8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 15, 2007

SunTrust Banks, Inc.

(Exact name of registrant as specified in its charter)

Georgia	001-08918	58-1575035
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

303 Peachtree St., N.E., Atlanta, Georgia	30308
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (404) 588-7711

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

Representatives of SunTrust Banks, Inc. (the “Registrant”) are scheduled to make a presentation at the 2007 UBS Global Financial Services Conference on Tuesday, May 15, 2007 at approximately 11:40 AM Eastern Time. James M. Wells III, President and Chief Executive Officer, and Mark A. Chancy, Corporate Executive Vice President and Chief Financial Officer, of SunTrust Banks, Inc. will make SunTrust’s presentation. A copy of the slide package to be used by the Registrant at this conference is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. Such slide package will also be available on the Registrant’s web site at www.suntrust.com. Information contained on the Registrant’s website is expressly not incorporated by reference into this Current Report on Form 8-K.

Representatives of the Registrant are scheduled to make a presentation at the Lehman Brothers Financial Services Conference in London on Thursday, May 17, 2007 at approximately 9:40 AM Eastern Time. Mark A. Chancy, Corporate Executive Vice President and Chief Financial Officer, of SunTrust Banks, Inc. is expected to make SunTrust’s presentation. A copy of the slide package to be used by the Registrant at this conference is substantially the same as that to be used at the UBS conference, which is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in the preceding paragraphs, as well as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Current Report on Form 8-K. All information in the slide package speaks as of the date thereof and the Registrant does not assume any obligation to update said information in the future. In addition, the Registrant disclaims any inference regarding the materiality of such information which otherwise may arise as a result of its furnishing such information under Item 7.01 of this report on Form 8-K.

Item 8.01 Other Events.

On May 15, 2007, the Registrant issued a news release announcing a series of initiatives representing an acceleration and expansion of initiatives to enhance shareholder value in three key categories: efficiency and productivity, SunTrust’s ownership of Coca-Cola common stock, and capital optimization/balance sheet management. A copy of the news release is filed as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	Slide package to be presented on May 15, 2007 (furnished with the Commission as a part of this Current Report on Form 8-K).
99.2	News release dated May 15, 2007.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SUNTRUST BANKS, INC.
	(Registrant)
Date: May 15, 2007.	By:	/s/ David A. Wisniewski
		David A. Wisniewski,
		Group Vice President

EX-99.1

Driving Shareholder Value

James M. Wells III

President and Chief Executive Officer

Mark A. Chancy

Corporate Executive Vice President and Chief Financial Officer

UBS 2007 Global Financial Services Conference

May 15, 2007

Exhibit 99.1

1

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2006 Annual Report

on Form 10-K, Quarterly Report for the period ended March 31, 2007 and Current Reports on Form 8-K.

The information in this presentation may contain forward-looking statements. Statements that do not describe historical or current facts, including

statements

about

beliefs

and

expectations,

are

forward-looking

statements.

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

SunTrust’s management and on information currently available to management. The forward-looking statements are intended to be subject to the safe

harbor

provided

by

Section

27A

of

the

Securities

Act

of

1933

and

Section

21E

of

the

Securities

Exchange

Act

of

1934.

Such

statements

speak

as

of

the date hereof, and SunTrust does 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

involve

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 the Company’s 2006 Annual Report on Form 10-K, in the Company’s Quarterly

Reports on Form 10-Q, and in the Current Reports on Form 8-K filed with the Securities and Exchange Commission and available at the Securities and

Exchange Commission's internet site (http://www.sec.gov).  Those

factors include: changes in general business or economic conditions, including

customers’

ability to repay debt obligations, could have a material adverse effect on our financial condition and results of operations; our trading assets

and financial instruments carried at fair value expose the Company to certain market risks; changes in market interest rates or capital markets could

adversely

affect

our

revenues

and

expenses,

the

values

of

assets

and

obligations,

costs

of

capital,

or

liquidity;

the

fiscal

and

monetary

policies

of

the

federal government and its agencies could have a material adverse effect on our earnings; significant changes in securities markets or markets for

commercial or residential real estate could harm our revenues and profitability; customers could pursue alternatives to bank deposits, causing us to

lose

a

relatively

inexpensive

source

of

funding;

customers

may

decide

not

to

use

banks

to

complete

their

financial

transactions,

which

could

affect

net

income; we have businesses other than banking, which subjects us

to a variety of risks; hurricanes and other natural 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 our

business; we rely on other companies for key components of our business infrastructure; we depend on the accuracy and completeness of information

about clients and counterparties; regulation by federal and state agencies could adversely affect our business, revenues, and profit margins;

competition

in

the

financial

services

industry

is

intense

and

could

result

in

losing

business

or

reducing

profit

margins;

future

legislation

could

harm

our

competitive position; 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 accounts for most of our revenues and could affect our liquidity and ability to pay dividends; 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 without whom our operations may suffer; we may be unable 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 strategy; our accounting policies and methods are key to how we report financial condition

and

results

of

operations,

and

may

require

management

to

make

estimates

about

matters

that

are

uncertain;

our

stock

price

can

be

volatile;

changes

in

our

accounting

policies

or

in

accounting

standards

could

materially

affect

how

we

report

our

financial

results

and

condition;

and

our

disclosure

controls

and

procedures

may

fail

to

prevent

or

detect

all

errors

or

acts

of

fraud.

2

Driving Shareholder Value

Accelerating and Expanding Initiatives to Drive Shareholder Value

SunTrust is a unique franchise that has not yet fully capitalized on the

growth opportunities in its markets

Management is taking significant actions to improve financial performance

Existing initiatives to be meaningfully accelerated and expanded

upon:

–

E

2

Efficiency and Productivity Initiative cost savings increased by over $200M.  Original

implementation timeline to be accelerated -

$530M in cost savings for fiscal year 2009, over 10%

of current expense base

–

In the context of capital optimization, 4.5M shares, or 9%, of our Coca-Cola common stock holdings

have

been

sold;

SunTrust

will

explore

alternatives

for

remaining

shares

in

the

context

of

capital

optimization and communicate its ultimate strategy by year-end

–

Management

is

conducting

a

comprehensive

review

of

balance

sheet

and

business

lines

to

identify

underperforming assets

–

Plans

to

further

optimize

capital

structure,

including

potential

share

repurchases

of

up

to

$1B

in

2007

SunTrust is committed to delivering results

3

Estimated Gross Cost Savings1

Estimated cost savings for 2007

increased $46M to $181M as program

gains momentum

For fiscal year 2009,

the additional

reductions translate into over $200M in

additional cost savings

–

Previous 2009 estimates were given on a

run-rate basis, the new $530M estimate is

expected to be achieved during the fiscal

year

Expanded the estimated cost savings in

a number of key areas:

–

Corporate Real Estate

–

Process Reengineering

–

Organizational Review

Savings for fiscal year 2009 represent

over 10% of current expense base

Highlights

Notes:

1

Does not include one-time costs associated with implementation, including severance

2

Straight-line interpolation of previous guidance to convert from end-of-year run rate to fiscal  year impact;

previously communicated year-end run rates were $250M for 2008 and $400M for 2009

E

2

Efficiency and Productivity Program:                         

Accelerating and Expanding Initiatives’

Impact through 2009

Cumulative

Total

2007

2008

2009

Corporate Real Estate

$100

Supplier Management

115

Offshoring/Outsourcing

45

$181

$350

$530

Process Reengineering

125

Organizational Review

145

Previous

E

2

Estimates     

(converted to fiscal

year estimates)

$135

$205²

$325

2

Additional

Savings

$46

$145

$205

4

$28.6

Previous

2007

Estimate

Total realized expense reductions achieved through the end of 1Q

1

1

Does

not

include

initial

costs

associated

with

implementation,

including

severance.

($ in millions)

2007 Gross Cost

Savings Are Now

Estimated to be

$181M

Exceeds Original

Estimate by   

$46M

E

2

Efficiency and Productivity Program:                         

Accelerating and Expanding Initiatives

Current

2007

Estimate

E

2

2007 Estimated Gross Cost Savings¹

Additional estimated gross cost savings for 2007

$0.0

$45.0

$90.0

$135.0

$180.0

5

($ in millions)

Noninterest Expense

Initial Implementation Costs

Noninterest Expense Excluding

Initial Implementation Costs

1Q 2007

1Q 2006

% Change

$1,236.0

13.8

$1,222.2

$1,226.5

4.0

$1,222.5

0.8%

0.0%

Results already apparent, as core expense growth was flat 1Q 2007 over 1Q 2006

E2 Efficiency and Productivity Program:                        

Accelerating and Expanding Initiatives

6

Coca-Cola Stock Holdings

Historical View of Coca-Cola Holdings

•

In 1919, SunTrust provided underwriting services to The Coca-Cola Company and received

some of the company’s first publicly-traded stock for its services

•

SunTrust held 48.2 million common shares of Coca-Cola Stock as of March 31, 2007

•

Book basis is $110,000; market value was approximately $2.3B on March 31, 2007

•

Generates dividend income of $0.16 per STI share, or $66M pre-tax annually

•

Coca-Cola holdings provide other benefits:

-

45% of pre-tax market value of Coca-Cola holdings is counted in Tier 2 Capital, or approximately $1B

-

Rating agencies provide varying amounts of capital credit

7

Coca-Cola Stock Holdings

Current Capital Inefficiency

In 2006, SunTrust set its reported Tier 1

target at 7.50%

The after-tax value of the KO holdings of

approximately $1.6 billion does not receive

Tier 1 treatment

Discussed with Regulators and Ratings

Agencies that SunTrust considers

approximately 75% of the after-tax value as

core capital

As a result, STI is unable to leverage the 25%

component in its business or return it to

shareholders

–

Over $390 million at the end of first quarter 2007

Sale of 4.5 million shares returns

approximately $150 million in after-tax value

to shareholders

1

Assumes KO price of $52.69 as of 5/11/07.

Partial Return of Coke-Related Capital

1

7.50%

Target

7.60%

8.32%

8.56%

Tier 1 Capital

Current level as of

3/31/07

Adds $1.2B

or 75% of after-tax

value

Underleveraged

capital of $394M or

25% of after-tax value

8

Coca-Cola Stock Holdings

Strategy Going Forward

•

The Board has recently authorized a formal review of the Coca-Cola holdings in the

context of capital optimization, including partial disposition of capital inefficient position

•

As a result, 4.5M shares, or 9%, of current position was recently sold

•

For

the

remaining

shares,

management

is

evaluating

a

broad

range

of

strategies:

-

maintain as long-term component of capital structure at specified level

-

sell and retain resulting capital

-

sell and repurchase additional STI shares

-

evaluate tax-efficient opportunities similar to 4Q 2006 contribution strategy

•

Committed to resolve how to use the Coca-Cola holdings to make the capital

structure more efficient for shareholders; will communicate by year-end

9

Consumer

10%

Other

1%

1–4 Family

28%

Home Equity

11%

Construction

and CRE

22%

Commercial

28%

Balance Sheet Initiatives—Focus on Risk Adjusted Returns

Net Interest Margin (1Q07)

While NIM has benefited from recent

restructuring activities, it remains at low end of

peer range

–

conservative loan mix and loan yields are primary driver of

margin level vs peers

Management has committed to a comprehensive

review of the balance sheet and lines of

business

–

will review risk-adjusted returns and valuation of all asset

classes/business lines with focus on lower yield loan

portfolios

–

areas not meeting requirements will be evaluated for

divestiture

–

Balance sheet management process continues to focus on

opportunities to divest underperforming asset classes,

improve operating metrics (NIM, ROE), and gain capital

and liquidity flexibility

Implement initiatives to drive higher-yield loan

growth

–

focus on building out business banking—higher spread

and greater profitability

–

increasing emphasis on risk-adjusted pricing

for

loan

book

–

moving to originate and sell model where appropriate

Loan Portfolio

1

Highlights

4.95

3.02

3.01

2.95

3.69

3.61

3.51

3.50

3.44

2.61

3.99

0.00

1.00

2.00

3.00

4.00

5.00

6.00

WFC

RF

NCC

BBT

USB

KEY

FITB

STI

WB

PNC

BAC

Peer Median: 3.50%

Note:

1 Quarterly average for 1Q 2007.  Does not include loans held for sale. 

$122B; 6.7% yield

10

Capital Optimization

Returning Capital to

Common Equity Shareholders

Optimization Strategy

•

Plan to repurchase incremental

$750M -

$1B of shares in 2007

–

Includes after-tax proceeds from

completed sale of Coca-Cola

shares of approximately $150M

–

Remaining portion, approximately

$600M -

$850M, to come via

balance sheet initiatives and

internal capital generation

•

Developing plans to lower cost of

capital by further optimizing and

diversifying capital base

–

Evaluating hybrid capital structures

and the replacement of legacy

TRuPs with higher equity content

TRuPs

2007E

>90

Expect to return over 90% of net income to shareholders in

2007 through share repurchase and dividends

including $1B in 2006

(1)

Includes the Accelerated Share Repurchase program announced in

(2)

Buyback amounts shown in chart are before any reduction from other capital stock issuances,

38

40

41

38

37

34

34

33

36

33

33

50

39

52

62

74

86

105

68

106

79

93

0

20

40

60

80

100

120

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Dividend

Buyback

%

Total Payout Average = 79%

Dividends = 35%

Buyback = 44%

NCF Acquisition

Impact

(1)

(2)

(1)

Includes the Accelerated Share Repurchase program announced in October 2006

(2)

Buyback amounts shown in chart are before any reduction from other capital stock issuances,

38

40

41

38

37

34

34

33

36

33

33

50

39

52

62

74

86

105

68

106

79

93

0

20

40

60

80

100

120

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Dividend

Buyback

%

Total Payout Average = 79%

Dividends = 35%

Buyback = 44%

NCF Acquisition

Impact

(1)

(2)

11

Initiative

Impact

Additional benefit from accelerating and

expanding E2 initiatives

-

2007

-

2008

-

2009

Total Share Repurchases

-

Sale of a portion of Coca-Cola holding      

used to repurchase shares

-

Additional shares repurchases

resulting from balance sheet

management initiatives

Full evaluation of Coca-Cola holdings in

the context of capital optimization and

evaluation and execution of additional

balance sheet management opportunities

Tangible Results Expected To Be Realized

$46M

$145M

$205M

~ $150M

$600M -

$850M

$750M -

$1.0B

TBD

12

•

Four Groups

–

Central

–

Florida

–

Mid-Atlantic

–

Carolinas

•

20 Regions

•

50+ Local Banking Markets

•

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 and Investment Management heads.  They are empowered to

deliver services, products and pricing to local customers

•

Local credit decisioning and pricing (most commercial credit requests are priced and approved locally)

•

Local management is held accountable and their incentive compensation is earned based on the

success of the combined local LOB’s performance

•

Geographic partners have weekly sales meetings with LOB’s where specific cross LOB commitments

are made and the subsequent success tracked

•

SunTrust’s operating model is relationship-based and focused on delivering the whole institution to

customers on an integrated basis

Unique Operating Model

Lines of Business

Geographies

Drive Strategy, Initiatives, Installation and

Profitability

•

Five Business Lines

–

Retail

–

Commercial

–

Mortgage

–

Corporate and Investment Banking

–

Wealth and Investment Management

Drive Client Acquisition, Expansion,

Service, Retention and Profitability

13

High Growth Footprint

Top 5 rank in 18 of the 25 largest, high-growth markets in the Southeast

Top 5 rank in 19 of SunTrust’s 20 geographic regions

Source: SNL Financial

Projected Population Growth for SunTrust’s Top Markets

Note: Weighted average by deposits based on all of SunTrust’s MSAs

% of STI Deposits 

26.9%

12.2%

7.2%

5.3%

4.9%

Rank

#1

#3

#4

#1

#3

Market Share

29.1%

9.9%

5.8%

19.7%

12.8%

Branches

212

184

100

72

104

11.8

19.5

8.5

10.5

19.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

Atlanta

Washington

DC

Miami

Orlando

Tampa

US Average = 6.7%

SunTrust

Weighted

Average = 12.8

SunTrust

Weighted

Average = 12.8

14

Diversified and Balanced Business Mix

Revenue-FTE Contribution

Excludes Corporate/Other and Reconciling Items, as defined in 10-K.  Data is for the full

year 2006.

Line of Business

Retail

•

1,691 banking locations, 2,543 ATMs

•

Opened 66 new branches in 2006; continue to invest in

high opportunity markets

•

Provides financial solutions to 5M client households

•

Business Banking represents >20% of total revenue,

adding 75 new bankers in high opportunity markets

•

Serves companies, government and nonprofit entities

with annual sales or budgets of $5M-$250M

•

Commercial Banking market penetration = 23%

$32.9B commercial loans outstanding

on average   

1Q 2007

•

New loan production up 18%²

•

# of new relationships up 15%²

•

Investments in Capital Markets product capabilities,

capacity, intellectual capital and distribution

•

Debt Capital Markets revenue up 21%³

•

Generated 19% of SunTrust’s noninterest income in

2006

Commercial

Corporate

and

Investment

Banking

•

#1 market share in 6 of 20 regions

•

Production increased 28%²

•

Record applications of $24.5B, up 21%²

•

#1 ranking in JD Power for customer satisfaction

Mortgage

•

Total assets under advisement:  $244B¹

•

Trusco

Capital Management’s AUM > $72B

4

•

Private Wealth Management’s AUA > $40B¹

•

Closed 3 CLO transactions => $1.4B (net new assets)

Wealth

and

Investment

Management

1. As of 3/31/07

2. 1Q 2007 vs. 1Q 2006

3. 2006 vs. 2005

4. As of 12/31/2006

Retail

42.8%

Commercial

15.3%

Corporate and

Investment

Banking

11.3%

Wealth &

Investment

Management

18.3%

Mortgage

12.3%

15

Wealth

and

Investment

Management

•

Target wealth creating sectors via delivery of integrated solutions

•

Improve investment performance through new hires augmenting existing investment talent.  Acquire

high-quality sales & distribution talent

•

Broaden and enhance product and service suite

Attractive Growth Prospects

2007 Growth Drivers

Retail

•

Series of initiatives to drive core deposit and household growth, and cross-sells

•

Business Banking

–

Enhancing product set and adding business bankers to capture market share

–

Returns >3x the annual household profit of a consumer client

–

Highest average loan spread across all LOB’s and 2

nd

highest deposit spread

•

Consumer Lending

–

Enhancing lending suite with new products to increase sales

–

Expanding network

Commercial

•

Focus on under-penetrated markets

•

Capitalize on client relationships that offer the broadest opportunities for cross-sale of Capital Markets,

Treasury & Payment Solutions, Private Wealth Management and Institutional Investment Management

products; capture wallet share

Corporate

and

Investment

Banking

•

Expand the cross-selling of capital market products to SunTrust’s Corporate Banking, Commercial

Banking and Wealth & Investment Management client bases

Mortgage

•

Expand sales force -

drives increased production

•

Leverage bank market presence

–

$1.8B in production from referral business, up 38%

1

–

19% of SunTrust homeowners have a SunTrust mortgage, up 13% from

a year ago; if increased to

35% would represent ~$80B in mortgage loans

1. 1Q 2007 vs. 1Q 2006

16

0.21

0.19

0.19

0.39

0.23

0.18

0.59

0.41

0.64

0.69

0.36

0.30

0.49

0.60

0.27

0.29

0.00

0.30

0.60

0.90

2000

2001

2002

2003

2004

2005

2006

1Q07

Disciplined Approach to Credit Risk Management

Annualized Net Charge-Offs/Average Loans

1

Annualized Net Charge-Offs/Average Loans Consistently Better Than Peers

2

Peers

SunTrust

Source: SNL Financial, Public filings

1.

The numbers from SNL Financial include Loans Held for Sale.  SunTrust calculates Annualized NCO/Average Loans excluding Loans Held for Sale, that ratio was 0.21 for 1Q

2007.

2.

Includes BAC, BBT, CMA, FITB, FHN, KEY, MTB NCC, PNC, RF, USB, WB and WFC.  Peer numbers are medians.

17

Driving Shareholder Value

•

A unique operating model coupled with an ideal high-growth footprint

provides a powerful platform for growth

•

Diversified and balanced business mix with strong distribution capabilities

•

Disciplined approach to credit risk management

•

Expanded and accelerated E

2

Efficiency and Productivity initiatives

•

Focused on optimizing capital structure through continuation of balance

sheet management and capital restructuring opportunities as well

as a

strategic review of Coca-Cola stock holdings

•

Commitment to return earnings to shareholders, including a 20% dividend

increase and planned share repurchases of up to $1B in 2007

An Attractive Investment Opportunity

Driving Shareholder Value

James M. Wells III

President and Chief Executive Officer

Mark A. Chancy

Corporate Executive Vice President and Chief Financial Officer

UBS 2007 Global Financial Services Conference

May 15, 2007

EX-99.2

Exhibit 99.2

News

Contact:	Investors	Media
	Greg Ketron	Barry Koling
	(404) 827-6714	(404) 230-5268

For Immediate Release

May 15, 2007

SunTrust Announces Acceleration and Expansion of

Major Shareholder Value Initiatives

Company Sees Additional 30% Cost Savings & Faster Pace from Efficiency Program; Partial

Sale of Coca-Cola Shares Reflects Capital Optimization Focus

ATLANTA — SunTrust Banks, Inc. (NYSE: STI) announced today a series of initiatives representing an acceleration and expansion of the Company’s increasingly intensive drive to enhance shareholder value. These initiatives focus on three key categories: efficiency and productivity, SunTrust’s ownership of Coca-Cola common stock and capital optimization/balance sheet management.

“Today’s announcement is consistent with our disciplined execution of a comprehensive program to deliver shareholder value. It also reflects the pace we believe appropriate in today’s challenging environment for banks and in light of our own commitment to fully capitalize on the opportunities afforded by SunTrust’s business mix, competitive strengths and high-growth geographic footprint,” said James M. Wells III, President and Chief Executive Officer of SunTrust. Mr. Wells became SunTrust CEO in January 2007.

“With the full support of our board of directors, the dedication of our management team, and the proven execution capabilities of our employees, the acceleration we are announcing today, along with our ongoing performance focus, provides a powerful platform for improved results and higher growth,” Mr. Wells added. The initiatives announced today include:

• Higher Efficiency and Productivity Targets: In January 2007, SunTrust announced a company-wide efficiency and productivity program named “E² – Excellence in Execution,” designed to slow the rate of growth in operating expenses and provide funding for investment in selected high-growth businesses. In connection with the program’s implementation, the Company has confirmed further opportunities for streamlining its expense base, as well as for accelerated implementation of certain E² initiatives.

-more-

As a result of these expanded E² opportunities, the Company now expects the annual gross cost savings during the full year of 2009 to total approximately $530 million. The original estimate, which was based on cost savings to be achieved by the end of that year, was $400 million. The new, higher total reflects an additional $205 million in cost savings expected to be achieved during 2009. The original estimate was $325 million. In addition, the Company has revised its 2007 estimated cost savings to $181 million, an increase of $46 million from its original plan.

The E² initiative involves efficiency and productivity opportunities related to five areas: corporate real estate, supplier management, offshoring and outsourcing, process re-engineering and a structured organizational review. SunTrust said the additional expense reductions would come primarily from the corporate real estate, process re-engineering and organizational review components of E².

• Sale of Coca-Cola Stock: In connection with the Company’s strategy to optimize its capital structure, SunTrust has sold 4.5 million shares of its common stock in The Coca-Cola Company (NYSE: KO) in a market transaction. This represents approximately 9% of its total Coca-Cola holdings. SunTrust also said it has begun a sharply focused evaluation of its remaining Coca-Cola common stock with the goal of ensuring that all Coca-Cola holdings are rationalized in context of the Company’s long-term capital optimization goals. SunTrust said it will implement — and communicate — the results of this evaluation by year-end.

With respect to the sale of Coca-Cola stock, Mr. Wells noted, “this action was taken after extensive discussion by our Board about the best way to maximize the value of this long-held asset. Our decisions with respect to Coca-Cola stock, along with the other initiatives announced today, are consistent with our focus on enhancing shareholder value and the efficiency of our overall capital structure. We continue to have great respect for The Coca-Cola Company and value the historical, and future, business relationship of our two Atlanta-based companies.”

• Capital Optimization & Balance Sheet Management: SunTrust expects to repurchase $750 million-$1 billion of the Company’s stock during the remainder of 2007, funded in part by the proceeds of the Coca-Cola stock sale. SunTrust also has achieved significant capital flexibility as a result of balance sheet management strategies executed in 2006 and the first quarter of 2007. Through a combination of a previously announced 20% dividend increase and anticipated share repurchases, the Company expects to return over 90% of earnings to common equity shareholders in 2007. SunTrust also said it will continue a comprehensive review of its balance sheet and business lines to identify underperforming assets.

-more-

2

Mr. Wells and SunTrust’s Chief Financial Officer, Mark A. Chancy, will provide detail on these initiatives and their anticipated impact on the Company’s performance in a presentation at the UBS Global Financial Services Conference today in New York at 11:40 ET. A copy of the conference slides is available on SunTrust’s web site at www.suntrust.com and may be accessed by clicking on the link, “Webcasts and Presentations,” located under the “Investor Relations” pages. “Investor Relations” pages may also be accessed from SunTrust’s home page via the link, “Investor Relations”. Interested individuals can listen to the live webcast of the presentation which will begin at approximately 11:40 a.m. at the same website. The webcast of the presentation will be archived at the same website later that afternoon and will be available for 30 days following the event. The webcast link will be available at least fifteen minutes before the webcast.

About SunTrust Banks, Inc.

SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation’s largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of March 31, 2007 SunTrust had total assets of $186.4 billion and total deposits of $123.4 billion. The Company operates an extensive branch and ATM network throughout the high- growth Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The Company also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides credit cards, mortgage banking, insurance, brokerage, equipment leasing and capital markets services. SunTrust’s Internet address is http://www.suntrust.com

###

3