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) July 22, 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 2.02 Results of Operations and Financial Condition.

Item 7.01 Regulation FD Disclosure.

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition” and Item 7.01, “Regulation FD Disclosure.” Consequently, it is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.

On July 22, 2008, SunTrust Banks, Inc. (the “Registrant”) announced financial results for the quarter ended June 30, 2008. A copy of the news release announcing the Registrant’s results for the quarter ended June 30, 2008 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The Registrant intends to hold an investor call and webcast to discuss financial results for the quarter ended June 30, 2008 on July 22, 2008, at 8:00 a.m. Eastern time. Additional presentation materials relating to such call are attached hereto as Exhibit 99.2 and are incorporated herein by reference.

All information in the news release and the presentation materials speak as of the date thereof and the Registrant does not assume any obligation to update such 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 2.02 and/or Item 7.01 of this report on Form 8-K.

Item 8.01 Other.

SunTrust Banks, Inc. and certain of its subsidiaries (collectively, “SunTrust”) have completed or entered into transactions involving all of its approximately 43.6 million shares of the common stock of The Coca-Cola Company (“Coke Shares”). In the aggregate, these transactions resulted in an increase in Tier 1 Capital of approximately $1.14 billion, or an estimated 68 basis points. Approximately $345 million of this amount, or an estimated 20 basis points, was recorded in the quarter ended June 30, 2008, and approximately $797 million of such amount, or an estimated 48 basis points, relates to transactions executed in July and will be reflected in the third quarter results. These transactions also resulted in an aggregate increase to net income (after tax) of approximately $414 million. Approximately $345 million of such increase in net income was recognized in the quarter ended June 30, 2008, and $69 million of such increase in net income was realized in July and will be reflected in the third quarter results.

There were three sets of transactions: (1) equity forward agreements covering 30 million Coke Shares, (2) open market sales covering 10 million Coke Shares, and (3) a charitable gift to the SunTrust Foundation of approximately 3.6 million Coke Shares, all described in greater detail below. These transactions are the culmination of a capital review initiative that commenced in early 2007. SunTrust’s primary objective in executing these transactions was to optimize the benefits it obtains from its long-term holding of this asset, including capital treatment by bank regulators, and does not reflect any opinion of The Coca-Cola Company.

Equity Forward Agreements

SunTrust entered into variable forward purchase agreements and share forward agreements effective July 15, 2008 with a major, unaffiliated financial institution (“Counterparty”) collectively covering 30 million Coke Shares (the “Agreements”). Under the Agreements, SunTrust must deliver to Counterparty at settlement either a variable number of Coke Shares or a cash payment in lieu of such shares. Counterparty is obligated to settle the Agreements for no less than approximately $39 per share, or approximately $1.16 billion in the aggregate (the “Minimum Proceeds”). The share forward agreements with Counterparty give SunTrust the right, but not the obligation, to sell to Counterparty, at prevailing market prices at the time of settlement, any of the 30 million Coke Shares which it does not deliver to Counterparty in settlement of the variable forward purchase agreements. The Agreements effectively ensure that SunTrust will be able to sell its 30 million Coke Shares at a price no less than approximately $39 per share, while permitting SunTrust to participate in future appreciation in the value of the Coke Shares up to approximately $66 per Coke Share.

SunTrust expects settlement to occur in approximately 7 years. However, SunTrust also has the option to terminate the Agreements earlier with the approval of the Federal Reserve. The Agreements may also terminate earlier upon certain events of default, extraordinary events regarding The Coca-Cola Company, and other typical termination events. Upon early termination, there could be exit costs or gains, such as certain breakage fees, including an interest-rate make-whole amount. Such costs or gains may be material but cannot be determined at the present time due to the unlikely occurrence of such events and the number of variables that would need to be determined. However, the payment of such costs, if any, will not result in SunTrust receiving less than the Minimum Proceeds.

SunTrust has received an opinion from its external legal counsel to the effect that entering into the Agreements should not result in a taxable disposition of the Coke Shares covered by such Agreements. Accordingly, SunTrust should not recognize taxable gain on such shares until it actually sells the Coke Shares under the Agreements or in another transaction. SunTrust’s present intention is to retain the 30 million Coke Shares for approximately 7 years and to sell the 30 million Coke Shares under the Agreements or in another market transaction at that time. SunTrust’s financial statements continue to reflect a deferred tax liability for an estimate of taxes that would be paid on the future sale of the 30 million Coke Shares.

Counterparty has invested in senior unsecured promissory notes issued by SunTrust Bank and SunTrust Banks, Inc. (collectively, the “Notes”) in a private placement in an aggregate principal amount equal to the Minimum Proceeds. The Notes mature in approximately 10 years and bear interest at 1-month Libor plus a fixed spread. However, upon the early termination of the Agreements, should that occur, the scheduled maturity of these Notes may accelerate to 3 years following settlement of the Agreements. Counterparty has pledged the Notes to SunTrust, and SunTrust has pledged the 30 million Coke Shares to Counterparty, each to secure its respective obligations under the Agreements. The pledged Coke Shares are held by an independent third-party custodian, and Counterparty is prohibited under the Agreements from selling, pledging, assigning or otherwise using the pledged Coke Shares in its business.

SunTrust generally may not prepay the Notes. The interest rate of the Notes will be reset upon or after the settlement of the Agreements, either through a remarketing process or based upon dealer quotations. In the event of an unsuccessful remarketing of the Notes, SunTrust would be required to collateralize the Notes and the maturity of the Notes may accelerate to the one year anniversary of the settlement of the Agreements. However, SunTrust presently believes that it is substantially certain that the Notes will be successfully remarketed.

The Federal Reserve has determined that SunTrust may immediately include in Tier 1 Capital an amount equal to the Minimum Proceeds minus the deferred tax liability associated with the ultimate sale of the 30 million Coke Shares. Accordingly, the Agreements have resulted in an increase in Tier 1 Capital during the third quarter of approximately $728 million or an estimated 44 basis points. For accounting purposes, SunTrust will not recognize a gain until SunTrust actually sells the Coke Shares.

During the terms of the Agreements, and until SunTrust sells the 30 million Coke Shares, SunTrust generally will continue to receive dividends as declared and paid by The Coca-Cola Company and will have the right to vote such shares of stock. However, the amounts payable to SunTrust under the Agreements will be adjusted if actual dividends received are not equivalent to expected amounts.

Open Market Transactions

Separately, SunTrust sold 10 million Coke Shares in open market transactions during the second quarter of 2008. These sales increased Tier 1 Capital in the second quarter by $345 million, or approximately 20 basis points, and resulted in a realized accounting gain of $345 million, net of taxes.

Charitable Gift to the SunTrust Foundation

SunTrust contributed approximately 3.6 million unrestricted Coke Shares to the SunTrust Foundation in July, 2008. SunTrust expects this gift to act as an endowment for the SunTrust Foundation to make grants to charities operating within the SunTrust footprint for years to come. SunTrust expects to receive a

charitable deduction for income tax purposes in the third quarter of 2008 for the fair market value of the donated Coke Shares. The contribution has resulted in an increase in Tier 1 Capital during the third quarter of approximately $69 million, or an estimated 4 basis points.

Important Cautionary Statement About Forward-Looking Statements

This report contains forward-looking statements. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. In particular, statements of expected Federal Reserve, accounting, or tax treatment of our transactions involving the common stock of The Coca Company, our future plans regarding such stock, the expected duration of the Agreements, and the likelihood of a successful remarketing of the Notes, are forward looking statements. These statements often include the words “may,” “could,” “will,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “initiatives,” “targets,” “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, and speak as of the date hereof. The forward-looking statements in this report speak only as of this date, and SunTrust does not assume any obligation to update such statements or to update the reasons why actual results could differ from those contained in such statements. In addition, estimates of Tier 1 Capital expressed as a percentage of risk-weighted assets rather than in dollars assume solely for convenience that risk-weighted assets at quarter end will be the same as at June 30, 2008, and no statement regarding the level of risk-weighted assets at September 30, 2008 is intended. Tier 1 Capital and risk-weighted assets as of June 30, 2008 were estimated as of the earnings release date.

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 2007 Annual Report on Form 10-K, in the Quarterly Reports on Form 10-Q and in the Current Reports filed on Form 8-K 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.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits

99.1 News release dated July 22, 2008 (furnished with the Commission as a part of this Form 8-K).

99.2 Presentation materials dated July 22, 2008 (furnished with the Commission as a part of this 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: July 22, 2008.	By:	/s/ Thomas E. Panther
		Thomas E. Panther, Senior Vice President and Controller

EX-99.1

Exhibit 99.1

News Release

Contact:
Investors	Media
Steve Shriner	Barry Koling
(404) 827-6714	(404) 230-5268

For Immediate Release

July 22, 2008

SunTrust Reports Second Quarter Earnings of $1.53 Per Share

Company Announces Completion of Transactions Regarding its Holdings in Common Stock of The

Coca-Cola Company Resulting in an Increase in Regulatory Capital

ATLANTA — SunTrust Banks, Inc. (NYSE: STI) today reported net income available to common shareholders of $535.3 million for the second quarter of 2008, or $1.53 per average common diluted share, compared to $673.9 million, or $1.89 per average common diluted share, in the second quarter of 2007. The results for the second quarter of 2008 included a number of gains and losses that were unrelated to the Company’s core performance, the largest of which was the sale of 10 million shares of The Coca-Cola Company (“Coke”) common stock. The aggregate net earnings impact of these items was an increase of $0.75 per average diluted common share. The second quarter of 2007 results included a gain on the sale of 4.5 million shares of Coke common stock, the net impact of which was $0.41 per average common diluted share.

The Company recently completed three separate transactions to optimize its long-term holdings of Coke common stock. Collectively, these transactions are estimated to have increased Tier 1 capital by 68 basis points. Further, one of the transactions involved a charitable contribution that will allow the legacy of The Coca-Cola Company and SunTrust relationship to benefit communities for years to come.

“Our capital position solidified during the quarter as a result of the Coke stock-related transactions which make SunTrust even better prepared to address the challenges of the current environment, as well as strengthen our position for the long-term,” said James M. Wells III, Chairman, President and Chief Executive Officer. “Against a backdrop of economic weakness, deteriorating market conditions, and industry-wide volatility, our second quarter results reflect the Company’s intense focus on managing our core business, balance sheet, and credit risk through this difficult cycle.”

During the quarter, the Company grew loans and deposits, expanded net interest margin, and improved certain fee income categories. Further, tightly managed growth of core operating expenses reflected the continuing success of SunTrust’s ongoing program to improve efficiency and productivity, although expenses continue to be pressured by credit-related costs. Additionally, the Company successfully reduced its risk profile during the second quarter by shedding an additional 50% of its higher-risk trading securities acquired from certain affiliated companies during the fourth quarter of 2007, bringing its exposure to these securities to less than $800 million.

Mr. Wells noted that the high costs of credit continued to take a toll on earnings, though at a slower pace than the prior quarter. Given the strengthened capital position, core earnings performance, and recent credit trends, Mr. Wells reiterated that the Company does not have any current plans to modify the dividend or issue additional shares of common stock.

Coke Common Stock Transactions

During the second and third quarters of 2008, the Company completed three transactions to optimize the regulatory capital contribution of its long-term holdings of Coke common stock:

• In June, the Company sold 10 million shares of Coke stock, which strengthened its estimated Tier 1 capital position by 20 basis points.

• The Company received Federal Reserve approval, and in July completed a Tier 1 transaction involving 30 million shares of Coke stock generating 44 basis points in proforma June 30, 2008 additional Tier 1 capital.

• Lastly, in July the Company contributed 3.6 million shares of Coke common stock to its charitable foundation which will reduce ongoing charitable contribution expense and increase Tier 1 capital by 4 basis points.

As a result of the Coke stock transactions completed in July, the Company’s estimated Tier 1 capital position of 7.47% as of June 30, 2008 would have increased to an estimated 7.95% at June 30, 2008 on a proforma basis.

“It is timely to reiterate that the impetus for the transactions announced today was exclusively related to SunTrust’s own capital optimization goals,” noted Mr. Wells. “We retain the highest degree of institutional respect for The Coca–Cola Company as one of the world’s leading companies with whom SunTrust has enjoyed a long, positive, and productive relationship. We are particularly pleased that one legacy of our Coke stock holdings is support for our future charitable giving and community commitment.”

Credit

The Company’s net charge-offs and certain other key credit metrics continued to deteriorate in the second quarter, though at a slower place than the prior quarter. Overall, credit metrics remain elevated, principally as a result of loans secured by real estate. Net charge-offs increased 8.6% from the first quarter, which equated to an annualized 104 basis points of average loans. Provision expense declined from the first quarter of 2008, as the slowing pace of credit deterioration necessitated a smaller increase in the reserve. Total provision expense was $448.0 million, as compared to $560.0 million in the first quarter of 2008 and $104.7 million in the second quarter of 2007. The allowance for loan losses increased to $1,829.4 million, or 1.46% of total loans outstanding, which is up 41 basis points from the end of 2007 and 21 basis points from the first quarter of 2008.

Second Quarter 2008 Consolidated Highlights

	2nd Quarter 2008			2nd Quarter 2007			% Change
Income Statement
(Dollars in millions, except per share data)
Net income available to common shareholders	$	535.3		$	673.9		(20.6	)%
Net income per average common diluted share		1.53			1.89		(19.0	)%
Revenue – fully taxable-equivalent		2,598.0			2,374.6		9.4	%
Net interest income – fully taxable equivalent		1,185.0			1,220.0		(2.9	)%
Provision for loan losses		448.0			104.7		328.0	%
Noninterest income		1,413.0			1,154.6		22.4	%
Noninterest expense		1,378.5			1,251.2		10.2	%
Net interest margin		3.13	%		3.10	%
Efficiency ratio		53.06	%		52.69	%
Balance Sheet
(Dollars in billions)
Average loans	$	125.2		$	118.2		5.9	%
Average consumer and commercial deposits		101.7			97.9		3.9	%
Capital
Tier 1 capital ratio (1)		7.47	%		7.49	%
Total average shareholders’ equity to total average assets		10.31	%		9.96	%
Tangible equity to tangible assets		6.23	%		5.85	%
Asset Quality
Net charge-offs to average loans (annualized)		1.04	%		0.30	%
Nonperforming loans to total loans		2.22	%		0.64	%

⁽¹⁾ Current period Tier 1 capital ratio is estimated as of the earnings release date.

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• Net income available to common shareholders decreased 20.6% and net income per average common diluted share decreased 19.0% from the second quarter of 2007 primarily due to higher provision for loan losses, higher credit-related expenses, impairment of a customer intangible asset, and valuation losses on publicly-traded debt and related hedges carried at fair value. These items were partially offset by the gain on sale of Coke common stock and the sale of a non-strategic operating subsidiary.

• The second quarter of 2008 results included a number of gains and losses that were unrelated to the Company’s core performance. Items that positively impacted results included the sale of 10 million shares of Coke common stock which contributed $0.99 and a gain on the sale of First Mercantile Trust which contributed $0.05 to diluted earnings per share. Items that negatively impacted results included mark-to-market losses on the Company’s debt which had a ($0.17) impact, impairment of an intangible asset which had a ($0.08) impact, Coke stock transaction costs which had a ($0.02) impact, and costs associated with the Company’s E² Efficiency and Productivity Program which had a ($0.02) impact on diluted earnings per share.

• Fully taxable-equivalent revenue increased 9.4% compared to the second quarter of 2007, as securities gains and fee income more than offset a decline in net interest income, trading account income due to valuation losses on the publicly-traded debt and related hedges carried at fair value, and mortgage- related income. Excluding net securities gains, total revenue decreased 4.2%.

• Fully taxable-equivalent net interest income declined 2.9% from the second quarter of 2007, despite a three basis point improvement in margin, as earning assets declined 3.2%. Both the increase in margin and the decrease in earning assets were the result of balance sheet management strategies executed over the past year.

• Noninterest income increased 22.4% from the second quarter of 2007, driven by incremental securities gains, double digit growth in service charges on deposit accounts and card fees, partially offset by a decline in trading profits and commissions related to valuation losses on the publicly-traded debt and related hedges, and mortgage-related income.

• Noninterest expense increased 10.2% from the second quarter of 2007. However, core expense growth remained well controlled as a result of the Company’s efficiency and productivity efforts. Noninterest expense would have declined if not for higher credit-related expenses and the impairment charge related to a customer intangible asset.

• Total average loans increased 5.9% from the second quarter of 2007 principally due to growth in the commercial loan portfolio. Average loans held for sale declined 61.7%, as loan originations declined 48%, production shifted to predominantly agency products, and efficiency improved in loan delivery. Average consumer and commercial deposits increased 3.9% over the second quarter of 2007. The increase in average consumer and commercial deposits was driven mainly by growth in NOW and money market account balances.

• The estimated Tier 1 capital, total average shareholders’ equity to total average assets, and tangible equity to tangible asset ratios were 7.47%, 10.31%, and 6.23%, respectively. These results do not reflect the entire impact of our completed capital optimization initiative related to our Coke holdings. The Coke stock transactions that were completed in July 2008 would have increased Tier 1 capital by approximately 48 basis points had they been completed during the second quarter of 2008.

• Annualized net charge-offs were 1.04% of average loans for the second quarter of 2008, up from 0.30% in the second quarter of 2007 and 0.97% in the first quarter of 2008. The increase reflects deterioration in consumer credit, particularly in residential real estate secured loans.

• Nonperforming loans to total loans increased to 2.22% as of June 30, 2008, from 1.67% as of March 31, 2008 and 0.64% as of June 30, 2007, due mainly to increased levels of residential real estate secured loans and residential real estate construction loans.

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CONSOLIDATED FINANCIAL PERFORMANCE

Revenue

Fully taxable-equivalent revenue was $2,598.0 million for the second quarter of 2008, an increase of 9.4% compared to the second quarter of 2007, driven by the incremental net securities gains primarily related to gains on the sale of the Coke stock and fee income. These growth items were partially offset by a 2.9% decline in net interest income and valuation losses related to our publicly-traded debt and related hedges carried at fair value. Excluding net securities gains, total revenue decreased 4.2%.

For the six months, fully taxable-equivalent revenue was $4,823.3 million, up 8.6% over prior year. The increase was driven by incremental net securities gains of $252.8 million, gains on the sale of non- strategic businesses and the sale/leaseback of certain corporate real estate properties, the Visa IPO gain, and fee income, partially offset by lower net interest income and net mark to market valuation losses on trading assets and publicly-traded debt recorded at fair value.

Net Interest Income

Fully taxable-equivalent net interest income was $1,185.0 million in the second quarter of 2008, a decrease of 2.9% from the second quarter of 2007, despite a three basis point improvement in net interest margin. Earning assets declined $5.1 billion, or 3.2%, primarily due to a reduction in interest earning trading assets and loans held for sale, partially offset by growth in commercial loans. The increase in net interest margin and the decrease in trading assets were the result of balance sheet management strategies initiated in 2007. On a sequential quarter basis, net interest margin increased six basis points, as the decline in funding costs exceeded the decline in asset yields.

For the six months, fully taxable-equivalent net interest income was $2,352.8 million, a decline of 2.3% from 2007. However, net interest margin improved four basis points as balance sheet management strategies executed in 2007 led to a $5.8 billion decline in average earning assets, namely loans held for sale and interest bearing trading assets, which was partially offset by growth in commercial loans.

Noninterest Income

Total noninterest income was $1,413.0 million for the second quarter of 2008, up $258.4 million, or 22.4%, from the second quarter of 2007. The second quarter of 2008 included the gain on the sale of Coke stock of $548.8 million and a $29.6 million gain on the sale of First Mercantile Trust, a retirement plan services subsidiary, as compared to the second quarter of 2007, which included a gain on the sale of Coke stock of $234.8 million and a $23.4 million gain generated from a private equity transaction.

During the quarter, the Company recorded approximately $102.6 million in market valuation losses in trading account profits and commissions related primarily to the Company’s publicly-traded debt and related hedges carried at fair value. These losses were related to the improvement in the credit spread on the Company’s public debt. Also, contributing to the decline in trading accounts profits and commissions were costs associated with derivative contracts executed in connection with the Coke transaction. Partially offsetting these valuation related losses was an improvement in fixed income trading revenue relative to prior year. The second quarter of 2007 also included market value adjustments on financial assets and liabilities carried at fair value.

Mortgage production income was $63.5 million in the second quarter of 2008 as compared to $64.3 million in the second quarter of 2007. Lower loan production and related fees were offset by higher fee recognition due to the elimination of the FAS 91 income deferral upon adoption of FAS 159 during the second quarter of 2007. In addition, the Company recognized valuation losses in the second quarter of 2007 on the Alt-A loans held in the warehouse. Mortgage servicing related income in the second quarter of 2008 declined $13.0 million primarily due to an $11.7 million gain on the sale of mortgage servicing rights during the second quarter of 2007.

4

In the second quarter of 2008, the Company experienced strong growth in service charges on deposit accounts and card fees, which increased 17.0% and 14.6%, respectively, over the same period of 2007. Other income declined $53.4 million year over year primarily due to gains on private equity transactions and structured leasing transactions in 2007.

For the six months, total noninterest income was $2,470.5 million, $437.0 million or 21.5% over the $2,033.5 million earned for the same period of 2007. The increase was largely due to the following transaction-related gains:

• $314.0 million incremental gain on the sale of Coke stock

• $57.1 million incremental gain on sale of Lighthouse interests

• $37.0 million gain on the sale/leaseback of corporate real estate

• $29.6 million gain on sale of First Mercantile Trust

• $86.3 million gain recorded on the Visa IPO

Partially offsetting these gains were securities losses recorded in the first quarter of 2008 of $64.1 million in conjunction with available for sale securities that were determined to be other than temporarily impaired, as well as a decline in trading account profits and commissions primarily related to valuation losses on trading assets that were acquired in late 2007, net of valuation gains on publicly-traded debt and related hedges. In 2007, $81.0 million of trading gains were recognized related to financial assets and liabilities that the Company elected to record at fair value in connection with the adoption of FAS 159. Mortgage production income increased 167.8% over the first six months of 2007 due to the earlier recognition of servicing rights and origination fees in accordance with recently adopted accounting standards partially offset by a decline in loan production. The prior period also included $42.2 million of income reductions recorded in conjunction with our election to record certain loans held for sale at fair value. Consistent with the quarterly comparison, revenue from card fees and service charges on deposit accounts experienced double digit growth over the same period of 2007, while trust and investment management income declined primarily due to the disposition of our interests in Lighthouse Investment Partners.

Noninterest Expense

Total noninterest expense in the second quarter of 2008 was $1,378.5 million, up $127.3 million, or 10.2%, from the second quarter of 2007, as credit related expenses grew by $69.5 million and an impairment charge of $45.0 million related to a customer intangible asset was recorded in the second quarter of 2008. Core expenses were well controlled as a result of the Company’s E² Efficiency and Productivity Program, which generated gross savings of approximately $135 million for the quarter. The impairment charge pertains to client relationships that were valued in 2004 in connection with an acquisition. While the overall business has performed satisfactorily, the attrition level of the legacy clients has recently increased resulting in the acceleration of the amortization of this intangible asset. Personnel expenses in the second quarter of 2008 increased $1.3 million, or 0.2%, from the same period in 2007; however, personnel expenses would have declined taking into account the impact related to loan origination costs that were deferred prior to the Company’s election during the second quarter of 2007 to record at fair value certain newly-originated mortgage loans held for sale. Total personnel declined from 33,241 as of June 30, 2007 to 31,602 as of June 30, 2008. Compared to the first quarter of 2008, personnel expense declined $3.1 million due a reduction in seasonal employee benefits expenses. The decrease was offset by a $3.8 million increase in expenses from the acquisition of GB&T. Other expenses increased in the second quarter of 2008, including a $69.5 million increase in credit-related expenses such as collection services, valuation losses on other real estate owned, mortgage insurance reserves, and mortgage fraud related losses. Of particular mention is the $25.0 million increase in the mortgage insurance reserve which pertains to our mortgage insurance guaranty subsidiary, Twin Rivers. Twin Rivers’ loss exposure arises from third-party mortgage insurers transferring a portion of their first loss exposure when losses by mortgage origination year exceed certain thresholds. We estimate losses in Twin Rivers to be in the range of $25 million to $50 million for each of the remaining two quarters of 2008, and our estimated maximum exposure, net of premium income, to be less than $200 million with the timing and ultimate amount of loss recognition being uncertain.

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For the six months, total noninterest expense was $2,633.7 million, an increase of $146.5 million, or 5.9%, over the same period in 2007. The increase was primarily due to the same reasons related to the quarterly increase. In addition, in 2008 the Company recorded a $39.1 million reduction in the Visa litigation accrued liability following the Visa IPO. The Company’s E² Efficiency and Productivity Program generated year-to-date gross savings of approximately $248 million.

Balance Sheet

As of June 30, 2008, SunTrust had total assets of $177.4 billion. Shareholders’ equity of $17.9 billion as of June 30, 2008 represented 10.1% of total assets. Book value and tangible book value per common share were $49.24 and $29.99 as of June 30, 2008, respectively.

Loans

Average loans for the second quarter of 2008 were $125.2 billion, up $7.0 billion, or 5.9%, from the second quarter of 2007. The increase was primarily in commercial-related categories. Construction loans declined $2.2 billion due to the Company’s risk mitigation efforts and indirect auto loans declined $626 million driven by SunTrust’s de-emphasis of this product channel. Average loans held for sale declined $8.3 billion, or 61.7%, as loan originations declined 48%, production shifted to predominantly agency products, and efficiency improved in loan delivery. Compared to the first quarter of 2008, average loans were up $1.9 billion, or 6.3% on a sequential annualized basis, driven by commercial loan growth and the acquisition of GB&T.

Deposits

Average consumer and commercial deposits for the second quarter of 2008 were $101.7 billion, up $3.8 billion, or 3.9%, from the second quarter of 2007, as increases in NOW and money market deposits were partially offset by declines in demand deposit and savings account balances. Average total brokered and foreign deposits declined 37.2% from the second quarter of 2007, as the Company deliberately reduced the size of its earning assets, thereby enabling the reduction of higher cost funding sources and substantially improving the Company’s liquidity position. Compared to the first quarter of 2008, average consumer and commercial deposits increased $558.5 million, or 2.2% on a sequential annualized basis, with most of the growth in lower cost deposit products unrelated to the GB&T acquisition.

Capital

The estimated Tier 1 capital, total average shareholders’ equity to total average assets, and tangible equity to tangible asset ratios at June 30, 2008, were 7.47%, 10.31%, and 6.23%, respectively. Tier 1 capital decreased two basis points compared to June 30, 2007, while the total average shareholders’ equity to total average assets and tangible equity to tangible asset ratios increased 35 and 38 basis points, respectively. The sale of 10 million shares of Coke common stock increased Tier 1 capital by 20 basis points. The contribution of 3.6 million shares to the SunTrust Foundation and the incremental Tier 1 capital transaction which were both completed in July 2008 would have increased Tier 1 capital by approximately 48 basis points had they been completed in the second quarter, resulting in an estimated proforma Tier 1 capital ratio of 7.95% at June 30, 2008. These transactions are also expected to increase the total capital ratio from an estimated 10.86% to 10.97%. The Company’s regulatory capital ratios are significantly in excess of the regulatory requirements for well capitalized status.

Asset Quality

Annualized net charge-offs in the second quarter of 2008 were 1.04% of average loans, up from 0.30% in the second quarter of 2007 and 0.97% in the first quarter of 2008. Net charge-offs were $323

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million in the second quarter of 2008, as compared to $88 million in the second quarter of 2007. The increase in net charge-offs over the second quarter of 2007 reflects deterioration in consumer credit, particularly in residential real estate secured loans. The increase in net charge-offs in 2008 was most pronounced in home equity and residential mortgages.

Nonperforming loans were $2,789 million, or 2.22%, of total loans as of June 30, 2008, compared to $2,069 million, or 1.67%, of total loans as of March 31, 2008, and $765 million, or 0.64%, of total loans, as of June 30, 2007. The increase in nonperforming loans was mainly due to an increase in residential mortgage and real estate construction loans as the overall weakening of the housing markets and economy continued to increase delinquencies.

The allowance for loan and lease losses was $1,829 million as of June 30, 2008. The increase in the allowance for loan and lease losses was attributable to the deterioration in certain segments of the consumer and residential real estate market. The allowance for loan and lease losses as of June 30, 2008 represented 1.46% of period-end total loans as compared to 1.05 % as of December 31, 2007. The allowance for loan and lease losses as of June 30, 2008 represented 72% of period-end nonperforming loans, the majority of which were mortgages secured by residential real estate. Provision in excess of net charge-offs was $125 million, adding approximately ten basis points to the allowance, while the consolidation of GB&T accounted for the remaining increase.

The Company continued to record provision for loan losses at elevated levels in the second quarter of 2008, although it was down from the first quarter of 2008, as charge-offs increased less than expected and slowing deterioration in the portfolio necessitated a lower level of reserve building.

LINE OF BUSINESS FINANCIAL PERFORMANCE

The following discussion details results for SunTrust’s four business lines: Retail and Commercial Banking, Wholesale Banking, Mortgage, and Wealth and Investment Management. In 2007, the Company had five business segments. The segment reporting structure was adjusted to align with the recently modified organizational structure that better aligns with serving clients’ needs.

All revenue is reported on a fully taxable-equivalent basis. For the lines of business, results include net interest income which is computed using matched-maturity funds transfer pricing. Further, provision for loan losses is represented by net charge-offs.

SunTrust also reports results for Corporate Other and Treasury, which includes the Treasury department as well as the residual expense associated with operational and support expense allocations. This segment also includes differences created between internal management accounting practices and Generally Accepted Accounting Principles, certain matched-maturity funds transfer pricing credits and charges, differences in loan loss provision compared to net charge-offs, as well as equity and its related impact. GB&T customer loans, customer deposits, the majority of the employees, among other items, have been integrated within the business lines; however, the associated goodwill has not been distributed and remains in Corporate Other and Treasury.

Retail and Commercial Banking

Three Months Ended June 30, 2008 vs. 2007

Retail and Commercial Banking net income for the second quarter of 2008 was $110.7 million, a decrease of $88.9 million, or 44.5%, compared to the second quarter of 2007. This decrease was primarily the result of higher provision expense due to home equity line net charge-offs and lower net interest income related to deposit spreads, partially offset by higher noninterest income.

Net interest income decreased $65.5 million, or 9.1%, driven by a shift in the mix of deposits and the decline in interest rates, which compressed spreads on deposits. Average deposit balances were relatively unchanged while deposit spreads decreased 32 basis points, driving $63.8 million of the decrease in net interest income. Average loan balances declined $70.3 million, or 0.1%, with the movement of the Middle Market clients to the Wholesale Banking segment decreasing loans by $2.2 billion. The remaining loan

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growth was driven by loans acquired in the GB&T acquisition, commercial loans, equity lines, and student loans.

Provision for loan losses increased $125.9 million over the same period in 2007. The provision increase was most pronounced in home equity, indirect auto and commercial loans (primarily commercial clients with annual revenues of less then $5 million), reflecting the negative impact from the current deterioration in certain segments of the consumer portfolio, primarily related to the residential real estate market.

Total noninterest income increased $43.8 million, or 14.5%, from the second quarter of 2007. This increase was driven primarily by a $28.2 million, or 16.2%, increase in service charges on deposit accounts from both consumer and business accounts, primarily due to growth in number of accounts, higher NSF rates and an increase in occurrences of NSF fees. Interchange fees increased $7.9 million, or 15.5%, and ATM revenue increased $3.5 million, or 11.7%.

Total noninterest expense decreased $6.3 million, or 1.0%, from the first quarter of 2007. The continuing positive impact of expense savings initiatives was partially offset by higher credit related expenses and continued investments in the branch distribution network.

Six Months Ended June 30, 2008 vs. 2007

Retail and Commercial Banking net income for the six months ended June 30, 2008 was $204.2 million, a decrease of $197.1 million, or 49.1%, compared to the same period in 2007. This decrease was primarily the result of higher provision expense due to home equity line net charge-offs and lower net interest income related to deposit spreads, partially offset by higher noninterest income.

Net interest income decreased $149.6 million, or 10.5%, driven by a continued shift in deposit mix and decreased spreads as deposit competition and the interest rate environment encouraged customers to migrate into higher yielding interest bearing deposits. Average deposit balances were relatively unchanged while deposit spreads decreased 38 basis points driving $151.8 million of the decrease in net interest income. Average loan balances declined $333.2 million, or 0.7%, with the movement of the Middle Market clients to the Wholesale Banking segment decreasing loans by $2.1 billion. That decrease was partially offset by growth in commercial loans, equity lines, and student loans.

Provision for loan losses increased $258.0 million over the same period in 2007. The provision increase was most pronounced in home equity, indirect, and commercial loans (primarily commercial clients with annual revenues of less then $5 million), reflecting the negative impact from the current deterioration in certain segments of the consumer portfolio, primarily related to the residential real estate market.

Total noninterest income increased $71.4 million, or 12.0%, over the same period in 2007. This increase was driven primarily by a $47.1 million, or 13.8%, increase in service charges on deposit accounts from both consumer and business accounts primarily due to growth in number of accounts, higher NSF rates, and an increase in occurrences of NSF fees. Interchange fees increased $14.8 million, or 15.2%, and ATM revenue increased $4.1 million, or 6.9%.

Total noninterest expense decreased $22.1 million, or 1.7%, from the same period in 2007. The continuing positive impact of expense savings initiatives was partially offset by higher credit-related expenses and continued investments in the branch distribution network.

Wholesale Banking

Three Months Ended June 30, 2008 vs. 2007

Wholesale Banking net income for the second quarter of 2008 was $74.8 million, a decrease of $43.9 million, or 37.0%, compared to the prior year. Reductions in private equity gains and declining balances in the residential construction portfolio were the primary drivers of the decline.

Net interest income decreased $15.1 million, or 10.3%. While average loan balances increased $4.9 billion, or 17.1%, the corresponding net interest income declined $11.6 million, or 10.0%. The increase in

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loan balances includes an approximate $2.2 billion impact from the migration of Middle Market clients from the Commercial line of business to Wholesale Banking. Loan balances increased approximately $2.7 billion, or 9.5%, in the remainder of Wholesale Banking driven by growth in corporate banking partially offset by declines in the residential builder portfolio. The decline in loan-related net interest income is due to a shift in mix away from higher spread construction loans to lower spread commercial loans and increased real estate related nonaccrual loans. Total average deposits were up $4.4 billion, or 93.3%, primarily in higher cost corporate money market accounts. The associated net interest income decreased $3.6 million driven by the decline in interest rates, which compressed spreads on deposits, and by lower demand deposits partially offset by the increase in higher cost corporate money market balances.

Provision for loan losses was $11.0 million, a decrease of $4.6 million from the same period in 2007. The decline resulted from lower charge-offs in corporate banking, partially offset by higher residential builder-related charge-offs.

Total noninterest income decreased $40.9 million, or 18.1%. Solid performances in fixed income sales and trading, derivatives, tax-exempt, and equity capital markets were masked by a reduction in private equity gains, the largest of which was $23.4 million, as well as lower revenues from loan syndications, bond originations, structured leasing, and asset securitization activity.

Total noninterest expense increased $4.9 million, or 2.5%. The increase was primarily driven by Middle Market which accounted for $6.7 million of the increase. The remainder of Wholesale Banking expenses decreased $1.7 million, or 0.9%, driven primarily by lower incentive-based compensation, personnel, and discretionary expenses partially offset by higher Affordable Housing related expenses and higher operating losses, other real estate and credit services expenses.

Six Months Ended June 30, 2008 vs. 2007

Wholesale Banking net income for the six months ended June 30, 2008 was $161.9 million, a decrease of $49.5 million, or 23.4%, compared to the same period in 2007. Reductions in private equity gains and declining balances in the residential construction portfolio were the primary drivers of the decline.

Net interest income decreased $19.3 million, or 6.6%. Average loan balances increased $4.0 billion, or 13.8%. Despite the growth, the corresponding net interest income declined $10.7 million, or 4.6%. The increase in loan balances includes an approximate $2.1 billion impact from the migration of Middle Market clients from the Commercial line of business to Wholesale Banking. Loan balances increased approximately $1.9 billion, or 6.7%, in the remainder of Wholesale Banking despite a $1.9 billion structured asset sale of corporate loans at the end of the first quarter 2007. The loan growth was driven by corporate banking partially offset by declines in the residential builder portfolio. The decline in net interest income is due to a shift in mix away from higher spread construction loans to lower spread commercial loans and increased real estate related nonaccrual loans. Total average deposits were up $4.1 billion, or 86.2%, primarily in higher cost corporate money market accounts. The associated net interest income decreased $6.2 million driven by the lower credit for funds on demand deposits partially offset by the increase in higher cost corporate money market balances.

Provision for loan losses was $23.3 million, an increase of $4.9 million from the same period in 2007, resulting from higher residential builder related charge-offs partially offset by lower charge-offs in corporate banking.

Total noninterest income decreased $36.0 million, or 9.1%. Solid performances in fixed income sales and trading, derivatives, bonds and equity capital markets were masked by a reduction in private equity gains, as well as lower revenues from loan syndications, M&A activity, and a decrease in asset securitization related transactions.

Total noninterest expense increased $14.4 million, or 3.7%. The transfer of Middle Market accounted for $13.0 million of the increase. The remainder of Wholesale Banking’s expense increased $1.4 million or 0.4%, driven primarily by higher Affordable Housing related expenses and outside processing expenses, partially offset by lower discretionary, personnel and shared corporate expenses.

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Mortgage

Three Months Ended June 30, 2008 vs. 2007

Mortgage reported a net loss of $91.1 million for the second quarter of 2008, a decrease of $132.6 million compared with the second quarter of 2007. The decline was principally due to credit-related costs and lower servicing income.

Net interest income decreased $10.7 million, or 8.0%. Average loans increased $2.3 billion, or 7.7%; however, the resulting net interest income declined $12.9 million principally due to increased residential real estate nonaccrual loans. Nonaccrual loans increased $1.1 billion resulting in a decrease of $10.8 million in net interest income. Also contributing to the net interest income decline was a lower funds credit for other liabilities of $6.1 million and a higher funds charge for other assets of $4.8 million. Partially offsetting the declines was an $11.5 million increase in net interest income from mortgage-backed securities and higher income from loans held for sale of $5.2 million. Loans held for sale balances declined $8.3 billion but income was up due to wider spreads.

Provision for loan losses increased $115.0 million due to higher residential mortgage and residential construction net charge-offs.

Total noninterest income decreased $28.3 million, or 20.7% primarily driven by lower servicing income. Servicing income was down $32.7 million due to MSR asset hedge costs, higher MSR amortization, and lower gains from the sale of mortgage servicing rights offset by higher fee income due to a larger servicing portfolio. Total loans serviced at June 30, 2008 were $158.8 billion compared with $150.5 billion at June 30, 2007. Loan production of $9.3 billion was down $8.6 billion, or 48.0%, from second quarter 2007. Production income, which was up $4.9 million compared to the second quarter of 2007, was affected by the election in second quarter 2007 to record certain newly-originated mortgage loans held for sale at fair value under the provisions of FAS 159. The election affected the timing of recognition of origination fees and costs, as well as servicing value. Loan fees recorded in production income were $31.2 million higher in second quarter 2008 due to the recognition of fees that were deferred prior to the election, but were partially offset by reduced income due to lower production.

Total noninterest expense increased $59.6 million, or 30.2%. Higher origination expense of $31.6 million due to the May 2007 election of FAS 159 was partially offset by lower incentive expense of $28.5 million due to reduced loan production. Reserves for mortgage reinsurance losses increased $25.0 million and other real estate expense increased $17.0 million principally due to additional write-downs for declining property values. Additionally, operating losses increased $11.5 million, primarily driven by borrower misrepresentation.

Six Months Ended June 30, 2008 vs. 2007

Mortgage reported a net loss for the six months ended June 30, 2008 of $122.4 million, a decrease of $170.8 million compared to the same period in 2007. Increases in credit-related costs and lower servicing income drove the decrease in net income.

Net interest income decreased $9.7 million, or 3.7%, from the comparable period in 2007. Total loans increased $0.9 billion, or 3.1%; however, income declined $28.3 million principally due to increased residential real estate nonaccrual loans and lower income from residential construction loans. Nonaccrual loans increased $1.0 billion resulting in a $20.4 million decrease in net interest income. Also contributing to the net interest income decline was a lower funds credit for other liabilities of $7.6 million and a higher funds charge for other assets of $11.6 million. Partially offsetting the decline was higher income from mortgage-backed securities of $20.0 million and higher income from loans held for sale of $19.8 million due to wider spreads.

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Provision for loan losses increased $203.0 million due to higher residential mortgage and residential construction net charge-offs.

Total noninterest income increased $65.4 million, or 37.3%, principally due to higher production income that was partially offset by lower servicing income. Year-to-date loan production of $21.1 billion was down $11.7 billion, or 35.7%, from 2007. Production income was up $109.3 million due to better secondary marketing margins and increased loan fees of $69.5 million that were deferred prior to the election of FAS 159 partially offset by lower income resulting from lower production. Servicing income was down $38.6 million due to higher MSR amortization, MSR asset hedge costs and lower gains from sales of mortgage servicing rights. Higher fee income due to a larger servicing portfolio partially offset the lower income.

Total noninterest expense increased $127.6 million, or 36.5%. Higher origination expense of $66.1 million due to the May 2007 election of FAS 159 was partially offset by lower incentive expense of $36.8 million due to reduced loan production. Reserves for mortgage reinsurance losses increased $32.0 million and other real estate expense increased $26.6 million principally due to additional write-downs for declining property values. Additionally, operating losses increased $30.2 million, primarily driven by borrower misrepresentation.

Wealth and Investment Management

Three Months Ended June 30, 2008 vs. 2007

Wealth and Investment Management’s net income for the second quarter of 2008 was $43.7 million, a decrease of $10.2 million, or 18.9%. The decrease was driven by a $27.9 million after-tax impairment charge on client based intangibles due to a reduction in the estimated weighted average remaining life of the client relationships. This adjustment was partially offset by an $18.4 million after-tax gain on the sale of First Mercantile Trust. The remaining net income was relatively flat compared to the second quarter of 2007, as lower noninterest income from the sales of First Mercantile Trust and Lighthouse Partners was offset by lower noninterest expense.

Net interest income decreased $4.1 million, or 4.6%, primarily due to a continued shift in deposit mix to higher cost deposits. Average deposits were practically unchanged, as declines in demand deposit and savings accounts were offset by an increase in higher-cost NOW accounts. This shift in deposit mix, coupled with compressed spreads due to increased competition for deposits resulted in a $3.8 million decrease in net interest income. Average loans increased $174.9 million, or 2.2%. Commercial loans increased $212.0 million, or 8.0%, partially offset by a $67.6 million, or 2.0%, decrease in consumer loans. The change in mix from higher spread consumer loans to lower spreads commercial loans resulted in a slight decline in loan interest income.

Provision for loan losses decreased $0.4 million primarily due to lower commercial net charge-offs.

Total noninterest income increased $18.8 million, or 7.5%, mainly driven by a $29.6 million gain on sale of First Mercantile Trust. This increase was partially offset by a $9.1 million decline in noninterest income associated with the sales of Lighthouse Partners and First Mercantile Trust. Retail investment income increased $1.0 million, or 1.4%, due to strong annuity sales and higher recurring managed account fees. Trust income decreased $6.9 million, or 4.2%, primarily due to the sale of Lighthouse Partners and First Mercantile Trust. As of June 30, 2008, assets under management were approximately $136.7 billion compared to $139.1 billion as of June 30, 2007. Assets under management include individually managed assets, the RidgeWorth Funds, institutional assets managed by RidgeWorth Capital Management, and participant-directed retirement accounts. SunTrust’s total assets under advisement were approximately $230.5 billion, which includes $136.7 billion in assets under management, $53.8 billion in non-managed trust assets, $37.9 billion in retail brokerage assets, and $2.1 billion in non-managed corporate trust assets.

Total noninterest expense increased $33.6 million, or 13.5%, primarily due to the $45.0 million impairment charge on a client based intangible asset. Noninterest expense before intangible amortization was down $9.6 million, or 3.9%, compared to the second quarter of 2007 driven by lower staff and

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discretionary expenses, as well as lower structural expense resulting from the sales of Lighthouse Partners and First Mercantile Trust.

Six Months Ended June 30, 2008 vs. 2007

Wealth and Investment Management’s net income for the six months ended June 30, 2008 was $148.0 million, an increase of $26.1 million, or 21.4%, from the prior year period. The following transactions represented $25.8 million of the year-over-year increase:

• $55.4 million increase due to the after-tax gain on sale of minority interest in Lighthouse Investment Partners in the first quarter of 2008;

• $18.4 million increase due to the after-tax gain on the sale of First Mercantile Trust in the second quarter of 2008;

• $27.9 million decrease due to the after-tax impairment charge on a client based intangible asset incurred in the second quarter of 2008; and

• $20.1 million decrease due to the after-tax gain resulting from the sale upon merger of Lighthouse Partners into Lighthouse Investment Partners in the first quarter of 2007.

Net interest income decreased $14.0 million, or 7.9%, primarily due to a continued shift in deposit mix to higher cost deposits. Average deposits were practically unchanged as declines in demand deposits and savings accounts were offset by increases in higher-cost NOW and certificate of deposit balances. This shift in deposit mix coupled with compressed spreads due to increased competition for deposits resulted in an $11.6 million decrease in net interest income. Average loans declined slightly as increases in commercial loans were more than offset by declines in higher spread consumer loans resulting in a $1.4 million decline in net interest income.

Provision for loan losses increased $3.7 million, as declines in commercial lending net charge-offs were more than offset by higher home equity, consumer direct, and consumer mortgage net charge-offs.

Total noninterest income increased $64.5 million, or 12.0%, compared to the six months ended June 30, 2007 driven by a $29.6 million gain on the sale of First Mercantile Trust and $35.2 million of incremental revenue from the sale of our Lighthouse Partners investment. Retail investment income increased $8.7 million, or 6.5%, due to strong annuity sales and higher recurring managed account fees. Trust income decreased $20.6 million, or 6.1%, primarily due to the aforementioned sales of Lighthouse Partners and First Mercantile Trust which resulted in a $24.4 million decline in trust income.

Total noninterest expense increased $8.2 million, or 1.6%, due to the $45.0 million impairment charge on the client based intangible. Noninterest expense before intangible amortization declined $36.1 million, or 7.1%, driven by lower staff, discretionary, and indirect expenses, as well as lower structural expense resulting from the sales of Lighthouse Partners and First Mercantile Trust.

Corporate Other and Treasury

Three Months Ended June 30, 2008 vs. 2007

Corporate Other and Treasury’s net income for the second quarter of 2008 was $402.3 million, an increase of $134.5 million, or 50.2%, compared to the second quarter of 2007. The increase was driven by an increase in securities gains primarily related to the gain on sale of Coke stock offset by an increase in provision expense.

Net interest income increased $60.4 million, or 44.9%, over the same period in 2007 mainly due to interest rate risk management activities. Total average assets decreased $5.6 billion, or 21.7%, mainly due to the reduction in the size of the investment portfolio as part of the Company’s overall balance sheet management strategy. Total average deposits decreased $10.1 billion, or 41.4%, mainly due to a decrease in brokered and foreign deposits as the Company reduced its reliance on wholesale funding sources.

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Provision for loan losses, which predominantly represents the difference between consolidated provision for loan losses and net charge-offs for the lines of business, increased $107.5 million in conjunction with an increase in the allowance for loan losses due to the further deterioration in the residential real estate market and consumer credit quality.

Total noninterest income increased $264.9 million in the second quarter of 2008 compared to the same period in 2007. Securities gains increased $314.7 million primarily related to increased gains on the sale of Coke stock. This increase was partially offset by a decrease of $67.9 million driven by net negative valuations on trading securities and long-term debt, net of hedges, carried at fair value. These net valuation losses are primarily due to the impact of credit spread tightening on the Company’s publicly-traded debt and related hedges carried at fair value.

Total noninterest expense increased $35.5 million compared to the second quarter of 2007. The increase in expenses was mainly due to increased advertising costs due to the “My Cause” campaign, reduction in real estate gains received in 2007, and an increase in expenses due to the GB&T acquisition.

Six Months Ended June 30, 2008 vs. 2007

Corporate Other and Treasury’s net income for the six months ended June 30, 2008 was $439.2 million, an increase of $19.5 million, or 4.6%, from the same period in 2007. The increase was driven by an increase in securities gains including gains on the sale of Coke stock offset by an increase in provision expense.

Net interest income increased $137.3 million, or 55.8%, over the same period in 2007 mainly due to interest rate risk management activities Total average assets decreased $7.2 billion, or 25.1%, mainly due to the reduction in the size of trading assets. Total average deposits decreased $10.8 billion, or 42.1%, mainly due to a decrease in brokered and foreign deposits as the Company reduced its reliance on wholesale funding sources.

Provision for loan losses, which predominantly represents the difference between consolidated provision for loan losses and net charge-offs for the lines of business, increased $377.4 million in conjunction with an increase in the allowance for loan losses due to deterioration in the residential real estate market and consumer credit quality.

Total noninterest income increased $271.7 million, or 82.3%, compared to the same period in 2007. Securities gains increased $259.0 million primarily related to $312 million in increased gains on the sale of Coke stock. In addition, the Company realized an $86.3 million gain on its holdings of Visa in connection with its initial public offering and an additional $37.0 million gain from the sale/leaseback of real estate properties. These gains were partially offset by a $53.3 million increase in securities losses during this period primarily driven by market value impairment related primarily to certain asset-backed securities that were classified as available for sale and estimated to be other-than-temporarily impaired, triggering accounting recognition of the unrealized loss in current period earnings. Noninterest income also included an additional $58.7 million of net negative marks in 2008 versus $50.3 million of net positive marks on trading securities and long-term debt carried at fair value. These mark-downs reflect the lack of liquidity in the market for these securities, deterioration in the credit quality of the underlying assets, and changes in the credit spread on our publicly-traded debt carried at fair value.

Total noninterest expense increased $18.3 million from the same period in 2007. The increase in expense was mainly due to an increase of $16.8 million in advertising costs due to the “My Cause” campaign, $10.7 million reduction in real estate gains, and $10.2 million in increased acquisition expense related to GB&T. These increases were partially offset by a $39.1 million partial reversal of an accrual for Visa litigation.

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Corresponding Financial Tables and Information

Investors are encouraged to review the foregoing summary and discussion of SunTrust’s earnings and financial condition in conjunction with the detailed financial tables and information which SunTrust has also published today and SunTrust’s forthcoming quarterly report on Form 10-Q. Detailed financial tables and other information are also available on the Company’s Web site at www.suntrust.com in the Investor Relations section located under “About SunTrust.” This information is also included in a current report on Form 8-K furnished with the SEC today.

This news release contains certain non-US GAAP financial measures to describe the Company’s performance. The reconciliation of those measures to the most directly comparable US GAAP financial measures, and the reasons why SunTrust believes such financial measures may be useful to investors, can be found in the financial information contained in the appendices of this news release.

Conference Call

SunTrust management will host a conference call July 22, 2008, at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals may call in beginning at 7:45 a.m. (Eastern Time) by dialing 1-888-972-7805 (Passcode: 2Q08). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 2Q08). A replay of the call will be available one hour after the call ends on July 22, 2008, and will remain available until August 5, 2008, by dialing 1-866-403-7106 (domestic) or 1-203-369-0578 (international).

Alternatively, individuals may listen to the live webcast of the presentation by visiting the SunTrust Web site at www.suntrust.com. The webcast will be hosted under “Investor Relations,” located under “About SunTrust,” or may be accessed directly from the SunTrust home page by clicking on the earnings-related link, “2nd Quarter Earnings Release.” Beginning the afternoon of July 22, 2008, listeners may access an archived version of the webcast in the “Webcasts and Presentations” subsection found under “Investor Relations.” This webcast will be archived and available for one year. A link to the Investor Relations page is also found in the footer of the SunTrust home page.

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. 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 www.suntrust.com.

Important Cautionary Statement About Forward-Looking Statements

This news release 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 “may,” “could,” “will,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “initiatives,” “targets,” “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. 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 2007 Annual Report on Form 10-K, in the Quarterly Reports on Form 10-Q and in the Current Reports filed on Form 8-K 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

14

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.

The forward-looking statements in this news release speak only as of this date, and SunTrust does not assume any obligation to update such statements or to update the reasons why actual results could differ from those contained in such statements.

15

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS

(Dollars in millions, except per share data) (Unaudited)

	Three Months Ended June 30				% Change		Six Months Ended June 30				% Change
	2008		2007				2008		2007
EARNINGS & DIVIDENDS
Net income	$540.4		$681.4		(20.7)	%	$830.9		$1,202.7		(30.9)	%
Net income available to common shareholders	535.3		673.9		(20.6	)	818.8		1,187.8		(31.1	)
Total revenue - FTE 2	2,598.0		2,374.6		9.4		4,823.3		4,441.7		8.6
Total revenue - FTE excluding securities (gains)/losses, net 1	2,048.2		2,138.2		(4.2	)	4,334.1		4,205.3		3.1
Net income per average common share
Diluted	1.53		1.89		(19.0	)	2.35		3.33		(29.4	)
Basic	1.53		1.91		(19.9	)	2.36		3.37		(30.0	)
Dividends paid per average common share	0.77		0.73		5.5		1.54		1.46		5.5
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets	$175,549		$179,996		(2.5)	%	$176,233		$180,747		(2.5)	%
Earning assets	152,483		157,594		(3.2	)	152,743		158,529		(3.6	)
Loans	125,192		118,165		5.9		124,227		119,831		3.7
Consumer and commercial deposits	101,727		97,927		3.9		101,448		97,860		3.7
Brokered and foreign deposits	15,068		23,983		(37.2	)	15,268		25,341		(39.7	)
Total shareholders’ equity	18,093		17,928		0.9		18,077		17,825		1.4
As of
Total assets	177,414		180,314		(1.6	)
Earning assets	154,716		157,095		(1.5	)
Loans	125,825		118,788		5.9
Allowance for loan and lease losses	1,829		1,050		74.2
Consumer and commercial deposits	102,434		97,822		4.7
Brokered and foreign deposits	17,326		25,069		(30.9	)
Total shareholders’ equity	17,907		17,369		3.1
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.24	%	1.52	%	(18.4)	%	0.95	%	1.34	%	(29.1)	%
Return on average assets less net unrealized securities gains 1	0.42		1.18		(64.4	)	0.57		1.16		(50.9	)
Return on average common shareholders’ equity	12.24		15.51		(21.1	)	9.37		13.83		(32.2	)
Return on average realized common shareholders’ equity 1	4.36		12.71		(65.7	)	6.02		12.63		(52.3	)
Net interest margin 2	3.13		3.10		1.0		3.10		3.06		1.3
Efficiency ratio 2	53.06		52.69		0.7		54.60		56.00		(2.5	)
Tangible efficiency ratio 1	50.57		51.64		(2.1	)	52.83		54.91		(3.8	)
Effective tax rate	27.29		31.45		(13.2	)	26.16		31.08		(15.8	)
Tier 1 capital ratio	7.47	3	7.49		(0.5	)
Total capital ratio	10.86	3	10.67		1.3
Tier 1 leverage ratio	7.55	3	7.11		6.0
Total average shareholders’ equity to total average assets	10.31		9.96		3.5		10.26		9.86		4.0
Tangible equity to tangible assets 1	6.23		5.85		6.5
Full-time equivalent employees	31,602		33,241		(4.9	)
Number of ATMs	2,506		2,533		(1.1	)
Full service banking offices	1,699		1,685		0.8
Traditional	1,374		1,338		2.7
In-store	325		347		(6.3	)
Book value per common share	$49.24		$48.33		1.9
Market price:
High	60.80		94.18		(35.4	)	70.00		94.18		(25.7	)
Low	32.34		78.16		(58.6	)	32.34		78.16		(58.6	)
Close	36.22		85.74		(57.8	)	36.22		85.74		(57.8	)
Market capitalization	12,805		29,928		(57.2	)
Average common shares outstanding (000s)
Diluted	349,783		356,008		(1.7	)	348,927		356,608		(2.2	)
Basic	348,714		351,987		(0.9	)	347,647		352,713		(1.4	)

¹ See Appendix A and Appendix B for reconcilements of non-GAAP performance measures.

² Total revenue, net interest margin, and efficiency ratios are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. Total revenue - FTE equals net interest income on a FTE basis plus noninterest income.

³ Current period tier 1 capital, total capital and tier 1 leverage ratios are estimated as of the earnings release date.

Page 1

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER FINANCIAL HIGHLIGHTS

(Dollars in millions, except per share data) (Unaudited)

	Three Months Ended
	June 30 2008		March 31 2008		December 31 2007		September 30 2007		June 30 2007
EARNINGS & DIVIDENDS
Net income	$540.4		$290.6		$11.1		$420.2		$681.4
Net income available to common shareholders	535.3		283.6		3.3		412.6		673.9
Total revenue - FTE 2	2,598.0		2,225.3		1,770.8		2,038.3		2,374.6
Total revenue - FTE excluding securities (gains)/losses, net 1	2,048.2		2,285.9		1,765.1		2,037.4		2,138.2
Net income per average common share
Diluted	1.53		0.81		0.01		1.18		1.89
Basic	1.53		0.82		0.01		1.19		1.91
Dividends paid per average common share	0.77		0.77		0.73		0.73		0.73
CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets	$175,549		$176,917		$175,130		$174,653		$179,996
Earning assets	152,483		153,004		151,541		152,328		157,594
Loans	125,192		123,263		121,094		119,559		118,165
Consumer and commercial deposits	101,727		101,168		99,649		96,708		97,927
Brokered and foreign deposits	15,068		15,469		15,717		21,140		23,983
Total shareholders’ equity	18,093		18,062		18,033		17,550		17,928
As of
Total assets	177,414		178,987		179,574		175,857		180,314
Earning assets	154,716		152,715		154,397		151,229		157,095
Loans	125,825		123,713		122,319		120,748		118,788
Allowance for loan and lease losses	1,829		1,545		1,283		1,094		1,050
Consumer and commercial deposits	102,434		103,432		101,870		98,834		97,822
Brokered and foreign deposits	17,326		12,747		15,973		17,026		25,069
Total shareholders’ equity	17,907		18,431		18,053		17,907		17,369
FINANCIAL RATIOS & OTHER DATA
Return on average total assets	1.24	%	0.66	%	0.03	%	0.95	%	1.52	%
Return on average assets less net unrealized securities gains 1	0.42		0.72		(0.01	)	0.93		1.18
Return on average common shareholders’ equity	12.24		6.49		0.07		9.60		15.51
Return on average realized common shareholders’ equity 1	4.36		7.69		(0.33	)	9.86		12.71
Net interest margin 2	3.13		3.07		3.13		3.18		3.10
Efficiency ratio 2	53.06		56.40		82.19		63.35		52.69
Tangible efficiency ratio 1	50.57		55.47		80.86		62.13		51.64
Effective tax rate	27.29		23.98		(116.22	)	26.68		31.45
Tier 1 capital ratio	7.47	3	7.23		6.93		7.44		7.49
Total capital ratio	10.86	3	10.97		10.30		10.72		10.67
Tier 1 leverage ratio	7.55	3	7.22		6.90		7.28		7.11
Total average shareholders’ equity to total average assets	10.31		10.21		10.30		10.05		9.96
Tangible equity to tangible assets 1	6.23		6.53		6.28		6.32		5.85
Full-time equivalent employees	31,602		31,745		32,323		32,903		33,241
Number of ATMs	2,506		2,509		2,507		2,518		2,533
Full service banking offices	1,699		1,678		1,682		1,683		1,685
Traditional	1,374		1,343		1,343		1,339		1,338
In-store	325		335		339		344		347
Book value per common share	$49.24		$51.26		$50.38		$50.01		$48.33
Market price:
High	60.80		70.00		78.76		90.47		94.18
Low	32.34		52.94		60.02		73.61		78.16
Close	36.22		55.14		62.49		75.67		85.74
Market capitalization	12,805		19,290		21,772		26,339		29,928
Average common shares outstanding (000s)
Diluted	349,783		348,072		348,072		349,592		356,008
Basic	348,714		346,581		345,917		346,150		351,987

¹ See Appendix A and Appendix B for reconcilements of non-GAAP performance measures.

² Total revenue, net interest margin, and efficiency ratios are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. Total revenue - FTE equals net interest income on a FTE basis plus noninterest income.

³ Current period tier 1 capital, total capital and tier 1 leverage ratios are estimated as of the earnings release date.

Page 2

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended							Six Months Ended
	June 30			Increase/(Decrease) 2				June 30			Increase/(Decrease) 2
	2008		2007	Amount		%		2008		2007	Amount		%
Interest income	$2,066,365		$2,543,870	($477,505	)	(18.8)	%	$4,324,697		$5,071,927	($747,230	)	(14.7)	%
Interest expense	909,649		1,348,586	(438,937	)	(32.5	)	2,028,114		2,712,084	(683,970	)	(25.2	)
NET INTEREST INCOME	1,156,716		1,195,284	(38,568	)	(3.2	)	2,296,583		2,359,843	(63,260	)	(2.7	)
Provision for loan losses	448,027		104,680	343,347		NM		1,008,049		161,121	846,928		NM
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	708,689		1,090,604	(381,915	)	(35.0	)	1,288,534		2,198,722	(910,188	)	(41.4	)
NONINTEREST INCOME
Service charges on deposit accounts	230,296		196,844	33,452		17.0		442,135		385,879	56,256		14.6
Trust and investment management income	157,319		164,620	(7,301	)	(4.4	)	318,421		338,938	(20,517	)	(6.1	)
Retail investment services	73,764		71,785	1,979		2.8		146,064		135,328	10,736		7.9
Other charges and fees	129,581		118,358	11,223		9.5		256,812		236,495	20,317		8.6
Investment banking income	60,987		61,999	(1,012	)	(1.6	)	116,407		112,156	4,251		3.8
Trading account profits/(losses) and commissions	(49,306	)	16,437	(65,743	)	NM		(21,088	)	106,638	(127,726	)	NM
Card fees	78,566		68,580	9,986		14.6		152,327		132,775	19,552		14.7
Mortgage production related income	63,508		64,322	(814	)	(1.3	)	149,057		55,667	93,390		NM
Mortgage servicing related income	32,548		45,527	(12,979	)	(28.5	)	61,646		80,930	(19,284	)	(23.8	)
Gain on Visa IPO	-		-	-		-		86,305		-	86,305		NM
Net gain on sale or merger of Lighthouse interests	-		-	-		-		89,390		32,340	57,050		NM
Net gain on sale/leaseback of premises	-		-	-		-		37,039		-	37,039		NM
Net gain on sale of First Mercantile	29,648		-	29,648		NM		29,648		-	29,648		NM
Other noninterest income	56,312		109,738	(53,426	)	(48.7	)	117,148		179,950	(62,802	)	(34.9	)
Securities gains/(losses), net	549,787		236,412	313,375		NM		489,201		236,432	252,769		NM
Total noninterest income	1,413,010		1,154,622	258,388		22.4		2,470,512		2,033,528	436,984		21.5
NONINTEREST EXPENSE
Employee compensation and benefits	711,957		710,613	1,344		0.2		1,427,040		1,409,613	17,427		1.2
Net occupancy expense	85,483		84,650	833		1.0		171,924		170,907	1,017		0.6
Outside processing and software	107,205		100,730	6,475		6.4		216,370		200,406	15,964		8.0
Equipment expense	50,991		53,823	(2,832	)	(5.3	)	103,386		103,232	154		0.1
Marketing and customer development	47,203		43,326	3,877		8.9		102,906		89,031	13,875		15.6
Amortization/impairment of intangible assets	64,735		24,904	39,831		NM		85,450		48,446	37,004		76.4
Net loss on extinguishment of debt	-		-	-		-		11,723		-	11,723		NM
Visa litigation	-		-	-		-		(39,124	)	-	(39,124	)	NM
Other noninterest expense	310,959		233,148	77,811		33.4		554,002		465,556	88,446		19.0
Total noninterest expense	1,378,533		1,251,194	127,339		10.2		2,633,677		2,487,191	146,486		5.9
INCOME BEFORE PROVISION FOR INCOME TAXES	743,166		994,032	(250,866	)	(25.2	)	1,125,369		1,745,059	(619,690	)	(35.5	)
Provision for income taxes	202,804		312,601	(109,797	)	(35.1	)	294,452		542,332	(247,880	)	(45.7	)
Net income	540,362		681,431	(141,069	)	(20.7	)	830,917		1,202,727	(371,810	)	(30.9	)
Preferred dividends	5,112		7,519	(2,407	)	(32.0	)	12,089		14,882	(2,793	)	(18.8	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$535,250		$673,912	($138,662	)	(20.6	)	$818,828		$1,187,845	($369,017	)	(31.1	)
Net interest income - FTE 1	$1,184,972		$1,219,952	($34,980	)	(2.9	)	$2,352,814		$2,408,224	($55,410	)	(2.3	)
Net income per average common share
Diluted	1.53		1.89	(0.36	)	(19.0	)	2.35		3.33	(0.98	)	(29.4	)
Basic	1.53		1.91	(0.38	)	(19.9	)	2.36		3.37	(1.01	)	(30.0	)
Cash dividends declared per common share	0.77		0.73	0.04		5.5		1.54		1.46	0.08		5.5
Average common shares outstanding (000s)
Diluted	349,783		356,008	(6,225	)	(1.7	)	348,927		356,608	(7,681	)	(2.2	)
Basic	348,714		351,987	(3,273	)	(0.9	)	347,647		352,713	(5,066	)	(1.4	)

¹ Net interest income includes the effects of FTE adjustments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis.

² ”NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 3

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended
	June 30 2008		March 31 2008		December 31 2007		September 30 2007		June 30 2007
Interest income	$2,066,365		$2,258,332		$2,448,701		$2,515,292		$2,543,870
Interest expense	909,649		1,118,465		1,281,188		1,323,104		1,348,586
NET INTEREST INCOME	1,156,716		1,139,867		1,167,513		1,192,188		1,195,284
Provision for loan losses	448,027		560,022		356,781		147,020		104,680
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	708,689		579,845		810,732		1,045,168		1,090,604
NONINTEREST INCOME
Service charges on deposit accounts	230,296		211,839		222,213		213,939		196,844
Trust and investment management income	157,319		161,102		170,854		175,242		164,620
Retail investment services	73,764		72,300		71,650		71,064		71,785
Other charges and fees	129,581		127,231		121,849		120,730		118,358
Investment banking income	60,987		55,420		55,041		47,688		61,999
Trading account profits/(losses) and commissions	(49,306	)	28,218		(437,162	)	(31,187	)	16,437
Card fees	78,566		73,761		77,481		70,450		68,580
Mortgage production related income	63,508		85,549		22,366		12,950		64,322
Mortgage servicing related income	32,548		29,098		57,364		57,142		45,527
Gain on Visa IPO	-		86,305		-		-		-
Net gain on sale or merger of Lighthouse interests	-		89,390		-		-		-
Net gain on sale/leaseback of premises	-		37,039		118,840		-		-
Net gain on sale of First Mercantile	29,648		-		-		-		-
Other noninterest income	56,312		60,836		89,827		80,130		109,738
Securities gains/(losses), net	549,787		(60,586	)	5,694		991		236,412
Total noninterest income	1,413,010		1,057,502		576,017		819,139		1,154,622
NONINTEREST EXPENSE
Employee compensation and benefits	711,957		715,083		682,810		677,765		710,613
Net occupancy expense	85,483		86,441		92,705		87,626		84,650
Outside processing and software	107,205		109,165		105,407		105,132		100,730
Equipment expense	50,991		52,395		51,734		51,532		53,823
Marketing and customer development	47,203		55,703		59,115		46,897		43,326
Amortization/impairment of intangible assets	64,735		20,715		23,414		24,820		24,904
Net loss on extinguishment of debt	-		11,723		-		9,800		-
Visa litigation	-		(39,124	)	76,930		-		-
Other noninterest expense	310,959		243,043		363,226		287,673		233,148
Total noninterest expense	1,378,533		1,255,144		1,455,341		1,291,245		1,251,194
INCOME/(LOSS) BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	743,166		382,203		(68,592	)	573,062		994,032
Provision/(benefit) for income taxes	202,804		91,648		(79,716	)	152,898		312,601
Net income	540,362		290,555		11,124		420,164		681,431
Preferred dividends	5,112		6,977		7,867		7,526		7,519
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$535,250		$283,578		$3,257		$412,638		$673,912
Net interest income - FTE 1	$1,184,972		$1,167,842		$1,194,757		$1,219,243		$1,219,952
Net income per average common share
Diluted	1.53		0.81		0.01		1.18		1.89
Basic	1.53		0.82		0.01		1.19		1.91
Cash dividends declared per common share	0.77		0.77		0.73		0.73		0.73
Average common shares outstanding (000s)
Diluted	349,783		348,072		348,072		349,592		356,008
Basic	348,714		346,581		345,917		346,150		351,987

¹ Net interest income includes the effects of FTE adjustments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis.

Page 4

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands) (Unaudited)

	As of June 30				Increase/(Decrease) 3
	2008		2007		Amount		%
ASSETS
Cash and due from banks	$3,564,824		$4,254,430		($689,606	)	(16.2)	%
Interest-bearing deposits in other banks	22,566		25,991		(3,425	)	(13.2	)
Funds sold and securities purchased under agreements to resell	1,920,276		1,143,995		776,281		67.9
Trading assets	10,327,795		13,044,972		(2,717,177	)	(20.8	)
Securities available for sale 1	15,118,073		14,725,957		392,116		2.7
Loans held for sale (loans at fair value: $3,743,620 as of June 30, 2008; $6,494,602 as of June 30, 2007)	5,260,892		12,474,932		(7,214,040	)	(57.8	)
Loans: (loans at fair value: $352,344 as of June 30, 2008; $0 as of June 30, 2007)
Commercial	38,800,537		34,362,837		4,437,700		12.9
Real estate:
Home equity lines	15,726,998		14,303,659		1,423,339		10.0
Construction	12,542,775		14,417,949		(1,875,174	)	(13.0	)
Residential mortgages	32,509,029		30,759,216		1,749,813		5.7
Commercial real estate	13,693,933		12,416,329		1,277,604		10.3
Consumer:
Direct	4,528,576		4,391,739		136,837		3.1
Indirect	7,077,510		7,739,369		(661,859	)	(8.6	)
Credit card	945,446		396,624		548,822		NM
Total loans	125,824,804		118,787,722		7,037,082		5.9
Allowance for loan and lease losses	(1,829,400	)	(1,050,362	)	779,038		74.2
Net loans	123,995,404		117,737,360		6,258,044		5.3
Goodwill	7,056,015		6,897,050		158,965		2.3
Other intangible assets	1,442,056		1,290,460		151,596		11.7
Other real estate owned	334,519		100,973		233,546		NM
Other assets (IRLCs and mortgage derivatives at fair value: $95,251 as of June 30, 2008; $114,738 as of June 30, 2007)	8,371,081		8,618,252		(247,171	)	(2.9	)
Total assets 2	$177,413,501		$180,314,372		($2,900,871	)	(1.6	)
LIABILITIES
Noninterest-bearing consumer and commercial deposits	$22,184,774		$22,725,654		($540,880	)	(2.4)	%
Interest-bearing consumer and commercial deposits:
NOW accounts	21,612,407		20,255,930		1,356,477		6.7
Money market accounts	26,016,859		21,645,616		4,371,243		20.2
Savings	3,990,277		4,698,516		(708,239	)	(15.1	)
Consumer time	16,582,510		16,745,010		(162,500	)	(1.0	)
Other time	12,046,718		11,751,246		295,472		2.5
Total consumer and commercial deposits	102,433,545		97,821,972		4,611,573		4.7
Brokered deposits (CDs at fair value: $547,295 as of June 30, 2008; $282,889 as of June 30, 2007)	12,787,957		16,659,978		(3,872,021	)	(23.2	)
Foreign deposits	4,538,435		8,408,752		(3,870,317	)	(46.0	)
Total deposits	119,759,937		122,890,702		(3,130,765	)	(2.5	)
Funds purchased	3,063,696		3,405,459		(341,763	)	(10.0	)
Securities sold under agreements to repurchase	5,156,986		6,081,096		(924,110	)	(15.2	)
Other short-term borrowings	2,682,808		2,083,518		599,290		28.8
Long-term debt (debt at fair value: $7,078,574 as of June 30, 2008; $6,757,188 as of June 30, 2007)	21,327,576		20,604,933		722,643		3.5
Trading liabilities	2,430,521		2,156,279		274,242		12.7
Other liabilities (IRLCs and mortgage derivatives at fair value: $49,573 as of June 30, 2008; $57,417 as of June 30, 2007)	5,084,825		5,723,532		(638,707	)	(11.2	)
Total liabilities	159,506,349		162,945,519		(3,439,170	)	(2.1	)
SHAREHOLDERS’ EQUITY
Preferred stock, no par value	500,000		500,000		-		-
Common stock, $1.00 par value	372,799		370,578		2,221		0.6
Additional paid in capital	6,799,935		6,589,387		210,548		3.2
Retained earnings	10,924,650		10,739,449		185,201		1.7
Treasury stock, at cost, and other	(1,612,167	)	(1,751,449	)	(139,282	)	(8.0	)
Accumulated other comprehensive income, net of tax	921,935		920,888		1,047		0.1
Total shareholders’ equity	17,907,152		17,368,853		538,299		3.1
Total liabilities and shareholders’ equity	$177,413,501		$180,314,372		($2,900,871	)	(1.6	)
Common shares outstanding	353,542,105		349,052,800		4,489,305		1.3
Common shares authorized	750,000,000		750,000,000		-		-
Preferred shares outstanding	5,000		5,000		-		-
Preferred shares authorized	50,000,000		50,000,000		-		-
Treasury shares of common stock	19,257,264		21,525,598		(2,268,334	)	(10.5	)
1   Includes net unrealized gains of	$1,655,504		$2,035,623		($380,119	)	(18.7)	%
2   Includes earning assets of	154,716,384		157,094,873		(2,378,489	)	(1.5	)

³ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 5

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEETS

(Dollars in thousands) (Unaudited)

	As of
	June 30 2008	March 31 2008	December 31 2007	September 30 2007	June 30 2007
ASSETS
Cash and due from banks	$3,564,824	$3,994,267	$4,270,917	$4,162,456	$4,254,430
Interest-bearing deposits in other banks	22,566	21,283	24,355	29,684	25,991
Funds sold and securities purchased under agreements to resell	1,920,276	1,247,495	1,347,329	968,553	1,143,995
Trading assets	10,327,795	10,932,251	10,518,379	9,566,806	13,044,972
Securities available for sale 1	15,118,073	15,882,088	16,264,107	15,243,133	14,725,957
Loans held for sale	5,260,892	6,977,289	8,851,695	8,675,427	12,474,932
Loans:
Commercial	38,800,537	37,306,872	35,929,400	34,969,714	34,362,837
Real estate:
Home equity lines	15,726,998	15,134,297	14,911,598	14,598,774	14,303,659
Construction	12,542,775	12,980,917	13,776,651	14,358,990	14,417,949
Residential mortgages	32,509,029	33,092,433	32,779,744	31,603,884	30,759,216
Commercial real estate	13,693,933	12,893,708	12,609,543	12,487,309	12,416,329
Consumer:
Direct	4,528,576	4,192,168	3,963,869	4,419,290	4,391,739
Indirect	7,077,510	7,305,213	7,494,130	7,642,099	7,739,369
Credit card	945,446	807,587	854,059	668,353	396,624
Total loans	125,824,804	123,713,195	122,318,994	120,748,413	118,787,722
Allowance for loan and lease losses	(1,829,400)	(1,545,340)	(1,282,504)	(1,093,691)	(1,050,362)
Net loans	123,995,404	122,167,855	121,036,490	119,654,722	117,737,360
Goodwill	7,056,015	6,923,033	6,921,493	6,912,110	6,897,050
Other intangible assets	1,442,056	1,430,268	1,362,995	1,327,060	1,290,460
Other real estate owned	334,519	244,906	183,753	156,106	100,973
Other assets	8,371,081	9,166,212	8,792,420	9,161,172	8,618,252
Total assets 2	$177,413,501	$178,986,947	$179,573,933	$175,857,229	$180,314,372
LIABILITIES
Noninterest-bearing consumer and commercial deposits	$22,184,774	$22,325,750	$21,083,234	$20,857,240	$22,725,654
Interest-bearing consumer and commercial deposits:
NOW accounts	21,612,407	22,292,330	22,558,374	20,319,435	20,255,930
Money market accounts	26,016,859	25,843,396	24,522,640	24,011,524	21,645,616
Savings	3,990,277	3,990,007	3,917,099	4,376,155	4,698,516
Consumer time	16,582,510	16,876,836	17,264,208	17,037,866	16,745,010
Other time	12,046,718	12,104,125	12,524,470	12,231,832	11,751,246
Total consumer and commercial deposits	102,433,545	103,432,444	101,870,025	98,834,052	97,821,972
Brokered deposits	12,787,957	11,034,332	11,715,024	14,188,886	16,659,978
Foreign deposits	4,538,435	1,712,504	4,257,601	2,836,775	8,408,752
Total deposits	119,759,937	116,179,280	117,842,650	115,859,713	122,890,702
Funds purchased	3,063,696	3,795,641	3,431,185	1,512,054	3,405,459
Securities sold under agreements to repurchase	5,156,986	5,446,204	5,748,277	5,548,486	6,081,096
Other short-term borrowings	2,682,808	3,061,003	3,021,358	2,971,761	2,083,518
Long-term debt	21,327,576	23,602,919	22,956,508	22,661,381	20,604,933
Trading liabilities	2,430,521	2,356,037	2,160,385	1,906,002	2,156,279
Other liabilities	5,084,825	6,114,415	6,361,052	7,490,585	5,723,532
Total liabilities	159,506,349	160,555,499	161,521,415	157,949,982	162,945,519
SHAREHOLDERS’ EQUITY
Preferred stock, no par value	500,000	500,000	500,000	500,000	500,000
Common stock, $1.00 par value	372,799	370,578	370,578	370,578	370,578
Additional paid in capital	6,799,935	6,682,828	6,707,293	6,709,002	6,589,387
Retained earnings	10,924,650	10,661,250	10,646,640	10,897,059	10,739,449
Treasury stock, at cost, and other	(1,612,167)	(1,692,117)	(1,779,142)	(1,821,360)	(1,751,449)
Accumulated other comprehensive income, net of tax	921,935	1,908,909	1,607,149	1,251,968	920,888
Total shareholders’ equity	17,907,152	18,431,448	18,052,518	17,907,247	17,368,853
Total liabilities and shareholders’ equity	$177,413,501	$178,986,947	$179,573,933	$175,857,229	$180,314,372
Common shares outstanding	353,542,105	349,832,264	348,411,163	348,073,971	349,052,800
Common shares authorized	750,000,000	750,000,000	750,000,000	750,000,000	750,000,000
Preferred shares outstanding	5,000	5,000	5,000	5,000	5,000
Preferred shares authorized	50,000,000	50,000,000	50,000,000	50,000,000	50,000,000
Treasury shares of common stock	19,257,264	20,746,134	22,167,235	22,504,427	21,525,598
1   Includes net unrealized gains of	$1,655,504	$2,835,823	$2,724,643	$2,391,606	$2,035,623
2   Includes earning assets of	154,716,384	152,714,700	154,397,231	151,228,575	157,094,873

Page 6

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED DAILY AVERAGE BALANCES,

AVERAGE YIELDS EARNED AND RATES PAID

(Dollars in millions; yields on taxable-equivalent basis) (Unaudited)

	Three Months Ended
	June 30, 2008					March 31, 2008
	Average Balances		Interest Income/ Expense	Yields/ Rates		Average Balances		Interest Income/ Expense	Yields/ Rates
ASSETS
Loans:
Real estate 1-4 family	$32,113.4		$507.0	6.32	%	$32,440.0		$521.3	6.43	%
Real estate construction	11,471.9		149.5	5.24		12,450.2		189.8	6.13
Real estate home equity lines	14,980.1		195.8	5.26		14,603.0		234.3	6.45
Real estate commercial	13,876.7		192.8	5.59		13,113.1		201.3	6.17
Commercial - FTE 1	37,600.1		501.4	5.36		36,374.6		539.2	5.96
Credit card	816.0		5.4	2.62		774.4		2.9	1.52
Consumer - direct	4,382.4		63.4	5.82		4,063.4		62.5	6.19
Consumer - indirect	7,437.2		115.9	6.27		7,645.3		120.2	6.32
Nonaccrual and restructured	2,514.1		7.5	1.20		1,799.0		5.4	1.21
Total loans	125,191.9		1,738.7	5.59		123,263.0		1,876.9	6.12
Securities available for sale:
Taxable	11,769.6		186.0	6.32		12,087.1		186.8	6.18
Tax-exempt - FTE 1	1,057.5		16.0	6.05		1,071.4		16.5	6.13
Total securities available for sale - FTE 1	12,827.1		202.0	6.30		13,158.5		203.3	6.18
Funds sold and securities purchased under agreements to resell	1,331.1		6.7	2.00		1,326.9		8.9	2.67
Loans held for sale	5,148.5		72.5	5.63		6,865.7		99.0	5.77
Interest-bearing deposits	21.4		0.2	3.77		21.9		0.2	4.54
Interest earning trading assets	7,963.0		74.5	3.76		8,367.6		98.0	4.71
Total earning assets	152,483.0		2,094.6	5.52		153,003.6		2,286.3	6.01
Allowance for loan and lease losses	(1,828.7	)				(1,393.1	)
Cash and due from banks	3,070.1					3,166.5
Other assets	17,186.1					17,076.4
Noninterest earning trading assets	2,342.4					2,609.5
Unrealized gains on securities available for sale, net	2,295.9					2,454.0
Total assets	$175,548.8					$176,916.9
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$21,762.4		$62.5	1.15	%	$21,981.1		$101.9	1.87	%
Money market accounts	26,031.8		116.7	1.80		25,342.7		154.7	2.46
Savings	3,939.1		3.9	0.40		3,917.0		5.7	0.59
Consumer time	16,726.7		165.2	3.97		17,030.8		187.8	4.43
Other time	11,921.1		118.8	4.01		12,280.5		141.1	4.62
Total interest-bearing consumer and commercial deposits	80,381.1		467.1	2.34		80,552.1		591.2	2.95
Brokered deposits	11,135.4		93.4	3.32		11,216.4		123.0	4.34
Foreign deposits	3,932.9		19.3	1.95		4,252.2		33.6	3.13
Total interest-bearing deposits	95,449.4		579.8	2.44		96,020.7		747.8	3.13
Funds purchased	2,792.5		13.5	1.92		2,885.7		21.9	3.00
Securities sold under agreements to repurchase	5,388.4		21.8	1.60		5,889.4		35.1	2.36
Interest-bearing trading liabilities	849.2		6.6	3.12		713.0		6.0	3.41
Other short-term borrowings	2,650.6		13.1	1.99		2,887.6		22.8	3.17
Long-term debt	22,298.6		274.8	4.96		22,808.3		284.9	5.02
Total interest-bearing liabilities	129,428.7		909.6	2.83		131,204.7		1,118.5	3.43
Noninterest-bearing deposits	21,345.9					20,616.3
Other liabilities	5,162.4					5,347.4
Noninterest-bearing trading liabilities	1,518.6					1,686.8
Shareholders’ equity	18,093.2					18,061.7
Total liabilities and shareholders’ equity	$175,548.8					$176,916.9
Interest Rate Spread				2.69	%				2.58	%
Net Interest Income - FTE 1			$1,185.0					$1,167.8
Net Interest Margin 2				3.13	%				3.07	%

¹ The fully taxable-equivalent (“FTE”) basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

² The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets.

Page 7

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED DAILY AVERAGE BALANCES,

AVERAGE YIELDS EARNED AND RATES PAID

(Dollars in millions; yields on taxable-equivalent basis) (Unaudited)

	Three Months Ended
	December 31, 2007					September 30, 2007					June 30, 2007
	Average Balances		Interest Income/ Expense	Yields/ Rates		Average Balances		Interest Income/ Expense	Yields/Rates		Average Balances		Interest Income/ Expense	Yields/ Rates
ASSETS
Loans:
Real estate 1-4 family	$31,990.3		$517.4	6.47	%	$31,003.5		$498.5	6.43	%	$30,754.4		$493.2	6.42	%
Real estate construction	13,250.9		238.8	7.15		13,686.6		260.0	7.54		13,710.1		259.4	7.59
Real estate home equity lines	14,394.8		268.1	7.39		14,133.1		279.5	7.85		13,849.7		272.4	7.89
Real estate commercial	12,891.6		221.2	6.81		12,759.3		225.3	7.01		12,731.8		220.8	6.95
Commercial - FTE 1	34,879.3		564.9	6.43		34,247.9		562.6	6.52		33,607.7		539.6	6.44
Credit card	690.1		2.1	1.23		516.3		4.2	3.29		403.7		5.9	5.80
Consumer - direct	3,949.3		70.7	7.10		4,368.0		80.0	7.26		4,347.5		78.2	7.21
Consumer - indirect	7,877.3		125.7	6.33		7,966.4		124.6	6.21		8,063.6		123.1	6.12
Nonaccrual and restructured	1,170.7		4.3	1.45		877.5		3.8	1.72		696.1		4.8	2.76
Total loans	121,094.3		2,013.2	6.60		119,558.6		2,038.5	6.76		118,164.6		1,997.4	6.78
Securities available for sale:
Taxable	11,814.6		182.9	6.19		11,546.2		179.7	6.23		11,014.3		167.7	6.09
Tax-exempt - FTE 1	1,054.0		16.0	6.07		1,040.9		15.8	6.05		1,041.2		15.2	5.85
Total securities available for sale - FTE 1	12,868.6		198.9	6.18		12,587.1		195.5	6.21		12,055.5		182.9	6.07
Funds sold and securities purchased under agreements to resell	1,066.1		11.6	4.25		872.5		11.1	4.99		1,038.1		13.2	5.04
Loans held for sale	8,777.6		139.2	6.34		9,748.0		155.6	6.39		13,454.3		200.4	5.96
Interest-bearing deposits	18.2		0.3	6.22		24.9		0.3	4.28		24.1		0.3	5.74
Interest earning trading assets	7,716.2		112.8	5.80		9,536.5		141.2	5.88		12,857.6		174.3	5.44
Total earning assets	151,541.0		2,476.0	6.48		152,327.6		2,542.2	6.62		157,594.2		2,568.5	6.54
Allowance for loan and lease losses	(1,114.9	)				(1,059.1	)				(1,037.6	)
Cash and due from banks	3,462.6					3,417.2					3,427.7
Other assets	17,172.3					16,719.9					16,626.9
Noninterest earning trading assets	1,660.9					1,155.9					986.6
Unrealized gains on securities available for sale, net	2,408.6					2,091.9					2,398.7
Total assets	$175,130.5					$174,653.4					$179,996.5
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$20,737.2		$121.0	2.32	%	$19,543.4		$117.9	2.39	%	$20,065.8		$119.0	2.38	%
Money market accounts	24,261.5		177.7	2.91		22,560.3		160.0	2.81		21,773.3		142.0	2.62
Savings	4,177.7		11.1	1.05		4,456.5		13.3	1.19		4,786.7		14.8	1.24
Consumer time	17,170.7		197.2	4.56		16,839.9		193.4	4.56		16,942.3		190.5	4.51
Other time	12,353.3		151.5	4.87		11,862.4		146.3	4.89		11,962.4		144.5	4.85
Total interest-bearing consumer and commercial deposits	78,700.4		658.5	3.32		75,262.5		630.9	3.33		75,530.5		610.8	3.24
Brokered deposits	12,771.1		168.2	5.15		15,806.3		214.6	5.31		16,972.2		227.5	5.30
Foreign deposits	2,945.9		32.6	4.33		5,333.6		68.8	5.05		7,011.2		92.9	5.24
Total interest-bearing deposits	94,417.4		859.3	3.61		96,402.4		914.3	3.76		99,513.9		931.2	3.75
Funds purchased	2,151.4		24.1	4.38		2,291.3		28.9	4.94		3,967.7		52.2	5.21
Securities sold under agreements to repurchase	5,706.7		55.2	3.78		5,732.2		64.7	4.42		6,339.0		74.4	4.64
Interest-bearing trading liabilities	504.2		3.5	2.75		354.1		3.4	3.85		453.1		4.4	3.87
Other short-term borrowings	3,202.8		37.4	4.63		2,730.1		33.6	4.89		2,262.3		28.3	5.02
Long-term debt	22,808.1		301.7	5.25		21,143.5		278.1	5.22		19,772.4		258.0	5.24
Total interest-bearing liabilities	128,790.6		1,281.2	3.95		128,653.6		1,323.0	4.08		132,308.4		1,348.5	4.09
Noninterest-bearing deposits	20,948.1					21,445.1					22,395.8
Other liabilities	5,812.5					5,633.7					6,185.4
Noninterest-bearing trading liabilities	1,546.5					1,370.8					1,178.8
Shareholders’ equity	18,032.8					17,550.2					17,928.1
Total liabilities and shareholders’ equity	$175,130.5					$174,653.4					$179,996.5
Interest Rate Spread				2.53	%				2.54	%				2.45	%
Net Interest Income - FTE 1			$1,194.8					$1,219.2					$1,220.0
Net Interest Margin 2				3.13	%				3.18	%				3.10	%

¹ The fully taxable-equivalent (“FTE”) basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

² The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets.

Page 8

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED DAILY AVERAGE BALANCES,

AVERAGE YIELDS EARNED AND RATES PAID

(Dollars in millions; yields on taxable-equivalent basis) (Unaudited)

	Six Months Ended
	June 30, 2008				June 30, 2007
	Average Balances	Interest Income/ Expense	Yields/ Rates		Average Balances	Interest Income/ Expense	Yields/ Rates
ASSETS
Loans:
Real estate 1-4 family	$32,276.7	$1,028.4	6.37	%	$32,412.5	$1,020.6	6.30	%
Real estate construction	11,961.1	339.3	5.70		13,571.0	512.1	7.61
Real estate home equity lines	14,791.6	430.0	5.85		13,794.2	540.6	7.90
Real estate commercial	13,494.9	394.0	5.87		12,780.9	441.0	6.96
Commercial - FTE 1	36,987.3	1,040.6	5.66		33,819.1	1,075.2	6.41
Credit card	795.2	8.3	2.09		386.7	11.3	5.87
Consumer - direct	4,222.9	125.9	6.00		4,284.3	154.2	7.26
Consumer - indirect	7,541.3	236.1	6.30		8,114.8	245.1	6.09
Nonaccrual and restructured	2,156.5	12.9	1.21		667.0	9.2	2.80
Total loans	124,227.5	3,615.5	5.85		119,830.5	4,009.3	6.75
Securities available for sale:
Taxable	11,928.3	372.8	6.25		8,844.5	276.3	6.25
Tax-exempt - FTE 1	1,064.5	32.4	6.09		1,040.0	30.5	5.86
Total securities available for sale - FTE 1	12,992.8	405.2	6.24		9,884.5	306.8	6.21
Funds sold and securities purchased under agreement to resell	1,329.0	15.7	2.33		1,022.3	26.1	5.08
Loans held for sale	6,007.1	171.5	5.71		12,336.0	374.1	6.07
Interest-bearing deposits	21.6	0.5	4.16		26.4	0.8	5.71
Interest earning trading assets	8,165.3	172.5	4.25		15,429.0	403.2	5.27
Total earning assets	152,743.3	4,380.9	5.77		158,528.7	5,120.3	6.51
Allowance for loan and lease losses	(1,610.9)				(1,044.0)
Cash and due from banks	3,118.3				3,473.6
Other assets	17,131.2				16,450.8
Noninterest earning trading assets	2,475.9				985.9
Unrealized gains on securities available for sale, net	2,375.0				2,352.2
Total assets	$176,232.8				$180,747.2
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$21,871.7	$164.4	1.51	%	$19,943.6	$235.0	2.38	%
Money market accounts	25,687.2	271.4	2.12		21,930.3	284.8	2.62
Savings	3,928.1	9.7	0.50		4,905.1	31.1	1.28
Consumer time	16,878.8	353.0	4.21		16,876.2	373.6	4.46
Other time	12,100.8	259.8	4.32		12,038.7	288.5	4.83
Total interest-bearing consumer and commercial deposits	80,466.6	1,058.3	2.64		75,693.9	1,213.0	3.23
Brokered deposits	11,175.9	216.4	3.83		17,925.1	478.3	5.31
Foreign deposits	4,092.5	52.9	2.56		7,416.1	195.8	5.25
Total interest-bearing deposits	95,735.0	1,327.6	2.79		101,035.1	1,887.1	3.77
Funds purchased	2,839.1	35.4	2.47		4,328.4	113.4	5.21
Securities sold under agreements to repurchase	5,638.9	56.9	2.00		6,552.4	154.0	4.67
Interest-bearing trading liabilities	781.1	12.6	3.25		431.3	8.7	4.05
Other short-term borrowings	2,769.1	35.9	2.60		2,011.8	50.0	5.01
Long-term debt	22,553.5	559.7	4.99		19,388.7	498.9	5.19
Total interest-bearing liabilities	130,316.7	2,028.1	3.13		133,747.7	2,712.1	4.09
Noninterest-bearing deposits	20,981.0				22,165.7
Other liabilities	5,254.9				5,844.1
Noninterest-bearing trading liabilities	1,602.7				1,164.9
Shareholders’ equity	18,077.5				17,824.8
Total liabilities and shareholders’ equity	$176,232.8				$180,747.2
Interest Rate Spread			2.64	%			2.42	%
Net Interest Income - FTE 1		$2,352.8				$2,408.2
Net Interest Margin 2			3.10	%			3.06	%

¹ The fully taxable-equivalent (“FTE”) basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

² The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets.

Page 9

SunTrust Banks, Inc. and Subsidiaries

OTHER FINANCIAL DATA

(Dollars in thousands) (Unaudited)

	Three Months Ended								Six Months Ended
	June 30				Increase/(Decrease)				June 30				Increase/(Decrease)
	2008		2007		Amount		% 1		2008		2007		Amount		% 1
CREDIT DATA
Allowance for loan and lease losses - beginning	$1,545,340		$1,033,939		$511,401		49.5	%	$1,282,504		$1,044,521		$237,983		22.8	%
Provision for loan losses	448,027		104,680		343,347		NM		1,008,049		161,121		846,928		NM
Allowance associated with loans at fair value2	-		-		-		-		-		(4,100	)	(4,100	)	100.0
Allowance from GB&T acquisition	158,705		-		158,705		NM		158,705		-		158,705		NM
Charge-offs
Commercial	(47,738	)	(40,853	)	6,885		16.9		(86,027	)	(63,133	)	22,894		36.3
Real estate:
Home equity lines	(94,857	)	(24,429	)	70,428		NM		(193,459	)	(40,301	)	153,158		NM
Construction	(35,399	)	(1,468	)	33,931		NM		(58,581	)	(2,066	)	56,515		NM
Residential mortgages	(126,055	)	(19,615	)	106,440		NM		(235,241	)	(33,908	)	201,333		NM
Commercial real estate	(563	)	(694	)	(131	)	(18.9	)	(796	)	(981	)	(185	)	(18.9	)
Consumer:
Direct	(7,852	)	(5,362	)	2,490		46.4		(18,167	)	(11,218	)	6,949		61.9
Indirect	(43,101	)	(19,301	)	23,800		NM		(85,990	)	(45,062	)	40,928		90.8
Total charge-offs	(355,565	)	(111,722	)	243,843		NM		(678,261	)	(196,669	)	481,592		NM
Recoveries
Commercial	7,255		5,536		1,719		31.1		12,991		11,307		1,684		14.9
Real estate:
Home equity lines	5,650		2,323		3,327		NM		8,018		3,506		4,512		NM
Construction	182		244		(62	)	(25.4	)	260		363		(103	)	(28.4	)
Residential mortgages	1,644		1,614		30		1.9		2,867		3,027		(160	)	(5.3	)
Commercial real estate	35		162		(127	)	(78.4	)	197		203		(6	)	(3.0	)
Consumer:
Direct	2,119		2,568		(449	)	(17.5	)	4,500		5,021		(521	)	(10.4	)
Indirect	16,008		11,018		4,990		45.3		29,570		22,062		7,508		34.0
Total recoveries	32,893		23,465		9,428		40.2		58,403		45,489		12,914		28.4
Net charge-offs	(322,672	)	(88,257	)	234,415		NM		(619,858	)	(151,180	)	468,678		NM
Allowance for loan and lease losses - ending	$1,829,400		$1,050,362		$779,038		74.2		$1,829,400		$1,050,362		$779,038		74.2
Net charge-offs to average loans (annualized)
Commercial	0.42	%	0.42	%	-	%	-	%	0.39	%	0.30	%	0.09	%	27.2	%
Real estate:
Home equity lines	2.40		0.64		1.76		NM		2.52		0.54		1.98		NM
Construction	1.16		0.04		1.12		NM		0.93		0.03		0.90		NM
Residential mortgages	1.49		0.23		1.26		NM		1.39		0.19		1.20		NM
Commercial real estate	0.02		0.02		-		-		0.01		0.01		-		-
Consumer:
Direct	0.53		0.26		0.27		NM		0.65		0.29		0.36		NM
Indirect	1.46		0.41		1.05		NM		1.50		0.57		0.93		NM
Total net charge-offs to total average loans	1.04		0.30		0.74		NM		1.00		0.25		0.75		NM
Period Ended
Nonaccrual loans
Commercial	$117,168		$91,895		$25,273		27.5	%
Real estate:
Home equity lines	216,839		52,449		164,390		NM
Construction	772,353		77,936		694,417		NM
Residential mortgages	1,356,710		447,951		908,759		NM
Commercial real estate	124,523		44,168		80,355		NM
Consumer loans	37,735		22,401		15,334		68.5
Total nonaccrual loans	2,625,328		736,800		1,888,528		NM
Restructured loans	163,358		27,816		135,542		NM
Total nonperforming loans	2,788,686		764,616		2,024,070		NM
Other real estate owned (OREO)	334,519		100,973		233,546		NM
Other repossessed assets	13,203		7,250		5,953		82.1
Total nonperforming assets	$3,136,408		$872,839		$2,263,569		NM
Total accruing loans past due 90 days or more	$753,558		$449,038		$304,520		67.8	%
Total nonperforming loans to total loans	2.22	%	0.64	%	1.58	%	NM	%
Total nonperforming assets to total loans plus OREO and other repossessed assets	2.49		0.73		1.76		NM
Allowance to period-end loans 3	1.46		0.89		0.57		64.0
Allowance to nonperforming loans 4	72.0		160.7		(88.7	)	(55.2	)
Allowance to annualized net charge-offs	1.41	x	2.97	x	(1.56	)x	(52.5	)

¹ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

² Amount removed from the allowance for loan losses related to the Company’s election to record $4.1 billion of residential mortgages at fair value.

³ During the second quarter of 2008, the Company revised its method of calculating this ratio to include, within the period-end loan amount, only loans measured at amortized cost. Previously, period-end loans included loans measured at fair value or the lower of cost or market. The Company believes this is an improved method of calculation due to the fact that the allowance for loan losses relates solely to the loans measured at amortized cost. Loans measured at fair value or the lower of cost or market that have been excluded from the prior period calculation were $110,841, which did not change the calculation by more than one basis point as of June 30, 2007.

⁴ During the second quarter of 2008, the Company revised its method of calculating this ratio to include, within the nonperforming loan amount, only loans measured at amortized cost. Previously, this calculation included nonperforming loans measured at fair value or the lower of cost or market. The Company believes this is an improved method of calculation due to the fact that the allowance for loan losses relates solely to the loans measured at amortized cost. Nonperforming loans measured at fair value or the lower of cost or market that have been excluded from the prior period calculation were $110,841, which increased the calculation approximately 23 basis points as of June 30, 2007.

Page 10

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER OTHER FINANCIAL DATA

(Dollars in thousands) (Unaudited)

	Three Months Ended
	June 30 2008		March 31 2008		Increase/(Decrease)				December 31 2007		September 30 2007		June 30 2007
					Amount		%1
CREDIT DATA
Allowance for loan and lease losses - beginning	$1,545,340		$1,282,504		$262,836		20.5	%	$1,093,691		$1,050,362		$1,033,939
Provision for loan losses	448,027		560,022		(111,995	)	(20.0	)	356,781		147,020		104,680
Allowance from GB&T acquisition	158,705		-		158,705		NM		-		-		-
Charge-offs
Commercial	(47,738	)	(38,289	)	9,449		24.7		(38,239	)	(39,487	)	(40,853	)
Real estate:
Home equity lines	(94,857	)	(98,602	)	(3,745	)	(3.8	)	(46,842	)	(29,075	)	(24,429	)
Construction	(35,399	)	(23,182	)	12,217		52.7		(7,616	)	(2,477	)	(1,468	)
Residential mortgages	(126,055	)	(109,186	)	16,869		15.4		(59,319	)	(19,853	)	(19,615	)
Commercial real estate	(563	)	(233	)	330		NM		(299	)	(789	)	(694	)
Consumer:
Direct	(7,852	)	(10,315	)	(2,463	)	(23.9	)	(6,630	)	(5,661	)	(5,362	)
Indirect	(43,101	)	(42,889	)	212		0.5		(32,448	)	(28,944	)	(19,301	)
Total charge-offs	(355,565	)	(322,696	)	32,869		10.2		(191,393	)	(126,286	)	(111,722	)
Recoveries
Commercial	7,255		5,736		1,519		26.5		6,613		6,322		5,536
Real estate:
Home equity lines	5,650		2,368		3,282		NM		2,182		2,101		2,323
Construction	182		78		104		NM		705		82		244
Residential mortgages	1,644		1,223		421		34.4		1,328		1,107		1,614
Commercial real estate	35		162		(127	)	(78.4	)	846		861		162
Consumer:
Direct	2,119		2,381		(262	)	(11.0	)	2,484		2,108		2,568
Indirect	16,008		13,562		2,446		18.0		9,267		10,014		11,018
Total recoveries	32,893		25,510		7,383		28.9		23,425		22,595		23,465
Net charge-offs	(322,672	)	(297,186	)	25,486		8.6		(167,968	)	(103,691	)	(88,257	)
Allowance for loan and lease losses - ending	$1,829,400		$1,545,340		$284,060		18.4		$1,282,504		$1,093,691		$1,050,362
Net charge-offs to average loans (annualized)
Commercial	0.42	%	0.35	%	0.07	%	20.7	%	0.35	%	0.38	%	0.42	%
Real estate:
Home equity lines	2.40		2.65		(0.25	)	(9.6	)	1.23		0.76		0.64
Construction	1.16		0.72		0.44		61.1		0.20		0.07		0.04
Residential mortgages	1.49		1.29		0.20		15.4		0.70		0.24		0.23
Commercial real estate	0.02		-		0.02		NM		(0.02	)	-		0.02
Consumer:
Direct	0.53		0.79		(0.26	)	(33.4	)	0.42		0.32		0.26
Indirect	1.46		1.53		(0.07	)	(4.7	)	1.16		0.94		0.41
Total net charge-offs to total average loans	1.04		0.97		0.07		7.2		0.55		0.34		0.30
Period Ended
Nonaccrual loans
Commercial	$117,168		$97,930		$19,238		19.6	%	$74,463		$74,246		$91,895
Real estate:
Home equity lines	216,839		193,153		23,686		12.3		135,700		80,966		52,449
Construction	772,353		520,704		251,649		48.3		295,335		158,194		77,936
Residential mortgages	1,356,710		1,115,071		241,639		21.7		841,376		595,856		447,951
Commercial real estate	124,523		64,251		60,272		93.8		44,502		40,649		44,168
Consumer loans	37,735		46,851		(9,116)		(19.5)		39,031		24,880		22,401
Total nonaccrual loans	2,625,328		2,037,960		587,368		28.8		1,430,407		974,791		736,800
Restructured loans	163,358		30,787		132,571		NM		29,851		29,057		27,816
Total nonperforming loans	2,788,686		2,068,747		719,939		34.8		1,460,258		1,003,848		764,616
Other real estate owned (OREO)	334,519		244,906		89,613		36.6		183,753		156,106		100,973
Other repossessed assets	13,203		6,340		6,863		NM		11,536		9,974		7,250
Total nonperforming assets	$3,136,408		$2,319,993		$816,415		35.2		$1,655,547		$1,169,928		$872,839
Total accruing loans past due 90 days or more	$753,558		$743,969		$9,589		1.3	%	$611,003		$495,384		$449,038
Total nonperforming loans to total loans	2.22	%	1.67	%	0.55	%	32.9	%	1.19	%	0.83	%	0.64	%
Total nonperforming assets to total loans plus OREO and other repossessed assets	2.49		1.87		0.62		33.2		1.35		0.97		0.73
Allowance to period-end loans 2	1.46		1.25		0.21		16.8		1.05		0.91		0.89
Allowance to nonperforming loans 3	72.0		81.6		(9.6	)	(11.7	)	99.5		125.2		160.7
Allowance to annualized net charge-offs	1.41	x	1.29	x	0.12	x	9.3		1.92	x	2.66	x	2.97	x

¹ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

² During the second quarter of 2008, the Company revised its method of calculating this ratio to include, within the period-end loan amount, only loans measured at amortized cost. Previously, period-end loans included loans measured at fair value or the lower of cost or market. The Company believes this is an improved method of calculation due to the fact that the allowance for loan losses relates solely to the loans measured at amortized cost. Loans measured at fair value or the lower of cost or market that have been excluded from the prior periods calculation were $450,662, $392,259, $131,514, and $110,841, as of March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007, respectively, which did not change the calculation by more than one basis point as of March 31, 2008, December 31, 2007, September 30, 2007 or June 30, 2007, respectively.

³ During the second quarter of 2008, the Company revised its method of calculating this ratio to include, within the nonperforming loan amount, only loans measured at amortized cost. Previously, this calculation included nonperforming loans measured at fair value or the lower of cost or market. The Company believes this is an improved method of calculation due to the fact that the allowance for loan losses relates solely to the loans measured at amortized cost. Nonperforming loans measured at fair value or the lower of cost or market that have been excluded from the prior periods calculation were $173,752, $171,475, $129,962, and $110,841, as of March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007, respectively, which increased the calculation approximately 7, 12, 16, and 23 basis points as of March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007, respectively.

Page 11

SunTrust Banks, Inc. and Subsidiaries

OTHER FINANCIAL DATA (continued)

(Dollars and shares in thousands, except per share data) (Unaudited)

	Three Months Ended										Six Months Ended
	June 30										June 30
	Core Deposit Intangible		Mortgage Servicing Rights		Other		Total				Core Deposit Intangible		Mortgage Servicing Rights		Other		Total
OTHER INTANGIBLE ASSET ROLLFORWARD
Balance, beginning of period	$222,829		$921,255		$149,373		$1,293,457				$241,614		$810,509		$129,861		$1,181,984
Amortization	(17,255	)	(46,578	)	(7,649	)	(71,482	)			(36,040	)	(87,937	)	(12,407	)	(136,384	)
Mortgage Servicing Rights (“MSRs”) originated	-		182,991		-		182,991				-		335,096		-		335,096
Purchase of GenSpring (formerly AMA, LLC) minority shares	-		-		1,150		1,150				-		-		1,278		1,278
Intangible assets obtained from sale upon merger of Lighthouse Partners, net1	-		-		-		-				-		-		24,142		24,142
Sale/securitization of MSRs	-		(115,656	)	-		(115,656	)			-		(115,656	)	-		(115,656	)
Balance June 30, 2007	$205,574		$942,012		$142,874		$1,290,460				$205,574		$942,012		$142,874		$1,290,460
Balance, beginning of period	$157,703		$1,143,405		$129,160		$1,430,268				$172,655		$1,049,425		$140,915		$1,362,995
Amortization	(14,228	)	(56,634	)	(5,506	)	(76,368	)			(29,180	)	(113,077	)	(11,269	)	(153,526	)
MSRs originated	-		145,974		-		145,974				-		298,278		-		298,278
MSRs impairment reserve	-		-		-		-				-		(1,881	)	-		(1,881	)
MSRs impairment recovery	-		1,881		-		1,881				-		1,881		-		1,881
Sale of interest in Lighthouse Partners	-		-		-		-				-		-		(5,992	)	(5,992	)
Sale/securitization of MSRs	-		(41,176	)	-		(41,176	)			-		(41,176	)	-		(41,176	)
Customer intangible impairment charge	-		-		(45,000	)	(45,000	)			-		-		(45,000	)	(45,000	)
Acquisition of GB&T	29,510		-		-		29,510				29,510		-		-		29,510
Sale of First Mercantile	-		-		(3,033	)	(3,033	)			-		-		(3,033	)	(3,033	)
Balance June 30, 2008	$172,985		$1,193,450		$75,621		$1,442,056				$172,985		$1,193,450		$75,621		$1,442,056
	Three Months Ended
	June 30 2008		March 31 2008		December 31 2007		September 30 2007		June 30 2007
COMMON SHARE ROLLFORWARD
Beginning balance	349,832		348,411		348,074		349,053		356,505
Common shares issued/exchanged for employee benefit plans, stock option, performance and restricted stock activity	1,489		1,421		337		483		1,228
Common shares issued for acquisition of GB&T	2,221		-		-		-		-
Acquisition of treasury stock	-		-		-		(1,462	)	(8,680	)
Ending balance	353,542		349,832		348,411		348,074		349,053
COMMON STOCK REPURCHASE ACTIVITY
Number of common shares repurchased2	19		17		12		1,472		8,715
Average price per share of repurchased common shares	$57.76		$62.38		$69.31		$81.00		$87.02
Total cost to acquire treasury shares	$-		$-		$-		$-		$853,386
Maximum number of common shares that may yet be purchased under plans or programs 3	30,000		30,000		30,000		30,000		2,471

¹ During the first quarter of 2007 SunTrust merged its wholly-owned subsidiary, Lighthouse Partners, into Lighthouse Investment Partners, LLC in exchange for a minority interest in Lighthouse Investment Partners, LLC and a revenue-sharing agreement. This transaction resulted in a $7.9 million decrease in existing intangible assets and a new intangible asset of $32.0 million.

² This figure includes shares repurchased pursuant to SunTrust’s employee stock option plans, pursuant to which participants may pay the exercise price upon exercise of SunTrust stock options by surrendering shares of SunTrust common stock which the participant already owns.

³ In August 2006, the Board authorized the Company to repurchase up to an additional $1 billion or 13,333,334 shares of the Company’s Common Stock, under which authority the Company repurchased 9,926,589 shares during 2006 under an Accelerated Share Repurchase Agreement (“ASR”). The 3,406,745 shares remaining under the August 2006 authorization, combined with 8,360,000 shares remaining under Board Authorization from April 2006, left the Company with authorization to repurchase up to 11,766,745 shares as of January 1, 2007. The Company completed the aforementioned ASR with the repurchase of 615,514 shares during the first quarter of 2007. During 2007, the Company entered into a second ASR, as announced in the Company’s 8-K filing on June 7, 2007, by repurchasing 8,022,254 shares during the second quarter of 2007. This ASR was completed in the third quarter of 2007 when the Company received, without additional payment, an additional 1,462,091 shares. On August 14, 2007, the Board of Directors authorized the Company to repurchase up to 30 million shares of common stock and specified that such authorization replaced (terminated) existing unused authorizations.

Page 12

SunTrust Banks, Inc. and Subsidiaries

RECONCILEMENT OF NON-GAAP MEASURES

APPENDIX A TO THE EARNINGS RELEASE

(Dollars in thousands) (Unaudited)

	Three Months Ended										Six Months Ended
	June 30 2008		March 31 2008		December 31 2007		September 30 2007		June 30 2007		June 30 2008		June 30 2007
NON-GAAP MEASURES PRESENTED IN THE EARNINGS RELEASE
Net income	$540,362		$290,555		$11,124		$420,164		$681,431		$830,917		$1,202,727
Securities (gains)/losses, net of tax	(345,807	)	37,563		(3,530	)	(614	)	(146,575	)	(308,244	)	(146,588	)
Net income excluding net securities (gains)/losses, net of tax	194,555		328,118		7,594		419,550		534,856		522,673		1,056,139
The Coca-Cola Company dividend, net of tax	(14,738	)	(14,738	)	(13,206	)	(13,210	)	(13,218	)	(29,477	)	(27,798	)
Net income/(loss) excluding net securities (gains)/losses and The Coca-Cola Company dividend	179,817		313,380		(5,612	)	406,340		521,638		493,196		1,028,341
Preferred dividends	5,112		6,977		7,867		7,526		7,519		12,089		14,882
Net income/(loss) available to common shareholders excluding net securities (gains)/losses and The Coca-Cola Company dividend	$174,705		$306,403		($13,479	)	$398,814		$514,119		$481,107		$1,013,459
Total average assets	$175,548,768		$176,916,901		$175,130,464		$174,653,377		$179,996,457		$176,232,836		$180,747,241
Average net unrealized securities gains	(2,295,932	)	(2,453,981	)	(2,408,596	)	(2,091,892	)	(2,398,651	)	(2,374,957	)	(2,352,236	)
Average assets less net unrealized securities gains	$173,252,836		$174,462,920		$172,721,868		$172,561,485		$177,597,806		$173,857,879		$178,395,005
Total average common shareholders’ equity	$17,593,229		$17,561,709		$17,532,786		$17,050,182		$17,428,101		17,577,470		$17,324,815
Average accumulated other comprehensive income	(1,488,305	)	(1,533,427	)	(1,292,785	)	(998,561	)	(1,206,487	)	(1,510,866	)	(1,140,856	)
Total average realized common shareholders’ equity	$16,104,924		$16,028,282		$16,240,001		$16,051,621		$16,221,614		$16,066,604		$16,183,959
Return on average total assets	1.24	%	0.66	%	0.03	%	0.95	%	1.52	%	0.95	%	1.34	%
Impact of excluding net realized and unrealized securities (gains)/losses and The Coca-Cola Company dividend	(0.82	)	0.06		(0.04	)	(0.02	)	(0.34	)	(0.38	)	(0.18	)
Return on average total assets less net unrealized securities gains 1	0.42	%	0.72	%	(0.01	)%	0.93	%	1.18	%	0.57	%	1.16	%
Return on average common shareholders’ equity	12.24	%	6.49	%	0.07	%	9.60	%	15.51	%	9.37	%	13.83	%
Impact of excluding net realized and unrealized securities (gains)/losses and The Coca-Cola Company dividend	(7.88	)	1.20		(0.40	)	0.26		(2.80	)	(3.35	)	(1.20	)
Return on average realized common shareholders’ equity 2	4.36	%	7.69	%	(0.33	)%	9.86	%	12.71	%	6.02	%	12.63	%
Efficiency ratio 3	53.06	%	56.40	%	82.19	%	63.35	%	52.69	%	54.60	%	56.00	%
Impact of excluding amortization/impairment of intangible assets other than MSRs	(2.49	)	(0.93	)	(1.33	)	(1.22	)	(1.05	)	(1.77	)	(1.09	)
Tangible efficiency ratio 4	50.57	%	55.47	%	80.86	%	62.13	%	51.64	%	52.83	%	54.91	%
Total shareholders’ equity	$17,907,152		$18,431,448		$18,052,518		$17,907,247		$17,368,853
Goodwill	(7,056,015	)	(6,923,033	)	(6,921,493	)	(6,912,110	)	(6,897,050	)
Other intangible assets including MSRs	(1,442,056	)	(1,430,268	)	(1,362,995	)	(1,327,060	)	(1,290,460	)
MSRs	1,193,450		1,143,405		1,049,426		995,984		942,012
Tangible equity	$10,602,531		$11,221,552		$10,817,456		$10,664,061		$10,123,355
Total assets	$177,413,501		$178,986,947		$179,573,933		$175,857,229		$180,314,372
Goodwill	(7,056,015	)	(6,923,033	)	(6,921,493	)	(6,912,110	)	(6,897,050	)
Other intangible assets including MSRs	(1,442,056	)	(1,430,268	)	(1,362,995	)	(1,327,060	)	(1,290,460	)
MSRs	1,193,450		1,143,405		1,049,426		995,984		942,012
Tangible assets	$170,108,880		$171,777,051		$172,338,871		$168,614,043		$173,068,874
Tangible equity to tangible assets 5	6.23	%	6.53	%	6.28	%	6.32	%	5.85	%
Net interest income	$1,156,716		$1,139,867		$1,167,513		$1,192,188		$1,195,284		$2,296,583		$2,359,843
Taxable-equivalent adjustment	28,256		27,975		27,244		27,055		24,668		56,231		48,381
Net interest income - FTE	1,184,972		1,167,842		1,194,757		1,219,243		1,219,952		2,352,814		2,408,224
Noninterest income	1,413,010		1,057,502		576,017		819,139		1,154,622		2,470,512		2,033,528
Total revenue - FTE	2,597,982		2,225,344		1,770,774		2,038,382		2,374,574		4,823,326		4,441,752
Securities (gains)/losses, net	(549,787	)	60,586		(5,694	)	(991	)	(236,412	)	(489,201	)	(236,432	)
Total revenue - FTE excluding securities (gains)/losses, net 6	$2,048,195		$2,285,930		$1,765,080		$2,037,391		$2,138,162		$4,334,125		$4,205,320
	As of
	June 30, 2008
CALCULATION OF PRO FORMA TIER 1 CAPITAL
Estimated Tier 1 Capital	$12,521,872
Impact of July 15, 2008 Tier 1 Coca-Cola Company Agreements	727,924
Impact of July charitable gift to SunTrust Foundation	68,527
Pro forma Tier 1 Capital	$13,318,323

¹ SunTrust presents a return on average assets less net unrealized gains on securities. The foregoing numbers primarily reflect adjustments to remove the effects of the securities portfolio which includes the ownership by the Company of 33.6 million shares of The Coca-Cola Company as of June 30, 2008. The Company uses this information internally to gauge its actual performance in the industry. The Company believes that the return on average assets less the net unrealized securities gains is more indicative of the Company’s return on assets because it more accurately reflects the return on the assets that are related to the Company’s core businesses which are primarily customer relationship and customer transaction driven. The return on average assets less net unrealized gains on securities is computed by dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, net of tax, by average assets less net unrealized securities gains.

² The Company believes that the return on average realized common shareholders’ equity is more indicative of the Company’s return on equity because the excluded equity relates primarily to the holding of a specific security. The return on average realized common shareholders’ equity is computed by dividing annualized net income available to common shareholders, excluding securities gains/losses and The Coca -Cola Company dividend, net of tax, by average realized common shareholders’ equity.

³ Computed by dividing noninterest expense by total revenue - FTE. The efficiency ratios are presented on an FTE basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

⁴ SunTrust presents a tangible efficiency ratio which excludes the amortization/impairment of intangible assets other than MSRs. The Company believes this measure is useful to investors because, by removing the effect of these intangible asset costs (the level of which may vary from company to company), it allows investors to more easily compare the Company’s efficiency to other companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business.

⁵ SunTrust presents a tangible equity to tangible assets ratio that excludes the impact of purchase accounting intangible assets. The Company believes this measure is useful to investors because, by removing the effect of intangible assets that result from merger and acquisition activity (the level of which may vary from company to company), it allows investors to more easily compare the Company’s capital adequacy to other companies in the industry. This measure is used by management to analyze capital adequacy.

⁶ SunTrust presents total revenue- FTE excluding realized securities (gains)/losses, net. The Company believes noninterest income without net securities (gains)/losses is more indicative of the Company’s performance because it isolates income that is primarily customer relationship and customer transaction driven and is more indicative of normalized operations.

Page 13

SunTrust Banks, Inc. and Subsidiaries

QUARTER-TO-QUARTER COMPARISON - ACTUAL

APPENDIX B TO THE EARNINGS RELEASE

(Dollars in thousands) (Unaudited)

	Three Months Ended
	June 30 2008		March 31 2008		Increase/ (Decrease)2				Sequential Annualized 1, 2 %		June 30 2008		June 30 2007	Increase/ (Decrease)2
					Amount		%							Amount		%
STATEMENTS OF INCOME
NET INTEREST INCOME	$1,156,716		$1,139,867		$16,849		1.5	%	5.9	%	$1,156,716		$1,195,284	($38,568	)	(3.2	)%
Provision for loan losses	448,027		560,022		(111,995	)	(20.0	)	(80.0	)	448,027		104,680	343,347		NM
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	708,689		579,845		128,844		22.2		88.9		708,689		1,090,604	(381,915	)	(35.0	)
NONINTEREST INCOME
Service charges on deposit accounts	230,296		211,839		18,457		8.7		34.9		230,296		196,844	33,452		17.0
Trust and investment management income	157,319		161,102		(3,783	)	(2.3	)	(9.4	)	157,319		164,620	(7,301	)	(4.4	)
Retail investment services	73,764		72,300		1,464		2.0		8.1		73,764		71,785	1,979		2.8
Other charges and fees	129,581		127,231		2,350		1.8		7.4		129,581		118,358	11,223		9.5
Investment banking income	60,987		55,420		5,567		10.0		40.2		60,987		61,999	(1,012	)	(1.6	)
Trading account profits/(losses) and commissions	(49,306	)	28,218		(77,524	)	NM		NM		(49,306	)	16,437	(65,743	)	NM
Card fees	78,566		73,761		4,805		6.5		26.1		78,566		68,580	9,986		14.6
Mortgage production related income	63,508		85,549		(22,041	)	(25.8	)	NM		63,508		64,322	(814	)	(1.3	)
Mortgage servicing related income	32,548		29,098		3,450		11.9		47.4		32,548		45,527	(12,979	)	(28.5	)
Net gain on sale/leaseback of premises	-		37,039		(37,039	)	(100.0	)	NM		-		-	-		NM
Net gain on sale or merger of Lighthouse interests	-		89,390		(89,390	)	(100.0	)	NM		-		-	-		NM
Gain on Visa IPO	-		86,305		(86,305	)	(100.0	)	NM		-		-	-		NM
Gain on sale of First Mercantile	29,648		-		29,648		NM		-		29,648		-	29,648		NM
Other noninterest income	56,312		60,836		(4,524	)	(7.4	)	(29.7	)	56,312		109,738	(53,426	)	(48.7	)
Securities gains/(losses), net	549,787		(60,586	)	610,373		NM		NM		549,787		236,412	313,375		NM
Total noninterest income	1,413,010		1,057,502		355,508		33.6		NM		1,413,010		1,154,622	258,388		22.4
NONINTEREST EXPENSE
Employee compensation and benefits	711,957		715,083		(3,126	)	(0.4	)	(1.7	)	711,957		710,613	1,344		0.2
Net occupancy expense	85,483		86,441		(958	)	(1.1	)	(4.4	)	85,483		84,650	833		1.0
Outside processing and software	107,205		109,165		(1,960	)	(1.8	)	(7.2	)	107,205		100,730	6,475		6.4
Equipment expense	50,991		52,395		(1,404	)	(2.7	)	(10.7	)	50,991		53,823	(2,832	)	(5.3	)
Marketing and customer development	47,203		55,703		(8,500	)	(15.3	)	(61.0	)	47,203		43,326	3,877		8.9
Amortization/impairment of intangible assets	64,735		20,715		44,020		NM		NM		64,735		24,904	39,831		NM
Net loss on extinguishment of debt	-		11,723		(11,723	)	(100.0	)	NM		-		-	-		NM
Visa litigation	-		(39,124	)	39,124		100.0		NM		-		-	-		NM
Other noninterest expense	310,959		243,043		67,916		27.9		NM		310,959		233,148	77,811		33.4
Total noninterest expense	1,378,533		1,255,144		123,389		9.8		39.3		1,378,533		1,251,194	127,339		10.2
INCOME BEFORE PROVISION FOR INCOME TAXES	743,166		382,203		360,963		94.4		NM		743,166		994,032	(250,866	)	(25.2	)
Provision for income taxes	202,804		91,648		111,156		NM		NM		202,804		312,601	(109,797	)	(35.1	)
NET INCOME	540,362		290,555		249,807		86.0		NM		540,362		681,431	(141,069	)	(20.7	)
Preferred dividends	5,112		6,977		(1,865	)	(26.7	)	NM		5,112		7,519	(2,407	)	(32.0	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$535,250		$283,578		$251,672		88.7		NM		$535,250		$673,912	($138,662	)	(20.6	)
REVENUE
Net interest income	$1,156,716		$1,139,867		$16,849		1.5	%	5.9	%	$1,156,716		$1,195,284	($38,568	)	(3.2	)%
Taxable-equivalent adjustment	28,256		27,975		281		1.0		4.0		28,256		24,668	3,588		14.5
Net interest income - FTE	1,184,972		1,167,842		17,130		1.5		5.9		1,184,972		1,219,952	(34,980	)	(2.9	)
Noninterest income	1,413,010		1,057,502		355,508		33.6		NM		1,413,010		1,154,622	258,388		22.4
Total revenue - FTE	2,597,982		2,225,344		372,638		16.7		67.0		2,597,982		2,374,574	223,408		9.4
SELECTED AVERAGE BALANCES (Dollars in millions)
Average loans
Commercial-FTE	$37,600		$36,375		$1,225		3.4	%	13.5	%	$37,600		$33,608	$3,992		11.9	%
Real estate home equity lines	14,980		14,603		377		2.6		10.3		14,980		13,850	1,130		8.2
Real estate construction	11,472		12,450		(978	)	(7.9	)	(31.4	)	11,472		13,710	(2,238	)	(16.3	)
Real estate 1-4 family	32,114		32,440		(326	)	(1.0	)	(4.0	)	32,114		30,754	1,360		4.4
Real estate commercial	13,877		13,113		764		5.8		23.3		13,877		12,732	1,145		9.0
Credit card	816		774		42		5.4		21.5		816		404	412		NM
Consumer - direct	4,382		4,063		319		7.9		31.4		4,382		4,347	35		0.8
Consumer - indirect	7,437		7,646		(209	)	(2.7	)	(10.9	)	7,437		8,064	(627	)	(7.8	)
Nonaccrual and restructured	2,514		1,799		715		39.8		NM		2,514		696	1,818		NM
Total loans	$125,192		$123,263		$1,929		1.6	%	6.3	%	$125,192		$118,165	$7,027		5.9	%
Average deposits
Noninterest bearing deposits	$21,346		$20,616		$730		3.5	%	14.2	%	$21,346		$22,396	($1,050	)	(4.7	)%
NOW accounts	21,762		21,981		(219	)	(1.0	)	(4.0	)	21,762		20,066	1,696		8.5
Money market accounts	26,032		25,343		689		2.7		10.9		26,032		21,773	4,259		19.6
Savings	3,939		3,917		22		0.6		2.3		3,939		4,787	(848	)	(17.7	)
Consumer and other time	28,648		29,311		(663	)	(2.3	)	(9.1	)	28,648		28,905	(257	)	(0.9	)
Total consumer and commercial deposits	101,727		101,168		559		0.6		2.2		101,727		97,927	3,800		3.9
Brokered and foreign deposits	15,068		15,469		(401	)	(2.6	)	(10.4	)	15,068		23,983	(8,915	)	(37.2	)
Total deposits	$116,795		$116,637		$158		0.1	%	0.5	%	$116,795		$121,910	($5,115	)	(4.2	)%
SELECTED CREDIT DATA (Dollars in thousands)
Nonaccrual loans	$2,625,328		$2,037,960		$587,368		28.8	%	NM	%	$2,625,328		$736,800	$1,888,528		NM	%
Restructured loans	163,358		30,787		132,571		NM		NM		163,358		27,816	135,542		NM
Total nonperforming loans	2,788,686		2,068,747		719,939		34.8		NM		2,788,686		764,616	2,024,070		NM
Other real estate owned (OREO)	334,519		244,906		89,613		36.6		NM		334,519		100,973	233,546		NM
Other repossessed assets	13,203		6,340		6,863		NM		NM		13,203		7,250	5,953		82.1
Total nonperforming assets	$3,136,408		$2,319,993		$816,415		35.2	%	NM	%	$3,136,408		$872,839	$2,263,569		NM	%
Allowance for loan and lease losses	$1,829,400		$1,545,340		$284,060		18.4	%	73.5	%	$1,829,400		$1,050,362	$779,038		74.2	%

¹ Multiply percentage change by 4 to calculate sequential annualized change.

² ”NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 14

SunTrust Banks, Inc. and Subsidiaries

YEAR-TO-DATE COMPARISON - ACTUAL

APPENDIX B TO THE EARNINGS RELEASE, continued

(Dollars in thousands) (Unaudited)

	Six Months Ended
	June 30 2008		June 30 2007	Increase/ (Decrease)
				Amount		% 1
STATEMENTS OF INCOME
NET INTEREST INCOME	$2,296,583		$2,359,843	($63,260	)	(2.7	)%
Provision for loan losses	1,008,049		161,121	846,928		NM
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	1,288,534		2,198,722	(910,188	)	(41.4	)
NONINTEREST INCOME
Service charges on deposit accounts	442,135		385,879	56,256		14.6
Trust and investment management income	318,421		338,938	(20,517	)	(6.1	)
Retail investment services	146,064		135,328	10,736		7.9
Other charges and fees	256,812		236,495	20,317		8.6
Investment banking income	116,407		112,156	4,251		3.8
Trading account profits/(losses) and commissions	(21,088	)	106,638	(127,726	)	NM
Card fees	152,327		132,775	19,552		14.7
Mortgage production related income	149,057		55,667	93,390		NM
Mortgage servicing related income	61,646		80,930	(19,284	)	(23.8	)
Gain on sale or merger of Lighthouse interests	89,390		32,340	57,050		NM
Gain on Visa IPO	86,305		-	86,305		NM
Gain of sale of First Mercantile	29,648		-	29,648		NM
Net gain on sale/leaseback of premises	37,039		-	37,039		NM
Other noninterest income	117,148		179,950	(62,802	)	(34.9	)
Net securities gains/(losses)	489,201		236,432	252,769		NM
Total noninterest income	2,470,512		2,033,528	436,984		21.5
NONINTEREST EXPENSE
Employee compensation and benefits	1,427,040		1,409,613	17,427		1.2
Net occupancy expense	171,924		170,907	1,017		0.6
Outside processing and software	216,370		200,406	15,964		8.0
Equipment expense	103,386		103,232	154		0.1
Marketing and customer development	102,906		89,031	13,875		15.6
Amortization/impairment of intangible assets	85,450		48,446	37,004		76.4
Loss on extinguishment of debt	11,723		-	11,723		NM
VISA litigation	(39,124	)	-	(39,124	)	NM
Other noninterest expense	554,002		465,556	88,446		19.0
Total noninterest expense	2,633,677		2,487,191	146,486		5.9
INCOME BEFORE PROVISION FOR INCOME TAXES	1,125,369		1,745,059	(619,690	)	(35.5	)
Provision for income taxes	294,452		542,332	(247,880	)	(45.7	)
NET INCOME	830,917		1,202,727	(371,810	)	(30.9	)
Preferred dividends	12,089		14,882	(2,793	)	(18.8	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$818,828		$1,187,845	($369,017	)	(31.1	)
REVENUE
Net interest income	$2,296,583		$2,359,843	($63,260	)	(2.7	)%
Taxable-equivalent adjustment	56,231		48,381	7,850		16.2
Net interest income - FTE	2,352,814		2,408,224	(55,410	)	(2.3	)
Noninterest income	2,470,512		2,033,528	436,984		21.5
Total revenue - FTE	$4,823,326		$4,441,752	$381,574		8.6
SELECTED AVERAGE BALANCES (Dollars in millions)
Average loans
Commercial-FTE	$36,987		$33,819	$3,168		9.4	%
Real estate home equity lines	14,792		13,794	998		7.2
Real estate construction	11,961		13,571	(1,610	)	(11.9	)
Real estate 1-4 family	32,277		32,413	(136	)	(0.4	)
Real estate commercial	13,495		12,781	714		5.6
Credit card	795		387	408		NM
Consumer - direct	4,223		4,284	(61	)	(1.4	)
Consumer - indirect	7,541		8,115	(574	)	(7.1	)
Nonaccrual and restructured	2,156		667	1,489		NM
Total loans	$124,227		$119,831	$4,396		3.7	%
Average deposits
Noninterest bearing deposits	$20,981		$22,166	($1,185	)	(5.3	)%
NOW accounts	21,872		19,944	1,928		9.7
Money market accounts	25,687		21,930	3,757		17.1
Savings	3,928		4,905	(977	)	(19.9	)
Consumer and other time	28,980		28,915	65		0.2
Total consumer and commercial deposits	101,448		97,860	3,588		3.7
Brokered and foreign deposits	15,268		25,341	(10,073	)	(39.7	)
Total deposits	$116,716		$123,201	($6,485	)	(5.3	)%

¹ ”NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 15

SunTrust Banks, Inc. and Subsidiaries

RETAIL AND COMMERCIAL LINE OF BUSINESS

(Dollars in thousands)    (Unaudited)

	Three Months Ended						Six Months Ended
	June 30 2008		June 30 2007		% Change3		June 30 2008		June 30 2007		% Change3
Statements of Income
Net interest income1	$642,474		$707,200		(9.2	)%	$1,262,592		$1,410,714		(10.5	)%
FTE adjustment	8,501		9,311		(8.7	)	17,233		18,760		(8.1	)
Net interest income - FTE	650,975		716,511		(9.1	)	1,279,825		1,429,474		(10.5	)
Provision for loan losses2	182,607		56,688		NM		363,349		105,382		NM
Net interest income after provision for loan losses - FTE	468,368		659,823		(29.0	)	916,476		1,324,092		(30.8	)
Noninterest income before securities gains/(losses)	345,051		301,239		14.5		669,012		597,563		12.0
Securities gains/(losses), net	-		-		-		-		3		(100.0	)
Total noninterest income	345,051		301,239		14.5		669,012		597,566		12.0
Noninterest expense before amortization of intangible assets	628,203		631,498		(0.5	)	1,241,367		1,256,558		(1.2	)
Amortization of intangible assets	14,218		17,245		(17.6	)	29,159		36,017		(19.0	)
Total noninterest expense	642,421		648,743		(1.0	)	1,270,526		1,292,575		(1.7	)
Income before provision for income taxes	170,998		312,319		(45.2	)	314,962		629,083		(49.9	)
Provision for income taxes	51,805		103,461		(49.9	)	93,488		208,992		(55.3	)
FTE adjustment	8,501		9,311		(8.7	)	17,233		18,760		(8.1	)
Net income	$110,692		$199,547		(44.5	)	$204,241		$401,331		(49.1	)
Total revenue - FTE	$996,026		$1,017,750		(2.1	)	$1,948,837		$2,027,040		(3.9	)
Selected Average Balances
Total loans	$51,396,999		$51,467,349		(0.1	)%	$50,891,138		$51,224,362		(0.7	)%
Goodwill	6,139,892		6,139,260		-		6,142,224		6,136,539		0.1
Other intangible assets excluding MSRs	161,459		211,917		(23.8	)	163,579		221,153		(26.0	)
Total assets	59,161,979		58,994,607		0.3		58,701,307		58,896,038		(0.3	)
Total deposits	81,174,182		80,574,355		0.7		80,975,187		80,824,425		0.2
Performance Ratios
Efficiency ratio	64.50	%	63.74	%			65.19	%	63.77	%
Impact of excluding amortization of intangible assets	(5.67	)	(5.63	)			(5.83	)	(5.71	)
Tangible efficiency ratio	58.83	%	58.11	%			59.36	%	58.06	%

¹ Net interest income does not include the funding benefit that would result from holding shareholders’ equity at the line of business level due to the fact that shareholders’ equity is not allocated to the lines of business at this time.

² Provision for loan losses represents net charge-offs for the lines of business.

³ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 16

SunTrust Banks, Inc. and Subsidiaries

WHOLESALE BANKING LINE OF BUSINESS

(Dollars in thousands)    (Unaudited)

	Three Months Ended						Six Months Ended
	June 30 2008		June 30 2007		% Change3		June 30 2008		June 30 2007		% Change3
Statements of Income
Net interest income1	$116,384		$135,679		(14.2	)%	$242,175		$269,688		(10.2	)%
FTE adjustment	15,259		11,078		37.7		29,350		21,142		38.8
Net interest income - FTE	131,643		146,757		(10.3	)	271,525		290,830		(6.6	)
Provision for loan losses2	10,981		15,587		(29.6	)	23,257		18,395		26.4
Net interest income after provision for loan losses - FTE	120,662		131,170		(8.0	)	248,268		272,435		(8.9	)
Noninterest income before securities gains/(losses)	184,732		225,602		(18.1	)	358,254		394,287		(9.1	)
Securities gains/(losses), net	-		-		-		-		-		-
Total noninterest income	184,732		225,602		(18.1	)	358,254		394,287		(9.1	)
Noninterest expense before amortization of intangible assets	200,550		195,636		2.5		400,976		386,607		3.7
Amortization of intangible assets	122		122		-		244		244		-
Total noninterest expense	200,672		195,758		2.5		401,220		386,851		3.7
Income before provision for income taxes	104,722		161,014		(35.0	)	205,302		279,871		(26.6	)
Provision for income taxes	14,617		31,227		(53.2	)	14,080		47,378		(70.3	)
FTE adjustment	15,259		11,078		37.7		29,350		21,142		38.8
Net income	$74,846		$118,709		(37.0	)	$161,872		$211,351		(23.4	)
Total revenue - FTE	$316,375		$372,359		(15.0	)	$629,779		$685,117		(8.1	)
Selected Average Balances
Total loans	$33,753,195		$28,820,686		17.1	%	$33,223,407		$29,201,194		13.8	%
Goodwill	168,129		168,149		-		168,132		168,149		-
Other intangible assets excluding MSRs	681		1,157		(41.1	)	741		1,221		(39.3	)
Total assets	44,737,435		38,291,705		16.8		44,170,590		38,280,872		15.4
Total deposits	9,093,065		4,703,473		93.3		8,786,705		4,719,650		86.2
Performance Ratios
Efficiency ratio	63.43	%	52.57	%			63.71	%	56.46	%
Impact of excluding amortization of intangible assets	(0.42	)	(0.29	)			(0.42	)	(0.33	)
Tangible efficiency ratio	63.01	%	52.28	%			63.29	%	56.13	%

¹ Net interest income does not include the funding benefit that would result from holding shareholders’ equity at the line of business level due to the fact that shareholders’ equity is not allocated to the lines of business at this time.

² Provision for loan losses represents net charge-offs for the lines of business.

³ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 17

SunTrust Banks, Inc. and Subsidiaries

MORTGAGE LINE OF BUSINESS

(Dollars in thousands)    (Unaudited)

	Three Months Ended						Six Months Ended
	June 30 2008		June 30 2007		% Change3		June 30 2008		June 30 2007		% Change3
Statements of Income
Net interest income1	$123,646		$134,382		(8.0	)%	$254,276		$263,974		(3.7	)%
FTE adjustment	-		-		-		-		-		-
Net interest income - FTE	123,646		134,382		(8.0	)	254,276		263,974		(3.7	)
Provision for loan losses2	128,008		13,051		NM		226,263		23,260		NM
Net interest income/(loss) after provision for loan losses - FTE	(4,362	)	121,331		NM		28,013		240,714		(88.4	)
Noninterest income before securities gains/(losses)	109,873		136,932		(19.8	)	247,003		175,415		40.8
Securities gains/(losses), net	(1,218	)	-		-		(6,228	)	-		-
Total noninterest income	108,655		136,932		(20.7	)	240,775		175,415		37.3
Noninterest expense before amortization of intangible assets	256,231		196,410		30.5		475,758		347,973		36.7
Amortization of intangible assets	563		763		(26.2	)	1,327		1,527		(13.1	)
Total noninterest expense	256,794		197,173		30.2		477,085		349,500		36.5
Income/(loss) before provision/(benefit) for income taxes	(152,501	)	61,090		NM		(208,297	)	66,629		NM
Provision/(benefit) for income taxes	(61,377	)	19,613		NM		(85,903	)	18,259		NM
FTE adjustment	-		-		-		-		-		-
Net income/(loss)	($91,124	)	$41,477		NM		($122,394	)	$48,370		NM
Total revenue - FTE	$232,301		$271,314		(14.4	)	$495,051		$439,389		12.7
Selected Average Balances
Total loans	$31,705,811		$29,447,549		7.7	%	$31,851,320		$30,906,163		3.1	%
Goodwill	276,568		276,635		-		276,575		276,310		0.1
Other intangible assets excluding MSRs	570		3,503		(83.7	)	922		3,901		(76.4	)
Total assets	42,307,385		47,866,726		(11.6	)	43,098,260		46,076,712		(6.5	)
Total deposits	2,449,481		2,378,640		3.0		2,259,889		2,086,942		8.3
Performance Ratios
Efficiency ratio	110.54	%	72.67	%			96.37	%	79.54	%
Impact of excluding amortization of intangible assets	(1.72	)	(1.08	)			(1.47	)	(1.42	)
Tangible efficiency ratio	108.82	%	71.59	%			94.90	%	78.12	%
Other Information
Production Data
Channel mix
Retail	$4,752,866		$6,767,535		(29.8	)%	$10,110,273		$12,687,187		(20.3	)%
Wholesale	3,226,782		6,447,113		(49.9	)	7,431,405		12,019,225		(38.2	)
Correspondent	1,357,553		4,745,579		(71.4	)	3,527,155		8,080,169		(56.3	)
Total production	$9,337,201		$17,960,227		(48.0	)	$21,068,833		$32,786,581		(35.7	)
Channel mix - percent
Retail	51	%	38	%			48	%	39	%
Wholesale	35		36				35		37
Correspondent	14		26				17		24
Total production	100	%	100	%			100	%	100	%
Purchase and refinance mix
Refinance	$4,063,567		$7,721,183		(47.4	)	$10,778,853		$15,287,725		(29.5	)
Purchase	5,273,634		10,239,044		(48.5	)	10,289,980		17,498,856		(41.2	)
Total production	$9,337,201		$17,960,227		(48.0	)	$21,068,833		$32,786,581		(35.7	)
Purchase and refinance mix - percent
Refinance	44	%	43	%			51	%	47	%
Purchase	56		57				49		53
Total production	100	%	100	%			100	%	100	%
Applications	$16,134,572		$24,369,784		(33.8	)	$37,344,012		$48,868,769		(23.6	)
Mortgage Servicing Data (End of Period)
Total loans serviced	$158,810,627		$150,456,415		5.6	%
Total loans serviced for others	123,152,250		105,123,313		17.2
Net carrying value of MSRs	1,193,450		942,012		26.7
Ratio of net carrying value of MSRs to total loans serviced for others	0.969	%	0.896	%

¹ Net interest income does not include the funding benefit that would result from holding shareholders’ equity at the line of business level due to the fact that shareholders’ equity is not allocated to the lines of business at this time.

² Provision for loan losses represents net charge-offs for the lines of business.

³ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 18

SunTrust Banks, Inc. and Subsidiaries

WEALTH AND INVESTMENT MANAGEMENT LINE OF BUSINESS

(Dollars in thousands)    (Unaudited)

	Three Months Ended						Six Months Ended
	June 30 2008		June 30 2007		% Change3		June 30 2008		June 30 2007		% Change3
Statements of Income
Net interest income1	$83,688		$87,723		(4.6	)%	$163,758		$177,787		(7.9	)%
FTE adjustment	9		12		(25.0	)	19		28		(32.1	)
Net interest income - FTE	83,697		87,735		(4.6	)	163,777		177,815		(7.9	)
Provision for loan losses2	2,547		2,951		(13.7	)	7,663		4,011		91.0
Net interest income after provision for loan losses - FTE	81,150		84,784		(4.3	)	156,114		173,804		(10.2	)
Noninterest income before securities gains/(losses)	269,119		250,194		7.6		600,468		535,927		12.0
Securities gains/(losses), net	(33	)	65		NM		(28	)	9		NM
Total noninterest income	269,086		250,259		7.5		600,440		535,936		12.0
Noninterest expense before amortization/impairment of intangible assets	233,315		242,869		(3.9	)	470,813		506,870		(7.1	)
Amortization/impairment of intangible assets	49,728		6,553		NM		54,514		10,216		NM
Total noninterest expense	283,043		249,422		13.5		525,327		517,086		1.6
Income before provision for income taxes	67,193		85,621		(21.5	)	231,227		192,654		20.0
Provision for income taxes	23,508		31,727		(25.9	)	83,180		70,667		17.7
FTE adjustment	9		12		(25.0	)	19		28		(32.1	)
Net income	$43,676		$53,882		(18.9	)	$148,028		$121,959		21.4
Total revenue - FTE	$352,783		$337,994		4.4		$764,217		$713,751		7.1
Selected Average Balances
Total loans	$8,200,939		$8,026,076		2.2	%	$8,045,532		$8,110,682		(0.8	)%
Goodwill	329,282		304,262		8.2		331,086		314,363		5.3
Other intangible assets excluding MSRs	120,193		136,557		(12.0	)	123,231		127,020		(3.0	)
Total assets	9,049,218		8,940,523		1.2		8,927,369		9,000,934		(0.8	)
Total deposits	9,789,285		9,869,892		(0.8	)	9,791,854		9,827,249		(0.4	)
Performance Ratios
Efficiency ratio	80.23	%	73.79	%			68.74	%	72.45	%
Impact of excluding amortization/impairment of intangible assets	(15.04	)	(2.94	)			(7.95	)	(2.37	)
Tangible efficiency ratio	65.19	%	70.85	%			60.79	%	70.08	%
Other Information (End of Period)
Assets under administration
Managed (discretionary) assets	$136,700,596		$139,149,853		(1.8	)%
Non-managed assets	53,821,885		60,290,599		(10.7	)
Total assets under administration	190,522,481		199,440,452		(4.5	)
Brokerage assets	37,847,007		42,494,858		(10.9	)
Corporate trust assets	2,145,296		7,941,416		(73.0	)
Total assets under advisement	$230,514,784		$249,876,726		(7.7	)

¹ Net interest income does not include the funding benefit that would result from holding shareholders’ equity at the line of business level due to the fact that shareholders’ equity is not allocated to the lines of business at this time.

² Provision for loan losses represents net charge-offs for the lines of business.

³ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 19

SunTrust Banks, Inc. and Subsidiaries

CORPORATE OTHER AND TREASURY

(Dollars in thousands)    (Unaudited)

	Three Months Ended						Six Months Ended
	June 30 2008		June 30 2007		% Change2		June 30 2008		June 30 2007		% Change2
Statements of Income
Net interest income	$190,524		$130,300		46.2	%	$373,782		$237,680		57.3	%
FTE adjustment	4,487		4,267		5.2		9,629		8,451		13.9
Net interest income - FTE	195,011		134,567		44.9		383,411		246,131		55.8
Provision for loan losses1	123,884		16,403		NM		387,517		10,073		NM
Net interest income after provision for loan losses - FTE	71,127		118,164		(39.8	)	(4,106	)	236,058		NM
Noninterest income before securities gains/(losses)	(45,552	)	4,243		NM		106,574		93,904		13.5
Securities gains/(losses), net	551,038		236,347		NM		495,457		236,420		NM
Total noninterest income	505,486		240,590		NM		602,031		330,324		82.3
Noninterest expense before amortization of intangible assets	(4,501	)	(40,123	)	(88.8	)	(40,687	)	(59,263	)	(31.3	)
Amortization of intangible assets	104		221		(52.9	)	206		442		(53.4	)
Total noninterest expense	(4,397	)	(39,902	)	(89.0	)	(40,481	)	(58,821	)	(31.2	)
Income before provision for income taxes	581,010		398,656		45.7		638,406		625,203		2.1
Provision for income taxes	174,251		126,573		37.7		189,607		197,036		(3.8	)
FTE adjustment	4,487		4,267		5.2		9,629		8,451		13.9
Net income	$402,272		$267,816		50.2		$439,170		$419,716		4.6
Total revenue - FTE	$700,497		$375,157		86.7		$985,442		$576,455		70.9
Selected Average Balances
Total loans	$134,914		$402,966		(66.5	)%	$216,050		$388,104		(44.3	)%
Securities available for sale	13,853,680		17,524,366		(20.9	)	14,601,794		20,116,132		(27.4	)
Goodwill	106,812	4	7,094		NM		53,763	4	7,672		NM
Other intangible assets excluding MSRs	4,381		4,957		(11.6	)	4,433		5,073		(12.6	)
Total assets	20,292,751		25,902,896		(21.7	)	21,335,310		28,492,685		(25.1	)
Total deposits (primarily brokered and foreign)	14,289,139		24,383,351		(41.4	)	14,902,402		25,742,603		(42.1	)
	June 30 2008		March 31 2008
Other Information
Duration of investment portfolio	5.6	%	4.3	%
Accounting net interest income interest rate sensitivity3 :
% Change in net interest income under:
Instantaneous 100 bp increase in rates over next 12 months	0.1	%	0.4	%
Instantaneous 100 bp decrease in rates over next 12 months	(0.3	) %	(1.0	) %
Economic net interest income interest rate sensitivity3 :
% Change in net interest income under:
Instantaneous 100 bp increase in rates over next 12 months	(0.8	) %	(0.8	) %
Instantaneous 100 bp decrease in rates over next 12 months	0.6	%	0.2	%

¹ Provision for loan losses includes net charge-offs for the lines of business and the difference between net charge-offs and consolidated provision for loan losses.

² “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

³ The recognition of interest rate sensitivity from an accounting perspective is different from the economic perspective due to the election of fair value accounting for the related interest rate swaps. The net interest income sensitivity profile from an economic perspective assumes the net interest payments from the related swaps were included in margin.

⁴ Includes $144.8 million of Goodwill associated with the acquisition of GB&T Bancshares, Inc. on May 1, 2008. This Goodwill has not been allocated to the lines of business at this time.

Page 20

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED - SEGMENT TOTALS

(Dollars in thousands)    (Unaudited)

	Three Months Ended						Six Months Ended
	June 30 2008		June 30 2007		% Change1		June 30 2008		June 30 2007		% Change1
Statements of Income
Net interest income	$1,156,716		$1,195,284		(3.2	)%	$2,296,583		$2,359,843		(2.7	)%
FTE adjustment	28,256		24,668		14.5		56,231		48,381		16.2
Net interest income - FTE	1,184,972		1,219,952		(2.9	)	2,352,814		2,408,224		(2.3	)
Provision for loan losses	448,027		104,680		NM		1,008,049		161,121		NM
Net interest income after provision for loan losses - FTE	736,945		1,115,272		(33.9	)	1,344,765		2,247,103		(40.2	)
Noninterest income before securities gains/(losses)	863,223		918,210		(6.0	)	1,981,311		1,797,096		10.3
Securities gains/(losses), net	549,787		236,412		NM		489,201		236,432		NM
Total noninterest income	1,413,010		1,154,622		22.4		2,470,512		2,033,528		21.5
Noninterest expense before amortization/impairment of intangible assets	1,313,798		1,226,290		7.1		2,548,227		2,438,745		4.5
Amortization/impairment of intangible assets	64,735		24,904		NM		85,450		48,446		76.4
Total noninterest expense	1,378,533		1,251,194		10.2		2,633,677		2,487,191		5.9
Income before provision for income taxes	771,422		1,018,700		(24.3	)	1,181,600		1,793,440		(34.1	)
Provision for income taxes	202,804		312,601		(35.1	)	294,452		542,332		(45.7	)
FTE adjustment	28,256		24,668		14.5		56,231		48,381		16.2
Net income	$540,362		$681,431		(20.7	)	$830,917		$1,202,727		(30.9	)
Total revenue - FTE	$2,597,982		$2,374,574		9.4		$4,823,326		$4,441,752		8.6
Selected Average Balances
Total loans	$125,191,858		$118,164,626		5.9	%	$124,227,447		$119,830,505		3.7	%
Goodwill	7,020,683		6,895,400		1.8		6,971,780		6,903,033		1.0
Other intangible assets excluding MSRs	287,284		358,091		(19.8	)	292,906		358,368		(18.3	)
Total assets	175,548,768		179,996,457		(2.5	)	176,232,836		180,747,241		(2.5	)
Total deposits	116,795,152		121,909,711		(4.2	)	116,716,037		123,200,869		(5.3	)
Performance Ratios
Efficiency ratio	53.06	%	52.69	%			54.60	%	56.00	%
Impact of excluding amortization/impairment of intangible assets	(2.49	)	(1.05	)			(1.77	)	(1.09	)
Tangible efficiency ratio	50.57	%	51.64	%			52.83	%	54.91	%

¹ “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

Page 21

EX-99.2

SunTrust Banks, Inc.

2Q 2008 Earnings Presentation

July 22, 2008

Exhibit 99.2

The

following

should

be

read

in

conjunction

with

the

financial

statements,

notes

and

other

information

contained

in

the

Company’s

2007

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

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

2007

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.

Table of Contents

I.

HIGHLIGHTS

II.

CAPITAL

III.

FINANCIAL PERFORMANCE

IV.

E2

V.

CREDIT PERSPECTIVE

VI.

SUMMARY

VII.

APPENDIX

3

•

Completed Coca-Cola stock transactions approved by Federal

Reserve to receive Tier 1 capital treatment

•

Substantially improved capital levels: estimated 2Q Tier 1 capital of

7.47% and proforma Tier 1 of 7.95%¹

•

Credit continued to deteriorate, but at a slower pace

•

Core revenue growth soft, primarily due to a decline in core

mortgage-related income; however, net interest margin improved

and steady growth in other fee categories continued

•

Core expenses remain tightly managed

•

Maintaining our current dividend is supported by our solid capital

position, credit outlook, and core earnings

•

Current operating environment remains challenging

Highlights

1.

Coke related transactions completed in July, 2008 contribute 48 bps of Tier 1 capital         

I. HIGHLIGHTS

4

Completed Coke Transactions Augment Estimated Tier 1 Capital of 7.47%

to 7.95% on a Proforma Basis

2Q 2008

2Q 2008

1Q 2008 

Proforma¹

Estimate

Actual         

Tier 1 Capital Ratio

7.95%

7.47%

7.23%

Total Capital Ratio

10.97%

10.86%

10.97%

Total Avg. Equity to Total Avg. Assets

10.29%    

10.31%

10.21%

Tangible Equity to Tangible Assets        

6.21%     

6.23%

6.53%

•

Solid capital foundation enhanced with Coke-related transactions

•

Given current level of economic uncertainty, maintaining Tier 1 in excess of our stated

goal of 7.50% is appropriate

1.

Proforma

ratios

include

estimated

impact

to

June

2008

estimated

capital

ratios

of

additional

capital

generated

from

transactions

completed

in

July

2008.

Estimated

Tier

1

capital

of

$12.5

billion

+

3Q

2008

incremental

transaction-related

capital

of

$797

million

Capital Ratios

II. CAPITAL

5

2Q

Complete

10 Million

Share Sale

30 Million Share

Tier 1

Transaction

3.6 Million

Share

Charitable

Foundation

Contribution

Coca-Cola Stock Transactions

Resolution of 43.6 Million Share Holdings Involves Three

Separate Transactions

Action

Timing                  Results

Rationale                         Implications

3Q (July)  

Complete       

3Q (July)  

Complete       

•

$549 million proceeds

•

After-tax gain = $345

million

•

Tier 1 capital = 20 bps

•

2Q EPS impact = $0.99

•

Maximize current

capital contribution for

this portion of the

shares

•

Forgone dividend income

of $0.04 in annual EPS

•

$183 million gain and

equal offsetting expense

•

Tax benefit of $69 million

= $0.20 EPS impact

•

4 bps Tier 1 addition

•

Maximize tax benefit

•

Long-term community

support

•

Lower future annual

charitable contribution

expense

•

Forgone dividend income

of $0.01 in annual EPS

•

Ongoing $10 million

expense reduction

•

$1,160 million in cash

proceeds and $728 million

Tier 1 capital

•

44 bps Tier 1 addition

•

Maximize shareholder

value via tax deferral,

retained dividend, and

price appreciation

potential

•

Retain dividend income

of $0.12 annual EPS

•

Collar on KO stock

provides upside to ~$66

and downside to ~$39

II. CAPITAL

6

•

Received Federal Reserve approval to increase Tier 1 capital by a fixed amount of $728 million,

and Tier 1 Ratio increases by 44 bps

•

Provides Tier 2 capital credit for 45% of the difference between

the Tier 1 credit amount and the

market value of the KO share holding, up to the cap

•

Defers payment of taxes until the shares are actually sold

•

KO shares remain in SunTrust’s AFS securities and are hedged by the derivatives

•

OCI will reflect the net of changes in value of the KO shares and the derivatives on a quarterly

basis

•

Retains dividends and Dividend Received Deduction until the shares are actually sold

•

Retains upside in KO share price appreciation to ~$66 per share

•

At maturity, the KO shares are expected to be sold and the applicable gain recognized in earnings

Impact on

Financial

Statements &

Ratios

Coca-Cola Stock Transactions

Substantial Incremental Tier 1 Capital Generated from Tier 1

Transaction Involving 30 Million Shares of The Coca-Cola Company

Transaction

Structure

•

Tier 1 transaction involving 30 million KO shares maturing in approximately 7 years

•

At transaction conclusion, the floor price is ~$39 and the cap price is ~$66 per share

•

Includes the issuance of $1,160 million in senior notes directly

to the counterparty in exchange

for unrestricted cash proceeds

II. CAPITAL

7

($ in millions, except per share data)

$1,185.0

1%               -3%             $2,352.8             -2%

448.0           -20%

328%               1,008.0          526% 

1,413.0

34%              22%               2,470.5            21%

2,598.0

17%                 9%               4,823.3              9%

1,378.5            10%              10%       

2,633.7              6%

202.8          121%             -35%                  294.5           -46%

535.3            89%             -21%                  818.8           -31%

$    1.53            89%             -19%             $     2.35           -29%

EPS Impacted by Provision Expense, Securities Gains and Non-Core

Expenses

Income Statement Summary

III. FINANCIAL PERFORMANCE

2Q 2008

1Q 2008

2Q 2007

YTD 2008

YTD 2007

% Change

% Change

% Change

Net Interest Income (FTE)

Provision for Loan Losses

Noninterest Income

Total Revenue (FTE)

Total Noninterest Expense

Provision for Income Taxes

Net Income Available to

Common Shareholders

Net Income Per Average

Common Diluted Share

8

3.10%

3.18%

3.13%

3.13%

3.07%

2Q 2007

3Q 2007

4Q 2007

1Q 2008

2Q 2008

Margin Increased to 3.13%, Up 6 bps from 1Q 2008

Margin expansion driven by improved 

deposit pricing, volume and mix

Growing NPAs

continue to exert pressure

on margin

We expect stable to slightly expanded

margins during the rest of 2008, as positive

loan and deposit trends offset growing

NPAs

Net Interest Margin

III. FINANCIAL PERFORMANCE

9

$448.0            $560.0          $356.8          $147.0

$322.7            $297.2          $168.0          $103.7

1.04%              0.97%          0.55%           0.34%

$284.1           $262.8           $188.8          $  43.3

1.46%             1.25%           1.05%           0.91%

2Q 2008

1Q 2008

4Q 2007

3Q 2007

($ in millions)

Provision Declined as Growth in Charge-offs and Delinquency Slowed;

Allowance Increased to 1.46%

1.

Increase in ALLL in 2Q 2008 is greater than provision less charge-offs due to acquisition of GB&T      

Provision

III. FINANCIAL PERFORMANCE

Provision

Net Charge-offs

Net Charge-off Ratio

Net ALLL Increase¹

Allowance to Loan Ratio

10

($ in millions)

Core Noninterest Income Growth Slowed in 2Q 2008, Driven by a Decline in

Mortgage-Related Income

%

2Q 2008

2Q 2007

Change

Noninterest Income

$1,413

$1,155

22%

Net Adjustments¹

458

206

Adjusted Noninterest Income      $   955

$   949

1%

Reported noninterest income up 22% versus 2Q 2007 driven primarily by the incremental gain

on sales of Coke stock

Adjusting both years’

results for net non-core gains results in a 1% increase

Positive results in most fee categories were largely offset by soft mortgage banking fees in 2Q

2008, and private equity gains and MSR sales in 2Q 2007

1.  Adjustment detail included in appendix includes securities gains and losses

Noninterest Income

III. FINANCIAL PERFORMANCE

11

Aggressively Managing Trading Assets; During 2Q, 53% Additional

Reduction in Exposure at a Small Net Gain

•

Exposure reduced with no

additional net write-down

•

Exposure reduced during 2Q

via approximately $630

million in sales and $225

million in payments

•

Reduction will slow given the

market environment and

uncertain outcome of SIV

restructurings

1.  Grand Horn CLO is a AAA-rated security arising from the securitization of a commercial leveraged loan warehouse

Carrying

Carrying         Acquisition

Value

Value                 Value

2Q 2008

1Q 2008

Q4 2007

SIV

$  425

$  685            $1,478

RMBS

151                 242              1,042

CDO

68                 287                 429

Other ABS

31                   46                 148

CLO

-

39                    47

__

__                    __

Sub-total                     675             1,299              3,144

Grand Horn CLO¹   

93

323

359

Total

$  768           $ 1,622            $3,503

($ in millions)

Acquired Securities Portfolio

III. FINANCIAL PERFORMANCE

12

Core Expenses in 2Q 2008 Up Slightly, Driven by Credit-Related Costs

Year-over-year adjusted expense growth of $39 million includes $69 million

in increased credit costs²

Sequential quarter adjusted expense growth of $43 million includes $51 million of increased credit 

costs²

1. Adjustment detail included in appendix

2. Includes

operating

losses,

credit

and

collections,

other

real

estate

expense,

and

additions

to

mortgage

re-insurance

reserves

Noninterest Expense

$1,379             $1,255

$1,251

10%            10%

Net Adjustments¹

54

-26                   -34

Adjusted Noninterest Expense             $1,325   

$1,281

$1,285  

Change          Change

2Q 2008

1Q 2008

2Q 2007

1Q 2008

2Q 2007

%

%

($ in millions)

3%         3%

Noninterest Expense

III. FINANCIAL PERFORMANCE

13

E²

Results

($ in millions)

E²

Program Continues to Deliver Results with Gross Savings in 2Q 2008 of

$135 Million

•

Annualized 2Q 2008 savings

level of $540 million

•

Key contributors to achieving

remaining goals include

supplier management,

outsourcing, and process

reengineering

$500 2008 Goal

$248 YTD Savings

500

400

300

200

100

IV. E²

14

Asset Quality Metrics

V. CREDIT PERSPECTIVE

Asset Quality Continued to Weaken, Although at a Slower Pace

1. Ratio excludes NPLs at fair market value and LOCOM

Difference from

Difference from

$ Millions

06/30/2008

03/31/2008

12/31/2007

Total Loans

$125,824.8

$123,713.2

$122,319.0

$2,111.6

$3,505.8

Allowance for Loans & Lease Losses

1,829.4

1,545.3

1,282.5

284.1

546.9

Net Charge-offs

322.7

297.2

168.0

25.5

154.7

Provision Expense

448.0

560.0

356.8

-112.0

91.2

NPAs

3,136.4

2,320.0

1,655.5

816.4

1,480.9

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ;---------------------------

NPLs

to Total Loans

2.22%

1.67%

1.19%

0.55%

1.03%

NPAs

to Total Loans + OREO and Other

Repossessed Assets

2.49%

1.87%

1.35%

0.62%

1.14%

ALLL to NPLs

1

72.0%

81.6%

99.5%

-9.6%

-27.5%

ALLL to Loans

1.46%

1.25%

1.05%

0.21%

0.41%

NCOs (annualized to Average Loans)

1.04%

0.97%

0.55%

0.07%

0.49%

30-89 Days Past Due

1.48%

1.52%

1.53%

-0.04%

-0.05%

March 2008

December 2007

15

Credit Perspective

V. CREDIT PERSPECTIVE

Commercial and Consumer Portfolios Comprise 52% of Loans and are

Performing Well Overall

Balance

% of

C/O Ratio

C/O Ratio

30-89 DLQ%

30-89 DLQ%

($ millions)

06/30/2008

Portfolio

2Q08

1Q08

2Q08

1Q08

Commercial

$38,801

31%

0.42%

0.35%

0.36%

0.37%

Commercial Real Estate

13,694

11%

0.02%

0.00%

0.91%

0.55%

Consumer

12,551

10%

1.05%

1.22%

2.82%

2.52%

Real Estate: Home-Equity Lines

15,727

12%

2.40%

2.65%

1.19%

1.25%

Real Estate: 1-4 Family

32,509

26%

1.49%

1.29%

1.90%

1.74%

Real Estate: Construction

12,543

10%

1.16%

0.72%

3.52%

4.59%

Total

$125,824

100%

1.04%

0.97%

1.48%

1.52%

16

Nonaccruals

V. CREDIT PERSPECTIVE

Nonaccrual Loans by Product

June 30, 2008

0

500

1,000

1,500

2,000

2,500

3,000

Q4-2007

Q1-2008

Q2-2008

($ millions)

Residential Mortgages1

Construction

Commercial Real Estate

Commercial

Consumer

GB&T

Residential Mortgages Represent 52% of Nonaccrual Loans; Construction

NPLs are Rising

1. Residential Mortgages includes 1-4 family mortgages, home equity credit line and home equity loans

17

1. Excludes $51.2 million of Commercial loans secured by residential real estate and $140.8 million of mark-to-market loans HFS

2. Does not include nonaccruals

Residential Mortgages $32,509 million

($ millions)

1.68%

7.00

6.26

3.63

1.48

0.57

1.42%

06/30/08    

60+ DLQ²

1.58%

7.67

6.71

3.41

1.35

0.50

1.29%

03/31/08    

60+ DLQ²

$1,165

58

206

157

119

50    

$  575

Total                    

$ Nonaccruals¹

Credit Quality Metrics

79%

$ 33,092

$32,509

Total

97

470

458

Alt-A 2nd

77

1,085

1,002

Alt-A 1st

84

1,575

1,520

Lot Loans

92

4,080

4,032

Prime 2nd

Insured

75

3,625

3,020

Home Equity Loans

77%

$ 22,257

$22,477

Core Portfolio

Orig

WACLTV

03/31/08   

Balance

06/30/08

Balance

Loan Type

Portfolio Profile

Residential Mortgages

V. CREDIT PERSPECTIVE

Overall, NPLs and Delinquencies are Up, While Alt-A Balances are Declining

and Alt-A Credit Performance is Improving

18

(As of 06/30/08, $ millions)

1. Nonaccruals not requiring write-downs include well-secured loans and loans with claims in process for individual and pool PMI policies

2. Excludes Home Equity nonaccruals of $49.7 million, $51.2 million of Commercial loans secured by residential real estate and $140.8 million of

mark-to-market loans HFS

+

$323.4

6.5

41.6

31.9

111.4

$132.0

Nonaccruals

not requiring

write-down1

Nonaccruals that have been through the specific write-

down process

Loan Type

Balance before

write-down

-

Amount of

write-down

=

Nonaccruals

with      

write-down

+

Nonaccruals

without

specific write-

down  

=

Total

Nonaccruals²

% Loss

Severity

Core

Portfolio

$ 333.4

$ (68.9)

$  264.5

$ 178.3

$ 574.9

14.8%

Prime 2nd

Insured

26.5

(19.2)

7.3

0.0

118.7

--

Lot Loans

129.0

(44.1)

84.9

40.0

156.8

27.4%

Alt-A 1st

144.6

(23.4)

121.2

43.5

206.3

12.6 %  

Alt-A 2nd

148.4

(118.6)

29.6

22.2

58.3

76.6%

Total

$ 781.9

$ (274.3)

$ 507.6

$ 284.0

$1,115.0

Residential Mortgages

Nonaccrual Balances are up, But 75% of Nonaccruals are Carried at

Expected Recoverable Value

V. CREDIT PERSPECTIVE

19

Home Equity Lines $15,727 million

1.  Excludes

3rd

party

originated

2.  Excludes

3rd

party

originated

and

CLTV

90+%

3.  Excludes

3rd

party

originated,

CLTV

90+%

and

Florida

(81-90%)

4.  Annualized quarterly rate

2.40%

0.90%

3.83%

3.19%

7.22%

Q2

Charge-off

4

%

$15,727

10,096.5

1,159.7

2,553.2

$1,917.6

6/30/08

Balance

1.28%

1.38%

2.65%

74%

$15,134

Total

0.87%

2.21%

1.58%

3.37%

Q2

Nonaccrual

%

0.94%

4.24%

3.34%

9.11%

Q1

Charge-off

4

%

Credit Quality Metrics

0.75%

65%

9,409.5

All Other ³

2.04%

86%

1,162.2

Florida ²

(81-

90% LTV)

1.54%

95%

2,705.2

CLTV > 90%¹

2.87%

86%

$1,857.1

3rd

Party

Originated

Q1

Nonaccrual

%

Orig

WACLTV

03/31/08

Balance

Type

Portfolio Profile

Home Equity Lines

V. CREDIT PERSPECTIVE

($ millions)

Charge-offs Moderated in 2Q and are Expected to Return to Q1 Levels

20

1.  Annualized second quarter charge-off ratio

($ millions)

Legacy SunTrust Balances Declined 6.5% vs 1Q 2008; Charge-offs and

NPLs Increasing

Construction $12,543 million

4.22

39

219.0

1.23

427

29

20

2,456

Construction

7.28

71

60.4

0.58

818

39

5

565

Residential Land

9.65

0

68.6

0.00

0

3

395

GB&T

Commercial

0.66

11

7.2

0.00

1, 639

26

27

3,423

Construction

1.04

5

9.2

0.40

810

27

4

559

Commercial A&D

41%

16

51

41%

FL

NPL

%

$ 12,543

447

2,140

$ 2,558

06/30/08

Balance

4.67%

$772.2

1.16%

28%

100%

Total

5.7

198.2

$203.9

$

NPL

0.19

0.35

3.77%

Q2

C/O1

%

Credit Quality Metrics

1.67

858

28

4

Commercial Land

4.06

679

26

17

Residential A&D

Residential

11.93%

492

25%

20%

Construction Perm

%

30 +

DLQ

Avg.

Size

$000’s

%

FL

%

of

Portfolio

Type

Portfolio Profile

Construction

V. CREDIT PERSPECTIVE

21

Construction Portfolio Trends

V. CREDIT PERSPECTIVE

Aggressive Management of Construction Exposure has Significantly

Reduced Risk

Availability down 35% in Construction and 50% in

A&D; outstandings down 25% in Construction and

13% in A&D over the last 12 months

More than 60% of the reductions have been in Florida

and the Atlanta market

Availability down 60%; outstandings down 30% over

the last 12 months

20% of Construction-to-Perm outstandings originated

since September 2007 under more restrictive

underwriting standards

Construction-to-Perm Decrease over Time

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

6/07

9/07

12/07

3/08

6/08

Availability

Outstanding

Residential Construction and A&D Decrease over Time

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6/07

9/07

12/07

3/08

6/08

Construction Availability

Construction Outstanding

A&D Availability

A&D Outstanding

22

Credit Summary

V. CREDIT PERSPECTIVE

•

Asset quality continued to weaken, although at a slower pace

•

Commercial and Consumer portfolios comprise 52% of loans and

are performing well overall

•

52% of nonaccruals are residential mortgages, and approximately

75% have been written down to expected recoverable values

•

We expect 3Q charge-offs to increase 15% -

20% over 2Q. This is

consistent with our previous guidance for 2Q and 3Q total charge-

offs. We do not expect 4Q to be dramatically higher or lower

•

We have minimal or no exposure to:

•

Unsyndicated leveraged loans

•

Option ARMs

•

Sub-prime mortgages

•

Unsecured consumer credit

23

VI. SUMMARY

Presentation Summary

•

Completed Coke transactions

•

Improved Tier 1 capital level

•

Core earnings approximated quarterly dividend

•

Expanded margin, steady fee income, and well managed expenses

•

Asset quality has deteriorated, but at a slower pace; allowance

increased

to

1.46%

•

Managing construction exposure well, but expect residential

construction charge-offs to increase over next several quarters

•

Expect 3Q 2008 portfolio charge-offs to increase 15% -

20% from 2Q

levels

Appendix

*

*

*

*

*

*

*

*

25

($ in millions)

%                  %

Change        Change

2Q 2008

1Q 2008

2Q 2007

1Q 2008

2Q 2007

Total

Noninterest

Income

$1,413

$1,058

$1,155

34%

22%

Securities

Gains/(Losses)

550

-60

236            

Visa

IPO

Gain

-

86

-

Lighthouse

Gain

-

89

-

First

Mercantile

Gain

30

-

-

Corporate

Real

Estate

Gain

-

37

-

Fair

Market

Write-downs

–

Trading

-2

-282

-

STI

Debt

Valuation

–

Trading

-103

240

-

Coke

Derivatives

Cost

-

Trading

-12

-

-

Fair

Value

Write-downs

-

-53

-

–

Mortgage Production

FAS

91

–

Mortgage

Production¹

-

-

-30

SAB

109

–

Mortgage

Production

-

18

-

Fair

Value

Write-downs

-5

-5

-

–

Other Income

Net

Adjustments

458

70

206

Adjusted

Noninterest

Income

$

955

$

987

$

949

-3%

1%

1. FAS 91 deferral elimination adjustment is reflected as an increase to 2Q 2007 to make comparable to future quarters

Noninterest Income Reconciliation

VII. APPENDIX

26

1. FAS

91

deferral

elimination

increased

expenses

beginning

in

2Q

2007.

2Q

2007

expenses

adjusted

upward

to

provide

comparability

to

subsequent quarters

Noninterest Expense

$1,379            $1,255          $1,251             

10%             10%

Net E²

Nonrecurring

9

5                   -1

Customer Intangible Impairment

45                     -

-

FAS 91 Deferral¹

-

-

-33

Visa Litigation Accrual

-

-39                     -

Debt Retirement

-

12

-

Tax Reserve Release

-

-4                     0

Net Adjustments

54                  -26                 -34

Adjusted Noninterest Expense              $1,325           $1,281           $1,285                    3%              3%

Change        Change

2Q 2008

1Q 2008

2Q 2007

1Q 2008

2Q 2007

%

%

($ in millions)

Noninterest Expense Reconciliation

VII. APPENDIX

27

Financial Statement effects of Coca-Cola Stock Transactions

VII. APPENDIX

10 Million

Foundation

Tier 1

Maturity of

(millions)

Share Sale

1

Contribution

Transaction

2

Tier 1 Transaction

Balance Sheet

AFS Securities

$

(549)

$

(183)

$

-

$

(2,042)

Cash

549

-

1,160

2,042

Long Term Debt

-

-

1,160

-

AOCI Unrealized Gain

(345)

(114)

-

(1,287)

Tier 1 Capital

345

69

728

552

3

Tier 1 Ratio (bps)

20

4

44

Income Statement

One-Time Impact:

Gain on Disposal

$

549

$

183

$

-

$

2,042

Trading Income

-

-

(12)

1

-

Contribution Expense

-

(183)

-

-

Tax (Expense) / Benefit

(204)

69

-

(755)

4

Net Income Impact

$

345

$

69

$

(12)

$

1,287

Notes:

1

Recognized in Q2

2

Expect debt issued as part of this transaction to offset current or future liabilities

3

Assume KO stock reaches cap level at maturity

4

Estimated

28

2Q 2008 Non-Core Items

VII. APPENDIX

(in thousands, except per share data)

Diluted

Before

After

EPS

Tax

Tax

Gain on sale of 10 million Coke shares

$0.99

$548,758

$345,169

Gain on sale of First Mercantile

$0.05

29,648

18,382

Mark to market adjustment on securities and public debt

($0.17)

(96,570)

(59,873)

Impairment of customer intangible

($0.08)

(45,000)

(27,900)

Coke derivative cost

($0.02)

(11,852)

(7,348)

E

2

expenses

($0.02)

(9,123)

(5,656)

Total non-operating items

$0.75

$415,861

$262,774