	)%
Impact of excluding merger expense		(1.26	)		(0.39	)		(0.87	)		224.7
Efficiency ratio excluding merger expense		58.86	%		60.26	%		(1.40	)		(2.3	)%
SELECTED AVERAGE BALANCES (Dollars in millions)
Average Loans⁶
Commercial	$	32,935		$	32,147		$	788			2.5	%
Real estate 1-4 family		27,092			20,847			6,245			30.0
Real estate commercial and construction		21,567			18,081			3,486			19.3
Real estate equity		12,361			9,916			2,445			24.7
Consumer⁷		14,560			15,358			(798	)		(5.2	)
Credit cards		227			172			55			32.1
Total loans	$	108,742		$	96,521		$	12,221			12.7	%
Average deposits
Noninterest bearing deposits	$	24,315		$	23,033		$	1,282			5.6	%
NOW accounts		17,214			15,468			1,746			11.3
Money market accounts		25,589			24,249			1,340			5.5
Savings		6,320			8,497			(2,177	)		(25.6	)
Consumer and other time		19,917			15,840			4,077			25.7
Total consumer and commercial deposits		93,355			87,087			6,268			7.2
Brokered and foreign deposits		17,052			11,855			5,197			43.8
Total deposits	$	110,407		$	98,942		$	11,465			11.5	%


¹	Includes service charges on deposits, card fees and other charges and fees.


²	Includes retail investment services, investment banking income and trading account profits and commissions.

SunTrust presents noninterest income before securities gains/(losses) and net gain on the sale of RCM assets. The Company believes noninterest income before securities gains/losses is more indicative of the Company's performance because it isolates income that is primarily customer relationship and customer transaction driven. SunTrust further excludes the net gain on the sale of RCM assets because the Company believes the exclusion of the net gain provides better comparability and is more indicative of normalized operations.


⁴	The Company presents noninterest expense before an impairment charge on Affordable Housing Properties, amortization of intangible assets and merger expense. The Company believes the exclusion of these measures provides better comparability and is more reflective of normalized operations.


⁵	NCF's FTE adjustments were reduced $13.1 million from the year ended 2004 to conform to SunTrust methodology.


⁶	SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.


⁷	Includes consumer direct and consumer indirect loans.

SunTrust Banks, Inc. and Subsidiaries
SUNTRUST / NCF — SELECTED HISTORICAL FINANCIAL DATA
APPENDIX B, continued


	Twelve Months Ended
	December 31, 2004
	SunTrust			NCF			Historical Combined
STATEMENTS OF INCOME (Dollars in thousands)
NET INTEREST INCOME	$	3,685,155		$	579,872		$	4,265,027
Provision for loan losses		135,537			43,977			179,514
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		3,549,618			535,895			4,085,513
NONINTEREST INCOME
Deposit and other fees ¹		1,243,955			159,148			1,403,103
Trust and investment management income		586,783			48,414			635,197
Broker / dealer revenue ²		527,340			71,815			599,155
Other noninterest income		288,059			66,316			354,375
Noninterest income before securities gains/(losses)		2,646,137			345,693			2,991,830
Securities gains/(losses)		(41,691	)		12,612			(29,079	)
Total noninterest income		2,604,446			358,305			2,962,751
NONINTEREST EXPENSE
Personnel expense		2,168,313			234,519			2,402,832
Net occupancy expense		268,248			40,153			308,401
Outside processing and software		286,270			20,443			306,713
Equipment expense		184,865			22,056			206,921
Marketing and customer development		128,291			10,109			138,400
Other noninterest expense		746,067			159,528			905,595
Noninterest expense before Affordable Housing impairment charge, amortization of intangible assets and merger expense		3,782,054			486,808			4,268,862
Impairment charge on Affordable Housing Properties		9,001			—			9,001
Amortization of intangible assets		77,582			39,079			116,661
Merger expense		28,401			—			28,401
Total noninterest expense		3,897,038			525,887			4,422,925
INCOME BEFORE INCOME TAXES		2,257,026			368,313			2,625,339
Provision for income taxes		684,125			125,341			809,466
NET INCOME	$	1,572,901		$	242,972		$	1,815,873
REVENUE (Dollars in thousands)
Net interest income	$	3,685,155		$	579,872		$	4,265,027
FTE adjustment ³		58,398			6,727			65,125
Net interest income — FTE		3,743,553			586,599			4,330,152
Noninterest income		2,604,446			358,305			2,962,751
Total revenue		6,347,999			944,904			7,292,903
Securities (gains)/losses		41,691			(12,612	)		29,079
Total revenue excluding securities gains/losses	$	6,389,690		$	932,292		$	7,321,982


	Twelve Months Ended
	December 31, 2004
	SunTrust			NCF			Historical Combined
Noninterest expense	$	3,897,038		$	525,887		$	4,422,925
Merger expense		(28,401	)		—			(28,401	)
Noninterest expense excluding merger expense	$	3,868,637		$	525,887		$	4,394,524
Efficiency ratio		61.39	%		55.66	%		60.65	%
Impact of excluding merger expense		(0.45	)		—			(0.39	)
Efficiency ratio excluding merger expense		60.94	%		55.66	%		60.26	%
SELECTED AVERAGE BALANCES (Dollars in millions)
Average Loans⁴
Commercial	$	29,070		$	3,077		$	32,147
Real estate 1-4 family		20,048			799			20,847
Real estate commercial and construction		15,213			2,868			18,081
Real estate equity		8,503			1,413			9,916
Consumer ⁵		13,220			2,138			15,358
Credit cards		160			12			172
Total loans	$	86,214		$	10,307		$	96,521
Average deposits
Noninterest bearing deposits	$	21,047		$	1,986		$	23,033
NOW accounts		13,778			1,690			15,468
Money market accounts		22,865			1,384			24,249
Savings		7,225			1,272			8,497
Consumer and other time		12,177			3,663			15,840
Total consumer and commercial deposits		77,092			9,995			87,087
Brokered and foreign deposits		10,041			1,814			11,855
Total deposits	$	87,133		$	11,809		$	98,942


¹	Includes service charges on deposits, card and other charges and fees.


²	Includes retail investment services, investment banking income and trading account profits and commissions.


³	NCF's FTE adjustments were reduced $13.1 million from the year ended 2004 to conform to SunTrust methodology.


⁴	SunTrust's average nonaccrual and restructured loans are included in the respective categories to conform to the NCF presentation.


⁵	Includes consumer direct and consumer indirect loans.