New Release dated January 22, 2009

EX-99.1 3 dex991.htm NEW RELEASE DATED JANUARY 22, 2009 New Release dated January 22, 2009

Exhibit 99.1


		News Release

Contact:


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

For Immediate Release

January 22, 2009

SunTrust Reports 2008 Profit of $2.13 Per Share

Fourth Quarter Loss Reflects Recession Impacts of Higher Charge-Offs and Reserve-Building.

While Capital and Liquidity Remain Strong, Quarterly Dividend Reduced to $0.10 Reflecting

Challenging Credit and Earnings Environment

ATLANTA — SunTrust Banks, Inc. (NYSE: STI) reported net income available to common shareholders of $746.9 million, or $2.13 per average common diluted share, for 2008 compared to $1,603.7 million, or $4.55 per average common diluted share in 2007. Net income available to common shareholders in the fourth quarter was a loss of $379.2 million, or $1.08 per average common diluted share, compared to $3.3 million, or $0.01 per average common diluted share, in the fourth quarter of 2007. The Company’s 2008 and fourth quarter results were adversely impacted by credit-related charges that reflect the dramatic deterioration in the economy, especially during the fourth quarter.

“The fact that SunTrust is not alone in paying the price of a deteriorating economy on our business and our clients does not make today’s results any less painful to report,” said James M. Wells III, SunTrust Chairman and CEO. Mr. Wells noted that increased unemployment and continued declines in home values drove loan delinquencies significantly higher during the fourth quarter of 2008, resulting in higher than expected credit losses. “We are under no illusions as to the severity of this credit cycle,” he added. “Managing successfully through it remains our number one priority.”

Mr. Wells said the significant increase in the fourth quarter provision for loan losses from the prior quarter covered current loan charge-offs and also strengthened the Company’s allowance for loan losses. He noted that the Company concluded 2008 “in a very strong regulatory capital position and with excellent liquidity.” Mr. Wells further noted that, “despite our strong capital position, given the strain on earnings from increased credit costs and the challenging revenue environment, SunTrust’s Board of Directors has decided to reduce the quarterly dividend to $0.10 per common share outstanding until the economic environment and earnings outlook improve.”

“Through this cycle, we will continue to take the steps appropriate to maintain the Company’s fundamental financial strength that is never more important than in a time of economic stress and uncertainty,” said Mr. Wells. “At the same time, our people will continue to focus on serving our clients’ needs, making good loans, generating core deposits, and running our business more efficiently. While understandably eclipsed right now by recession-related credit concerns, the positive momentum generated by these efforts will help us deliver the long-term shareholder value to which we remain committed.”

Credit and Market Environment

The Company recorded provision for loan losses of $962.5 million, or $410.0 million in excess of net charge-offs, increasing the allowance for loan losses to 1.86% of total loans during the fourth quarter. Additionally, during the fourth quarter, the Company recorded $236.1 million in operating losses, which were primarily related to losses stemming from borrower misrepresentations and insurance claim denials, and $100.0 million related to mortgage reinsurance reserves.

The worsening economic conditions and resulting affect on asset values also continued to adversely impact the Company’s assets carried at fair market value. During the fourth quarter, market valuation

losses on loans and securities carried at fair value were approximately $145 million, of which $44.3 million related to the Company’s public debt and related hedges carried at fair value.

Balance Sheet Growth

During the fourth quarter, the Company issued $4.85 billion of preferred stock and warrants to the U.S. Treasury under the Capital Purchase Plan, significantly increasing the Company’s capital position. As of December 31, 2008, SunTrust’s tangible equity to tangible assets ratio was 8.39%, and the estimated Tier 1 capital ratio was 10.85%. The Company also issued $3.0 billion of debt guaranteed by the FDIC under the Temporary Liquidity Guarantee Program. The additional capital and debt enhances SunTrust’s solid capital and liquidity position, and improves, among other items, the Company’s ability to meet the borrowing needs of clients and prospects throughout the economic downturn.

During the fourth quarter, average loans and consumer and commercial deposits increased 6.3% and 8.1%, respectively, on a sequential quarter annualized basis. Both consumer and commercial loan categories showed growth, which was partially offset by a decline in construction loans. Core deposit growth was particularly evident at the end of the quarter, and given the Company’s strong liquidity position, brokered and foreign deposits were reduced by over 40% at year end as compared to September 30, 2008.

Financial Highlights


	4^th Quarter 2008		4^th Quarter 2007		Change		Full Year 2008		Full Year 2007		Change
Income Statement
(Dollars in millions, except per share data)
Net income/(loss) available to common shareholders	$(379.2	)	$3.3		NM		$746.9		$1,603.7		(53.4	)%
Net income/(loss) per average common diluted share	(1.08	)	0.01		NM		2.13		4.55		(53.2	)%
Total revenue – fully taxable-equivalent	1,926.4		1,770.8		8.8	%	9,210.6		8,250.9		11.6	%
Net interest income – fully taxable-equivalent	1,208.7		1,194.8		1.2	%	4,737.1		4,822.2		(1.8	%)
Provision for loan losses	962.5		356.8		169.8	%	2,474.2		664.9		272.1	%
Noninterest income	717.7		576.0		24.6	%	4,473.5		3,428.7		30.5	%
Noninterest expense	1,588.6		1,455.3		9.2	%	5,890.4		5,233.8		12.5	%
Net interest margin	3.14	%	3.13	%	1 bp		3.10	%	3.11	%	(1	) bp

Balance Sheet
(Dollars in billions)
Average loans	$127.6		$121.1		5.4	%	$125.4		$120.1		4.5	%
Average consumer and commercial deposits	102.2		99.6		2.6	%	101.3		98.0		3.4	%

Capital
Tier 1 capital ratio ⁽¹⁾	10.85	%	6.93	%
Total average shareholders’ equity to total average assets	11.17	%	10.30	%
Tangible equity to tangible assets	8.39	%	6.31	%

Asset Quality
Net charge-offs to average loans (annualized)	1.72	%	0.55	%			1.24	%	0.35	%
Nonperforming loans to total loans	3.10	%	1.17	%

⁽¹⁾ Current period Tier 1 capital ratio was estimated at the time of this earnings release. NM – Not meaningful. Those changes over 1000% or where results change from positive to negative. bp – basis point

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Increased credit-related expenses and net mark to market losses on illiquid financial instruments and the Company’s public debt and related hedges carried at fair value adversely impacted fourth quarter income resulting in a net loss available to common shareholders of $379.2 million.

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For the fourth quarter, fully taxable-equivalent total revenue increased $155.6 million, or 8.8%, over the comparable period in 2007. Growth in net interest income and lower net mark to market valuation losses in 2008 drove the increase over 2007.

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Fully taxable-equivalent net interest income increased 1.2% in the fourth quarter over the same quarter in 2007, reflective of growth in average earning assets and customer deposits. Net interest margin was 3.14% for the fourth quarter of 2008, up seven basis points from the third quarter of 2008 and effectively flat compared to the same period in 2007.

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Noninterest income in the fourth quarter increased $141.7 million, or 24.6%, as the impact of the net market valuation losses of approximately $555 million recorded in 2007 was reduced to approximately $145 million in 2008. Partially offsetting the benefit of lower mark to market losses was a real estate gain of $118.8 million recorded in 2007 and lower mortgage production income and trust and investment management revenue in 2008. As a result of the dramatic decline in mortgage interest rates in December, a $370.0 million impairment of mortgage servicing rights was recognized, which was offset by $411.1 million of securities gains related to the sale of securities available for sale that were acquired in conjunction with our risk management strategies associated with hedging the value of mortgage servicing rights.

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Noninterest expense for the fourth quarter of 2008 increased 9.2% over the fourth quarter of 2007, as growth in credit-related expenses of approximately $334 million overshadowed the cost savings achieved from the Company’s efficiency and productivity initiatives.

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Total average loans in the fourth quarter increased 5.4% compared to the fourth quarter of 2007 and increased 6.3% on a sequential quarter annualized basis. Growth was concentrated in commercial loans and was partially offset by a decline in construction loans.

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Total average consumer and commercial deposits increased $2.6 billion, or 2.6%, compared to the fourth quarter of 2007 and increased 8.1% on a sequential quarter annualized basis. The increase was primarily in money market and time deposit accounts. As of December 31, 2008, customer deposits totaled a record $105.4 billion.

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The estimated Tier 1 capital, total average shareholders’ equity to total average assets, and tangible equity to tangible asset ratios were 10.85%, 11.17%, and 8.39%, respectively, which compares to 6.93%, 10.30%, and 6.31%, respectively, as of December 31, 2007.

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Annualized quarter net charge-offs were 1.72% of average loans for the fourth quarter of 2008, up from 0.55% in the fourth quarter of 2007 and 1.24% in the third quarter of 2008. The increase reflects further deterioration in consumer residential real estate and residential construction loans, as well as increases in commercial related charge-offs.

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Nonperforming loans to total loans increased to 3.10% as of December 31, 2008, from 2.60% as of September 30, 2008 and 1.17% as December 31, 2007, due mainly to increased levels of nonperforming residential mortgage and construction loans.

CONSOLIDATED FINANCIAL PERFORMANCE

Revenue

Fully taxable-equivalent total revenue was $1,926.4 million for the fourth quarter of 2008, an increase of $155.6 million, or 8.8%, compared to the fourth quarter of 2007. The increase was primarily attributable to a decline in market valuation losses in 2008 as compared to 2007. In the fourth quarter of 2008, market valuation losses declined to $100.2 million from $639.5 million related to the write-down of certain asset-backed securities and mortgage loans as the investment in those assets has been substantially curtailed. The reduction in valuation losses was partially offset by an increase of approximately $129 million in net mark to market losses on the Company’s debt and related hedges carried at fair value, due to tightening of the Company’s credit spread, as well as declines in mortgage production income and trust and investment management income. The fourth quarter of 2007 also included a $118.8 million net gain from sale/leaseback of certain corporate real estate properties.

For the year ended December 31, 2008, fully taxable-equivalent total revenue was $9,210.6 million, an increase of $959.7 million, or 11.6%, over 2007. The increase was due to incremental securities gains, gains from the sale of non-strategic businesses, gain on Visa interest, lower net mark to market valuation losses, and increased fee income from core businesses. Partially offsetting these contributions to growth were declines in trust income, net interest income, and lower gains on sale/leaseback transactions.

Net Interest Income

For the fourth quarter of 2008, fully taxable-equivalent net interest income was $1,208.7 million, up $13.9 million, or 1.2%, compared to the prior year, and up $33.0 million, or 2.8%, compared to the prior quarter. Net interest income growth over the sequential quarter was due to growth in average earning assets, an improved mix of loans and deposits, an increase in consumer and commercial deposits, and a decrease in wholesale funding during the fourth quarter. Net interest margin for the fourth quarter of 2008 was 3.14%, an increase of one basis point and seven basis points over the fourth quarter of 2007 and third quarter of 2008, respectively. A 145 basis point decrease in rates paid on interest-bearing liabilities compared to a 124 basis point decrease in earning asset yields in the fourth quarter of 2008 contributed to the increase in net interest margin, which offset the negative impact of the increase in nonperforming loans in 2008.

For the year ended December 31, 2008, fully taxable-equivalent net interest income was $4,737.1 million, down $85.1 million, or 1.8%, compared to 2007. Net interest margin was 3.10% compared to 3.11% in 2007. The decline was driven by the increased level of nonperforming assets, partially offset by a reduction in higher cost funding sources.

Noninterest Income

Total noninterest income was $717.7 million for the fourth quarter of 2008, which was $141.7 million, or 24.6%, above prior year. The fourth quarter included securities gains of $411.1 million related to available for sale securities that were acquired in conjunction with risk management strategies associated with hedging the value of mortgage servicing rights. Volatility in interest rates and increased loan prepayment speed estimates during the quarter resulted in a $370.0 million impairment of mortgage servicing rights that were carried at amortized cost. Servicing related income in the fourth quarter of 2007 included a $19.2 million gain on the sale of servicing rights. Mortgage production income declined $50.1 million in the fourth quarter, as reserves for losses associated with repurchases of mortgage loans increased approximately $32 million and mortgage origination volume declined 44% compared to the fourth quarter of 2007. These elements were partially offset by a decrease in valuation losses on loans carried at fair value or held for sale. While fourth quarter origination income declined versus prior year and prior quarter, mortgage loan applications in the fourth quarter of 2008 were up 16% compared to the third quarter.

The fourth quarter of 2008 included net mark to market valuation losses in trading income of $43.6 million related to illiquid trading securities and loans carried at fair value, and losses of $44.3 million related to the tightening of credit spreads on the Company’s public debt and related hedges carried at fair value. The fourth quarter of 2007 included losses of approximately $475 million related to market value declines in asset-backed securities, net of valuation gains on the Company’s debt carried at fair value. Exposure to securities acquired in the fourth quarter 2007 has been reduced to approximately $250 million as of December 31, 2008, down from $3.5 billion at the end of 2007. Exclusive of core mark to market losses, trading income declined as compared to both the fourth quarter of 2007 and the third quarter of 2008 due to declines in derivatives, structured leasing and merchant banking revenues which were partially offset by growth in credit-related fees, fixed income and trading, and direct finance fees.

Trust and investment management income declined $44.4 million, or 26.0%, from the fourth quarter of 2007, as a result of the sale of certain trust related businesses earlier in 2008 and lower fee income that was attributable to the decline in the equity markets. Investment banking income increased $2.9 million, or 5.3%, over the fourth quarter of 2007. Other fee based revenues in the fourth quarter were essentially flat compared to the fourth quarter of 2007, as the impact of the slowing economy resulted in less transaction-related fees. The fourth quarter of 2008 also included a gain of $19.9 million related to the settlement of legal proceedings, and the Company recognized a net gain of $118.8 million from the sale/leaseback of branch and office properties in the fourth quarter of 2007.

For the year ended December 31, 2008, noninterest income was $4,473.5 million, which was $1,044.8 million, or 30.5%, over 2007. The most significant element of the increase was incremental gains on the sale of available for sale securities of $830.2 million, which were executed in conjunction with risk management strategies associated with hedging the value of mortgage servicing rights, and incremental gains on the sale of The Coca-Cola Company stock (“Coke”). During 2008, the Company recognized

approximately $400 million in net market valuation losses related to certain illiquid trading assets, loans carried at fair value, auction rate securities, and other than temporary impairment on available for sale securities, net of valuation gains on the Company’s public debt carried at fair value, as compared to approximately $700 million in comparable net losses during 2007. Gains on the Company’s public debt carried at fair value in 2008 were $431.7 million as compared to $140.9 million during 2007. During 2008, the Company recorded gains on the following transactions:

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$57.1 million incremental additional gain on sale of Lighthouse interests

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$81.8 million gain on the sale of TransPlatinum

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$29.6 million gain on sale of First Mercantile Trust

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$86.3 million gain recorded on the Visa IPO

Further, the Company recognized a net gain of $37.0 million in the first quarter of 2008 and $118.8 million in the fourth quarter of 2007 from the sale/leaseback of branch and office properties. During 2008, SunTrust experienced approximately 10% growth in fee based categories such as service charges on deposit accounts, up $82.1 million, investment banking income, up $21.6 million, and credit card fees, up $27.7 million. Trust and investment management fees declined $92.7 million for the same reasons as indicated above. Mortgage servicing income decreased $407.3 million due to the $370.0 million impairment charge and higher gains from the sale of mortgage servicing rights in 2007. For 2008, mortgage production volume declined 37.6% to $36.4 billion compared to 2007; however, mortgage production-related income increased $80.4 million, or 88.4%, due to relatively lower valuation losses, particularly due to the elimination of Alt-A loans from the warehouse, increased margins, and the adoption of certain accounting standards in accordance with generally accepted accounting principles.

Noninterest Expense

For the fourth quarter of 2008, noninterest expense was $1,588.6 million, an increase of $133.3 million, or 9.2%, over the fourth quarter of 2007. The increase was primarily driven by a $334.3 million increase in credit-related expenses to $415.7 million in the quarter, which overshadowed the success achieved in reducing expenses through the Company’s E² efficiency and productivity program. Credit-related expenses include operating losses of $236.1 million, which includes increased reserves for borrower misrepresentations on mortgage loan documentation and insurance claim denials of $166.9 million, other real estate losses of $35.3 million, credit and collection costs of $44.3 million, and mortgage reinsurance reserves of $100.0 million. The fourth quarter also included a $14.3 million expense reversal related to Visa litigation, resulting from the recognition of the funding by Visa of its litigation escrow account, compared to a $76.9 million expense accrual for Visa litigation in the fourth quarter of 2007. In the fourth quarter of 2008, SunTrust recorded write-downs of $15.7 million related to Affordable Housing properties as compared to $57.7 million of related charges in the fourth quarter of 2007. Outside processing increased $38.5 million, or 36.5%, due to the outsourcing of certain back-office operations in the third quarter of 2008, which was more than offset by the corresponding decrease in employee compensation and benefits. Essentially all other categories of expense decreased compared to the fourth quarter of 2007.

For the year ended December 31, 2008, total noninterest expense was $5,890.4 million, an increase of $656.6 million, or 12.5%, over 2007. The items previously discussed were the primary drivers of the increase, particularly the credit-related costs, and the third quarter expense associated with the contribution of Coke stock to our charitable foundation recognized in marketing and customer development expense.

Provision for Income Taxes

For the fourth quarter, the Company recognized a tax benefit of $309.0 million compared to a tax benefit of $79.7 million recognized in the fourth quarter of 2007. For the year ended December 31, 2008, income taxes were a benefit of $67.3 million compared to a provision of $615.5 million in 2007. The income tax benefit for the year ended December 31, 2008, was due to the charitable contribution of the Coke stock, and other significant differences between generally accepted accounting principles and taxable income primarily related to non-taxable interest and dividends, state taxes, and federal tax credits.

Balance Sheet

As of December 31, 2008, SunTrust had total assets of $189.3 billion and shareholders’ equity was $22.4 billion, representing 11.83% of total assets. Book value and tangible book value per common share were $48.42 and $28.36 as of December 31, 2008, respectively.

Loans

Average loans for the fourth quarter of 2008 were $127.6 billion, which was up 5.4% compared to the fourth quarter of 2007 and up $2.0 billion, or 6.3% on a sequential quarter annualized basis. The increase in average loans was concentrated in commercial loans. Average construction loans in the fourth quarter declined $4.3 billion, or 32.7%, from the fourth quarter of 2007, in conjunction with the Company’s efforts to reduce its exposure to construction loans, as well as transfers to nonaccrual status. Average loans held for sale for the quarter declined $4.8 billion, or 54.8%, compared to the fourth quarter of 2007 as mortgage production levels declined.

Deposits

Average consumer and commercial deposits totaled $102.2 billion for the fourth quarter of 2008, an increase of $2.6 billion, or 2.6%, compared to the fourth quarter of 2007, and $2.0 billion, or 8.1% on a sequential quarter annualized basis. The 2008 fourth quarter increase in customer deposits was driven by growth in money market and time deposits, partially offset by declines in NOW and savings accounts, while demand deposit balances were relatively flat. Average balances for brokered deposits declined $1.8 billion in the fourth quarter of 2008 as compared to the third quarter of 2008, as lower cost deposits and short-term funding sources were utilized.

Capital

The estimated Tier 1 capital, total average shareholders’ equity to total average assets, and tangible equity to tangible asset ratios at December 31, 2008, were 10.85%, 11.17%, and 8.39%, respectively, compared to 8.15%, 10.34%, and 6.40%, respectively, as of September 30, 2008. The $4.85 billion of preferred stock issued to the U.S. Treasury under the Capital Purchase Program qualifies as Tier 1 capital and increased SunTrust’s already well capitalized status. Despite the Company’s strong capital ratios, SunTrust’s Board of Directors has decided to reduce the quarterly dividend from $0.54 to $0.10 per common share outstanding given the strain on earnings from increased credit costs and the challenging revenue environment. Under the terms of the agreement entered into with the U.S. Treasury, the Company has the latitude to return the dividend to its previous level of $0.54 per quarter.

Asset Quality

Nonaccrual loans, as of December 31, 2008, totaled $3,940.0 million compared to $3,289.5 million as of September 30, 2008 and $1,430.4 million as of December 31, 2007. Residential mortgage and construction loans were 47% and 32%, respectively, of total nonaccrual loans as of December 31, 2008. Net charge-offs for the fourth quarter were $552.5 million compared to $168.0 million for the fourth quarter in 2007. Annualized net charge-offs to average loans for the quarter ended December 31, 2008 was 1.72% compared to 1.24% for the quarter ended September 30, 2008 and 0.55% for the quarter ended December 31, 2007. The increase in net charge-offs was primarily related to consumer and residential real estate loans, as well as commercial related loans. Other real estate owned increased to $500.5 million, up 29.3% over September 30, 2008, as the Company foreclosed on the collateral securing nonperforming loans.

For the fourth quarter, the provision for loan losses exceeded net charge-offs by $410.0 million as the overall impact of the housing market and increased delinquencies impacted the allowance for loan losses, which totaled $2,351.0 million as of December 31, 2008 and was 1.86% of total loans. The allowance for loan losses was 1.05% of total loans as of December 31, 2007.

LINE OF BUSINESS FINANCIAL PERFORMANCE

The following discussion details results for SunTrust’s four business lines: Retail and Commercial, Wholesale Banking, Mortgage, and Wealth and Investment Management. At the end of 2008, the Company announced certain management and organizational changes related to the lines of business. The Company’s reporting segments could change after the organizational transitions are completed in 2009. 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 provision expense compared to net charge-offs, as well as equity and its related impact.

Retail and Commercial Banking

Three Months Ended December 31, 2008 vs. 2007

Retail and Commercial Banking net income for the fourth quarter of 2008 was $18.5 million, a decrease of $154.1 million, or 89.3%, compared to the fourth quarter of 2007. This decrease was primarily the result of higher provision for loan losses due to home equity line, consumer, indirect, and commercial loan net charge-offs, lower deposit related net interest income and higher credit and fraud related noninterest expense, partially offset by growth in loan net interest income.

Net interest income decreased $16.9 million, or 2.5%, driven by a shift in deposit mix and compressed spreads due to increased competition for deposits. Average deposits increased $2.0 billion, or 2.5%, while deposit spreads decreased 12 basis points resulting in a $25.5 million decrease in net interest income. Low cost demand deposit and savings accounts decreased a combined $0.7 billion, or 4.0%, primarily driven by a decrease in savings. Higher cost products such as NOW and money market increased a combined $2.1 billion, or 5.9%. Certificates of deposit and IRA accounts increased $0.6 billion, or 2.2%. Net interest income from loans increased $10.3 million as average loan balances increased $1.0 billion, or 2.0%. Growth in commercial loans, equity lines, credit card, student loans, and loans acquired in conjunction with the GB&T transaction was partially offset by an approximately $0.9 billion decline in average loan balances related to the migration of middle market clients from Retail and Commercial to Wholesale Banking.

Provision for loan losses increased $184.1 million over the same period in 2007. The provision increase was most pronounced in home equity lines reflecting deterioration in the residential real estate market, while provision for loan losses on consumer, indirect, and commercial loans, primarily to commercial clients with annual revenues of less then $5 million, also increased.

Total noninterest income increased $1.1 million, or 0.3%, from the fourth quarter of 2007. This increase was driven primarily by a $2.2 million increase in interchange fees and a $2.8 million increase in ATM fees. Service charges on deposits declined by $2.7 million driven by higher uncollectible NSF fees and changes to the fee structure designed to encourage growth in checking accounts and balances.

Total noninterest expense increased $44.3 million, or 6.9%, from the fourth quarter of 2007. This increase was driven primarily by higher credit-related expenses including operating losses due to fraud, other real estate, and collections, as well as continued investment in the branch distribution network.

Twelve Months Ended December 31, 2008 vs. 2007

Retail and Commercial Banking net income for the twelve months ended December 31, 2008 was $306.6 million, a decrease of $483.9 million, or 61.2%, compared to the same period in 2007. This decrease was primarily the result of higher provision for loan losses due to home equity line, consumer,

indirect, and commercial loan net charge-offs, lower net interest income related to deposit spreads and higher credit-related noninterest expense, partially offset by strong growth in service charges on deposits.

Net interest income decreased $217.9 million, or 7.7%, 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 increased $0.8 billion, or 1.0%, while deposit spreads decreased 26 basis points resulting in a $207.6 million decrease in net interest income. Low cost demand deposit and savings account average balances decreased a combined $1.6 billion, or 8.1%, primarily due to decreases in commercial demand and savings. Higher cost products such as NOW and money market increased a combined $2.3 billion, or 6.7%. Net interest income from loans decreased $14.3 million, or 1.4%, as average loan balances declined $0.1 billion, or 0.1%. Growth in commercial loans, equity lines, credit card, student loans, and loans acquired in conjunction with the GB&T transaction was offset by an approximately $1.8 billion decline in average loan balances related to the migration of middle market clients from Retail and Commercial to Wholesale Banking.

Provision for loan losses increased $593.1 million over the same period in 2007. The provision increase was most pronounced in home equity lines reflecting deterioration in the residential real estate market, while provision for loan losses on consumer, indirect, and commercial loans, primarily to commercial clients with annual revenues of less then $5 million, also increased.

Total noninterest income increased $102.6 million, or 8.2%, over the same period in 2007. This increase was driven primarily by a $66.5 million, or 9.1%, increase in service charges on both consumer and business deposit accounts, primarily due to growth in the number of accounts, higher NSF rates, and an increase in occurrences of NSF fees. Interchange fees increased $24.5 million, or 12.1%, and ATM revenue increased $9.9 million, or 8.3%.

Total noninterest expense increased $60.2 million, or 2.4%, from the same period in 2007. The continuing positive impact of expense savings initiatives and lower amortization of intangibles was offset by higher credit-related expenses including operating losses due to fraud, other real estate, and collections, as well as continued investments in the branch distribution network.

Wholesale Banking

Three Months Ended December 31, 2008 vs. 2007

Wholesale Banking’s net income for the fourth quarter of 2008 was $12.3 million, compared to a loss of $42.0 million in the fourth quarter of 2007, an increase of $54.3 million. Lower market valuation trading losses, lower Affordable Housing related noninterest expenses and higher net interest income were partially offset by higher provision for loan losses.

Net interest income was $161.0 million, up $18.8 million, or 13.2%, from the prior year primarily driven by strong loan growth. Average loan balances increased $6.0 billion, or 19.2%, while the corresponding net interest income increased $6.4 million, or 5.6%. The increase in average loan balances was driven by double digit growth in large corporate, middle market, and leasing but was partially offset by reductions in the residential builder portfolio. The growth in net interest income due to volume was partially offset by overall portfolio spread compression caused by a shift in mix away from higher spread residential construction loans to lower spread commercial loans, as well as higher real estate-related nonaccrual loans. Trading assets net interest income increased $16.8 million, or 102.0%, primarily driven by improved spreads and higher volumes in the fixed income sales and trading business. Total average deposits were up $1.9 billion, or 25.5%, primarily in higher cost deposits. The net interest income on deposits declined $3.3 million, or 9.3%, as the additional volume was more than offset by lower credit for funds on demand deposits.

Provision for loan losses was $111.9 million, an increase of $98.8 million from the same period in 2007. The increase was primarily due to higher residential builder-related charge-offs and higher charge-offs from large corporate and middle market clients.

Total noninterest income was $132.7 million, an increase of $118.4 million compared to the fourth quarter of 2007. Lower market valuation trading losses primarily related to structured products, as well as higher revenues from credit-related fees, fixed income sales and trading, and direct finance, were in part offset by lower revenues in derivatives, structured leasing, merchant banking, and Affordable Housing.

Total noninterest expense was $214.4 million, a decrease of $32.1 million, or 13.0%. The migration of middle market clients from Retail and Commercial to Wholesale Banking accounted for an approximately $5.0 million increase in expense. The remainder of Wholesale Banking decreased $37.1 million, or 15.3%. The decrease was primarily driven by lower Affordable Housing expense, as SunTrust recorded $15.7 million of write-downs in the fourth quarter 2008 as compared to $57.7 million of related charges in the fourth quarter of 2007. Certain structural expenses also decreased partially offset by higher incentive-based compensation and higher other real estate expense.

Twelve Months Ended December 31, 2008 vs. 2007

Wholesale Banking’s net income for the twelve months ended December 31, 2008 was $217.3 million, an increase of $21.2 million, or 10.8%, compared to the same period in 2007. Lower market valuation trading losses in structured products and Affordable Housing related noninterest expenses were partially offset by an increase in provision expense, lower merchant banking gains, and higher incentive-based compensation.

Net interest income was $564.7 million for the twelve months ended December 31, 2008, relatively unchanged from prior year. Average loan balances increased $4.8 billion, or 16.2%, while the corresponding net interest income declined $7.1 million, or 1.6%. The migration of middle market clients from Retail and Commercial to Wholesale Banking accounted for approximately $1.8 billion of the loan balances and $25.8 million of the loan-related net interest income increase. The remainder of Wholesale Banking increased $3.0 billion, or 10.4%, driven by increased corporate banking loans and lease financing which was partially offset by reductions in the residential builder portfolio. The corresponding net interest income declined $32.9 million, or 7.3%, due to a shift in mix away from higher spread residential construction loans to lower spread commercial loans, as well as an increase in residential construction nonaccrual loans. Total average deposits increased $3.5 billion, or 63.2%, primarily in higher cost interest-bearing deposits. Deposit-related net interest income decreased $8.9 million, or 6.6%, driven by the lower credit for funds on demand deposits partially offset by the increased volumes in higher cost deposit products.

Provision for loan losses was $167.4 million, an increase of $120.5 million over the prior year, resulting from higher residential builder related charge-offs as well as increased charge-offs on middle market clients partially offset by lower charge-offs in corporate banking.

Noninterest income increased $168.2 million, or 35.0%, primarily due to lower market valuation trading losses in structured products. In addition, increases in direct finance, loan syndications, credit-related fees, and fixed income sales and trading were partially offset by a reduction in merchant banking gains and lower revenues in structured leasing, derivatives, and Affordable Housing.

Noninterest expense increased $6.4 million, or 0.8%, primarily due to the transfer of the middle market business from Retail and Commercial to Wholesale Banking which accounted for approximately $24.9 million of the increase. The remainder of Wholesale Banking’s noninterest expense decreased $18.4 million, or 2.3%, primarily due to a decrease in write-downs related to Affordable Housing properties offset in part by higher incentive-based compensation.

Mortgage

Three Months Ended December 31, 2008 vs. 2007

Mortgage had a net loss of $285.6 million for the fourth quarter of 2008, compared to a net loss of $30.4 million in fourth quarter 2007, a decrease of $255.2 million, principally due to higher credit-related costs.

Net interest income declined $34.3 million, or 26.6%. Average loans were down $0.8 billion, or 2.4%, while net interest income was down $30.9 million, or 34.6%. Nonaccrual loans accounted for $13.5 million of the net interest income decline as average nonaccruals increased $1.2 billion. Accruing loans

declined $1.9 billion, or 6.2%, while net interest income decreased $17.4 million, or 18.2%. The decline in net interest income was influenced by compressed spreads due to a change in product mix as declines in construction-perm and Alt-A balances were replaced with lower yielding prime first lien mortgages.

Provision for loan losses increased $94.0 million to $140.2 million due to higher residential mortgage and residential construction net charge-offs.

Total noninterest income declined $33.7 million, or 33.5%. The decline was principally due to lower origination income and higher loan repurchase reserves, partially offset by securities gains in excess of mortgage servicing rights impairment. Mortgage production income declined $55.7 million, with loan repurchase reserves increasing $32.5 million, while income related to lower loan production drove the remainder of the decrease. Loan production of $7.2 billion was down $5.7 billion, or 44.2%, compared to the fourth quarter of 2007. Mortgage servicing income was down $393.5 million, driven by $370.0 million of impairment of mortgage servicing rights that were carried at amortized cost. Also, mortgage servicing income in the fourth quarter of 2007 included $19.2 million of gains from the sale of servicing rights, as compared to no sales in the fourth quarter of 2008. The mortgage servicing rights impairment expense was offset by $410.7 million of gains from the sale of available for sale securities that were acquired in conjunction with the Company’s risk management strategies associated with economically hedging the value of mortgage servicing rights. Total loans serviced at December 31, 2008 were $162.0 billion, an increase of $12.2 billion, or 8.1%.

Total noninterest expense was up $254.6 million, or 106.7%, principally due to higher credit-related costs. Operating losses increased $165.1 million driven by fraud losses and reserves primarily related to borrower misrepresentation and insurance claim denials. Reserves for mortgage reinsurance losses increased $99.9 million and other real estate and collection services costs increased $25.1 million. Staff and commissions expense were down $23.8 million, or 22.5%, primarily due to lower loan production.

Twelve Months Ended December 31, 2008 vs. 2007

Mortgage reported a net loss for the twelve months ended December 31, 2008 of $561.8 million, compared to $5.4 million in net income in 2007, a decrease of $567.2 million, principally due to higher credit-related costs.

Net interest income declined $67.0 million, or 12.8%. Average loans increased $0.5 billion, or 1.7%, while the resulting net interest income declined $78.7 million. Nonaccrual loans accounted for $46.0 million of the net interest income decline as average nonaccrual loans increased $1.1 billion. Accruing loans declined $0.5 billion, or 1.8%, while net interest income decreased $32.7 million, or 8.5%. The decline in net interest income was influenced by a change in product mix as declines in construction-perm and Alt-A balances were replaced with lower yielding prime first lien mortgages. Average mortgage loans held for sale declined $5.5 billion; however, due to widening spreads, net interest income increased $25.4 million. Average investment securities were up $0.8 billion while net interest income increased $21.5 million primarily due to improved spreads. Total deposits increased $0.1 billion, or 4.8%, although net interest income on deposits and other liabilities decreased $17.7 million primarily due to lower short-term interest rates.

Provision for loan losses increased $410.1 million to $491.3 million due to higher residential mortgage and residential construction net charge-offs.

Total noninterest income increased $70.2 million, or 19.2%, due to reduced net valuation losses, increased production fee income, and securities gains in excess of mortgage servicing rights impairment, partially offset by higher repurchase reserves and lower gains from the sale of mortgage servicing rights. Total production income increased $83.2 million, or 85.5%, driven by reduced valuation losses associated with secondary market loans and the recognition of loan origination fees resulting from the Company’s election to record certain mortgage loans at fair value beginning in May 2007. The increase in loan production income was partially offset by increased reserves for the repurchase of loans. Loan production of $36.4 billion was down $21.9 billion, or 37.6%. Mortgage servicing income declined $426.3 million from $193.6 million in 2007, to a net loss of $232.7 million in 2008. The decline was driven by $370.0 million in impairment of mortgage servicing rights that were carried at amortized cost, as well as lower gains from the sale of mortgage servicing rights. The mortgage servicing rights impairment was

offset by $410.7 million of gains from the sale of available for sale securities that were acquired in conjunction with the Company’s risk management strategies associated with economically hedging the value of mortgage servicing rights.

Total noninterest expense increased $509.1 million, or 61.8%, driven by increased credit-related expenses. Operating losses were up $266.9 million driven by fraud losses and reserves primarily related to borrower misrepresentation and insurance claim denials. Reserves for mortgage reinsurance losses increased $179.8 million while other real estate expense and collection services expense increased $95.9 million. Additionally, the recognition of loan origination costs resulting from the Company’s election to record certain mortgage loans at fair value beginning in May 2007 increased noninterest expense compared with the prior year, offsetting significant reductions in staff and commissions expense related to lower loan production.

Wealth and Investment Management

Three Months Ended December 31, 2008 vs. 2007

Wealth and Investment Management’s net income for the fourth quarter of 2008 was $34.0 million, an increase of $129.6 million compared to the fourth quarter of 2007. The increase in net income was primarily due to a $250.5 million market valuation loss recorded in the fourth quarter of 2007 related to securities purchased from the Company’s RidgeWorth subsidiary.

Net interest income decreased $3.0 million, or 3.5%, primarily due to lower average deposits. Average deposits were down $0.8 billion, or 7.8%, while net interest income on deposits declined $1.6 million, or 2.9%, due to the lower average balance, as well as a lower credit for funds on demand deposits. Average loans increased $0.3 billion, or 4.3%, driven by a $179.2 million increase in commercial loans primarily in the professional specialty lending units.

Provision for loan losses increased $7.5 million primarily due to higher home equity lines, consumer, and mortgage net charge-offs.

Total noninterest income increased $170.7 million primarily due to a $250.5 million market valuation loss in the fourth quarter of 2007 on purchased securities partially offset by lower trust income. Trust income decreased $43.0 million, or 25.4%, primarily due to lower market valuations on managed equity assets and lower revenue as a result of the sale of Lighthouse Partners and First Mercantile Trust. As of December 31, 2008, assets under management were approximately $113.1 billion compared to $142.8 billion as of December 31, 2007. Assets under management include individually managed assets, the RidgeWorth Funds, managed institutional assets, and participant-directed retirement accounts. SunTrust’s total assets under advisement were approximately $192.0 billion, which includes $113.1 billion in assets under management, $45.7 billion in non-managed trust assets, $31.2 billion in retail brokerage assets, and $2.0 billion in non-managed corporate trust assets.

Total noninterest expense decreased $43.2 million, or 17.3%, driven by lower staff and lower structural expense resulting from the sale of Lighthouse Partners and First Mercantile Trust. Employee compensation declined $17.3 million, or 14.4%, resulting from reduced headcount and lower incentive payments.

Twelve Months Ended December 31, 2008 vs. 2007

Wealth and Investment Management’s net income for the twelve months ended December 31, 2008 was $186.9 million, an increase of $98.6 million compared to same period in 2007. The following transactions represented $141.7 million of the year-over-year increase:

•

$39.4 million decrease due to the after-tax impact of the market valuation loss on Lehman bonds purchased from the Company’s RidgeWorth subsidiary in the third 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 in the second quarter of 2008.

•

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

•

$155.3 million increase due to the after-tax impact of the market valuation losses in the fourth quarter of 2007 on securities purchased from the Company’s RidgeWorth subsidiary.

•

$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 $20.3 million, or 5.8%, primarily due to a decline in deposit-related net interest income. Average deposits were down $0.2 billion, or 2.2%, while net interest income on deposits declined $14.4 million, or 6.5%, due to the decreased average balance, as well as a lower credit for funds on demand deposits. Average loans increased $0.1 billion, or 1.8%, while net interest income declined $5.0 million driven by growth in commercial loans in the professional specialty lending units at compressed spreads.

Provision for loan losses increased $18.4 million driven by higher home equity lines, personal credit lines, and consumer mortgage net charge-offs.

Total noninterest income increased $138.6 million, or 17.1%, compared to the twelve months ended December 31, 2007 driven by a decrease in market valuation losses. Additionally, gains on the sale of non-strategic businesses were offset by the corresponding loss of revenue and lower market valuations on managed equity assets. Trading gains and losses increased $168.4 million primarily due to a $250.5 million market valuation loss in 2007 related to securities purchased from the Company’s RidgeWorth subsidiary as compared to a $63.5 million market valuation loss in 2008 related to Lehman bonds purchased from the Company’s RidgeWorth subsidiary. A $29.6 million gain on sale of First Mercantile Trust in 2008 and $24.1 million of incremental noninterest income from the sale of the Company’s Lighthouse Partners investment also increased income. Retail investment income increased $6.8 million, or 2.5%, due to higher annuity sales and higher recurring managed account fees. Trust income decreased $91.1 million, or 13.4%, primarily due to the aforementioned sales of Lighthouse Partners and First Mercantile Trust, which resulted in a $49.1 million decline in trust income as well as lower market valuations on managed equity assets.

Total noninterest expense decreased $52.8 million, or 5.2%, despite a $45.0 million impairment charge on a client based intangible in the second quarter of 2008. Noninterest expense before intangible amortization declined $91.0 million, or 9.2%, 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 December 31, 2008 vs. 2007

Corporate Other and Treasury’s net loss for the fourth quarter of 2008 was $126.8 million, compared to net income of $6.4 million in the fourth quarter of 2007, a decrease of $133.2 million, primarily due to a $221.3 million increase in provision for loan losses.

Net interest income increased $49.3 million, or 31.9%, over the same period in 2007 mainly due to increased gains on interest rate swaps employed as part of an overall interest rate risk management strategy. Total average assets decreased $3.6 billion, or 16.8%, mainly due to the reduction in the size of the investment portfolio in 2007 as part of the Company’s overall balance sheet management strategy. Total average deposits decreased $3.7 billion, or 22.7%, mainly due to a decrease in brokered 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 was $410.4 million, compared to $189.1 million in 2007, an increase of $221.3 million.

Total noninterest income declined $114.9 million compared to the same period in 2007. The decline is primarily related to $118.8 million gain on the sale/leaseback of real estate properties in 2007.

Total noninterest expense declined $90.3 million. The decrease was mainly due a $14.3 million expense reversal related to Visa litigation, resulting from the recognition of the funding by Visa of the litigation escrow account, compared to a $76.9 million accrual in the same period in 2007.

Twelve Months Ended December 31, 2008 vs. 2007

Corporate Other and Treasury’s net income for the twelve months ended December 31, 2008 was $646.8 million, an increase of $93.1 million, or 16.8%, from the same period in 2007.

Net interest income increased $221.0 million, or 40.5%, over the same period in 2007 mainly due to increased gains on interest rate swaps employed as part of an overall interest rate risk management strategy. Total average assets decreased $5.5 billion, or 21.6%, mainly due to the reduction in the size of the investment portfolio in 2007 as part of the Company’s overall balance sheet management strategy. Total average deposits decreased $8.0 billion, or 35.9%, 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, was $909.6 million in 2008, compared to $242.5 million in 2007, an increase of $667.1 million.

Total noninterest income increased $565.1 million compared to the same period in 2007 mainly due to increased gains on securities and the sale of non-strategic businesses. Securities gains increased $431.4 million primarily due to the sale of Coke stock, partially offset by market value impairment related to certain asset-backed securities that were estimated to be other-than-temporarily impaired. Trading gains and losses increased $40.2 million as gains on the Company’s long-term debt carried at fair value were partially offset by losses on certain illiquid assets. Gains on the Company’s public debt carried at fair value in 2008 were $431.7 million as compared to $140.9 million during 2007. The increase was also due to an $86.3 million gain on the Company’s holdings of Visa in connection with its initial public offering and an $81.8 million gain on sale of TransPlatinum subsidiary were offset by an $81.8 million decrease in gains on the sale/leaseback of real estate properties.

Total noninterest expense increased $133.6 million from the same period in 2007. The increase in expense was mainly due to a $183.4 million contribution of Coke stock to the Company’s charitable foundation recognized in marketing and customer development expense.

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-K. 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 January 22, 2009, 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: 4Q08). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 4Q08). A replay of the call will be available one hour after the call ends on January 22, 2009, and will remain available until February 5, 2009, dialing 1-888-277-9385 (domestic) or 1-402-998-0509 (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, “4th Quarter Earnings Release.” Beginning the afternoon of January 22, 2009, 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 mortgage banking, insurance, brokerage, investment management, 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 regarding future levels of charge-offs, provision expense, and income are forward-looking statements. Also, any statement that does not describe historical or current facts, including statements about beliefs and expectations, is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Such statements are based upon the current beliefs and expectations of management and on information currently available to management. Such statements speak as of the date hereof, and we do not assume any obligation to update the statements made herein or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward-looking statements 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 actual results to differ materially from those described in the forward-looking statements can be found in Exhibit 99.3 to our Current Reports on Form 8-K filed on October 23, 2008 with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s internet site (http://www.sec.gov). Those factors include: difficult market conditions have adversely affected our industry; current levels of market volatility are unprecedented; the soundness of other financial institutions could adversely affect us; there can be no assurance that recently enacted legislation will stabilize the U.S. financial system; the impact on us of recently enacted legislation, in particular the Emergency Economic Stabilization Act of 2008 and its implementing regulations, and actions by the FDIC, cannot be predicted at this time; credit risk; weakness in the economy and in the real estate market, including specific weakness within our geographic footprint, has adversely affected us and may continue to adversely affect us; weakness in the real estate market, including the secondary residential mortgage loan markets, has adversely affected us and may continue to adversely affect us; as a financial services company, adverse changes in general business or economic conditions could have a material adverse effect on our financial condition and results of operations; changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations, and the availability and cost of capital or liquidity; the fiscal and monetary policies of the federal government and its agencies could have a material adverse effect on our earnings; 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; clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; consumers may decide not to use banks to complete their financial transactions, which could affect net income; we have businesses other than banking which subject us to a variety of risks; hurricanes and other natural disasters may adversely affect loan portfolios and operations and increase the cost of doing business; negative public opinion could damage our reputation and adversely impact our business and revenues; we rely on other companies to provide key components of our business infrastructure; we rely on our systems, employees and certain counterparties, and certain failures could materially adversely affect our operations; we depend on the accuracy and completeness of information about clients and counterparties; regulation by federal and state agencies could adversely affect

our business, revenue and profit margins; competition in the financial services industry is intense and could result in losing business or reducing margins; future legislation could harm our competitive position; maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; we may not pay dividends on our common stock; our ability to receive dividends from our subsidiaries accounts for most of our revenue and could affect our liquidity and ability to pay dividends; significant legal actions could subject us to substantial uninsured liabilities; recently declining values of residential real estate may increase our credit losses, which would negatively affect our financial results; deteriorating credit quality, particularly in real estate loans, has adversely impacted us and may continue to adversely impact us; disruptions in our ability to access global capital markets may negatively affect our capital resources and liquidity; any reduction in our credit rating could increase the cost of our funding from the capital markets; we have in the past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to realize anticipated benefits; we depend on the expertise of key personnel; we may not be able to hire or retain additional qualified personnel and recruiting and compensation costs may increase as a result of turnover, both of which may increase costs and reduce profitability and may adversely impact our ability to implement our business strategy; our accounting policies and methods are key to how we report our financial condition and results of operations, and these require us to make estimates about matters that are uncertain; changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition; our stock price can be volatile; our disclosure controls and procedures may not prevent or detect all errors or acts of fraud; our financial instruments carried at fair value expose us to certain market risks; our revenues derived from our investment securities may be volatile and subject to a variety of risks; we may enter into transactions with off-balance sheet affiliates or our subsidiaries that could result in current or future gains or losses or the possible consolidation of those entities; and we are subject to market risk associated with our asset management and commercial paper conduit businesses.

###

SunTrust Banks, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS

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


	Three Months Ended December 31				% Change ⁴		Twelve Months Ended December 31				% Change ⁴
	2008		2007		% Change ⁴		2008		2007		% Change ⁴
EARNINGS & DIVIDENDS
Net income/(loss)	($347.6	)	$11.1		NM	%	$795.8		$1,634.0		(51.3	)%
Net income/(loss) available to common shareholders	(379.2	)	3.3		NM		746.9		1,603.7		(53.4	)
Total revenue - FTE ²	1,926.4		1,770.8		8.8		9,210.6		8,250.9		11.6
Total revenue - FTE excluding securities (gains)/losses, net ¹	1,515.3		1,765.1		(14.2	)	8,137.3		8,007.8		1.6
Net income/(loss) per average common share
Diluted	(1.08	)	0.01		NM		2.13		4.55		(53.2	)
Basic	(1.08	)	0.01		NM		2.14		4.59		(53.4	)
Dividends paid per average common share	0.54		0.73		(26.0	)	2.85		2.92		(2.4	)

CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets	$177,047		$175,130		1.1	%	$175,848		$177,796		(1.1	)%
Earning assets	153,188		151,541		1.1		152,749		155,204		(1.6	)
Loans	127,608		121,094		5.4		125,433		120,081		4.5
Consumer and commercial deposits	102,238		99,649		2.6		101,333		98,020		3.4
Brokered and foreign deposits	12,649		15,717		(19.5	)	14,743		21,856		(32.5	)
Total shareholders’ equity	19,778		18,033		9.7		18,481		17,808		3.8

As of
Total assets	189,289		179,574		5.4
Earning assets	156,016		154,397		1.0
Loans	126,998		122,319		3.8
Allowance for loan and lease losses	2,351		1,283		83.2
Consumer and commercial deposits	105,359		101,870		3.4
Brokered and foreign deposits	8,053		15,973		(49.6	)
Total shareholders’ equity	22,388		18,053		24.0

FINANCIAL RATIOS & OTHER DATA
Return on average total assets	(0.78	)%	0.03	%	NM	%	0.45	%	0.92	%	(51.1	)%
Return on average assets less net unrealized securities gains ¹	(1.39	)	(0.01	)	NM		0.05		0.81		(93.8	)
Return on average common shareholders’ equity	(8.63	)	0.07		NM		4.26		9.27		(54.0	)
Return on average realized common shareholders’ equity ¹	(15.54	)	(0.33	)	NM		0.19		8.65		(97.8	)
Net interest margin ²	3.14		3.13		0.3		3.10		3.11		(0.3	)
Efficiency ratio ²	82.47		82.19		0.3		63.95		63.43		0.8
Tangible efficiency ratio ¹	81.57		80.86		0.9		62.64		62.26		0.6
Effective tax rate/(benefit)	(47.06	)	(116.22	)	(59.5	)	(9.23	)	27.36		NM
Tier 1 capital ratio	10.85	³	6.93		56.6
Total capital ratio	14.00	³	10.30		35.9
Tier 1 leverage ratio	10.40	³	6.90		50.7
Total average shareholders’ equity to total average assets	11.17		10.30		8.5		10.51		10.02		4.9
Tangible equity to tangible assets ¹	8.39	⁵	6.31		33.1
Tangible common equity to tangible assets ¹	5.53	⁵	6.02		(8.2	)
Full-time equivalent employees	29,333		32,323		(9.3	)
Number of ATMs	2,582		2,507		3.0
Full service banking offices	1,692		1,682		0.6
Traditional	1,370		1,343		2.0
In-store	322		339		(5.0	)

Book value per common share	$48.42		$50.38		(3.9	)
Market price:
High	57.75		78.76		(26.7	)	70.00		94.18		(25.7	)
Low	19.75		60.02		(67.1	)	19.75		60.02		(67.1	)
Close	29.54		62.49		(52.7	)	29.54		62.49		(52.7	)
Market capitalization	10,472		21,772		(51.9	)

Average common shares outstanding (000s)
Diluted	351,882		348,072		1.1		350,183		352,688		(0.7	)
Basic	350,439		345,917		1.3		348,919		349,346		(0.1	)

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

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.

⁴	“NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful.

⁵	Current period calculation excludes deferred tax amount associated with goodwill in conjunction with Federal Reserve guidance issued in the fourth quarter of 2008.

Page 1

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER FINANCIAL HIGHLIGHTS

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


	Three Months Ended
	December 31 2008		September 30 2008		June 30 2008		March 31 2008		December 31 2007
EARNINGS & DIVIDENDS
Net income/(loss)	($347.6	)	$312.4		$540.4		$290.6		$11.1
Net income/(loss) available to common shareholders	(379.2	)	307.3		535.3		283.6		3.3
Total revenue - FTE ²	1,926.4		2,460.9		2,598.0		2,225.3		1,770.8
Total revenue - FTE excluding securities (gains)/losses, net¹	1,515.3		2,287.9		2,048.2		2,285.9		1,765.1
Net income/(loss) per average common share
Diluted	(1.08	)	0.88		1.53		0.81		0.01
Basic	(1.08	)	0.88		1.53		0.82		0.01
Dividends paid per average common share	0.54		0.77		0.77		0.77		0.73

CONDENSED BALANCE SHEETS
Selected Average Balances
Total assets	$177,047		$173,888		$175,549		$176,917		$175,130
Earning assets	153,188		152,320		152,483		153,004		151,541
Loans	127,608		125,642		125,192		123,263		121,094
Consumer and commercial deposits	102,238		100,200		101,727		101,168		99,649
Brokered and foreign deposits	12,649		15,800		15,068		15,469		15,717
Total shareholders’ equity	19,778		17,982		18,093		18,062		18,033

As of
Total assets	189,289		174,777		177,233		178,987		179,574
Earning assets	156,016		152,904		154,716		152,715		154,397
Loans	126,998		126,718		125,825		123,713		122,319
Allowance for loan and lease losses	2,351		1,941		1,829		1,545		1,283
Consumer and commercial deposits	105,359		101,829		102,434		103,432		101,870
Brokered and foreign deposits	8,053		14,083		17,146		12,747		15,973
Total shareholders’ equity	22,388		17,956		17,907		18,431		18,053

FINANCIAL RATIOS & OTHER DATA
Return on average total assets	(0.78	)%	0.71	%	1.24	%	0.66	%	0.03	%
Return on average assets less net unrealized securities gains ¹	(1.39	)	0.45		0.42		0.72		(0.01	)
Return on average common shareholders’ equity	(8.63	)	6.99		12.24		6.49		0.07
Return on average realized common shareholders’ equity ¹	(15.54	)	4.55		4.36		7.69		(0.33	)
Net interest margin ²	3.14		3.07		3.13		3.07		3.13
Efficiency ratio ²	82.47		67.78		53.06		56.40		82.19
Tangible efficiency ratio ¹	81.57		67.03		50.57		55.47		80.86
Effective tax rate/(benefit)	(47.06	)	(20.32	)	27.29		23.98		(116.22	)
Tier 1 capital ratio	10.85	³	8.15		7.47		7.23		6.93
Total capital ratio	14.00	³	11.16		10.85		10.97		10.30
Tier 1 leverage ratio	10.40	³	7.98		7.54		7.22		6.90
Total average shareholders’ equity to total average assets	11.17		10.34		10.31		10.21		10.30
Tangible equity to tangible assets ¹	8.39	⁴	6.40		6.27		6.56		6.31
Tangible common equity to tangible assets ¹	5.53	⁴	6.10		5.97		6.27		6.02
Full-time equivalent employees	29,333		29,447		31,602		31,745		32,323
Number of ATMs	2,582		2,506		2,506		2,509		2,507
Full service banking offices	1,692		1,692		1,699		1,678		1,682
Traditional	1,370		1,370		1,374		1,343		1,343
In-store	322		322		325		335		339

Book value per common share	$48.42		$49.32		$49.24		$51.26		$50.38
Market price:
High	57.75		64.00		60.80		70.00		78.76
Low	19.75		25.60		32.34		52.94		60.02
Close	29.54		44.99		36.22		55.14		62.49
Market capitalization	10,472		15,925		12,805		19,290		21,772

Average common shares outstanding (000s)
Diluted	351,882		350,970		349,783		348,072		348,072
Basic	350,439		349,916		348,714		346,581		345,917

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

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

⁴	Current period calculation excludes deferred tax amount associated with goodwill in conjunction with Federal Reserve guidance issued in the fourth quarter of 2008.

Page 2

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

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


	Three Months Ended								Twelve Months Ended
	December 31				Increase/(Decrease) ²				December 31				Increase/(Decrease) ²
	2008		2007		Amount		%		2008		2007		Amount		%
Interest income	$1,985,371		$2,448,701		($463,330	)	(18.9	)%	$8,327,382		$10,035,920		($1,708,538	)	(17.0	)%
Interest expense	808,511		1,281,188		(472,677	)	(36.9	)	3,707,726		5,316,376		(1,608,650	)	(30.3	)

NET INTEREST INCOME	1,176,860		1,167,513		9,347		0.8		4,619,656		4,719,544		(99,888	)	(2.1	)
Provision for loan losses	962,494		356,781		605,713		NM		2,474,215		664,922		1,809,293		NM

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	214,366		810,732		(596,366	)	(73.6	)	2,145,441		4,054,622		(1,909,181	)	(47.1	)


NONINTEREST INCOME
Service charges on deposit accounts	221,751		222,213		(462	)	(0.2	)	904,127		822,031		82,096		10.0
Trust and investment management income	126,426		170,854		(44,428	)	(26.0	)	592,324		685,034		(92,710	)	(13.5	)
Retail investment services	70,238		71,650		(1,412	)	(2.0	)	289,093		278,042		11,051		4.0
Other charges and fees	125,206		121,849		3,357		2.8		510,794		479,074		31,720		6.6
Investment banking income	57,962		55,041		2,921		5.3		236,533		214,885		21,648		10.1
Trading account profits/(losses) and commissions	(61,879	)	(437,162	)	375,283		85.8		38,169		(361,711	)	399,880		NM
Card fees	77,909		77,481		428		0.6		308,374		280,706		27,668		9.9
Mortgage production related income/(loss)	(27,717	)	22,366		(50,083	)	NM		171,368		90,983		80,385		88.4
Mortgage servicing related income/(loss)	(336,129	)	57,364		(393,493	)	NM		(211,829	)	195,436		(407,265	)	NM
Net gain/(loss) on sale of businesses	(2,711	)	-		(2,711	)	NM		198,140		32,340		165,800		NM
Gain on Visa IPO	-		-		-		-		86,305		-		86,305		NM
Net gain on sale/leaseback of premises	-		118,840		(118,840	)	(100.0	)	37,039		118,840		(81,801	)	(68.8	)
Other noninterest income	55,620		89,827		(34,207	)	(38.1	)	239,726		349,907		(110,181	)	(31.5	)
Securities gains/(losses), net	411,053		5,694		405,359		NM		1,073,300		243,117		830,183		NM

Total noninterest income	717,729		576,017		141,712		24.6		4,473,463		3,428,684		1,044,779		30.5


NONINTEREST EXPENSE
Employee compensation and benefits	638,014		682,810		(44,796	)	(6.6	)	2,761,264		2,770,188		(8,924	)	(0.3	)
Net occupancy expense	86,620		92,705		(6,085	)	(6.6	)	347,289		351,238		(3,949	)	(1.1	)
Outside processing and software	143,880		105,407		38,473		36.5		492,611		410,945		81,666		19.9
Equipment expense	47,892		51,734		(3,842	)	(7.4	)	203,209		206,498		(3,289	)	(1.6	)
Marketing and customer development	51,636		59,115		(7,479	)	(12.7	)	372,235		195,043		177,192		90.8
Amortization/impairment of intangible assets	17,259		23,414		(6,155	)	(26.3	)	121,260		96,680		24,580		25.4
Net loss on extinguishment of debt	-		-		-		-		11,723		9,800		1,923		19.6
Visa litigation	(14,345	)	76,930		(91,275	)	NM		(33,469	)	76,930		(110,399	)	NM
Operating losses	236,078		42,815		193,263		NM		446,178		134,028		312,150		NM
Mortgage reinsurance	99,999		79		99,920		NM		179,927		174		179,753		NM
Other noninterest expense	281,605		320,332		(38,727	)	(12.1	)	988,174		982,253		5,921		0.6

Total noninterest expense	1,588,638		1,455,341		133,297		9.2		5,890,401		5,233,777		656,624		12.5


INCOME/(LOSS) BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	(656,543	)	(68,592	)	(587,951	)	NM		728,503		2,249,529		(1,521,026	)	(67.6	)
Provision/(benefit) for income taxes	(308,956	)	(79,716	)	(229,240	)	NM		(67,271	)	615,514		(682,785	)	NM

Net income/(loss)	(347,587	)	11,124		(358,711	)	NM		795,774		1,634,015		(838,241	)	(51.3	)
Preferred dividends, Series A	5,055		7,867		(2,812	)	(35.7	)	22,255		30,275		(8,020	)	(26.5	)
U.S. Treasury preferred dividends	26,579		-		26,579		NM		26,579		-		26,579		NM

NET INCOME/(LOSS) AVAILABLE TO COMMON SHAREHOLDERS	($379,221	)	$3,257		($382,478	)	NM		$746,940		$1,603,740		($856,800	)	(53.4	)

Net interest income - FTE ¹	$1,208,650		$1,194,757		$13,893		1.2		$4,737,143		$4,822,224		($85,081	)	(1.8	)

Net income/(loss) per average common share
Diluted	(1.08	)	0.01		(1.09	)	NM		2.13		4.55		(2.42	)	(53.2	)
Basic	(1.08	)	0.01		(1.09	)	NM		2.14		4.59		(2.45	)	(53.4	)

Cash dividends paid per common share	0.54		0.73		(0.19	)	(26.0	)	2.85		2.92		(0.07	)	(2.4	)
Average common shares outstanding (000s)
Diluted	351,882		348,072		3,810		1.1		350,183		352,688		(2,505	)	(0.7	)
Basic	350,439		345,917		4,522		1.3		348,919		349,346		(427	)	(0.1	)

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
	December 31 2008		September 30 2008		June 30 2008		March 31 2008		December 31 2007
Interest income	$1,985,371		$2,017,314		$2,066,365		$2,258,332		$2,448,701
Interest expense	808,511		871,101		909,649		1,118,465		1,281,188

NET INTEREST INCOME	1,176,860		1,146,213		1,156,716		1,139,867		1,167,513
Provision for loan losses	962,494		503,672		448,027		560,022		356,781

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	214,366		642,541		708,689		579,845		810,732


NONINTEREST INCOME
Service charges on deposit accounts	221,751		240,241		230,296		211,839		222,213
Trust and investment management income	126,426		147,477		157,319		161,102		170,854
Retail investment services	70,238		72,791		73,764		72,300		71,650
Other charges and fees	125,206		128,776		129,581		127,231		121,849
Investment banking income	57,962		62,164		60,987		55,420		55,041
Trading account profits/(losses) and commissions	(61,879	)	121,136		(49,306	)	28,218		(437,162	)
Card fees	77,909		78,138		78,566		73,761		77,481
Mortgage production related income/(loss)	(27,717	)	50,028		63,508		85,549		22,366
Mortgage servicing related income/(loss)	(336,129	)	62,654		32,548		29,098		57,364
Net gain/(loss) on sale of businesses	(2,711	)	81,813		29,648		89,390		-
Gain on Visa IPO	-		-		-		86,305		-
Net gain on sale/leaseback of premises	-		-		-		37,039		118,840
Other noninterest income	55,620		66,958		56,312		60,836		89,827
Securities gains/(losses), net	411,053		173,046		549,787		(60,586	)	5,694

Total noninterest income	717,729		1,285,222		1,413,010		1,057,502		576,017


NONINTEREST EXPENSE
Employee compensation and benefits	638,014		696,210		711,957		715,083		682,810
Net occupancy expense	86,620		88,745		85,483		86,441		92,705
Outside processing and software	143,880		132,361		107,205		109,165		105,407
Equipment expense	47,892		51,931		50,991		52,395		51,734
Marketing and customer development	51,636		217,693		47,203		55,703		59,115
Amortization/impairment of intangible assets	17,259		18,551		64,735		20,715		23,414
Net loss on extinguishment of debt	-		-		-		11,723		-
Visa litigation	(14,345	)	20,000		-		(39,124	)	76,930
Operating losses	236,078		135,183		44,654		30,263		42,815
Mortgage reinsurance	99,999		47,956		24,961		7,011		79
Other noninterest expense	281,605		259,456		241,344		205,769		320,332

Total noninterest expense	1,588,638		1,668,086		1,378,533		1,255,144		1,455,341


INCOME/(LOSS) BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	(656,543	)	259,677		743,166		382,203		(68,592	)
Provision/(benefit) for income taxes	(308,956	)	(52,767	)	202,804		91,648		(79,716	)

Net income/(loss)	(347,587	)	312,444		540,362		290,555		11,124
Preferred dividends, Series A	5,055		5,111		5,112		6,977		7,867
U.S. Treasury preferred dividends	26,579		-		-		-		-

NET INCOME/(LOSS) AVAILABLE TO COMMON SHAREHOLDERS	($379,221	)	$307,333		$535,250		$283,578		$3,257

Net interest income - FTE ¹	$1,208,650		$1,175,679		$1,184,972		$1,167,842		$1,194,757

Net income/(loss) per average common share
Diluted	(1.08	)	0.88		1.53		0.81		0.01
Basic	(1.08	)	0.88		1.53		0.82		0.01

Cash dividends paid per common share	0.54		0.77		0.77		0.77		0.73
Average common shares outstanding (000s)
Diluted	351,882		350,970		349,783		348,072		348,072
Basic	350,439		349,916		348,714		346,581		345,917

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 December 31				Increase/(Decrease) ³
	2008		2007		Amount		%
ASSETS
Cash and due from banks	$5,622,789		$4,270,917		$1,351,872		31.7	%
Interest-bearing deposits in other banks	23,999		24,355		(356	)	(1.5	)
Funds sold and securities purchased under agreements to resell	990,614		1,347,329		(356,715	)	(26.5	)
Trading assets	10,431,091		10,518,379		(87,288	)	(0.8	)
Securities available for sale ¹	19,696,537		16,264,107		3,432,430		21.1
Loans held for sale	4,032,128		8,851,695		(4,819,567	)	(54.4	)
Loans:
Commercial	41,039,945		35,929,400		5,110,545		14.2
Real estate:
Home equity lines	16,454,382		14,911,598		1,542,784		10.3
Construction	9,863,961		13,776,651		(3,912,690	)	(28.4	)
Residential mortgages	32,065,839		32,779,744		(713,905	)	(2.2	)
Commercial real estate	14,957,082		12,609,543		2,347,539		18.6
Consumer:
Direct	5,139,335		3,963,869		1,175,466		29.7
Indirect	6,507,622		7,494,130		(986,508	)	(13.2	)
Credit card	970,277		854,059		116,218		13.6

Total loans	126,998,443		122,318,994		4,679,449		3.8
Allowance for loan and lease losses	(2,350,996	)	(1,282,504	)	1,068,492		83.3

Net loans	124,647,447		121,036,490		3,610,957		3.0
Goodwill	7,043,503		6,921,493		122,010		1.8
Other intangible assets	1,035,427		1,362,995		(327,568	)	(24.0	)
Other real estate owned	500,481		183,753		316,728		NM
Other assets	15,264,958		8,792,420		6,472,538		73.6

Total assets ²	$189,288,974		$179,573,933		$9,715,041		5.4


LIABILITIES
Noninterest-bearing consumer and commercial deposits	$21,605,212		$21,083,234		$521,978		2.5	%
Interest-bearing consumer and commercial deposits:
NOW accounts	21,349,609		22,558,374		(1,208,765	)	(5.4	)
Money market accounts	28,744,308		24,522,640		4,221,668		17.2
Savings	3,345,187		3,917,099		(571,912	)	(14.6	)
Consumer time	17,239,725		17,264,208		(24,483	)	(0.1	)
Other time	13,074,857		12,524,470		550,387		4.4

Total consumer and commercial deposits	105,358,898		101,870,025		3,488,873		3.4
Brokered deposits	7,667,167		11,715,024		(4,047,857	)	(34.6	)
Foreign deposits	385,510		4,257,601		(3,872,091	)	(90.9	)

Total deposits	113,411,575		117,842,650		(4,431,075	)	(3.8	)
Funds purchased	1,120,079		3,431,185		(2,311,106	)	(67.4	)
Securities sold under agreements to repurchase	3,193,311		5,748,277		(2,554,966	)	(44.4	)
Other short-term borrowings	5,199,360		3,021,358		2,178,002		72.1
Long-term debt	26,812,381		22,956,508		3,855,873		16.8
Trading liabilities	3,275,606		2,160,385		1,115,221		51.6
Other liabilities	13,888,553		6,361,052		7,527,501		NM

Total liabilities	166,900,865		161,521,415		5,379,450		3.3


SHAREHOLDERS’ EQUITY
Preferred stock, no par value	5,221,703		500,000		4,721,703		NM
Common stock, $1.00 par value	372,799		370,578		2,221		0.6
Additional paid in capital	6,904,644		6,707,293		197,351		2.9
Retained earnings	10,388,984		10,646,640		(257,656	)	(2.4	)
Treasury stock, at cost, and other	(1,481,146	)	(1,779,142	)	(297,996	)	(16.7	)
Accumulated other comprehensive income, net of tax	981,125		1,607,149		(626,024	)	(39.0	)

Total shareholders’ equity	22,388,109		18,052,518		4,335,591		24.0

Total liabilities and shareholders’ equity	$189,288,974		$179,573,933		$9,715,041		5.4


Common shares outstanding	354,515,013		348,411,163		6,103,850		1.8
Common shares authorized	750,000,000		750,000,000		-		-
Preferred shares outstanding	53,500		5,000		48,500		NM
Preferred shares authorized	50,000,000		50,000,000		-		-
Treasury shares of common stock	18,284,356		22,167,235		(3,882,879	)	(17.5	)
¹Includes net unrealized gains of	$1,413,330		$2,724,643		($1,311,313)		(48.1)%
² Includes earning assets of	156,016,463		154,397,231		1,619,232		1.0
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
	December 31 2008		September 30 2008		June 30 2008		March 31 2008		December 31 2007
ASSETS
Cash and due from banks	$5,622,789		$3,065,268		$3,564,824		$3,994,267		$4,270,917
Interest-bearing deposits in other banks	23,999		65,025		22,566		21,283		24,355
Funds sold and securities purchased under agreements to resell	990,614		1,440,234		1,920,276		1,247,495		1,347,329
Trading assets	10,431,091		8,936,540		10,147,021		10,932,251		10,518,379
Securities available for sale ¹	19,696,537		14,533,075		15,118,073		15,882,088		16,264,107
Loans held for sale	4,032,128		4,759,761		5,260,892		6,977,289		8,851,695
Loans:
Commercial	41,039,945		40,084,729		38,800,537		37,306,872		35,929,400
Real estate:
Home equity lines	16,454,382		16,159,053		15,726,998		15,134,297		14,911,598
Construction	9,863,961		11,519,497		12,542,775		12,980,917		13,776,651
Residential mortgages	32,065,839		32,382,111		32,509,029		33,092,433		32,779,744
Commercial real estate	14,957,082		13,841,995		13,693,933		12,893,708		12,609,543
Consumer:
Direct	5,139,335		4,930,531		4,528,576		4,192,168		3,963,869
Indirect	6,507,622		6,796,898		7,077,510		7,305,213		7,494,130
Credit card	970,277		1,003,581		945,446		807,587		854,059

Total loans	126,998,443		126,718,395		125,824,804		123,713,195		122,318,994
Allowance for loan and lease losses	(2,350,996	)	(1,941,000	)	(1,829,400	)	(1,545,340	)	(1,282,504	)

Net loans	124,647,447		124,777,395		123,995,404		122,167,855		121,036,490
Goodwill	7,043,503		7,062,869		7,056,015		6,923,033		6,921,493
Other intangible assets	1,035,427		1,389,965		1,442,056		1,430,268		1,362,995
Other real estate owned	500,481		387,037		334,519		244,906		183,753
Other assets	15,264,958		8,359,591		8,371,081		9,166,212		8,792,420

Total assets ²	$189,288,974		$174,776,760		$177,232,727		$178,986,947		$179,573,933


LIABILITIES
Noninterest-bearing consumer and commercial deposits	$21,605,212		$21,487,853		$22,184,774		$22,325,750		$21,083,234
Interest-bearing consumer and commercial deposits:
NOW accounts	21,349,609		20,313,035		21,612,407		22,292,330		22,558,374
Money market accounts	28,744,308		27,654,355		26,016,859		25,843,396		24,522,640
Savings	3,345,187		3,568,831		3,990,277		3,990,007		3,917,099
Consumer time	17,239,725		16,566,225		16,582,510		16,876,836		17,264,208
Other time	13,074,857		12,238,642		12,046,718		12,104,125		12,524,470

Total consumer and commercial deposits	105,358,898		101,828,941		102,433,545		103,432,444		101,870,025
Brokered deposits	7,667,167		9,141,001		12,607,183		11,034,332		11,715,024
Foreign deposits	385,510		4,941,939		4,538,435		1,712,504		4,257,601

Total deposits	113,411,575		115,911,881		119,579,163		116,179,280		117,842,650
Funds purchased	1,120,079		2,388,629		3,063,696		3,795,641		3,431,185
Securities sold under agreements to repurchase	3,193,311		4,090,085		5,156,986		5,446,204		5,748,277
Other short-term borrowings	5,199,360		2,728,307		2,682,808		3,061,003		3,021,358
Long-term debt	26,812,381		23,857,828		21,327,576		23,602,919		22,956,508
Trading liabilities	3,275,606		1,924,013		2,430,521		2,356,037		2,160,385
Other liabilities	13,888,553		5,919,992		5,084,825		6,114,415		6,361,052

Total liabilities	166,900,865		156,820,735		159,325,575		160,555,499		161,521,415


SHAREHOLDERS’ EQUITY
Preferred stock, no par value	5,221,703		500,000		500,000		500,000		500,000
Common stock, $1.00 par value	372,799		372,799		372,799		370,578		370,578
Additional paid in capital	6,904,644		6,783,976		6,799,935		6,682,828		6,707,293
Retained earnings	10,388,984		10,959,830		10,924,650		10,661,250		10,646,640
Treasury stock, at cost, and other	(1,481,146	)	(1,548,870	)	(1,612,167	)	(1,692,117	)	(1,779,142	)
Accumulated other comprehensive income, net of tax	981,125		888,290		921,935		1,908,909		1,607,149

Total shareholders’ equity	22,388,109		17,956,025		17,907,152		18,431,448		18,052,518

Total liabilities and shareholders’ equity	$189,288,974		$174,776,760		$177,232,727		$178,986,947		$179,573,933

Common shares outstanding	354,515,013		353,962,785		353,542,105		349,832,264		348,411,163
Common shares authorized	750,000,000		750,000,000		750,000,000		750,000,000		750,000,000
Preferred shares outstanding	53,500		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	18,284,356		18,836,584		19,257,264		20,746,134		22,167,235
¹Includes net unrealized gains of	$1,413,330		$1,519,449		$1,655,504		$2,835,823		$2,724,643
²Includes earning assets of	156,016,463		152,903,782		154,716,384		152,714,700		154,397,231

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
	December 31, 2008					September 30, 2008
	Average Balances		Interest Income/ Expense	Yields/ Rates		Average Balances		Interest Income/ Expense	Yields/ Rates
ASSETS
Loans:
Real estate 1-4 family	$31,006.9		$482.4	6.22	%	$31,486.5		$494.0	6.28	%
Real estate construction	8,914.8		106.5	4.75		10,501.9		130.0	4.92
Real estate home equity lines	15,803.1		173.8	4.38		15,424.4		193.0	4.98
Real estate commercial	14,736.8		202.2	5.46		14,138.6		193.4	5.44
Commercial - FTE ¹	40,463.8		540.5	5.31		38,064.4		508.5	5.32
Credit card (consumer and commercial)	999.0		16.9	6.76		859.7		9.4	4.36
Consumer - direct	5,009.4		65.3	5.18		4,705.0		62.9	5.32
Consumer - indirect	6,820.9		109.6	6.39		7,152.3		114.0	6.34
Nonaccrual and restructured	3,853.2		5.1	0.53		3,309.2		7.4	0.88

Total loans	127,607.9		1,702.3	5.31		125,642.0		1,712.6	5.42
Securities available for sale:
Taxable	13,071.2		183.8	5.63		11,944.2		174.4	5.84
Tax-exempt - FTE ¹	1,007.9		15.2	6.04		1,017.2		15.5	6.07

Total securities available for sale - FTE ¹	14,079.1		199.0	5.65		12,961.4		189.9	5.86
Funds sold and securities purchased under agreements to resell	963.2		1.9	0.77		1,649.7		7.5	1.79
Loans held for sale	3,968.3		53.5	5.39		4,459.3		65.0	5.82
Interest-bearing deposits	30.9		0.2	2.14		28.0		0.2	2.81
Interest earning trading assets	6,538.5		60.3	3.67		7,579.4		71.6	3.76

Total earning assets	153,187.9		2,017.2	5.24		152,319.8		2,046.8	5.35
Allowance for loan and lease losses	(1,997.9	)				(2,035.8	)
Cash and due from banks	3,218.6					2,918.1
Other assets	17,695.3					17,120.7
Noninterest earning trading assets	3,571.8					2,039.3
Unrealized gains on securities available for sale, net	1,371.6					1,526.4

Total assets	$177,047.3					$173,888.5


LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$20,095.0		$32.6	0.65	%	$20,501.5		$55.9	1.08	%
Money market accounts	27,968.7		126.3	1.80		26,897.1		122.5	1.81
Savings	3,460.0		2.8	0.32		3,770.9		3.8	0.40
Consumer time	17,043.5		141.9	3.31		16,282.1		144.2	3.52
Other time	12,716.6		112.0	3.50		11,868.3		106.8	3.58

Total interest-bearing consumer and commercial deposits	81,283.8		415.6	2.03		79,319.9		433.2	2.17
Brokered deposits	8,942.3		84.3	3.69		10,693.5		90.8	3.32
Foreign deposits	3,706.4		4.0	0.42		5,106.3		21.9	1.68

Total interest-bearing deposits	93,932.5		503.9	2.13		95,119.7		545.9	2.28
Funds purchased	2,156.1		3.8	0.69		2,658.5		12.3	1.80
Securities sold under agreements to repurchase	3,609.4		3.1	0.33		4,971.7		19.1	1.50
Interest-bearing trading liabilities	585.9		5.7	3.87		994.5		8.8	3.53
Other short-term borrowings	4,163.5		8.0	0.77		2,521.0		11.2	1.77
Long-term debt	24,037.8		284.0	4.70		22,419.4		273.8	4.86

Total interest-bearing liabilities	128,485.2		808.5	2.50		128,684.8		871.1	2.69
Noninterest-bearing deposits	20,954.6					20,879.9
Other liabilities	5,237.7					4,961.1
Noninterest-bearing trading liabilities	2,591.8					1,380.8
Shareholders’ equity	19,778.0					17,981.9

Total liabilities and shareholders’ equity	$177,047.3					$173,888.5

Interest Rate Spread				2.74	%				2.66	%

Net Interest Income - FTE ¹			$1,208.7					$1,175.7

Net Interest Margin ²				3.14	%				3.07	%

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
	June 30, 2008					March 31, 2008					December 31, 2007
	Average Balances		Interest Income/ Expense	Yields/ Rates		Average Balances		Interest Income/ Expense	Yields/ Rate		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	%	$31,990.3		$517.4	6.47	%
Real estate construction	11,471.9		149.5	5.24		12,450.2		189.8	6.13		13,250.9		238.8	7.15
Real estate home equity lines	14,980.1		195.8	5.26		14,603.0		234.3	6.45		14,394.8		268.1	7.39
Real estate commercial	13,876.7		192.8	5.59		13,113.1		201.3	6.17		12,891.6		221.2	6.81
Commercial - FTE ¹	37,600.1		501.4	5.36		36,374.6		539.2	5.96		34,879.3		564.9	6.43
Credit card (consumer and commercial)	816.0		5.4	2.62		774.4		2.9	1.52		690.1		2.1	1.23
Consumer - direct	4,382.4		63.4	5.82		4,063.4		62.5	6.19		3,949.3		70.7	7.10
Consumer - indirect	7,437.2		115.9	6.27		7,645.3		120.2	6.32		7,877.3		125.7	6.33
Nonaccrual and restructured	2,514.1		7.5	1.20		1,799.0		5.4	1.21		1,170.7		4.3	1.45

Total loans	125,191.9		1,738.7	5.59		123,263.0		1,876.9	6.12		121,094.3		2,013.2	6.60
Securities available for sale:
Taxable	11,769.6		186.0	6.32		12,087.1		186.8	6.18		11,814.6		182.9	6.19
Tax-exempt - FTE ¹	1,057.5		16.0	6.05		1,071.4		16.5	6.13		1,054.0		16.0	6.07

Total securities available for sale - FTE¹	12,827.1		202.0	6.30		13,158.5		203.3	6.18		12,868.6		198.9	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		1,066.1		11.6	4.25
Loans held for sale	5,148.5		72.5	5.63		6,865.7		99.0	5.77		8,777.6		139.2	6.34
Interest-bearing deposits	21.4		0.2	3.77		21.9		0.2	4.54		18.2		0.3	6.22
Interest earning trading assets	7,963.0		74.5	3.76		8,367.6		98.0	4.71		7,716.2		112.8	5.80

Total earning assets	152,483.0		2,094.6	5.52		153,003.6		2,286.3	6.01		151,541.0		2,476.0	6.48
Allowance for loan and lease losses	(1,828.7	)				(1,393.1	)				(1,114.9	)
Cash and due from banks	3,070.1					3,166.5					3,462.6
Other assets	17,186.1					17,076.4					17,172.3
Noninterest earning trading assets	2,342.4					2,609.5					1,660.9
Unrealized gains on securities available for sale, net	2,295.9					2,454.0					2,408.6

Total assets	$175,548.8					$176,916.9					$175,130.5


LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$21,762.4		$62.5	1.15	%	$21,981.1		$101.9	1.87	%	$20,737.2		$121.0	2.32	%
Money market accounts	26,031.8		116.7	1.80		25,342.7		154.7	2.46		24,261.5		177.7	2.91
Savings	3,939.1		3.9	0.40		3,917.0		5.7	0.59		4,177.7		11.1	1.05
Consumer time	16,726.7		165.2	3.97		17,030.8		187.8	4.43		17,170.7		197.2	4.56
Other time	11,921.1		118.8	4.01		12,280.5		141.1	4.62		12,353.3		151.5	4.87

Total interest-bearing consumer and commercial deposits	80,381.1		467.1	2.34		80,552.1		591.2	2.95		78,700.4		658.5	3.32
Brokered deposits	11,135.4		93.4	3.32		11,216.4		123.0	4.34		12,771.1		168.2	5.15
Foreign deposits	3,932.9		19.3	1.95		4,252.2		33.6	3.13		2,945.9		32.6	4.33

Total interest-bearing deposits	95,449.4		579.8	2.44		96,020.7		747.8	3.13		94,417.4		859.3	3.61
Funds purchased	2,792.5		13.5	1.92		2,885.7		21.9	3.00		2,151.4		24.1	4.38
Securities sold under agreements to repurchase	5,388.4		21.8	1.60		5,889.4		35.1	2.36		5,706.7		55.2	3.78
Interest-bearing trading liabilities	849.2		6.6	3.12		713.0		6.0	3.41		504.2		3.5	2.75
Other short-term borrowings	2,650.6		13.1	1.99		2,887.6		22.8	3.17		3,202.8		37.4	4.63
Long-term debt	22,298.6		274.8	4.96		22,808.3		284.9	5.02		22,808.1		301.7	5.25

Total interest-bearing liabilities	129,428.7		909.6	2.83		131,204.7		1,118.5	3.43		128,790.6		1,281.2	3.95
Noninterest-bearing deposits	21,345.9					20,616.3					20,948.1
Other liabilities	5,162.4					5,347.4					5,812.5
Noninterest-bearing trading liabilities	1,518.6					1,686.8					1,546.5
Shareholders’ equity	18,093.2					18,061.7					18,032.8

Total liabilities and shareholders’ equity	$175,548.8					$176,916.9					$175,130.5

Interest Rate Spread				2.69	%				2.58	%				2.53	%

Net Interest Income - FTE ¹			$1,185.0					$1,167.8					$1,194.8

Net Interest Margin ²				3.13	%				3.07	%				3.13	%

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)


	Twelve Months Ended
	December 31, 2008					December 31, 2007
	Average Balances		Interest Income/ Expense	Yields/ Rates		Average Balances		Interest Income/ Expense	Yields/ Rates
ASSETS
Loans:
Real estate 1-4 family	$31,758.9		$2,004.8	6.31	%	$31,951.0		$2,036.5	6.37	%
Real estate construction	10,828.5		575.8	5.32		13,519.4		1,011.0	7.48
Real estate home equity lines	15,204.9		796.9	5.24		14,031.0		1,088.2	7.76
Real estate commercial	13,968.9		789.7	5.65		12,803.4		887.5	6.93
Commercial - FTE ¹	38,131.9		2,089.6	5.48		34,194.4		2,202.6	6.44
Credit card (consumer and commercial)	862.6		34.5	4.00		495.9		17.7	3.57
Consumer - direct	4,541.8		254.1	5.60		4,221.0		304.9	7.22
Consumer - indirect	7,262.5		459.8	6.33		8,017.5		495.4	6.18
Nonaccrual and restructured	2,872.7		25.4	0.89		847.0		17.3	2.05

Total loans	125,432.7		7,030.6	5.61		120,080.6		8,061.1	6.71
Securities available for sale:
Taxable	12,219.5		731.0	5.98		10,274.1		639.1	6.22
Tax-exempt - FTE ¹	1,038.4		63.1	6.07		1,043.8		62.2	5.96

Total securities available for sale - FTE ¹	13,257.9		794.1	5.99		11,317.9		701.3	6.20
Funds sold and securities purchased under agreement to resell	1,317.7		25.1	1.91		995.6		48.8	4.91
Loans held for sale	5,105.6		289.9	5.68		10,786.7		668.9	6.20
Interest-bearing deposits	25.6		0.8	3.18		24.0		1.3	5.44
Interest earning trading assets	7,609.1		304.4	4.00		11,999.6		657.2	5.48

Total earning assets	152,748.6		8,444.9	5.53		155,204.4		10,138.6	6.53
Allowance for loan and lease losses	(1,815.0	)				(1,065.7	)
Cash and due from banks	3,093.2					3,456.6
Other assets	17,270.4					16,700.5
Noninterest earning trading assets	2,641.6					1,198.9
Unrealized gains on securities available for sale, net	1,909.5					2,300.8

Total assets	$175,848.3					$177,795.5


LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$21,080.7		$252.9	1.20	%	$20,042.8		$473.9	2.36	%
Money market accounts	26,564.8		520.3	1.96		22,676.7		622.5	2.75
Savings	3,770.9		16.3	0.43		4,608.7		55.5	1.20
Consumer time	16,770.2		639.1	3.81		16,941.3		764.2	4.51
Other time	12,197.2		478.6	3.92		12,073.5		586.3	4.86

Total interest-bearing consumer and commercial deposits	80,383.8		1,907.2	2.37		76,343.0		2,502.4	3.28
Brokered deposits	10,493.2		391.5	3.73		16,091.9		861.2	5.35
Foreign deposits	4,250.3		78.8	1.85		5,764.5		297.2	5.16

Total interest-bearing deposits	95,127.3		2,377.5	2.50		98,199.4		3,660.8	3.73
Funds purchased	2,622.0		51.5	1.96		3,266.2		166.5	5.10
Securities sold under agreements to repurchase	4,961.0		79.1	1.59		6,132.5		273.8	4.46
Interest-bearing trading liabilities	785.7		27.1	3.46		430.2		15.6	3.62
Other short-term borrowings	3,057.2		55.1	1.80		2,493.0		121.0	4.85
Long-term debt	22,892.9		1,117.4	4.88		20,692.9		1,078.7	5.21

Total interest-bearing liabilities	129,446.1		3,707.7	2.86		131,214.2		5,316.4	4.05
Noninterest-bearing deposits	20,949.0					21,677.2
Other liabilities	5,176.7					5,783.1
Noninterest-bearing trading liabilities	1,795.6					1,313.0
Shareholders’ equity	18,480.9					17,808.0

Total liabilities and shareholders’ equity	$175,848.3					$177,795.5

Interest Rate Spread				2.67	%				2.48	%

Net Interest Income - FTE ¹			$4,737.2					$4,822.2

Net Interest Margin ²				3.10	%				3.11	%

²	The net interest margin is calculated by dividing 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								Twelve Months Ended
	December 31				Increase/(Decrease)				December 31				Increase/(Decrease)
	2008		2007		Amount		%¹		2008		2007		Amount		%¹
CREDIT DATA
Allowance for loan and lease losses - beginning	$1,941,000		$1,093,691		$847,309		77.5	%	$1,282,504		$1,044,521		$237,983		22.8	%
Provision for loan losses	962,494		356,781		605,713		NM		2,474,215		664,922		1,809,293		NM
Allowance associated with loans at fair value²	-		-		-		-		-		(4,100	)	(4,100	)	(100.0	)
Allowance from GB&T acquisition	-		-		-		-		158,705		-		158,705		NM
Charge-offs
Commercial	(93,556	)	(37,917	)	55,639		NM		(232,493	)	(140,494	)	91,999		65.5
Real estate:
Home equity lines	(136,949	)	(46,842	)	90,107		NM		(449,570	)	(116,218	)	333,352		NM
Construction	(84,194	)	(7,616	)	76,578		NM		(194,494	)	(12,159	)	182,335		NM
Residential mortgages	(156,397	)	(59,319	)	97,078		NM		(525,148	)	(113,080	)	412,068		NM
Commercial real estate	(23,548	)	(299	)	23,249		NM		(24,744	)	(2,069	)	22,675		NM
Consumer:
Direct	(13,295	)	(6,630	)	6,665		NM		(41,868	)	(23,509	)	18,359		78.1
Indirect	(65,666	)	(32,448	)	33,218		NM		(192,905	)	(106,454	)	86,451		81.2
Credit cards	(8,962	)	(322	)	8,640		NM		(19,330	)	(365	)	18,965		NM

Total charge-offs	(582,567	)	(191,393	)	391,174		NM		(1,680,552	)	(514,348	)	1,166,204		NM

Recoveries
Commercial	6,938		6,573		365		5.6		25,191		24,030		1,161		4.8
Real estate:
Home equity lines	4,480		2,182		2,298		NM		16,401		7,789		8,612		NM
Construction	802		705		97		13.8		2,848		1,150		1,698		NM
Residential mortgages	2,816		1,328		1,488		NM		7,766		5,462		2,304		42.2
Commercial real estate	700		846		(146	)	(17.3	)	1,154		1,910		(756	)	(39.6	)
Consumer:
Direct	1,964		2,484		(520	)	(20.9	)	8,164		9,613		(1,449	)	(15.1	)
Indirect	12,102		9,267		2,835		30.6		54,163		41,343		12,820		31.0
Credit cards	267		40		227		NM		437		212		225		NM

Total recoveries	30,069		23,425		6,644		28.4		116,124		91,509		24,615		26.9

Net charge-offs	(552,498	)	(167,968	)	384,530		NM		(1,564,428	)	(422,839	)	1,141,589		NM

Allowance for loan and lease losses - ending	$2,350,996		$1,282,504		$1,068,492		83.3		$2,350,996		$1,282,504		$1,068,492		83.3

Net charge-offs to average loans (annualized)
Commercial	0.84	%	0.34	%	0.50	%	NM	%	0.53	%	0.33	%	0.20	%	60.6	%
Real estate:
Home equity lines	3.33		1.23		2.10		NM		2.85		0.77		2.08		NM
Construction	3.29		0.20		3.09		NM		1.63		0.08		1.55		NM
Residential mortgages	1.86		0.70		1.16		NM		1.56		0.33		1.23		NM
Commercial real estate	0.61		(0.02	)	0.63		NM		0.17		-		0.17		NM
Consumer:
Direct	0.90		0.42		0.48		NM		0.74		0.33		0.41		NM
Indirect	3.12		1.16		1.96		NM		1.91		0.81		1.10		NM
Credit cards	7.00		0.48		6.52		NM		5.05		0.18		4.87		NM
Total net charge-offs to total average loans	1.72		0.55		1.17		NM		1.24		0.35		0.89		NM

Period Ended
Nonaccrual/nonperforming loans
Commercial	$321,980		$74,463		$247,517		NM	%
Real estate:
Home equity lines	272,577		135,700		136,877		NM
Construction	1,276,847		295,335		981,512		NM
Residential mortgages	1,846,999		841,376		1,005,623		NM
Commercial real estate	176,578		44,502		132,076		NM
Consumer loans	45,045		39,031		6,014		15.4

Total nonaccrual/nonperforming loans	3,940,026		1,430,407		2,509,619		NM
Other real estate owned (OREO)	500,481		183,753		316,728		NM
Other repossessed assets	15,866		11,536		4,330		37.5

Total nonperforming assets	$4,456,373		$1,625,696		$2,830,677		NM

Restructured loans (accruing)⁵	$462,648		$29,851		$432,797		NM

Total accruing loans past due 90 days or more	$1,032,260		$611,003		$421,257		68.9	%

Total nonperforming loans to total loans	3.10	%	1.17	%	1.93	%	NM	%
Total nonperforming assets to total loans plus OREO and other repossessed assets	3.49		1.33		2.16		NM
Allowance to period-end loans ³	1.86		1.05		0.81		77.1
Allowance to nonperforming loans ⁴	61.7		101.9		(40.20	)	(39.5	)
Allowance to annualized net charge-offs	1.07	x	1.92	x	(0.85	) x	(44.4	)

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.

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 $392,259, which did not change the calculation by more than one basis point as of December 31, 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 $171,475, which increased the calculation approximately 12 basis points as of December 31, 2007.

⁵

During the third quarter of 2008, the Company revised its definition of nonperforming to exclude loans that have been restructured and remain on accruing status. These loans are not considered to be nonperforming because they are performing in accordance with the restructured terms. This change better aligns the Company’s definition of nonperforming loans with the one used by peer institutions and therefore improves comparability of this measure across the industry.

Page 10

SunTrust Banks, Inc. and Subsidiaries

FIVE QUARTER OTHER FINANCIAL DATA

(Dollars in thousands) (Unaudited)


	Three Months Ended
	December 31 2008		September 30 2008		Increase/(Decrease)				June 30 2008		March 31 2008		December 31 2007
	December 31 2008		September 30 2008		Amount		%¹		June 30 2008		March 31 2008		December 31 2007
CREDIT DATA
Allowance for loan and lease losses - beginning	$1,941,000		$1,829,400		$111,600		6.1	%	$1,545,340		$1,282,504		$1,093,691
Provision for loan losses	962,494		503,672		458,822		91.1		448,027		560,022		356,781
Allowance from GB&T acquisition	-		-		-		-		158,705		-		-
Charge-offs
Commercial	(93,556	)	(57,789	)	35,767		61.9		(44,352	)	(37,161	)	(37,917	)
Real estate:
Home equity lines	(136,949	)	(119,162	)	17,787		14.9		(94,857	)	(98,602	)	(46,842	)
Construction	(84,194	)	(51,719	)	32,475		62.8		(35,399	)	(23,182	)	(7,616	)
Residential mortgages	(156,397	)	(133,510	)	22,887		17.1		(126,055	)	(109,186	)	(59,319	)
Commercial real estate	(23,548	)	(400	)	23,148		NM		(563	)	(233	)	(299	)
Consumer:
Direct	(13,295	)	(10,406	)	2,889		27.8		(7,852	)	(10,315	)	(6,630	)
Indirect	(65,666	)	(41,249	)	24,417		59.2		(43,101	)	(42,889	)	(32,448	)
Credit cards	(8,962	)	(5,489	)	3,473		63.3		(3,386	)	(1,128	)	(322	)

Total charge-offs	(582,567	)	(419,724	)	162,843		38.8		(355,565	)	(322,696	)	(191,393	)

Recoveries
Commercial	6,938		5,360		1,578		29.4		7,186		5,919		6,573
Real estate:
Home equity lines	4,480		3,903		577		14.8		5,650		2,368		2,182
Construction	802		1,786		(984	)	(55.1	)	182		78		705
Residential mortgages	2,816		2,083		733		35.2		1,644		1,223		1,328
Commercial real estate	700		257		443		NM		35		162		846
Consumer:
Direct	1,964		1,700		264		15.5		2,119		2,381		2,484
Indirect	12,102		12,491		(389	)	(3.1	)	16,008		13,562		9,267
Credit cards	267		72		195		NM		69		(183	)	40

Total recoveries	30,069		27,652		2,417		8.7		32,893		25,510		23,425

Net charge-offs	(552,498	)	(392,072	)	160,426		40.9		(322,672	)	(297,186	)	(167,968	)

Allowance for loan and lease losses - ending	$2,350,996		$1,941,000		$409,996		21.1		$1,829,400		$1,545,340		$1,282,504

Net charge-offs to average loans (annualized)
Commercial	0.84	%	0.54	%	0.30	%	55.6	%	0.39	%	0.34	%	0.34	%
Real estate:
Home equity lines	3.33		2.97		0.36		12.1		2.40		2.65		1.23
Construction	3.29		1.73		1.56		90.2		1.16		0.72		0.20
Residential mortgages	1.86		1.57		0.29		18.5		1.49		1.29		0.70
Commercial real estate	0.61		-		0.61		NM		0.02		-		(0.02	)
Consumer:
Direct	0.90		0.74		0.16		21.6		0.53		0.79		0.42
Indirect	3.12		1.56		1.56		100.0		1.46		1.53		1.16
Credit cards	7.00		5.80		1.20		20.7		4.09		1.74		0.48
Total net charge-offs to total average loans	1.72		1.24		0.48		38.7		1.04		0.97		0.55

Period Ended
Nonaccrual/nonperforming loans
Commercial	$321,980		$257,343		$64,637		25.1	%	$117,168		$97,930		$74,463
Real estate:
Home equity lines	272,577		232,904		39,673		17.0		216,839		193,153		135,700
Construction	1,276,847		1,040,678		236,169		22.7		772,353		520,704		295,335
Residential mortgages	1,846,999		1,548,955		298,044		19.2		1,356,710		1,115,071		841,376
Commercial real estate	176,578		164,906		11,672		7.1		124,523		64,251		44,502
Consumer loans	45,045		44,732		313		0.7		37,735		46,851		39,031

Total nonaccrual/nonperforming loans	3,940,026		3,289,518		650,508		19.8		2,625,328		2,037,960		1,430,407
Other real estate owned (OREO)	500,481		387,037		113,444		29.3		334,519		244,906		183,753
Other repossessed assets	15,866		13,714		2,152		15.7		13,203		6,340		11,536

Total nonperforming assets	$4,456,373		$3,690,269		$766,104		20.8		$2,973,050		$2,289,206		$1,625,696

Restructured loans (accruing) ⁴	$462,648		$381,040		$81,608		21.4	%	$163,358		$30,787		$29,851

Total accruing loans past due 90 days or more	$1,032,260		$772,132		$260,128		33.7	%	$753,558		$743,969		$611,003

Total nonperforming loans to total loans	3.10	%	2.60	%	0.50	%	19.2	%	2.09	%	1.65	%	1.17	%
Total nonperforming assets to total loans plus
OREO and other repossessed assets	3.49		2.90		0.59		20.3		2.36		1.85		1.33
Allowance to period-end loans ²	1.86		1.54		0.32		20.8		1.46		1.25		1.05
Allowance to nonperforming loans ³	61.7		62.1		(0.42	)	(0.7	)	77.0		82.9		101.9
Allowance to annualized net charge-offs	1.07	x	1.24	x	(0.18	) x	(14.9	)	1.41	x	1.28	x	1.92	x

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

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 and $392,259 as of March 31, 2008 and December 31, 2007, respectively, which did not change the calculation by more than one basis point.

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 and $171,475 as of March 31, 2008 and December 31, 2007, respectively, which increased the calculation approximately 7 and 12 basis points as of March 31, 2008 and December 31, 2007, respectively.

⁴

Page 11

SunTrust Banks, Inc. and Subsidiaries

OTHER FINANCIAL DATA (continued)

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


	Three Months Ended								Twelve Months Ended
	December 31								December 31
	Core Deposit Intangible		Mortgage Servicing Rights		Other		Total		Core Deposit Intangible		Mortgage Servicing Rights		Other		Total
OTHER INTANGIBLE ASSET ROLLFORWARD
Balance, beginning of period	$188,372		$995,984		$142,704		$1,327,060		$241,614		$810,509		$129,861		$1,181,984
Amortization	(15,717	)	(47,997	)	(7,697	)	(71,411	)	(68,959	)	(181,263	)	(27,721	)	(277,943	)
Mortgage Servicing Rights (“MSRs”) originated	-		142,100		-		142,100		-		639,158		-		639,158
Purchase of GenSpring (formerly AMA, LLC) minority shares	-		-		-		-		-		-		2,205		2,205
Client relationship intangible obtained from GenSpring’s acquisition of TBK Investments, Inc.	-		-		-		-		-		-		6,520		6,520
Client relationship intangible obtained from GenSpring’s acquisition of Inlign Wealth Management	-		-		4,120		4,120		-		-		4,120		4,120
Alpha Equity Management revenue sharing intangible	-		-		1,788		1,788		-		-		1,788		1,788
Intangible assets obtained from sale upon merger of Lighthouse Partners, LLC, net¹	-		-		-		-		-		-		24,142		24,142
Sale/securitization of MSRs	-		(40,662	)	-		(40,662	)	-		(218,979	)	-		(218,979	)

Balance, December 31, 2007	$172,655		$1,049,425		$140,915		$1,362,995		$172,655		$1,049,425		$140,915		$1,362,995

Balance, beginning of period	$158,404		$1,150,013		$81,548		$1,389,965		$172,655		$1,049,425		$140,915		$1,362,995
Amortization	(13,093	)	(58,546	)	(4,166	)	(75,805	)	(56,854	)	(223,092	)	(19,406	)	(299,352	)
MSRs originated	-		89,007		-		89,007		-		485,597		-		485,597
MSRs impairment reserve	-		(370,000	)	-		(370,000	)	-		(371,881	)	-		(371,881	)
MSRs impairment recovery	-		-		-		-		-		1,881		-		1,881
Sale of interest in Lighthouse Partners	-		-		-		-		-		-		(5,992	)	(5,992	)
Sale of MSRs	-		-		-		-		-		(131,456	)	-		(131,456	)
Customer intangible impairment charge	-		-		-		-		-		-		(45,000	)	(45,000	)
Purchased credit card relationships	-		-		-		-		-		-		9,898		9,898
Acquisition of GB&T	-		-		-		-		29,510		-		-		29,510
Sale of First Mercantile	-		-		-		-		-		-		(3,033	)	(3,033	)
Other	-		-		2,260		2,260		-		-		2,260		2,260

Balance, December 31, 2008	$145,311		$810,474		$79,642		$1,035,427		$145,311		$810,474		$79,642		$1,035,427


	Three Months Ended
	December 31 2008	September 30 2008	June 30 2008	March 31 2008	December 31 2007
COMMON SHARE ROLLFORWARD
Beginning balance	353,963	353,542	349,832	348,411	348,074
Common shares issued/exchanged for employee benefit plans, stock option, performance and restricted stock activity	552	421	1,489	1,421	337
Common shares issued for acquisition of GB&T	-	-	2,221	-	-

Ending balance	354,515	353,963	353,542	349,832	348,411


COMMON STOCK REPURCHASE ACTIVITY
Number of common shares repurchased²	-	-	2	17	12
Average price per share of repurchased common shares	$-	$-	$57.76	$62.38	$69.31
Maximum number of common shares that may yet be purchased under repurchase plans or programs	30,000	30,000	30,000	30,000	30,000

During the first quarter of 2007, SunTrust merged its wholly-owned subsidiary, Lighthouse Partners, LLC, 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.

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										Twelve Months Ended
	December 31 2008		September 30 2008		June 30 2008		March 31 2008		December 31 2007		December 31 2008		December 31 2007
NON-GAAP MEASURES PRESENTED IN THE EARNINGS RELEASE
Net income/(loss)	($347,587	)	$312,444		$540,362		$290,555		$11,124		$795,774		$1,634,015
Securities (gains)/losses, net of tax	(254,853	)	(107,289	)	(345,807	)	37,563		(3,530	)	(665,446	)	(150,733	)

Net income/(loss) excluding net securities (gains)/losses, net of tax	(602,440	)	205,155		194,555		328,118		7,594		130,328		1,483,282
The Coca-Cola Company stock dividend, net of tax	(10,146	)	(10,146	)	(14,738	)	(14,738	)	(13,206	)	(49,769	)	(54,214	)

Net income/(loss) excluding net securities (gains)/losses and The Coca-Cola Company stock dividend, net of tax	(612,586	)	195,009		179,817		313,380		(5,612	)	80,559		1,429,068
Less: Preferred dividends, Series A	5,055		5,111		5,112		6,977		7,867		22,255		30,275
Less: U.S. Treasury preferred dividends	26,579		-		-		-		-		26,579		-

Net income/(loss) available to common shareholders excluding net securities (gains)/losses and The Coca-Cola Company stock dividend	($644,220	)	$189,898		$174,705		$306,403		($13,479	)	$31,725		$1,398,793

Total average assets	$177,047,258		$173,888,490		$175,548,768		$176,916,901		$175,130,464		$175,848,265		$177,795,518
Average net unrealized securities gains	(1,371,624	)	(1,526,431	)	(2,295,932	)	(2,453,981	)	(2,408,596	)	(1,909,462	)	(2,300,821	)

Average assets less net unrealized securities gains	$175,675,634		$172,362,059		$173,252,836		$174,462,920		$172,721,868		$173,938,803		$175,494,697

Total average common shareholders’ equity	$17,487,081		$17,481,916		$17,593,229		$17,561,709		$17,532,786		$17,530,731		$17,308,013
Average accumulated other comprehensive income	(996,955	)	(871,413	)	(1,488,305	)	(1,533,427	)	(1,292,785	)	(1,220,949	)	(1,143,284	)

Total average realized common shareholders’ equity	$16,490,126		$16,610,503		$16,104,924		$16,028,282		$16,240,001		$16,309,782		$16,164,729

Return on average total assets	(0.78	)%	0.71	%	1.24	%	0.66	%	0.03	%	0.45	%	0.92	%
Impact of excluding net realized and unrealized securities (gains)/losses and The Coca-Cola Company stock dividend	(0.61	)	(0.26	)	(0.82	)	0.06		(0.04	)	(0.40	)	(0.11	)

Return on average total assets less net unrealized securities gains ¹	(1.39	)%	0.45	%	0.42	%	0.72	%	(0.01	)%	0.05	%	0.81	%

Return on average common shareholders’ equity	(8.63	)%	6.99	%	12.24	%	6.49	%	0.07	%	4.26	%	9.27	%
Impact of excluding net realized and unrealized securities (gains)/losses and The Coca-Cola Company stock dividend	(6.91	)	(2.44	)	(7.88	)	1.20		(0.40	)	(4.07	)	(0.62	)

Return on average realized common shareholders’ equity ²	(15.54	)%	4.55	%	4.36	%	7.69	%	(0.33	)%	0.19	%	8.65	%

Efficiency ratio ³	82.47	%	67.78	%	53.06	%	56.40	%	82.19	%	63.95	%	63.43	%
Impact of excluding amortization/impairment of intangible assets other than MSRs	(0.90	)	(0.75	)	(2.49	)	(0.93	)	(1.33	)	(1.31	)	(1.17	)

Tangible efficiency ratio ⁴	81.57	%	67.03	%	50.57	%	55.47	%	80.86	%	62.64	%	62.26	%

Total shareholders’ equity	$22,388,109		$17,956,025		$17,907,152		$18,431,448		$18,052,518
Goodwill	(6,941,104	)	(7,062,869	)	(7,056,015	)	(6,923,033	)	(6,921,493	)
Other intangible assets including MSRs	(978,211	)	(1,328,055	)	(1,394,941	)	(1,379,522	)	(1,308,618	)
MSRs	810,474		1,150,013		1,193,450		1,143,405		1,049,426

Tangible equity	15,279,268		10,715,114		10,649,646		11,272,298		10,871,833
Preferred stock	(5,221,703	)	(500,000	)	(500,000	)	(500,000	)	(500,000	)

Tangible common equity	$10,057,565		$10,215,114		$10,149,646		$10,772,298		$10,371,833

Total assets	$189,288,974		$174,776,760		$177,232,727		$178,986,947		$179,573,933
Goodwill	(7,043,503	)	(7,062,869	)	(7,056,015	)	(6,923,033	)	(6,921,493	)
Other intangible assets including MSRs	(1,035,427	)	(1,389,965	)	(1,442,056	)	(1,430,268	)	(1,362,995	)
MSRs	810,474		1,150,013		1,193,450		1,143,405		1,049,425

Tangible assets	$182,020,518		$167,473,939		$169,928,106		$171,777,051		$172,338,870

Tangible equity to tangible assets ⁵	8.39	%	6.40	%	6.27	%	6.56	%	6.31	%
Tangible common equity to tangible assets⁶	5.53	%	6.10	%	5.97	%	6.27	%	6.02	%

Net interest income	$1,176,860		$1,146,213		$1,156,716		$1,139,867		$1,167,513		$4,619,656		$4,719,544
Taxable-equivalent adjustment	31,790		29,466		28,256		27,975		27,244		117,487		102,680

Net interest income - FTE	1,208,650		1,175,679		1,184,972		1,167,842		1,194,757		4,737,143		4,822,224
Noninterest income	717,729		1,285,222		1,413,010		1,057,502		576,017		4,473,463		3,428,684

Total revenue - FTE	1,926,379		2,460,901		2,597,982		2,225,344		1,770,774		9,210,606		8,250,908
Securities (gains)/losses, net	(411,053	)	(173,046	)	(549,787	)	60,586		(5,694	)	(1,073,300	)	(243,117	)

Total revenue - FTE excluding net securities (gains)/losses ⁷	$1,515,326		$2,287,855		$2,048,195		$2,285,930		$1,765,080		$8,137,306		$8,007,791

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 30.0 million shares of The Coca-Cola Company as of December 31, 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.

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.

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 after-tax 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 a tangible common equity to tangible assets ratio that excludes preferred stock from tangible equity. The Company believes this measure is useful to investors because, by removing the preferred stock (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 who also use this measure. This measure is also used by management to analyze capital adequacy.

⁷

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
	December 31 2008		September 30 2008		Increase/(Decrease)²				Sequential Annualized ¹ %		December 31 2008		December 31 2007		Increase/(Decrease)²
	December 31 2008		September 30 2008		Amount		%		Sequential Annualized ¹ %		December 31 2008		December 31 2007		Amount		%
STATEMENTS OF INCOME

NET INTEREST INCOME	$1,176,860		$1,146,213		$30,647		2.7	%	10.7	%	$1,176,860		$1,167,513		$9,347		0.8	%
Provision for loan losses	962,494		503,672		458,822		91.1		NM		962,494		356,781		605,713		NM

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	214,366		642,541		(428,175	)	(66.6	)	NM		214,366		810,732		(596,366	)	(73.6	)

NONINTEREST INCOME

Service charges on deposit accounts	221,751		240,241		(18,490	)	(7.7	)	(30.8	)	221,751		222,213		(462	)	(0.2	)
Trust and investment management income	126,426		147,477		(21,051	)	(14.3	)	(57.1	)	126,426		170,854		(44,428	)	(26.0	)
Retail investment services	70,238		72,791		(2,553	)	(3.5	)	(14.0	)	70,238		71,650		(1,412	)	(2.0	)
Other charges and fees	125,206		128,776		(3,570	)	(2.8	)	(11.1	)	125,206		121,849		3,357		2.8
Investment banking income	57,962		62,164		(4,202	)	(6.8	)	(27.0	)	57,962		55,041		2,921		5.3
Trading account profits/(losses) and commissions	(61,879	)	121,136		(183,015	)	NM		NM		(61,879	)	(437,162	)	375,283		85.8
Card fees	77,909		78,138		(229	)	(0.3	)	(1.2	)	77,909		77,481		428		0.6
Mortgage production related income/(loss)	(27,717	)	50,028		(77,745	)	NM		NM		(27,717	)	22,366		(50,083	)	NM
Mortgage servicing related income/(loss)	(336,129	)	62,654		(398,783	)	NM		NM		(336,129	)	57,364		(393,493	)	NM
Gain/(loss) on sale of businesses	(2,711	)	81,813		(84,524	)	NM		NM		(2,711	)	-		(2,711	)	NM
Net gain on sale/leaseback of premises	-		-		-		-		-		-		118,840		(118,840	)	(100.0	)
Other noninterest income	55,620		66,958		(11,338	)	(16.9	)	(67.7	)	55,620		89,827		(34,207	)	(38.1	)
Securities gains/(losses), net	411,053		173,046		238,007		NM		NM		411,053		5,694		405,359		NM

Total noninterest income	717,729		1,285,222		(567,493	)	(44.2	)	NM		717,729		576,017		141,712		24.6

NONINTEREST EXPENSE

Employee compensation and benefits	638,014		696,210		(58,196	)	(8.4	)	(33.4	)	638,014		682,810		(44,796	)	(6.6	)
Net occupancy expense	86,620		88,745		(2,125	)	(2.4	)	(9.6	)	86,620		92,705		(6,085	)	(6.6	)
Outside processing and software	143,880		132,361		11,519		8.7		34.8		143,880		105,407		38,473		36.5
Equipment expense	47,892		51,931		(4,039	)	(7.8	)	(31.1	)	47,892		51,734		(3,842	)	(7.4	)
Marketing and customer development	51,636		217,693		(166,057	)	(76.3	)	NM		51,636		59,115		(7,479	)	(12.7	)
Amortization/impairment of intangible assets	17,259		18,551		(1,292	)	(7.0	)	(27.9	)	17,259		23,414		(6,155	)	(26.3	)
Visa litigation	(14,345	)	20,000		(34,345	)	NM		NM		(14,345	)	76,930		(91,275	)	NM
Operating losses	236,078		135,183		100,895		74.6		NM		236,078		42,815		193,263		NM
Mortgage reinsurance	99,999		48,956		51,043		NM		NM		99,999		79		99,920		NM
Other noninterest expense	281,605		258,456		23,149		9.0		35.8		281,605		320,332		(38,727	)	(12.1	)

Total noninterest expense	1,588,638		1,668,086		(79,448	)	(4.8	)	(19.1	)	1,588,638		1,455,341		133,297		9.2

INCOME/(LOSS) BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES	(656,543	)	259,677		(916,220	)	NM		NM		(656,543	)	(68,592	)	(587,951	)	NM
Provision/(benefit) for income taxes	(308,956	)	(52,767	)	(256,189	)	NM		NM		(308,956	)	(79,716	)	(229,240	)	NM

NET INCOME/(LOSS)	(347,587	)	312,444		(660,031	)	NM		NM		(347,587	)	11,124		(358,711	)	NM
Preferred dividends, Series A	5,055		5,111		(56	)	(1.1	)	(4.4	)	5,055		7,867		(2,812	)	(35.7	)
U.S. Treasury preferred dividends	26,579		-		26,579		NM		NM		26,579		-		26,579		NM

NET INCOME/(LOSS) AVAILABLE TO COMMON SHAREHOLDERS	($379,221	)	$307,333		($686,554	)	NM	%	NM	%	($379,221	)	$3,257		($382,478	)	NM	%

REVENUE

Net interest income	$1,176,860		$1,146,213		$30,647		2.7	%	10.7	%	$1,176,860		$1,167,513		$9,347		0.8	%
Taxable-equivalent adjustment	31,790		29,466		2,324		7.9		31.5		31,790		27,244		4,546		16.7

Net interest income - FTE	1,208,650		1,175,679		32,971		2.8		11.2		1,208,650		1,194,757		13,893		1.2
Noninterest income	717,729		1,285,222		(567,493	)	(44.2	)	NM		717,729		576,017		141,712		24.6

Total revenue - FTE	$1,926,379		$2,460,901		($534,522	)	(21.7	)	(86.9	)	$1,926,379		$1,770,774		$155,605		8.8

SELECTED AVERAGE BALANCES (Dollars in millions)

Average loans
Commercial-FTE	$40,464		$38,064		$2,400		6.3	%	25.2	%	$40,464		$34,879		$5,585		16.0	%
Real estate home equity lines	15,803		15,424		379		2.5		9.8		15,803		14,395		1,408		9.8
Real estate construction	8,915		10,502		(1,587	)	(15.1	)	(60.5	)	8,915		13,251		(4,336	)	(32.7	)
Real estate 1-4 family	31,007		31,486		(479	)	(1.5	)	(6.1	)	31,007		31,990		(983	)	(3.1	)
Real estate commercial	14,737		14,139		598		4.2		16.9		14,737		12,892		1,845		14.3
Credit card	999		860		139		16.2		64.8		999		690		309		44.8
Consumer - direct	5,009		4,705		304		6.5		25.9		5,009		3,949		1,060		26.8
Consumer - indirect	6,821		7,152		(331	)	(4.6	)	(18.5	)	6,821		7,877		(1,056	)	(13.4	)
Nonaccrual and restructured	3,853		3,309		544		16.4		65.8		3,853		1,171		2,682		NM

Total loans	$127,608		$125,641		$1,967		1.6	%	6.3	%	$127,608		$121,094		$6,514		5.4	%

Average deposits
Noninterest bearing deposits	$20,955		$20,880		$75		0.4	%	1.4	%	$20,955		$20,948		$7		0.0	%
NOW accounts	20,095		20,501		(406	)	(2.0	)	(7.9	)	20,095		20,737		(642	)	(3.1	)
Money market accounts	27,969		26,897		1,072		4.0		15.9		27,969		24,262		3,707		15.3
Savings	3,460		3,771		(311	)	(8.2	)	(33.0	)	3,460		4,178		(718	)	(17.2	)
Consumer and other time	29,760		28,150		1,610		5.7		22.9		29,760		29,524		236		0.8

Total consumer and commercial deposits	102,239		100,199		2,040		2.0		8.1		102,239		99,649		2,590		2.6
Brokered and foreign deposits	12,648		15,800		(3,152	)	(19.9	)	(79.8	)	12,648		15,717		(3,069	)	(19.5	)

Total deposits	$114,887		$115,999		($1,112	)	(1.0	)%	(3.8	)%	$114,887		$115,366		($479	)	(0.4	)%

SELECTED CREDIT DATA (Dollars in thousands)

Nonaccrual loans	3,940,026		$3,289,518		$650,508		19.8	%	79.1	%	$3,940,026		$1,430,407		$2,509,619		NM	%
Other real estate owned (OREO)	500,481		387,037		113,444		29.3		NM		500,481		183,753		316,728		NM
Other repossessed assets	15,866		13,714		2,152		15.7		62.8		15,866		11,536		4,330		37.5

Total nonperforming assets	$4,456,373		$3,690,269		$766,104		20.8	%	83.0	%	$4,456,373		$1,625,696		$2,830,677		NM	%

Allowance for loan and lease losses	$2,350,996		$1,941,000		$409,996		21.1	%	84.5	%	$2,350,996		$1,282,504		$1,068,492		83.3	%

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)


	Twelve Months Ended
	December 31 2008		December 31 2007		Increase/(Decrease)
	December 31 2008		December 31 2007		Amount		%¹
STATEMENTS OF INCOME

NET INTEREST INCOME	$4,619,656		$4,719,544		($99,888	)	(2.1	)%

Provision for loan losses	2,474,215		664,922		1,809,293		NM

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	2,145,441		4,054,622		(1,909,181	)	(47.1	)

NONINTEREST INCOME

Service charges on deposit accounts	904,127		822,031		82,096		10.0
Trust and investment management income	592,324		685,034		(92,710	)	(13.5	)
Retail investment services	289,093		278,042		11,051		4.0
Other charges and fees	510,794		479,074		31,720		6.6
Investment banking income	236,533		214,885		21,648		10.1
Trading account profits/(losses) and commissions	38,169		(361,711	)	399,880		NM
Card fees	308,374		280,706		27,668		9.9
Mortgage production related income	171,368		90,983		80,385		88.4
Mortgage servicing related income/(loss)	(211,829	)	195,436		(407,265	)	NM
Gain on sale of businesses	198,140		32,340		165,800		NM
Gain on Visa IPO	86,305		-		86,305		NM
Net gain on sale/leaseback of premises	37,039		118,840		(81,801	)	(68.8	)
Other noninterest income	239,726		349,907		(110,181	)	(31.5	)
Net securities gains	1,073,300		243,117		830,183		NM

Total noninterest income	4,473,463		3,428,684		1,044,779		30.5

NONINTEREST EXPENSE

Employee compensation and benefits	2,761,264		2,770,188		(8,924	)	(0.3	)
Net occupancy expense	347,289		351,238		(3,949	)	(1.1	)
Outside processing and software	492,611		410,945		81,666		19.9
Equipment expense	203,209		206,498		(3,289	)	(1.6	)
Marketing and customer development	372,235		195,043		177,192		90.8
Amortization/impairment of intangible assets	121,260		96,680		24,580		25.4
Loss on extinguishment of debt	11,723		9,800		1,923		19.6
Visa litigation	(33,469	)	76,930		(110,399	)	NM
Operating losses	446,178		134,028		312,150		NM
Mortgage reinsurance	179,927		174		179,753		NM
Other noninterest expense	988,174		982,253		5,921		0.6

Total noninterest expense	5,890,401		5,233,777		656,624		12.5

INCOME BEFORE PROVISION FOR INCOME TAXES	728,503		2,249,529		(1,521,026	)	(67.6	)
Provision/(benefit) for income taxes	(67,271	)	615,514		(682,785	)	NM

NET INCOME	795,774		1,634,015		(838,241	)	(51.3	)
Preferred dividends, Series A	22,255		30,275		(8,020	)	(26.5	)
U.S. Treasury preferred dividends	26,579		-		26,579		NM

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$746,940		$1,603,740		($856,800	)	(53.4	)%

REVENUE

Net interest income	$4,619,656		$4,719,544		($99,888	)	(2.1	)%
Taxable-equivalent adjustment	117,487		102,680		14,807		14.4

Net interest income - FTE	4,737,143		4,822,224		(85,081	)	(1.8	)
Noninterest income	4,473,463		3,428,684		1,044,779		30.5

Total revenue - FTE	$9,210,606		$8,250,908		$959,698		11.6	%

SELECTED AVERAGE BALANCES (Dollars in millions)

Average loans
Commercial-FTE	$38,132		$34,194		$3,938		11.5	%
Real estate home equity lines	15,205		14,031		1,174		8.4
Real estate construction	10,829		13,520		(2,693	)	(19.9	)
Real estate 1-4 family	31,759		31,951		(192	)	(0.6	)
Real estate commercial	13,969		12,803		1,164		9.1
Credit card	863		496		367		74.0
Consumer - direct	4,542		4,221		321		7.6
Consumer - indirect	7,262		8,018		(756	)	(9.4	)
Nonaccrual and restructured	2,873		847		2,026		NM

Total loans	$125,433		$120,081		$5,352		4.5	%

Average deposits
Noninterest bearing deposits	$20,949		$21,677		($728	)	(3.4	)%
NOW accounts	21,081		20,043		1,038		5.2
Money market accounts	26,565		22,677		3,888		17.1
Savings	3,771		4,609		(838	)	(18.2	)
Consumer and other time	28,967		29,015		(48	)	(0.2	)

Total consumer and commercial deposits	101,333		98,021		3,312		3.4
Brokered and foreign deposits	14,743		21,856		(7,113	)	(32.5	)

Total deposits	$116,076		$119,877		($3,800	)	(3.2	)%

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						Twelve Months Ended
	December 31 2008		December 31 2007		% Change³		December 31 2008		December 31 2007		% Change³
Statements of Income
Net interest income¹	$657,287		$674,122		(2.5	)%	$2,582,613		$2,798,040		(7.7	)%
FTE adjustment	8,858		8,885		(0.3	)	34,404		36,910		(6.8	)

Net interest income - FTE	666,145		683,007		(2.5	)	2,617,017		2,834,950		(7.7	)
Provision for loan losses²	290,020		105,898		NM		878,983		285,840		NM

Net interest income after provision for loan losses - FTE	376,125		577,109		(34.8	)	1,738,034		2,549,110		(31.8	)


Noninterest income before securities gains/(losses)	331,629		330,559		0.3		1,352,891		1,250,024		8.2
Securities gains/(losses), net	(6	)	-		-		(226	)	3		NM

Total noninterest income	331,623		330,559		0.3		1,352,665		1,250,027		8.2


Noninterest expense before amortization of intangible assets	670,452		623,865		7.5		2,565,988		2,494,021		2.9
Amortization of intangible assets	13,439		15,707		(14.4	)	57,169		68,917		(17.0	)


Total noninterest expense	683,891		639,572		6.9		2,623,157		2,562,938		2.3

Income before provision/(benefit) for income taxes	23,857		268,096		(91.1	)	467,542		1,236,199		(62.2	)
Provision/(benefit) for income taxes	(3,512	)	86,554		NM		126,513		408,795		(69.1	)
FTE adjustment	8,858		8,885		(0.3	)	34,404		36,910		(6.8	)

Net income	$18,511		$172,657		(89.3	)	$306,625		$790,494		(61.2	)


Total revenue - FTE	$997,768		$1,013,566		(1.6	)	$3,969,682		$4,084,977		(2.8	)

Selected Average Balances

Total loans	$51,462,734		$50,475,414		2.0	%	$51,147,782		$51,198,675		(0.1	)%
Goodwill	5,915,688		5,866,876		0.8		5,852,562		5,860,859		(0.1	)
Other intangible assets excluding MSRs	161,713		177,747		(9.0	)	163,890		203,371		(19.4	)
Total assets	58,951,810		58,160,613		1.4		58,603,247		58,591,299		0.0
Total deposits	81,878,207		79,908,943		2.5		80,943,903		80,153,021		1.0

Performance Ratios

Efficiency ratio	68.54	%	63.10	%			66.08	%	62.74	%
Impact of excluding amortization of intangible assets	(5.89	)	(5.42	)			(5.68	)	(5.42	)

Tangible efficiency ratio	62.65	%	57.68	%			60.40	%	57.32	%

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						Twelve Months Ended
	December 31		December 31		%		December 31		December 31		%
	2008		2007		Change³		2008		2007		Change³
Statements of Income
Net interest income¹	$142,302		$128,586		10.7	%	$499,898		$517,752		(3.4	)%
FTE adjustment	18,661		13,622		37.0		64,825		47,851		35.5

Net interest income - FTE	160,963		142,208		13.2		564,723		565,603		(0.2	)
Provision for loan losses²	111,859		13,058		NM		167,429		46,923		NM

Net interest income after provision for loan losses - FTE	49,104		129,150		(62.0	)	397,294		518,680		(23.4	)


Noninterest income before securities gains/(losses)	132,686		14,239		NM		649,193		480,964		35.0
Securities gains/(losses), net	-		-		-		-		-		-

Total noninterest income	132,686		14,239		NM		649,193		480,964		35.0


Noninterest expense before amortization of intangible assets	214,327		246,473		(13.0	)	818,382		811,946		0.8
Amortization of intangible assets	122		122		-		488		488		-

Total noninterest expense	214,449		246,595		(13.0	)	818,870		812,434		0.8


Income/(loss) before provision/(benefit) for income taxes	(32,659	)	(103,206	)	(68.4	)	227,617		187,210		21.6
Provision/(benefit) for income taxes	(63,603	)	(74,796	)	(15.0	)	(54,503	)	(56,727	)	(3.9	)
FTE adjustment	18,661		13,622		37.0		64,825		47,851		35.5

Net income/(loss)	$12,283		($42,032	)	NM		$217,295		$196,086		10.8


Total revenue - FTE	$293,649		$156,447		87.7		$1,213,916		$1,046,567		16.0

Selected Average Balances

Total loans	$37,258,126		$31,245,564		19.2	%	$34,615,063		$29,789,871		16.2	%
Goodwill	522,633		446,700		17.0		523,621		446,706		17.2
Other intangible assets excluding MSRs	430		919		(53.2	)	616		1,101		(44.1	)
Total assets	50,548,820		41,649,859		21.4		46,454,855		39,421,580		17.8
Total deposits	9,332,227		7,437,346		25.5		9,059,997		5,552,618		63.2

Performance Ratios

Efficiency ratio	73.03	%	157.62	%			67.46	%	77.63	%
Impact of excluding amortization of intangible assets	(1.56	)	(5.00	)			(1.36	)	(1.48	)

Tangible efficiency ratio	71.47	%	152.62	%			66.10	%	76.15	%

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						Twelve Months Ended
	December 31 2008		December 31 2007		% Change³		December 31 2008		December 31 2007		% Change³
Statements of Income
Net interest income¹	$94,527		$128,803		(26.6	)%	$456,268		$523,253		(12.8	)%
FTE adjustment	-		-		-		-		-		-

Net interest income - FTE	94,527		128,803		(26.6	)	456,268		523,253		(12.8	)
Provision for loan losses²	140,156		46,163		NM		491,280		81,157		NM

Net interest income after provision for loan losses - FTE	(45,629	)	82,640		NM		(35,012	)	442,096		NM


Noninterest income before securities gains/(losses)	(343,999	)	100,389		NM		36,777		365,752		(89.9	)
Securities gains/(losses), net	410,737		-		-		399,177		-		-

Total noninterest income	66,738		100,389		(33.5	)	435,954		365,752		19.2


Noninterest expense before amortization of intangible assets	493,149		237,787		NM		1,331,562		820,893		62.2
Amortization of intangible assets	30		763		(96.1	)	1,520		3,053		(50.2	)

Total noninterest expense	493,179		238,550		NM		1,333,082		823,946		61.8


Income/(loss) before provision/(benefit) for income taxes	(472,070	)	(55,521	)	NM		(932,140	)	(16,098	)	NM
Provision/(benefit) for income taxes	(186,441	)	(25,103	)	NM		(370,360	)	(21,539	)	NM
FTE adjustment	-		-		-		-		-		-

Net income/(loss)	($285,629	)	($30,418	)	NM		($561,780	)	$5,441		NM


Total revenue - FTE	$161,265		$229,192		(29.6	)	$892,222		$889,005		0.4

Selected Average Balances

Total loans	$30,578,302		$31,328,575		(2.4	)%	$31,342,036		$30,805,460		1.7	%
Goodwill	279,295		276,598		1.0		277,413		276,459		0.3
Other intangible assets excluding MSRs	106		2,014		(94.7	)	527		3,151		(83.3	)
Total assets	40,602,117		44,819,241		(9.4	)	41,980,502		45,554,067		(7.8	)
Total deposits	2,125,512		2,048,331		3.8		2,238,165		2,136,678		4.7

Performance Ratios
Efficiency ratio	305.82	%	104.08	%			149.41	%	92.68	%
Impact of excluding amortization of intangible assets	(6.20	)	(1.73	)			(2.29	)	(1.60	)

Tangible efficiency ratio	299.62	%	102.35	%			147.12	%	91.08	%


Other Information

Production Data
Channel mix
Retail	$3,131,622		$4,937,847		(36.6	)%	$17,019,652		$23,190,416		(26.6	)%
Wholesale	2,117,785		5,128,463		(58.7	)	12,130,940		21,604,003		(43.8	)
Correspondent	1,976,900		2,879,608		(31.3	)	7,279,578		13,552,369		(46.3	)

Total production	$7,226,307		$12,945,918		(44.2	)	$36,430,170		$58,346,788		(37.6	)

Channel mix - percent
Retail	43	%	38	%			47	%	40	%
Wholesale	29		40				33		37
Correspondent	28		22				20		23

Total production	100	%	100	%			100	%	100	%

Purchase and refinance mix
Refinance	$3,077,888		$5,518,486		(44.2	)	$16,371,010		$25,073,101		(34.7	)
Purchase	4,148,419		7,427,432		(44.1	)	20,059,160		33,273,687		(39.7	)

Total production	$7,226,307		$12,945,918		(44.2	)	$36,430,170		$58,346,788		(37.6	)

Purchase and refinance mix - percent
Refinance	43	%	43	%			45	%	43	%
Purchase	57		57				55		57

Total production	100	%	100	%			100	%	100	%

Applications	$16,785,691		$21,676,536		(22.6	)	$68,558,868		$91,892,599		(25.4	)

Mortgage Servicing Data (End of Period)
Total loans serviced	$162,026,248		$149,857,226		8.1	%
Total loans serviced for others	130,515,425		114,635,081		13.9
Net carrying value of MSRs	810,474		1,049,426		(22.8	)
Ratio of net carrying value of MSRs to total loans serviced for others	0.621	%	0.915	%

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						Twelve Months Ended
	December 31 2008		December 31 2007		% Change³		December 31 2008		December 31 2007		% Change³
Statements of Income

Net interest income¹	$83,507		$86,489		(3.4	)%	$331,919		$352,198		(5.8	)%
FTE adjustment	5		13		(61.5	)	31		54		(42.6	)

Net interest income - FTE	83,512		86,502		(3.5	)	331,950		352,252		(5.8	)
Provision for loan losses²	10,072		2,594		NM		26,895		8,519		NM

Net interest income after provision for loan losses - FTE	73,440		83,908		(12.5	)	305,055		343,733		(11.3	)


Noninterest income before securities gains/(losses)	189,243		18,505		NM		951,582		812,866		17.1
Securities gains/(losses), net	-		-		-		(116	)	8		NM

Total noninterest income	189,243		18,505		NM		951,466		812,874		17.0


Noninterest expense before amortization of intangible assets	203,207		243,255		(16.5	)	899,062		990,044		(9.2	)
Amortization of intangible assets	3,567		6,719		(46.9	)	61,673		23,456		NM

Total noninterest expense	206,774		249,974		(17.3	)	960,735		1,013,500		(5.2	)


Income/(loss) before provision/(benefit) for income taxes	55,909		(147,561	)	NM		295,786		143,107		NM
Provision/(benefit) for income taxes	21,866		(52,062	)	NM		108,890		54,762		98.8
FTE adjustment	5		13		(61.5	)	31		54		(42.6	)

Net income/(loss)	$34,038		($95,512	)	NM		$186,865		$88,291		NM


Total revenue - FTE	$272,755		$105,007		NM		$1,283,416		$1,165,126		10.2

Selected Average Balances

Total loans	$8,127,898		$7,795,906		4.3	%	$8,108,966		$7,965,365		1.8	%
Goodwill	333,396		322,505		3.4		329,750		316,366		4.2
Other intangible assets excluding MSRs	65,806		131,775		(50.1	)	95,153		129,995		(26.8	)
Total assets	8,906,151		8,825,594		0.9		8,943,745		8,898,787		0.5
Total deposits	9,093,821		9,861,019		(7.8	)	9,563,480		9,780,563		(2.2	)

Performance Ratios

Efficiency ratio	75.81	%	238.05	%			74.86	%	86.99	%
Impact of excluding amortization of intangible assets	(2.58	)	(17.16	)			(5.86	)	(3.42	)

Tangible efficiency ratio	73.23	%	220.89	%			69.00	%	83.57	%


Other Information (End of Period)

Assets under adminstration
Managed (discretionary) assets	$113,109,076		$142,844,803		(20.8	)%
Non-managed assets	45,729,084		60,903,024		(24.9	)

Total assets under administration	158,838,160		203,747,827		(22.0	)

Brokerage assets	31,221,049		41,576,425		(24.9	)
Corporate trust assets	1,950,609		4,742,003		(58.9	)

Total assets under advisement	$192,009,818		$250,066,255		(23.2	)

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						Twelve Months Ended
	December 31 2008		December 31 2007		% Change²		December 31 2008		December 31 2007	% Change²
Statements of Income

Net interest income	$199,237		$149,513		33.3	%	$748,958		$528,301	41.8	%
FTE adjustment	4,266		4,724		(9.7	)	18,227		17,865	2.0

Net interest income - FTE	203,503		154,237		31.9		767,185		546,166	40.5
Provision for loan losses¹	410,387		189,068		NM		909,628		242,483	NM

Net interest income after provision for loan losses - FTE	(206,884	)	(34,831	)	NM		(142,443	)	303,683	NM


Noninterest income before securities gains/(losses)	(2,883	)	106,631		NM		409,720		275,961	48.5
Securities gains/(losses), net	322		5,694		(94.3	)	674,465		243,106	NM

Total noninterest income	(2,561	)	112,325		NM		1,084,185		519,067	NM


Noninterest expense before amortization of intangible assets	(9,756	)	80,547		NM		154,147		20,193	NM
Amortization of intangible assets	101		103		(1.9	)	410		766	(46.5	)

Total noninterest expense	(9,655	)	80,650		NM		154,557		20,959	NM


Income/(loss) before provision/(benefit) for income taxes	(199,790	)	(3,156	)	NM		787,185		801,791	(1.8	)
Provision/(benefit) for income taxes	(77,266	)	(14,309	)	NM		122,189		230,223	(46.9	)
FTE adjustment	4,266		4,724		(9.7	)	18,227		17,865	2.0

Net income/(loss)	($126,790	)	$6,429		NM		$646,769		$553,703	16.8

Total revenue - FTE	$200,942		$266,562		(24.6	)	$1,851,370		$1,065,233	73.8

Selected Average Balances

Total loans	$180,854		$248,883		(27.3	)%	$218,900		$321,180	(31.8	)%
Securities available for sale	12,684,773		13,715,798		(7.5	)	13,824,706		17,197,201	(19.6	)
Goodwill	433		(35	)	NM		28,036		5,400	NM
Other intangible assets excluding MSRs	4,171		4,580		(8.9	)	4,328		4,869	(11.1	)
Total assets	18,038,360		21,675,157		(16.8	)	19,865,916		25,329,785	(21.6	)
Total deposits (mainly brokered and foreign)	12,457,366		16,109,868		(22.7	)	14,270,686		22,253,687	(35.9	)


	December 31 2008		September 30 2008
Other Information

Duration of investment portfolio	2.8	%	4.8	%

Accounting net interest income interest rate sensitivity³:
% Change in net interest income under:
Instantaneous 100 bp increase in rates over next 12 months	4.1	%	0.8	%
Instantaneous 100 bp decrease in rates over next 12 months	(1.3	)%	(1.1	)%

Economic net interest income interest rate sensitivity³:
% Change in net interest income under:
Instantaneous 100 bp increase in rates over next 12 months	3.3	%	(0.4	)%
Instantaneous 100 bp decrease in rates over next 12 months	(0.1	)%	0.1	%

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

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

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 certain long-term debt and 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.

Page 20

SunTrust Banks, Inc. and Subsidiaries

CONSOLIDATED - SEGMENT TOTALS

(Dollars in thousands) (Unaudited)


	Three Months Ended						Twelve Months Ended
	December 31 2008		December 31 2007		% Change¹		December 31 2008		December 31 2007		% Change¹
Statements of Income

Net interest income	$1,176,860		$1,167,513		0.8	%	$4,619,656		$4,719,544		(2.1	)%
FTE adjustment	31,790		27,244		16.7		117,487		102,680		14.4

Net interest income - FTE	1,208,650		1,194,757		1.2		4,737,143		4,822,224		(1.8	)
Provision for loan losses	962,494		356,781		NM		2,474,215		664,922		NM

Net interest income after provision for loan losses - FTE	246,156		837,976		(70.6	)	2,262,928		4,157,302		(45.6	)


Noninterest income before securities gains/(losses)	306,676		570,323		(46.2	)	3,400,163		3,185,567		6.7
Securities gains/(losses), net	411,053		5,694		NM		1,073,300		243,117		NM

Total noninterest income	717,729		576,017		24.6		4,473,463		3,428,684		30.5


Noninterest expense before amortization of intangible assets	1,571,379		1,431,927		9.7		5,769,141		5,137,097		12.3
Amortization of intangible assets	17,259		23,414		(26.3	)	121,260		96,680		25.4

Total noninterest expense	1,588,638		1,455,341		9.2		5,890,401		5,233,777		12.5


Income/(loss) before provision/(benefit) for income taxes	(624,753	)	(41,348	)	NM		845,990		2,352,209		(64.0	)
Provision/(benefit) for income taxes	(308,956	)	(79,716	)	NM		(67,271	)	615,514		NM
FTE adjustment	31,790		27,244		16.7		117,487		102,680		14.4

Net income/(loss)	($347,587	)	$11,124		NM		$795,774		$1,634,015		(51.3	)


Total revenue - FTE	$1,926,379		$1,770,774		8.8		$9,210,606		$8,250,908		11.6

Selected Average Balances

Total loans	$127,607,914		$121,094,342		5.4	%	$125,432,747		$120,080,551		4.5	%
Goodwill	7,051,445		6,912,644		2.0		7,011,382		6,905,790		1.5
Other intangible assets excluding MSRs	232,226		317,035		(26.8	)	264,514		342,487		(22.8	)
Total assets	177,047,258		175,130,464		1.1		175,848,265		177,795,518		(1.1	)
Total deposits	114,887,133		115,365,507		(0.4	)	116,076,231		119,876,567		(3.2	)

Performance Ratios

Efficiency ratio	82.47	%	82.19	%			63.95	%	63.43	%
Impact of excluding amortization of intangible assets	(0.90	)	(1.33	)			(1.31	)	(1.17	)

Tangible efficiency ratio	81.57	%	80.86	%			62.64	%	62.26	%

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

Page 21