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) January 29, 2008

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.

SunTrust Banks, Inc. (the “Registrant”) is scheduled to make a presentation at the 2008 Citigroup Financial Services Conference on Tuesday, January 29, 2008 at 10:30 AM Eastern Time. James M. Wells III, President and Chief Executive Officer, will make SunTrust’s presentation. A copy of the slide package to be used by the Registrant at this conference is being 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.

The information in the preceding paragraph, 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 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Slide package to be presented on January 29, 2008 (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: January 29, 2008.	By:	/s/ David A. Wisniewski
		David A. Wisniewski,
		Associate General Counsel and Group Vice President

EX-99.1

James M. Wells III

President and Chief Executive Officer

2008 Citigroup Financial Services Conference

January 29, 2008

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 on Form 10-Q, and Current Reports on Form 8-K. 

This

presentation

includes

non-GAAP

financial

measures

to

describe

SunTrust’s

performance.

The

reconciliation

of

those

measures

to

GAAP

measures

are

provided

within

this

presentation.

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

slide

21,

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

Capital & Coca-Cola Stock

•

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

4

Financial Topics:  Margin

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

2.94%

3.02%

3.10%

3.13%

3.18%

4Q 2006

1Q 2007

2Q 2007

3Q 2007

4Q 2007

5

Financial Topics:  Noninterest

Income

STI Classic Funds

$250

Three Pillars ABS

145

Capital Markets

50

Mortgage

78

Securities Marks

116

SunTrust Debt               (84)

TOTAL

$555

($ in millions)

$555 Million Market Valuation Write-Downs on Securities and Loans;

Otherwise Fee Income up 12% Versus 4Q 2006

%

4Q07

4Q06

Change

Noninterest

Income

$576

$883

(35%)

Market Valuation

555                 -

RE Gain

(119)               -

MSR Sale

(19)

-

FAS 91

-

34

Securities gains

(6)

(35)

Adjusted Fee Income       $987

$882

12%

Market Valuation Impacts

Noninterest

Income Growth

6

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

7

Credit Prospective

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

Credit Perspective

($ in millions)

Net Charge-offs

Commercial     

0.35%    

Commercial Real Estate

(0.02)

Home Equity Lines  

1.23

Residential Mortgage

0.70

Construction

0.20

Consumer Direct

0.42

Consumer Indirect

1.16

Total Net Charge-off Ratio

0.55%

4Q07 Charge-Off Ratio Increased to 55 bps, Driven by Home Equity

Lines and Residential Mortgage

•

Commercial and Commercial Real Estate

generally performing well

•

Rapid deterioration in 4Q of Home Equity

and Residential Mortgage Portfolios

•

Sub-sets of Residential Mortgage, Home

Equity lines, and Construction are under

stress

•

These sub-sets total $16 billion, or 13%, of 

the total Dec 31 portfolio and much of it is

reasonably well secured

9

Operating Model:  Lines of Business (LOBs) & Geographic Banking

LOBs

Create Strategies & Products Centrally and Geographies

Execute Sales, Service, and Credit Decisions Locally….

…with Joint Accountability for Results

C. Eugene Kirby

Corporate EVP

Retail &

Commercial

Mid-Atlantic 

Group

Wholesale

Wealth &

Investment Mgmt

Mortgage

William H. Rogers, Jr.

Corporate EVP

William R. Reed, Jr.

Vice Chairman

James M. Wells III

President & CEO

Florida         

Group

Central          

Group

10

Operating Model:  Line of Business Segmentation

Restructured Business Client Model to Better Meet Client Needs

and Streamline Internal Processes

Mortgage

Wholesale

Retail &

Commercial

Large Corporate:

(>$750 MM Rev)

Middle Market:

($100 MM -

$750 MM Revs)

Commercial Real Estate

Capital Markets

Branch Banking

Consumer Lending

Small Business:

(<$5 MM Revenue)

Commercial Banking:

(<$100 MM Rev)

Wealth &

Investment Mgmt

Origination

Servicing

Private Wealth Mgmt

Institutional Investment Mgmt

GenSpring

Family Offices

11

2008 Priorities

Managing Through the Credit Cycle

•

Refining underwriting policies

•

Improving collections and recovery

•

Enhancing Risk Management

Focusing on E

2

Efficiency & Productivity

•

Completing remaining real estate transactions

•

Finalizing implementation of Commercial credit resource centers

•

Continuing focus on supplier management

•

Making it easier to do business internally and externally

Growing Revenue

•

Generating more deposit growth

•

Increasing assets under management

•

Selling more Capital Markets products in Corporate, Middle Market, and Commercial 

segments

•

Growing Mortgage production market share

12

Appendix

13

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

14

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)

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

nd

st

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

rd

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 3rd party originated, CLTV 90+%

3.

Excludes 3rd party originated, CLTV 90+% and Florida

Performance Issues Largely Confined to 3

Party and Higher LTV

Portions of Portfolio

rd

rd

1

2

3

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

Geographic Banking Overview

Mid-Atlantic

Group

Central

Group

Florida

Group

Loans:

$23 billion

$17 billion

$18 billion

Deposits:

$32 billion                   

$25 billion

$34 billion

Branches:                 662

482

538

Regions:

C Virginia

Atlanta

C Florida

GWR/Maryland

Chattanooga

N Florida

Hampton Roads

E Tennessee

S Florida

Mecklenburg/SC

Georgia

SW Florida

Triangle/Triad NC

Memphis

Tampa

Western VA

Nashville

William R.  Reed, Jr.

Vice Chairman

21

Outlook

1

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

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

Alt-A 1

st

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 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

Three Pillars is currently performing well and we expect it

will remain

off balance sheet

Revenue Expense

2008 will be a tough year for loan and revenue growth

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