EX-99.2 3 dex992.htm PRESENTATION MATERIALS Presentation Materials
SunTrust Banks, Inc.
4Q 2007 Earnings Presentation
January 23, 2008
Exhibit 99.2

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 on Form 10-Q, and Current Reports on Form 8-K. 
This presentation may include non-GAAP financial measures to describe SunTrust’s performance.  The reconciliation of those measures to GAAP measures can be found in
SunTrust’s earnings press releases, which can be found on SunTrust’s website in the news section of the investor relations pages.  In this presentation, net interest income and net
interest margin are presented on a fully taxable-equivalent (“FTE”) basis, and ratios are presented on an annualized basis.  The FTE basis adjusts for the tax-favored status of income
from certain loans and investments.  The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between
taxable and non-taxable amounts. 
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,
and
in
particular
the
outlook
statements
provided
at
slides
22-23,
are
forward-looking
statements.
These
statements
often
include
the
words
“may,”
“could,”
“will,”
“should,”
“believes,”
“expects,”
“anticipates,”
“estimates,”
“intends,”
“plans,”
“targets,”
“initiatives,”
“potentially,”
“probably,”
“projects,”
“outlook”
or similar expressions.  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
intend
to
update
the
statements
made
herein
or
to
update
the
reasons
why
actual
results
could
differ
from
those
contained
in
such
statements
in
light
of
new
information or future events.
Forward looking statements are subject to significant risks and uncertainties.  Investors are cautioned against placing undue reliance on such statements.  Actual results may differ
materially from those set forth in the forward-looking statements.  Factors that could cause SunTrust’s 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:
(1)
adverse
changes
in
general
business or economic conditions could have a material adverse effect on our financial condition and results of operations; (2) changes in market interest rates or capital markets could
adversely affect our revenues and expenses, the value of assets and obligations, costs of capital, or liquidity; (3) the fiscal and monetary policies of the federal government and its
agencies could have a material adverse effect on our earnings; (4) changes in securities markets or markets for commercial or residential real estate could harm our revenues and
profitability; (5) customers could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; (6) customers may decide not to use banks to
complete their financial transactions, which could affect net income; (7) we have businesses other than banking, which subjects us to a variety of risks; (8) hurricanes and other natural
disasters may adversely affect loan portfolios and operations and increase the cost of doing business; (9) negative public opinion could damage our reputation and adversely impact our
business; (10) we rely on other companies for key components of our business infrastructure; (11) we rely on our systems, employees and certain counterparties, and certain failures
could
materially
adversely
affect
our
operations;
(12)
we
depend
on
the
accuracy
and
completeness
of
information
about
clients
and
counterparties;
(13)
regulation
by
federal
and
state
agencies could adversely affect our business, revenues, and profit margins; (14) competition in the financial services industry is intense and could result in losing business or reducing
profit
margins;
(15)
future
legislation
could
harm
our
competitive
position;
(16)
maintaining
or
increasing
market
share
depends
on
market
acceptance
and
regulatory
approval
of
new
products and services; (17) our ability to receive dividends from our subsidiaries accounts for most of our revenues and could affect our liquidity and ability to pay dividends; (18)
significant legal actions could subject us to substantial uninsured liabilities; (19) 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; (20) we depend on the expertise of key personnel without whom our operations may suffer; (21) 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; (22) 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; (23) changes in our accounting policies or in accounting standards could materially affect how we report our financial
results and condition; (24) our stock price can be volatile; (25) our disclosure controls and procedures may fail to prevent or detect all errors or acts of fraud; (26) our trading assets and
financial instruments carried at fair value expose the Company to certain market risks; (27) weakness in residential property values and mortgage loan markets could adversely affect us;
(28) 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; and (29) we may enter into transactions with off-balance sheet entities affiliated with
SunTrust or its subsidiaries which may cause us to recognize current or future losses.

2
4Q 2007 Financial Performance
Income Statement Summary
($ in millions, except per share data)
4Q 2007             4Q 2006         
2007                 2006
% Change
% Change
Twelve Months Ended Dec 31
Net Interest Income (FTE)
$1,194.8
1%
$4,822.2
2%
Provision for Loan Losses
356.8
208%
664.9
153%
Noninterest
Income
576.0
(35)%
3,428.7
(1)%
Total
Revenue
(FTE)
1,770.8
(14)%
8,250.9
0%
Total Noninterest
Expense
1,455.3
18%
5,233.8
7%
Provision for Income Taxes
(79.7)
NM
615.5
(29)%
Net
Income
Available
to
Common
Shareholders
3.3
(99)%
1,603.7
(24)%
Net Income Per Average Common Diluted Share
$   0.01
(99)%
$     4.55
(22)%
Fourth Quarter Earnings Materially Impacted by Credit and
Market Valuation Write-Downs

3
1.
Does
not
include
initial
costs,
non-recurring
expense
reductions,
and
non-recurring
gains
associated
with
E
implementation
2.
Total realized expense reductions achieved during 2007
E   Efficiency and Productivity Program: Estimated Gross Cost Savings
1,2
($ in millions)
Gross Cost Savings
For 4Q  
= $75 Million
$0.0
$135.0
$90.0
$45.0
$181.0
2007 Savings of $215.2 Million is 119% of Goal
$215.2
2
2

4
1.
Does
not
include
initial
costs,
non-recurring
expense
reductions,
or
non-recurring
gains
associated
with
E
implementation
($ in millions)
E  Efficiency and Productivity Program: Estimated Gross Cost Savings
Actual
Goal
Goal
Cumulative Total
2007
2008
2009
Corporate Real Estate
$100
Supplier Management
115
Offshoring/Outsourcing
45
$215            $350            $530
Process Reengineering                    125
Organizational Review                      145
TOTAL
$530
Savings for Fiscal Year 2009 Represent Over 10% of 2006 Expense
Base
2
2
1

5
Capital & Coca-Cola Stock
Tier 1 Ratio (9/30)
7.44%
Capital Security Redemption     (0.22)
Securities Purchases                  (0.25)
Higher Loan Loss Provision      (0.08)
Other
0.11
Estimated Tier 1 Ratio (12/31) 
7.00%
Tier 1 target remains 7.50%
Tangible equity to tangible assets ratio of 6.28%
Pursuing certain transactions authorized by the BOD regarding our Coca-Cola stock holdings;
under
review
by
the
appropriate
regulatory
and
other
relevant
parties
Under
any
of
the
authorized
transactions,
Tier
1
capital
would
increase
by
approximately
$1
billion
Expect to provide additional detail around these transactions during 2Q 2008
Evaluating the Capital Markets and may issue capital securities during the first quarter
Tier 1 Ratio Fell Below Target at Year End; We Expect to be 
Above Target with Planned Transactions

6
Financial Topics:  Margin
2.94%
3.02%
3.10%
3.13%
3.18%
4Q 2006
1Q 2007
2Q 2007
3Q 2007
4Q 2007
3Q 2007 Margin
3.18%
Deposit Pricing Pressure
(0.08)
Decline in Earning Asset Yields
(0.14)
Lower Wholesale Funding Costs
0.17
4Q 2007 Margin
3.13%
After Three Quarters of Expansion Totaling 24 bps, Margin
Slipped by 5 bps to 3.13%
1Q 2008 margin is likely to compress slightly due to the securities purchased in 4Q 2007
For the remainder of 2008, we expect margin to stabilize and possibly expand, depending               
upon deposit pricing and volumes, the Libor/Prime relationship, and the level of NPA’s

7
Financial Topics:  Provision
Provision
$356.8           $147.0        $104.7
Net Charge-Offs
$168.0           $103.7        $  88.3
Net Charge-Off Ratio
0.55%           0.34%         0.30%
Net ALLL Increase                $188.8           $  43.3       $  16.4
Allowance to Loan Ratio       1.05%            0.91%        0.88%
4Q 2007
3Q 2007
2Q 2007
($ in millions)
Provision
Expense
Covers
Charge-Offs
Plus
a
14
bp
Increase
in the Allowance to Loan Ratio

8
Financial Topics:  Three Pillars Funding
Three Pillars is an off-balance sheet, multi-seller asset-backed commercial paper (ABCP)
program established in 1999 to finance the receivables of SunTrust’s corporate clients
Three Pillars had $7.7 billion in commitments with $4.6 billion of outstanding ABCP on
12/31/2007 supporting 48 client transactions
Client transactions are typically structured to an implied A rating and we have not incurred
losses on any client related transactions since inception
Three Pillars also held $718 million of highly-rated ABS in 4Q 2007 and 83% of the $718
million
portfolio
of
bonds
are
AAA/Aaa
rated
and
17%
are
AA/Aa
rated
In the 3Q and 4Q, deterioration in the performance of the underlying collateral and market
illiquidity began materially decreasing the market value of the securities, and a review of the
remittance reports received on 12/26/2007 showed continued deterioration in collateral
performance
In order to reduce the risk profile of Three Pillars, SunTrust Management decided to purchase
the $718 million
in
ABS
securities
and
record
a
market
valuation
write-down
of
$145
million
Through January 16th, all bonds have maintained their original ratings and none have been
placed on a “ratings watch”
During the week of January 7th, SunTrust sold 3 of the highest risk bonds with current par
values of $104
million
at
prices
roughly
equal
to
the
12/31/2007
carrying
values
Purchased $718 Million in Asset-Backed Securities (ABS) from
Three Pillars on December 31, 2007 and Recorded a $145 Million
Market Valuation Write-Down

9
Financial Topics:  STI Classic Funds
As previously announced on December 20th, SunTrust purchased $1.4 Billion of securities
from
the
STI
Classic
Prime
Quality
Money
Market
Fund
and
the
STI
Classic
Institutional
Cash
Management Money Market Fund at the end of the 4Q
The securities have been recorded in Trading Assets on SunTrust’s balance sheet and a
market valuation write-down of $250 million was recorded in the 4Q
SunTrust took this preemptive action to protect its approximately 142,000 account holders
from possible future losses associated with these securities
We believe this action enhances our reputation with clients and protects the revenue value of
the other products and services purchased by the Fund’s shareholders throughout the Bank
Excluding the non-performing SIVs, 94% of the securities mature by June 30, 2008.  $185
million in payments have been received in January, and another $155 million is expected by
month end
Purchased $1.4 Billion in Securities from its Affiliated Mutual Fund
Complex in 4Q 2007 and Recorded a $250 Million Market Valuation
Write-Down

10
Financial Topics:  Private Placement Fund Update
In 3Q 2007 SunTrust disclosed the planned closure of a private placement fund and that 
shareholder’s of the fund would receive their full principal and interest due in cash
The $967 million in securities were consolidated on the Company’s balance sheet at 9/30/2007
These
securities
had
original
AAA
ratings
and
consist
of
roughly
80%
RMBS
A market valuation write-down of approximately $16.0 million was recorded in the 3Q
The market value of these securities declined significantly during the fourth quarter due to
trading activity in some of the securities, and as a result we determined that an additional $116
million write-down was appropriate
After a fundamental review of the likely intrinsic value of the securities if held to maturity,
SunTrust has decided for now to hold these securities
Recorded 4Q 2007 Market Valuation Write-Down of $116 Million on
$967 Million in Securities Consolidated in 3Q 2007 as a Result of the
Closure of a Private Placement Fund

11
Financial Topics:  Noninterest
Income
SIV’s
Purchased from STI Classic Funds
$250
Securities Purchased from Three Pillars
145
Other Market Valuation Impacts:
Capital Markets
50
Mortgage
78
Treasury
–
Securities
Marks                     116
Treasury
–
SunTrust
Debt      
(84)
160
TOTAL
$555
Capital Markets related write-downs
declined from $121 million in 3Q to $50
million in 4Q
Mortgage write-downs decreased from $88
million in 3Q to $78 million in 4Q
Corporate debt security spreads widened
even more in 4Q creating an $84 million
write-up in the value of SunTrust fixed rate
debt
Solid performance in fee income with
double digit percentage growth over 4Q
2006 in service charges, retail investment
services, card fees, and mortgage servicing
($ in millions)
$555 Million Market Valuation Write-Downs on Securities and Loans
Drove
a
35%
Decrease
in
Noninterest
Income
versus
4Q
2006

12
Financial Topics:  Trading Assets
Dec 31           Sept 30
2007
2007
Change
U.S. Gov’t
& Agency
$   4,133
$4,215          $    (82)
Corporate & Other
3,440
970             2,470
Equity
243
325                 (82)
Mortgage Backed
321
494              (173)
Derivative Contracts
1,977
1,612
365
Municipal                                
171 
241                 (70)
Commercial Paper                            2  
673              (671)
Securitization Warehouse            61
894              (833)
Other Securities
170
143
27
TOTAL
$10,518         $9,567
$ 951
($ in millions)
Trading Assets Increase by $951 Million Driven by the Purchase of
Securities from STI Mutual Funds and Three Pillars
Growth in Corporate &
Other includes carrying
value of SIV and Three
Pillars securities
purchased in December
Securitization warehouse
declined by $833 million
due in part to securitization
of CLO loans

13
Financial Topics:  Capital Markets Related Impacts
Significant Steps Taken to Mitigate Securitization-Related Exposure
Dec 31       Sept 30
Warehouse
2007
2007
RMBS
$  0.0  
$       2.4
CLO
0.0
420.2
SBA
61.0
471.1
Sub-Total                          
$61.0   
$  893.7
Other Exposure
STI CLO
$ 45.7        $
48.5
CDO
6.9 
21.1
CLO
23.2  
8.1
RMBS
0.4
29.6
Trups
4.8
6.7
Sub-Total
81.0
114.0
TOTAL
$142.0 
$1,007.7
CLO reduction from securitization with
$365 million AAA portion retained in
Treasury portfolio
SBA
loans
re-classified
as
U.S.
Gov’t
&
Agency and approximately half sold
during 4Q 2007
CDO & RMBS exposures reduced
through write-downs and sales
($ in millions)

14
Financial Topics:  Expense Growth
($ in millions)
$
%
2007
2006
Change
Change
Noninterest
Expense
$5,233.8   
$4,879.9             $353.9              7.3%           
Net
E
Non-Recurring
(61.7)
(13.4)
Elimination
of
FAS
91
Deferral
(78.4)
-
Reversal of LILO QTE Reserve
-
10.9
Capital Security Redemption                        33.6
-
Visa Litigation Accrual                                 (76.9) 
-
Affordable Housing Divestitures                 (63.5)         
(14.8)     
Adjusted Noninterest
Expense
$4,986.9
$4,862.6            $124.3             
Credit Related
$   262.4
$   146.4            $116.0             79.2%
1. 
Includes $45 million of severance recorded in 3Q 2007
2.  Related to fair value accounting election in May 2007
3.  Includes operating losses, credit and collections, and other real estate expense
2007 Full Year Core Expense Growth of $124 Million (2.6%)
Driven Entirely by Increased Credit Related Costs
2.6%
2
1
3
2

15
Loan Portfolio: $122,319
Credit Perspective
($ in millions)
Dec 31
Sept 30
%
2007
2007
Change
Commercial
$35,929
$34,970
2.7%
Real Estate:
Home Equity
14,912
14,599
2.1
Construction
13,777
14,359
(4.1)
Residential Mortgages
32,780
31,604
3.7
Commercial Real Estate
12,609
12,487
1.0
Consumer:
Direct
3,964
4,419
(10.3)
Indirect
7,494
7,642
(1.9)
Credit Card
854
668
27.8
Total Loans
$122,319
$120,748
1.3%
Growth in C&I and Mortgage; Declines in Construction and
Consumer

16
Residential Mortgages $32,780
Credit Perspective
(As of 12/31/07, in millions)
Portfolio Profile
Credit Quality Metrics
%
Dec 31                                Orig
Current                    $              
60+
Balance
%
WACLTV
WAFICO
NPL
DLQ
Core Portfolio        
$21,831     
66.6%   
76%    
733              $323          1.40%
Home Equity                 3,625         11.0            73   
722                   41          0.80
Prime 2   
(Insured)      3,919         12.0            93                
721                   49          1.60
Lot Loans
1,681
5.1            84                        
729                   87          3.30
Alt-A 1                   
1,204           3.7            76                       
664                 276          8.30
Alt-A 2       
520
1.6
98  
634
65
6.50
$32,780 
100.0%        83%                              701        
$841         2.00%
1.  %60+ DPD does not include nonaccruals
90% of Portfolio has High FICO and Low LTV or Insurance
nd
st
nd
1

17
Home Equity Lines $14,912
Credit Perspective
(As of 12/31/07, in millions)
Portfolio Profile
Credit Quality Metrics
4Q
Dec 31          % of
Orig
Current                      C/O
%                  30+
Balance
Portfolio
WACLTV
WAFICO
%
NPL
DLQ
3   Party Originated
$1,836
12.3%         86%
715                   3.85%         2.59%         5.41%   
CLTV > 90%  
2,561          17.2      
95            736                
1.85        
1.11     
2.65
Florida 
3,518          23.6      
67            720                
0.92         
0.96     
2.10
All Other            
6,997
46.9
67
722
0.44
0.42
1.41
$14,912       100.0%      
74%   
723        
1.23%   
0.91%  
2.29% 
1.  Excludes 3   party originated
2. Excludes 3    party originated, CLTV 90+%
3.
Excludes 3    party originated, CLTV 90+% and Florida
Performance Issues Largely Confined to 3   Party and Higher LTV
Portions of Portfolio
rd
rd
1
2
3
rd
rd
rd

18
Construction $13,777
Credit Perspective
(As of 12/31/07, in millions)
Portfolio Statistics
Credit Quality Metrics
Avg
FL           %
Dec 31              % of
%           Size                  4Q07            $  
NPL         30+
Balance
Portfolio
FL
$000’s
$C/O
NPL
%
DLQ
Construction Perm
$3,555              26%         31%       445       
$1.4
$99.0       51%     4.36%
Residential
Construction               
2,731              20            31          391           
3.9      132.3       55        1.34
Residential A&D              2,146              15   
28 
662          
1.4        45.7     
53        0.54
Commercial
Construction            
3,293              24      
28       1,400    
0.0         4.0          6        0.22
Commercial A&D                791      
6 
27          771               
0.2   
4.5          9        0.08
Raw Land
1,261
9
34
712                
0.0
10.0
7
0.13
$13,777            100%  
29%                              $6.9   $295.5    
50%     6.67%
Low Charge-Offs to Date; Commercial Performing Well, with Stress
Most Evident in Florida Residential

19
Nonperforming Assets $1,655
Credit Perspective
(As of 12/31/07, in millions)
Dec 31       
% of
Balance
NPA
Residential Construction & A&D
$179
10.8%
Construction Perm
99                  
6.0
Other
17 
1.0
Total Construction
295
17.8          
Residential Mortgage
& HELOC
977
59.0
Total Construction & Mortgage              
1,272                               76.8
All Other
158
9.5
Subtotal -
Nonaccrual
loans
1,430                               86.3
Restructured/OREO       
225
13.6
TOTAL  NPA’s
$1,655
100.0%       
Growth in NPAs
Driven by Relatively Well Secured Residential
Mortgage and Construction Loans

20
Appendix

21
Additional Financial Disclosures
($ in millions)
4Q 2007
3Q 2007
Trading Account Profits and Commissions
Market Valuation Write-Downs
$(477)                            $(73)
Mortgage Production Income
Mark-to-Market (Spread widening
$  (78)
$ (88)
& NPL Marks)
Mortgage Servicing Income
Revenue From Sale of Mortgage Servicing Rights
$   19
$ 20
Other
Noninterest
Expense
Affordable Housing
$   58
$    6

22
Outlook
Capital & Margin
Tier 1 ratio fell below target at year end; we expect to be above target with planned transactions
Tier 1 target remains 7.50%
We expect that under any of the authorized Coca-Cola Stock transactions, Tier 1 capital would increase by
approximately $1 billion and SunTrust expects to provide additional detail around these transactions during 2Q 2008
We
are
also
evaluating
the
Capital
Markets
and
may
issue
capital
securities
during
the
first
quarter
We do
not
anticipate
any
issues
in
maintaining
our
dividend.
As
has
been
the
standard
practice
over
the
years, the
Board will consider SunTrust’s dividend policy when it meets in February
1Q 2008 margin is likely to compress slightly due to the securities purchased in 4Q 2007
For the remainder of 2008, we expect margin to stabilize and possibly expand, depending upon deposit pricing and
volumes, the Libor/Prime relationship, and the level of NPA’s
Credit
The 5% of the Residential Mortgage portfolio secured by residential lots is showing stress with 60+ delinquency in
excess of 3%.  While the credit quality of the borrowers is holding up well, the delinquency rate, original LTV and outlook
for residential values and construction activity point to more losses in this portfolio
Alt-A 1   lien loans:  We
expect
NPL’s
to
increase
further.
However,
ultimately
we
expect
the
loss
content
to be
manageable given the 24% valuation cushion at origination.
We
continue
to
expect
that
the
loss
content
in
current
NPA’s
will
be manageable
1.
Actual
results
could
differ
materially
from
those
contained
in
or
implied
by
such
statements
-
a
list
of
important
factors
that
could
affect
actual
results
are
listed on slide 1
1
st

23
Outlook
Credit (continued)
We
expect
charge-offs
to
increase
in
the
first
quarter
and
perhaps
second
quarter
in
the
consumer/residential
real
estate-based portfolios.  We are projecting charge-offs to moderate in the second half in these portfolios, relatively good
C&I performance, and increasing risk and charge-offs in residential construction/Home Builder as current weakness
turns into charge-offs later in the year.  The key risk to these expectations are a broad recession and significant
additional declines in real estate values
We expect charge-offs to trend up in the near term.  However, given our underwriting standards, collateral position, and
risk mitigation activities, we expect 2008 losses to be manageable
Revenue & Expense
In this environment, we would expect our Commercial Clients to be relatively conservative in investing for growth and
that means 2008 will be tough year for loan and revenue growth
Three Pillars is performing well and we expect it will remain off balance sheet
The markets remain volatile and we expect to receive December performance data later this month that could affect
values
Based on estimates provided by Visa regarding its planned IPO, we currently believe our ownership interest in Visa has
a value significantly in excess of $77 million
Our
organizational
review
efforts
will
result
in
the
elimination
of
2,400
positions
E  goal is to achieve savings of $530 million, or 10% of our 2006 expense base during the 2009 fiscal year, and with a
fourth quarter run-rate of $75 million we are well on our way to meeting our 2008 goal of $350 million
1.
Actual
results
could
differ
materially
from
those
contained
in
or
implied
by
such
statements
-
a
list
of
important
factors
that
could
affect
actual
results
are
listed on slide 1
1
2