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)     September 11, 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 Lehman Brothers Financial Services Conference in New York on Tuesday, September 11, 2007 at approximately 4:30 PM 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 immediately before the presentation begins. Information contained on the Registrant’s website is expressly not incorporated by reference into 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.

At slide 18 of exhibit 99.1, which is described in Item 7.01 above, the Company makes the following statement about the estimated impact in the third quarter of 2007 of marking-to-market certain financial instruments and investments required by fair value accounting: “Current indications are that the negative marks from the loan warehouse and trading assets, offset by the positive mark on the debt portfolio, would have an estimated ($0.20) impact on 3Q 2007 EPS; the actual impact will not be known until the third quarter is completed.”

The foregoing statement is a forward-looking statement and 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 Reports for the quarters ended March 31, 2007 and June 30, 2007 and Current Reports on Form 8-K. It is based upon the current beliefs and expectations of SunTrust’s management and on information currently available to management. The forward-looking statement is 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 statement speaks 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 statement. Actual results may differ materially. 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 residential or commercial 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 and revenues; we rely on other companies for key components of our business infrastructure; we rely on our systems, employees and certain counterparties, and certain failures could materially adversely affect our operations; 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; significant legal actions could subject us to substantial uninsured liabilities; 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; our disclosure controls and procedures may fail to prevent or detect all errors or acts of fraud; and weakness in residential property values and mortgage loan markets could adversely affect us; and we may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain borrower defaults, which could harm our liquidity, results of operations and financial condition.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Slide package to be presented on September 11, 2007 (furnished with the Commission as a part of this Current Report on Form 8-K).

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: September 11, 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

Lehman 2007 Financial Services Conference

September 11, 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 Reports for the quarters ended March 31, 2007 and June 30, 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 residential or commercial 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

and

revenues;

we

rely

on

other

companies

for key components of our business infrastructure; we rely on our systems, employees and certain counterparties, and certain failures could materially

adversely affect our operations; 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; significant legal actions could subject us to substantial uninsured liabilities; 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;

weakness

in

residential

property

values

and

mortgage

loan

markets

could

adversely

affect

us;

and

we

may

be

required to repurchase mortgage loans or indemnify mortgage loan

purchasers as a result of breaches of representations and warranties, borrower fraud,

or certain borrower defaults, which could harm our liquidity, results of operations and financial condition.

2

An Attractive Investment Opportunity

Delivering on Shareholder Value Commitments

Since they were announced in early 2007, the Company has made

significant progress on numerous initiatives aimed at driving shareholder

value; the acceleration and expansion of these initiatives are already

producing results and contributing to earnings

–

E

2

Efficiency and Productivity

–

Balance Sheet Management

–

Capital Optimization

Strength and Stability

•

SunTrust operates from a position of strength and stability in difficult

operating environments through a disciplined approach to credit and

liquidity risk, as well as possessing a strong customer deposit and capital

base 

Long-Term Growth Opportunities

SunTrust is a unique franchise that has meaningful opportunity for longer

term growth; attractive growth prospects exist for each line of business

3

Driving Shareholder Value

4

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 E² Estimates     

(converted to fiscal year estimates)

$135

$2032

$325²

Additional Savings³

$46

   $147 

   $205

Estimated Gross Cost Savings¹

As a result of the early success of

the program, estimated cost

savings in a number of key areas

were expanded:

–

Corporate Real Estate

–

Process Reengineering

–

Organizational Review

Estimated cost savings for 2007

increased $46M to $181M

For fiscal year 2009,

the additional

reductions translate into over

$200M in further cost savings

–

$530M in cost savings is expected

to be achieved for the 2009 fiscal

year

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

3

Acceleration and expansion of cost savings was previously announced on May 15, 2007

Accelerated and Expanded Estimated Cost Savings For Fiscal Year 2009 Represent Over 10% of

Current Expense Base

Driving Shareholder Value

E

2

Efficiency and Productivity Program: Achievements

5

Total realized expense reductions achieved through the end of 2Q

1

1

Does

not

include

initial

costs

associated

with

implementation,

including

severance.

2007 Gross Cost

Savings Are Now

Estimated to be

$181M

Exceeds Original

Estimate by   

$46M

E

2

2007 Estimated Gross Cost Savings

1

Exceed Initial Estimates; On Track to

Achieve the 2007 Estimate

Additional estimated gross cost savings for 2007

Driving Shareholder Value

E

2

Efficiency and Productivity Program: Achievements

6

($ in millions)

Noninterest Expense

E

2

Initial Implementation Costs

E

2

Program Real Estate Gains

Elimination of FAS 91 Deferral Related

to FV Adoption

Reversal of LILO QTE Reserve

Core Expenses

June 30, 2007

% Change

$2,487.2

(26.2)

17.4

(12.4)

-

$2,466.0

$2,440.6

(6.9)

-

-

10.9

$2,444.6

1.9%

0.9%

E

2

Program Impacting Earnings: Core Expense Growth <1% YTD 2007 Over YTD 2006

June 30, 2006

Six Months Ended

Driving Shareholder Value

E

2

Efficiency and Productivity Program: Achievements

7

Driving Shareholder Value

E

2

Efficiency and Productivity Program: Current Initiatives

Implemented New Credit Support Structure

Process

Reengineering

•

Credit Resource Centers have been formed

•

Streamlining the credit process will improve client experience, eliminate administrative tasks

from Relationship Managers, and reduce headcount and expenses through the achievement of

economies of scale

•

Moved from 4 Groups/20 Regions to 3 Groups/17 Regions

•

Introduced a more efficient approach to layers of management and

spans of control within the

Geographies

•

Consolidating several back office operations that have historically been performed at the Region or

Group level to gain consistency and economies of scale

•

Will incur a pre-tax one-time charge of $45 million associated with the eliminations in 3Q 2007

Organizational

Review

Approximately 2,400 primarily non-customer contact employee positions, or 7% of the

workforce, will be eliminated by year-end 2008

New corporate-owned real estate strategy involving the sale and leaseback of key facilities

•

Involves approximately 475 facilities throughout the Southeast and Mid-Atlantic -

49 office buildings

and 425 retail branches:

–

Final bids due by late September, anticipate closings to occur by year-end

–

Could result in gains later this year which may provide restructuring opportunities

Corporate

Real

Estate

8

•

The Company continues to execute on opportunities to reposition its balance

sheet to delever the Company, enhance earnings and achieve greater capital

efficiency

–

Nearly $30 billion of loans and investments have been sold over the past year with

goal of enhancing yield and/or reducing capital necessary to support assets

–

Proceeds used to buy higher yielding assets or to pay-down wholesale funding

•

Efforts were accelerated in the 1

st

and 2

nd

quarters of 2007

–

Sold $16.0 billion in investment securities

–

$5.0 billion reinvested in longer-term mortgage backed securities for duration

management

–

Improved credit profile of securities portfolio –

97% rated AAA

–

$7.0 billion reinvested in US T-bills for collateral needs (pledging to repos and public

deposits) –

eliminated credit-related risk and achieved better duration match given

short duration of these specific deposit products

–

Sold $4.1 billion in mortgage loans

–

Sold $1.9 billion in corporate loans through structured asset transaction

Driving Shareholder Value

Balance Sheet Management: Achievements

9

Driving Shareholder Value

Balance Sheet Management: Achievements

Balance sheet optimization

strategies have resulted in a

stronger, more profitable earning

asset mix, thereby improving the

margin

–

In 2Q 2007, SunTrust NIM was 3.10%,

up 10bps from 2Q 2006 and 8bps from

1Q 2007

–

NIM up 16bps in the past two quarters

Drove Net Interest Income growth of

$32M in 2Q over 1Q 2007

These initiatives have also resulted

in additional capital flexibility –

enabling SunTrust to repurchase

over $850M in shares through

repurchase programs

Delevered the balance sheet in a flat

to inverted yield curve environment

3.00%

3.02%

3.10%

2006

Q1 2007

Q2 2007

Net Interest Margin Improvement

10

Net Interest Margin

While NIM has benefited from recent

restructuring activities, it remains at low end

of peer range

–

We believe that our conservative loan mix and loan

yields are primary drivers of margin level vs peers

Management has committed to a

comprehensive review of the balance sheet

and lines of business

–

Reviewing risk-adjusted returns and valuation of all

asset classes/business lines with focus on lower

yielding loan portfolios

–

Areas not meeting requirements (i.e., RAROC) will be

evaluated for de-emphasis or divestiture

–

As a percentage of loans, large corporate, indirect

auto and student lending assets have all declined

significantly in recent years

Implement initiatives to drive higher-yield

loan growth

–

Focus on building out business banking—higher

spread and greater profitability

–

Increasingly moving to originate and sell model where

appropriate, including mortgage and student lending

3.00%

3.02%

3.10%

3.46%

3.49%

3.67%

2006

Q1 2007

Q2 2007

SunTrust

Peers

Driving Shareholder Value

Balance Sheet Management: Current Initiatives

Peers: BAC, BBT, CMA, FITB, FHN, KEY, MTB NCC, PNC,

RF, USB, WB and WFC.  Peer numbers are medians.

67 b.p.

Difference

36 b.p.

Difference

11

•

In

3Q

2006,

SunTrust

initiated

a

comprehensive

evaluation

of

its

capital

structure resulting in the following actions to date:

–

Established a 7.5% Tier 1 target

–

Retired $1B of legacy TruPs

–

Issued $1B of enhanced equity content TruPs

–

Issued $500M of Preferred Stock and $500M of Preferred Purchase Securities

–

Sold 4.5M shares or 9% of its Coca-Cola holdings producing an after-tax gain

of $145.6M, or $0.41 per share

–

Repurchased approximately $1.7B of common stock

•

In connection with the partial sale in May 2007, SunTrust announced its

intention to formally evaluate its remaining Coca-Cola holdings in

connection with its capital optimization strategy

Driving Shareholder Value

Capital Optimization: Achievements

12

•

Increased dividend

20% in February

2007

•

Approximately

$850M in shares

have been

repurchased to date

in 2007

•

Expect to return

over 90% of net

income to

shareholders in

2007 through share

repurchases and

dividends

(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)

(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)

Driving Shareholder Value

Capital Optimization: Achievements

2007E

>90

13

•

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

•

Currently evaluating alternatives for the remaining 43.7M shares

of

Coca-Cola stock and will communicate results of evaluation and next

steps by year-end

•

Committed to maintaining a minimum Tier 1 Capital ratio of 7.5%

Driving Shareholder Value

Capital Optimization: Current Initiatives

14

Driving Shareholder Value

Tangible Results To Be Realized

Initiative

Impact

Additional benefit from accelerating and

expanding E2 initiatives

-

2007

-

2008

-

2009

Total Share Repurchases

-

Additional share repurchases resulting    

from balance sheet management

initiatives

-

Sale of a portion of Coca-Cola

holdings used to repurchase shares

Execution of additional balance sheet

management opportunities and full

evaluation of Coca-Cola holdings in the

context of capital optimization

$46M

$137M

$205M

~ $700M

~ $146M

~ $850M

TBD

15

Commercial

$92       

12%

Construction

$78        

11%

Commercial RE

$44          

6%

Consumer Loans

$11           

2%

Residential

Mortgages

$512     

69%

Commercial

$34,363   

29%

Residential

Mortgages

$30,759  

26%

Construction

$14,418     

12%

Home Equity

Lines      

$14,304    

12%

Commercial RE

$12,416       

10%

Indirect

$7,740

7%

Direct

$4,392

4%

Loan Portfolio: $118,788

1

•

SunTrust does not originate sub-prime loans

•

SunTrust has originated Alt-A loans, but only

retained a small amount in the loan portfolio

(1.5% of total loans)

•

High LTV (>90%) home equity lines represent

only 2% of the portfolio

•

69% of NPA’s in highly-collateralized consumer

mortgages and home equity lines

•

Utilized insurance to a large degree on high

LTV component

•

NPL’s from mortgage warehouse, mainly Alt-A,

included in residential NPL’s

Nonaccrual Loans: $737

Strength and Stability

Strength of SunTrust in Today’s Operating Environment -

Credit

2

2 Includes home equity lines

(As of 6/30/2007, in millions)

1 Loan Portfolio also includes credit cards which totaled $397

(As of 6/30/2007, in millions)

16

Annualized Net Charge-Offs/Average Loans

1

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

0.30

for

2Q

2007.

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

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

Strength and Stability

Strength of SunTrust in Today’s Operating Environment -

Credit

0.19

0.27

0.19

0.18

0.37

0.56

0.37

0.22

0.17

0.36

0.30

0.27

0.35

0.29

0.60

0.69

0.64

0.49

0.00

0.20

0.40

0.60

0.80

2000

2001

2002

2003

2004

2005

2006

1Q 2007

2Q 2007

%

17

Fed Funds

Purchased

$3,405    

2%

Securities Sold

U/A to

Repurchase 

$6,081        

4%

Other Short-

Term

Borrowings

$2,084     

1%

Long-Term Debt

$20,605        

13%

Brokered and

Foreign

Deposits 

$25,069     

16%

Total Consumer

& Commercial

Deposits      

$97,822        

64%

Strength and Stability

Strength of SunTrust in Today’s Operating Environment -

Liquidity

Agency MBS

$9,766     

77%

Non-Agency

MBS      

$209      

2%

States and

Political

Subdivisions

$1,039      

8%

Other

Securities

$1,105   

9%

US Treasury

and Other

Gov't Agencies

$257         

2%

Asset-Backed

Securities 

$287        

2%

Investment Portfolio: $12,690

1

•

Investment Portfolio size reduced by 45% from

12/31/06

•

Approximately 97% of securities are rated AAA

•

Yield, ex-Coca-Cola dividend, ~5.7%, consistent

with a high grade investment portfolio

Funding Structure

•

Diversified funding base

•

Strong customer and commercial deposit base; 64%

of total funding base

•

Increased liquidity by de-levering balance sheet

•

Significant contingent funding sources are available:

–

$14.0B at Discount Window

–

$10.0B at FHLB

–

$12.5B remaining on global bank note shelf²

–

$2.4B remaining on parent company shelf²

–

$5.4B in free securities

1

Investment

Portfolio

also

includes

corporate

bonds

which

totaled

$27M

and

the

common

stock

of

The

Coca-Cola

Company

which totaled $0.1M

(As of 6/30/2007,  in millions)

(As of 6/30/2007, in millions)

2 Represents Board authorized borrowing; does not represent commitment to fund by any investor or lender; figures as of 9/11/2007

18

Mortgage  

$11,177               

90%

Other     

$789         

6%

Mortgage    

Alt-A        

$509            

4%

US Treasury

and Other Gov't

Agencies     

$9,532       

74%

Securitization

Warehouses

$959        

7%

Derivative

Contracts

$1,075  

8%

Other Trading

Assets      

$1,479      

11%

•

Currently, 94% of mortgage production

intended for sale in secondary market is

agency conforming

•

Small Alt-A warehouse of $509M and no sub-

prime loans in the warehouse

•

Other includes government-backed student

loans

•

Mark-to-market risk lies in Alt A and

nonconforming loan warehouses

Loans Held for Sale: $12,475

•

Nearly 75% of trading assets are in US

Government and Agency Securities

•

Trading assets have relatively short duration

•

Mark-to-market risk lies in the securitization

warehouse, which is composed of SBA,

CDO, CLO and RMBS securitizations in

process

Trading Assets: $13,045

Selected Areas With Potential Mark-to-Market Risk

SunTrust’s Loans Held for Sale and Trading Asset Structure

(As of 6/30/2007,  in millions)

(As of 6/30/2007,  in millions)

•

There

are

mark-to-market

exposures

in

certain

areas

of

the

loan

warehouse,

trading

assets, and debt

•

Current indications are that the negative marks from the loan warehouse and trading assets, offset by

the

positive

mark

on

the

debt

portfolio,

would

have

an

estimated

($0.20)

impact

on

3Q

2007

EPS;                  

the actual impact will not be known until the third quarter is completed

19

Long-Term Growth Opportunities

20

Consumer

Lending

•

Will introduce new investment platform in 2008, offering our enhanced asset allocation

framework and a broader selection of investment managers in one convenient account

•

85% of STI Classic Equity and Fixed Income funds are in Lipper top 2 quartiles for        

year-to-date performance

•

Retail investment income up 20% over 2006

Business

Banking

•

Highest

average

loan

spread

across

all

LOB’s

and

2

nd

highest deposit spread

•

New segmentation model allows for more efficient relationship management and

increased number of resources focused on client acquisition

•

Q3 launch of enhanced Online Cash Manager provides positive pay functionality to

help business owners combat fraud

DCM

High-Growth

Wealth and

Investment

Management

Segments

•

Opened Charlotte and Chicago offices

•

Improved talent and capacity with 100 new hires

•

Cross-sales of capital markets products up 10% from 2006

Growth Opportunities

Selected 2007 Growth Drivers

•

Focusing on maintaining and improving spreads through use of relationship pricing

•

Streamlining back office processes to decrease time required to decision and close

loans and to drive out costs

21

SunTrust Long-Term Financial Goals

5 Year Goal

1

Primary Performance

Metrics

•

Executing LOB strategies in

the geographic units to

acquire, retain and expand

client relationships, leveraging

our operating model

differentiation

•

Executing E

2

program and

continuing to focus on internal

productivity improvements to

reduce costs and create

investments for future growth

•

Balancing our business mix, 

optimizing risk-adjusted

returns and aligning

investments with the greatest

opportunities

How We Get There

1

Actual results could differ.  Please see slide 1 for a list of important factors that could cause actual results to differ.

2

Based on full-year, annual growth rates.

EPS Growth

2

Operating Leverage:

Revenue/Expense

Multiple

2

Revenue Growth

2

Tier 1 Capital

9-11%

1.5x

>7%

7.5%

Growth Opportunities

Long-Term Goals

22

Conclusion

23

•

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

provides a strong platform for growth

•

Diversified and balanced business mix with strong distribution capabilities

•

Operates from a position of strength and stability in difficult operating

environments through a disciplined approach to credit and liquidity risk

management, as well as possessing a strong customer deposit and capital

base

•

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 returning a high-level of earnings to shareholders, including

a 20% dividend increase (2/13/2007) and share repurchases of $850M year-

to-date in 2007

Conclusion

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

Lehman 2007 Financial Services Conference

September 11, 2007

25

Appendix

26

2Q 2007 Financial Performance

Income Statement

($ in millions, except per share data)

Net Interest Income (FTE)

Provision for Loan Losses

Noninterest Income

Gain on Sale of Shares of Coke

Noninterest Income Excluding Coke Gain

Total Revenue (FTE)

Gain on Sale of Shares of Coke

Total Revenue (FTE) Excluding Coke Gain

Total Noninterest Expense

Provision for Income Taxes¹

Net Income Available to Common Shareholders

Gain on Sale of Shares of Coke, Net of Tax

Net Income Available to Common Shareholders

Excluding Coke Gain

Diluted Net Income Per Average Common Share

Impact of Excluding Gain on Sale of Shares of Coke

Diluted Net Income Per Average Common Share

Excluding Coke Gain ²

$1,220.0

104.7

1,154.6

234.8

919.8

2,374.6

234.8

2,139.8

1,251.2

312.6

673.9

145.6

528.3

1.89

(0.41)

1.48

2Q 2007

1%

89%

18%

-

4%

8%

-

2%

2%

15%

10%

-

(3)%

13%

-

(1)%

June 30, 2007

2Q 2006

% Change

Annualized

1Q 2007

3%

102%

32%

-

5%

15%

-

4%

3%

33%

24%

-

(3)%

27%

-

(1)%

11%

342%

126%

-

19%

60%

-

14%

5%

144%

124%

-

11%

125%

-

11%

1

Effective tax rate in 2Q 2007 was 31.45% versus 30.59% in 1Q 2007 and 30.10% in 2Q 2006 primarily due to taxes paid on Coke gain.

$2,408.2

161.1

2,033.5

234.8

1,798.7

4,441.7

234.8

4,206.9

2,487.2

542.3

1,187.8

145.6

1,042.3

3.33

(0.41)

2.92

June 30, 2006

% Change

2 Accelerated share repurchases of 8 million shares entered into

in late May is partially reflected in 2Q 2007.

Six Months Ended

27

2Q 2007 Financial Performance

Balance Sheet

Real Estate 1-4 Family

Real Estate Construction

Real Estate Home Equity Lines

Real Estate Commercial

Commercial

Consumer –

Direct

Consumer –

Indirect

Total Loans

Total Securities Available for Sale

Total Earning Assets

Noninterest-Bearing Deposits

NOW Accounts

Money Market Accounts

Savings

Consumer Time

Other Time

Total Consumer and Commercial Deposits

(Average balances, $ in millions)

2Q 2007

% Change

2Q 2006

$    30,754.4

13,710.1

13,849.7

12,731.8

33,607.7

4,347.5

8,063.6

118,164.6

12,055.5

$  157,594.2

$    22,395.8

20,065.8

21,773.3

4,786.7

16,942.3

11,962.4

$    97,926.3

$    34,348.0

12,180.6

13,517.5

12,840.8

33,993.0

4,251.1

8,385.8

120,144.5

25,554.8

$  158,888.8

$    23,858.0

16,811.2

25,091.3

5,161.0

15,471.7

10,779.1

$    97,172.3

(10)%

13%

2%

(1)%

(1)%

2%

(4)%

(2)%

(53)%

(1)%

(6)%

19%

(13)%

(7)%

10%

11%

1%

28

2Q 2007 Financial Performance

Financial Ratios and Other Data

Return on Average Total Assets

Impact of Gain on Sale of Shares of Coke

Return on Average Total Assets Excluding Coke Gain

Return on Average Common Shareholders’

Equity

Impact of Gain on Sale of Shares of Coke

Return on Average Common Shareholders’

Equity

Excluding Coke Gain 

Net Interest Margin

Efficiency Ratio

Impact of Gain on Sale of Shares of Coke

Efficiency Ratio Excluding Coke Gain

Tier 1 Capital Ratio

Annualized Total Net Charge-Offs to Total Average

Loans

1.16%

-

1.16%

12.10%

-

12.10%

3.02%

59.79%

-

59.79%

7.60%

0.21%

2Q 2007

1Q 2007

1.52%

(0.33)%

1.19%

15.51%

(3.35)%

12.16%

3.10%

52.69%

5.78%

58.47%

7.49%

0.30%

Diluted Average Common Shares

Outstanding (000s)

357,214

356,008

1

Accelerated

share

repurchases

of

8

million

shares

entered

into

in

late

May

is

partially

reflected

in

2Q

2007.

1