SunTrust Banks, Inc.

4Q 2008 Earnings Presentation

January 22, 2009

Exhibit 99.2

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2007 Annual Report on Form 10-K, Quarterly Reports on

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

This presentation includes non-GAAP financial measures to describe SunTrust’s performance.  The reconciliation of those measures to GAAP measures are provided within this

presentation.  In this presentation, net interest income and net interest margin are presented on a fully taxable-equivalent (“FTE”) basis, and ratios are presented on an annualized basis. 

The FTE basis adjusts for the tax-favored status of income from certain loans and investments.  The Company believes this measure to be the preferred industry measurement of net

interest income and provides relevant comparison between taxable and non-taxable amounts. 

This presentation contains 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 statements. These statements often include the words

“believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such

as “may,” “will,” “should,” “would,” and “could.” Such statements are based upon the current beliefs and expectations of 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

1

Important

Cautionary

Statement

About

Forward-Looking

Statements

associated with our asset management and commercial paper conduit businesses.

Table of Contents

I.

HIGHLIGHTS

II.

CAPITAL

III.

FUNDING & LIQUIDITY

IV.

FINANCIAL PERFORMANCE

V.

CREDIT

VI.

APPENDIX

2

3

•

Earnings per share of $2.13 for the year and a loss of $1.08 in the fourth quarter

•

Capital

and

liquidity

enhanced;

estimated

Tier

1

Ratio

of

10.85%

at

quarter

end

•

Loan

and

deposit

trends

were

positive

in

the

quarter

•

Core revenue generation stable in net interest margin and soft in noninterest

income categories

•

Expenses well managed; core expenses declining exclusive of cyclical credit

costs

•

Asset

quality

deteriorated

significantly

as

the

economy

weakened

dramatically

in

the fourth quarter

•

Current

operating

environment

remains

difficult;

recent

economic

data

and

market liquidity challenges suggest more downside risk for the economy and

credit quality

•

In

light

of

the

economic

and

earnings

environment,

the

quarterly

dividend

has

been reduced to $0.10 per share

I. HIGHLIGHTS

Highlights

4

Completed Sale of $4.9 billion in Preferred Securities to U.S. Treasury

Tier 1 Capital Ratio

10.85%

8.15%

7.47%

Total Capital Ratio

14.00%

11.16%

10.85%

Total Avg. Equity to Total Avg. Assets                         

11.17%

10.34%    

10.31%

Tangible Equity to Tangible Assets        

8.39%

6.40%     

6.27%

Tangible Common Equity to Tangible Assets

5.53%                    6.10%                  5.97%

•

Coke

related

transactions

generated

proceeds

of

$1.7

billion

and

Tier

1

capital

of

$1.1

billion

during 2

nd

and 3

rd

quarters of 2008

•

Received $4.9 billion in proceeds and Tier 1 capital from sale of preferred securities to U.S.

Treasury

Capital Ratios

II. CAPITAL

4Q 2008

3Q 2008

2Q 2008

Estimate                   Actual                Actual

5

Funding & Liquidity

Funding

•

Increased core deposit base

–

Core customer deposits of $105 billion, up $3.5 billion during the fourth quarter

–

Core deposits compose 93% of total deposits

•

Raised funds via public debt markets

–

Issued

$3

billion

FDIC-guaranteed

2-

and

3-year

bank

notes

in

December

–

Retain $1 billion capacity to issue FDIC-guaranteed debt

Liquidity

•

Well-structured debt maturity profile at the Bank and Holding Company

–

$6.4 billion of term debt maturing during 2009, much of it pre-funded with bank note issuance in

December

–

One Holding Company note maturing for $300 million in October 2009

•

Daily overnight borrowing position reduced to zero at year-end

•

Combined available contingent liquidity from the Fed, FHLB, and free securities exceeds $23 billion

1.  At

December

31,

2008

core

deposits

exclude

brokered

and

foreign

deposits

Enhanced Funding Profile and Very Strong Liquidity Position

III. FUNDING & LIQUIDITY

1

6

($ in millions, except per share data)

$1,208.7                3%                1%             $4,737.2

(2)%

962.5             91%

170%               2,474.2          272%

717.7

(44)%            

25%               4,473.5            30%

1,926.4

(22)%          

9%               9,210.6            12%

1,588.6             (5)%                9%    

5,890.4           13%

(656.5)              NM                NM    

728.5         (68)%

(309.0)           486%            288%       

(67.3)       (111)%

(379.2)              NM                NM    

746.9         (53)%

$  (1.08)              NM                NM    

$    

2.13         (53)%

2008 Earnings Per Share of $2.13 and 4Q 2008 Loss of $1.08 Per Share

Income Statement Highlights

IV. FINANCIAL PERFORMANCE

Net Interest Income (FTE)

Provision for Loan Losses

Noninterest Income

Total Revenue (FTE)

Total Noninterest Expense

Pre-Tax Income

Provision for Income Taxes

Net Income Available to

Common Shareholders

Net Income Per Average

Common Diluted Share

% Change      % Change                   

% Change

4Q 2008       3Q 2008          4Q 2007             2008     

2007

NM = Not

Meaningful—those

changes

over

1,000%

or

where

results

changed

from

positive

to

negative

7

($ in millions, quarterly average balances)

Balance Sheet Summary

Commercial

Real Estate Home Equity Lines

Real Estate Construction

Real Estate 1-4 Family

Real Estate Commercial

Consumer –

Direct

Consumer –

Indirect

Credit Card

Total Loans

Noninterest-Bearing Deposits

NOW Accounts

Money Market Accounts

Savings

Consumer Time

Other Time

Total Consumer and Commercial Deposits       

Brokered & Foreign Deposits

Total Deposits

4Q 2008

3Q 2008

3Q 2008

4Q 2007

Annualized

% Change

IV. FINANCIAL PERFORMANCE

$  40,464

6%

25%

16%

15,803

2%

10%          

10%

8,915

(15)%    

(60)%        

(33)%

31,007

(2)%        

(6)%          

(3)%

14,737

4%            

17%           

14%

5,009

6%              

26%          

27%

6,821                       (5)%          

(19)%            

(13)%

999

16%

65%              

45%

$123,755    

1%          

5%         

3%

$  20,955

0%     

1%           

0%

20,095

(2)%            

(8)%        

(3)%

27,969                        

4%             

16%          

15%

3,460

(8)%             

(33)%        

(17)%

17,043

5%      

19%          

(1)%

12,717

7%          

29%             

3%

102,239                        

2%         

8%         

3% 

12,648

(20)%                  (80)%              

(20)%

$114,887

(1)%                    (4)%     

0%

1.

Excludes nonaccrual loans

1

8

3.13%

3.07%

3.13%

3.14%

3.07%

4Q 2007

1Q 2008

2Q 2008

3Q 2008

4Q 2008

Margin of 3.14% was Up 7 bps from 3Q 2008

•

Margin has been within a relatively

stable range for the last 5 quarters

•

Margin expanded in 4Q driven by:

•

Deposit volume and pricing

•

Preferred stock issuance

•

Risks to 2009 margin include

deposit pricing, rate compression,

NPA levels, and asset mix. 

•

The primary opportunity is deposit

volume and mix

Net Interest Margin

IV. FINANCIAL PERFORMANCE

9

($ in millions)

Provision Increased Due to Higher Charge-offs and Loan Growth; Allowance

Increased to 1.86% Consistent with Decline in Economic Indicators in 4Q 

Provision

IV. FINANCIAL PERFORMANCE

Provision

Net Charge-offs

Net Charge-off Ratio

Net ALLL Increase

Allowance to Loan Ratio

$962.5

$503.7

$448.0          $560.0           $356.8         

$552.5

$392.1

$322.7          $297.2           $168.0         

1.72%

1.24%

1.04%            0.97%           0.55%

$410.0

$111.6

$284.1

$262.8          $188.8

1.86%

1.54% 

1.46%

1.25%           1.05%

1.

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

4Q 2008       3Q 2008         2Q 2008        1Q 2008       4Q

2007

1

10

Noninterest Income   

$   718

$   576                    25%

Net

Adjustments

1

(86)            (430)  

Adjusted Noninterest Income           $   804

$1,006

($ in millions)

Core Noninterest Income Declined 20%

(20%)

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

Noninterest Income

IV. FINANCIAL PERFORMANCE

% 

4Q 2008        4Q 2007              Change

11

Securities

Acquired

in

4Q

2007

Managed

Down

93%;

ARS

Increasing,

Though

Loss

On Expected Repurchase Recognized in 3Q 2008

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

SIV

$188

$221         $1,478

RMBS                           

CDO

Other ABS

CLO

Grand Horn CLO

1

Lehman                          7                   

7

ARS

181                   

21

($ in millions)

Acquired Securities Portfolio

IV. FINANCIAL PERFORMANCE

•

4Q 2007 acquired portfolio

managed down $95 million, or

27%, during 4Q with roughly

$12 million in additional write-

downs

•

Of approximately $725 million

in expected ARS repurchases,

we have completed roughly

1/3 through 4Q

4Q 2007 Acquired   $251

$ 346          $3,503

Carrying

Carrying       Acquisition

Value                 Value              Value

4Q 2008        3Q 2008       4Q 2007

2008 Acquired         $188

$   28

Total                          $439

$ 374

11

23

-

-

43

13

25

-

44

1,042

429

148

47

359

29

12

1

2

Noninterest Expense

$1,589             $1,668           $1,455

(5%)              9%

Net Adjustments

13

206                 145

Adjusted Noninterest Expense                          

$1,462

$1,310

Total Adjusted Dollar Increase

$124            $277

Credit-Related Costs               150              334

Change Excluding Credit            $(26)            $(57)

Core Expenses Increased Due to Credit-Related Costs, Otherwise Decreasing

1.  Adjustment detail included in appendix

2.  Includes operating losses, credit and collections, other real estate expense, and additions to mortgage re-insurance reserves

Change          Change

4Q 2008             3Q 2008             4Q 2007

3Q 2008

4Q 2007

%

%

($ in millions)

8%            20%

Noninterest Expense

IV. FINANCIAL PERFORMANCE

$                       $

Change          Change

$1,576

13

E  Results

($ in millions)

E 

Program

Continues to Deliver Results; 2008 Gross Savings of $560 Million,            

and $163 Million in 4Q 2008

•

$560 million 2008

actual savings

•

2009 goal remains

$600 million

•

Key contributors to

achieving 2009 goal

include supplier

management,

outsourcing, and

process reengineering

$500 Million 2008 Goal

500

400

300

200

100

IV. FINANCIAL PERFORMANCE

600

$

2

2

14

Credit Trends

Current and Leading Asset Quality Metrics Deteriorated in 4Q

1.72%

1.24%

1.04%

0.97%

0.55%

1.81%

1.52%

1.48%

1.53%

1.52%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

4Q 2007

1Q 2008

2Q 2008

3Q 2008

4Q 2008

Net Charge-Offs

30-89 Days Past Due

V. CREDIT

15

Asset Quality Metrics

V. CREDIT

Allowance Increased to 1.86% Reflecting 4Q

Deterioration

in

Asset

Quality

Trends

1.  Ratio excludes NPLs at fair market value and LOCOM

$ in Millions

12/31/2008

9/30/2008

6/30/2008

4Q vs

3Q 2008

Total Loans

$126,998.4

$126,718.4

$125,824.8

$280.0

$893.6

Allowance for Loans & Lease Losses

2,351.0

1,941.0

1,829.4

410.0

111.6

Net Charge-offs

552.5

392.1

322.7

160.4

69.4

Provision Expense

962.5

503.7

448.0

458.8

55.7

NPAs

4,456.4

3,690.3

2,973.1

766.1

717.2

NPLs

to Total Loans

3.10%

2.60%

2.09%

0.50%

0.51%

NPAs

to Total Loans + OREO/OA

3.49%

2.90%

2.36%

0.59%

0.54%

ALLL to NPLs

1

61.7%

62.1%

77.0%

-0.40%

-14.90%

ALLL to Loans

1.86%

1.54%

1.46%

0.32%

0.08%

NCOs (annualized to Average Loans)

1.72%

1.24%

1.04%

0.48%

0.20%

30-

89

Days Past Due

1.81%

1.52%

1.48%

0.29%

0.04%

3Q vs

2Q 2008

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

Credit Perspective

V. CREDIT

Consumer

and

Residential

Real

Estate

Secured

Portfolios

Continue

to

Drive

Credit

Quality Metrics, Although We Are Seeing Some Stress in the Commercial

Portfolios

1.  CRE

4Q

2008

charge-off

was

largely

related

to

one

commercial

purpose

credit

secured

by

real

estate

Balance

% of

Balance

% of

C/O Ratio

C/O Ratio

30-

89 DLQ%

30-

89 DLQ%

($ millions)

12/31/2008

Portfolio

09/30/2008

Portfolio

4Q08

3Q08

4Q08

3Q08

Commercial

$41,040

32%

$40,085

32%

0.84%

0.54%

0.36%

0.38%

Commercial Real Estate

(1)

14,957

12%

13,842

11%

0.61%

-

0.63%

0.49%

Consumer

12,617

10%

12,731

10%

2.38%

1.39%

3.46%

3.36%

Real Estate Home Equity Lines

16,454

13%

16,159

13%

3.33%

2.97%

1.65%

1.48%

Real

Estate

1-

4

Family

32,066

25%

32,382

25%

1.86%

1.57%

2.93%

2.03%

Real Estate Construction

9,864

8%

11,519

9%

3.29%

1.73%

4.13%

3.37%

Total

$126,998

100%

$126,718

100%

1.72%

1.24%

1.81%

1.52%

17

1.  Excludes $85.6 million of Commercial loans secured by residential real estate and $75.1 million of mark-to-market loans held for sale

2.  Does not include nonaccruals

Residential Mortgages $32,066 million

($ millions)

Portfolio Profile

Credit Quality Metrics

Loan Type

12/31/08

Balance

09/30/08   

Balance

12/31/2008                   

$ Nonaccruals

1

12/31/08

60+ DLQ

2

09/30/08

60+ DLQ

2

Core Portfolio

$23,143

$22,804

$ 938

$  737

2.57%

1.75%

Home Equity Loans

2,504

2,894

60         

58          

0.85

0.52

Prime 2

3,843

3,938

225  

169

2.93

2.00

Lot Loans

1,391

1,447

209  

187

5.67

4.13

Alt-A 1

865

917

204  

200

12.79

7.12

Alt-A 2

320

382

50   

52

13.32

10.64

Total

$32,066

$32,382

$1,686

$1,403

2.98%

2.01%

Residential Mortgages

V. CREDIT

Deterioration in Core Portfolio Driven Primarily by Florida Market

nd

st

nd

9/30/2008

$ Nonaccruals

18

Home Equity Lines $16,454 million

1.  Excludes 3rd party originated

2.  Excludes 3rd party originated and Florida CLTV > 80%

3.  Excludes 3rd party originated, Florida CLTV>80% and CLTV

90+%

4.  Annualized quarterly rate

Portfolio Profile

Credit Quality Metrics

Type

12/31/08

Balance

% of

total

09/30/08

Balance

Q4

Charge-off

4

%

Q3

Charge-off

4

%

Q4

Nonaccrual

%

Q3

Nonaccrual

%

3

rd

Party

Originated

$1,859

11%

$1,903

10.63%

8.66%

4.30%

3.43%

CLTV > 80%

1

(Florida)

1,868

11

1,945

7.06

5.55

3.00

2.59

CLTV > 90%

2

1,739

11

1,763

3.58

2.34

1.60

1.34

All Other

3

10,988

67

10,548

1.45

1.54

1.87

0.84

Total

$16,454

100%

$16,159

3.33%

2.97%

1.66%

1.44%

Home Equity Lines

V. CREDIT

($ millions)

Losses in Core Portfolio Were Stable; High Risk Portion of the Portfolio Continued

to Deteriorate

19

1. Annualized fourth quarter net charge-off ratio

($ millions)

Balances Declined $3.9 Billion, or 28%, vs 4Q 2007; Performance was as Expected

Construction $9,864 million

Portfolio Profile

Credit Quality Metrics

Type

12/31/08

Balance

%

of

Portfolio

%

FL

Avg.

Size

$000’s

Q4

C/O

%

$

NPLs

FL

NPL

%

%

30 +

DLQ

Construction Perm

$ 1,708

17%

25%

508

5.97%

$331

31%

7.26%

Residential

Construction

1,975

20

27

434

3.41

330

29

7.74

Residential A&D

1,913

20

25

694

7.15

383

33

7.89

Residential Land

632

7

36

883

1.57

166

52

5.74

Commercial

Construction

2,399

24

19

1, 761

0.08

32

15

0.90

Commercial A&D

612

6

26

800

-0.08

8

33

0.65

Commercial Land

625

6

30

711

1.31

27

17

5.14

Total

$ 9,864

100%

25%

3.29%

$1,277

33%

5.29%

V. CREDIT

Construction

1

20

Commercial Portfolio Profile

V. CREDIT

Source:  Commercial Loan System; excludes Leasing

All pie charts are in descending order by outstandings, clockwise

(1) Predominantly large corporate; southeast-based, large corporate client balances are included in “National”

Well Diversified C & I Portfolio

Collateral Type

29%

10%

6%

4%

4%

5%

42%

Unsecured

Receivables

Assignments of Contracts

and Intangibles

Deposits, CSV, Securities,

Letters of Credit

Equipment

(Business/Commercial)

Inventory

Residential Property

Geography

21%

18%

15%

46% (1)

National (1)

Mid-Atlantic Group

Central Group

Florida Group

Industry Group

11%

9%

9%

9%

7%

6%

6%

5%

5%

5%

4%

4%

3%

16%

1%

Business and Consumer Services

Manufacturing

Retail Trade

Wholesale Trade

Finance and Insurance

Real Estate and Rental and Leasing

Information

Public Administration

Health Care and Social Assistance

Transportation and Warehousing

Professional, Scientific, and Technical Services

Construction

Mining

Utilities

Agriculture, Forestry, Fishing and Hunting

21

Commercial Real Estate Portfolio Profile

V. CREDIT

Source: Commercial Loan System; excludes Leasing

All pie charts in descending order by outstandings, clockwise

(1) Largely owner occupied

Well Diversified, Largely Owner-Occupied

Commercial Real Estate Portfolio

Property Type

18%

12%

8%

8%

8%

7%

3%

3%

33% (1)

Office (1)

Retail

Manufacturing/Industrial/

Warehouse

Auto Dealer

Institutional

Office/Warehouse -

Mixed Use

Apartments

Land and Other

Hotel/Motel

Ownership Profile

60%

40%

Owner Occupied

Investor Owned

Geography

40%

30%

27%

3%

Mid-Atlantic

Group

Central Group

Florida Group

National

22

Credit Summary

V. CREDIT

•

Credit performance weakened in 4Q with deterioration evident in many asset

quality measures and products

•

Increase in early stage delinquencies in the fourth quarter mostly due to a

sudden jump in roll rates in consumer mortgage products

•

Residential Mortgages and HELOCs account for 54% of nonperforming

loans; approximately 67% of residential mortgage nonperformers have been

written down to expected recoverable value

•

Overall, the Construction portfolio has declined by over 28% in the last 12

months; Commercial Construction is performing well

•

Commercial portfolio is well-diversified and continues to perform well

overall; however, beginning to see signs of stress brought about

by market

pressures amid prolonged recession

•

Commercial Real Estate portfolio is well-diversified, largely owner-occupied

and continues to perform well

•

The ALLL build to 1.86% of loans was driven, in part, by increasing roll rates

and higher delinquencies in consumer residential real estate

Appendix

24

($ in millions)

Noninterest Income Reconciliation

VI. APPENDIX

Total Noninterest Income

$  718          $1,285            $576

(44%)

25%

Securities Gains

411               173                  6 

MSR Impairment Charge                                 (370)    

-

-

Transplatinum Gain

-

82                   -

Corporate Real Estate Gain                                   -

-

119

Fair Market Write-downs –

Trading                  (41)             (113)            (561)

STI Debt Write-up/(Down) –

Trading           

(44)               341                84

Fair Value Write-downs –

Mtg

Prod

(57)

(17)

(78)

Fair Value Write-downs –

Other Income

-

(7)             

-

ARS Charge –

Trading                                         (5)            

(173)                   -

Litigation Settlement

20                  

-

-

Net Adjustments                                                  (86)              286            (430)      

Adjusted Noninterest Income                      $    804      

$ 999         $1,006            (20%)         (20%)

%                   %

Change        Change

4Q 2008       3Q 2008        4Q 2007     3Q 2008        4Q 2007

25

Noninterest Expense

$1,589            $1,668           $1,455            

(5%)              9%

Net E

Nonrecurring

11  

3                  10                                      

Visa Litigation

(14)                     20                 77

Coke Charitable Contribution

-

183                     -

AHG Write-down

16                       -

58                        

Net Adjustments                                                 

206

145                                              

Adjusted Noninterest Expense

$1,576             $1,462          $1,310            

8%             20%

Change        Change

4Q 2008         3Q 2008        4Q 2007

3Q 2008

4Q 2007

%

%

($ in millions)

Noninterest Expense Reconciliation

VI. APPENDIX

2

13

26

Noninterest Income

OTTI-

Securities Gains/(Losses)

$   (2.0)          $ (10.3)             $     -

$  (8.3)           $ (2.0)

MSR

Sales

–

Mortgage

Servicing                    -

19.0               19.2               (19.0)   

(19.2)

Mortgage Repurchase Reserve              (60.2)            (12.9)              (27.7)                47.3               32.5

Noninterest Expense

Operating Losses

1

236.1             135.2        

42.8              100.9            193.3    

Mortgage Insurance Reserves

100.0              48.0                  0.1     

52.0              99.9

Credit & Collections                                     44.3  

50.6                 30.1                (6.3)       

14.2

Other Real Estate

35.3              32.3       

8.4                  3.0

26.9

$415.7         $266.1                $81.4         

$149.6          $334.3

Additional Disclosures

VI. APPENDIX

$                    $

Change        Change

4Q 2008        3Q 2008        4Q 2007          3Q 2008

4Q 2007

($ in millions)

1.

4Q 2008 operating losses includes $167 million increase in reserves for expected fraud losses and claim denials associated with

mortgage secured loans and 3Q 2008 included $40 million

27

(As of 12/31/08, $ millions)

1. Reserves have been established for residential mortgage loans that have not had specific write-downs as well as for incremental losses on loans carried at expected recoverable values

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

3. Excludes Home Equity nonaccruals of $60.0 million, $85.6million of Commercial loans secured by residential real estate and $75.1 million of

mark-to-market loans held for sale

Nonaccruals

that

have been through the specific

write-down process

Loan Type

Balance before

write-down

-

Amount of

write-down

=

Nonaccruals

with              

write-down

+

Nonaccruals

not requiring

write-down

+

Nonaccruals

without

specific write-

down  

=

Total

Nonaccruals

% Loss

Severity

Core

Portfolio

$471.5

$(130.4)

$341.1

$213.8

$383.4

$938.3

19.0%

Prime 2

22.4

(20.7)

1.7

223.1

0.0

224.8

--

Lot Loans

189.8

(82.2)

107.6

47.2

54.2

209.0

34.7%

Alt-A 1

111.2

(27.7)

83.5

47.8

73.2

204.5

17.4%  

Alt-A 2

106.7

(87.2)

19.5

--

30.2

49.7

81.7%

Total

$901.6

$(348.2)

$553.4

$531.9

$541.0

$1,626.3

Residential Mortgages

Nonaccrual Balances Were Up, But 67% of Nonaccruals are Carried At Expected

Recoverable Value

(1)

VI. APPENDIX

nd

st

nd

2

3