SunTrust Banks, Inc.

3Q 2010 Earnings Presentation

October 21, 2010

Exhibit 99.2

1

Important Cautionary Statement About Forward-Looking Statements

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2009 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 reconciliations of those measures to GAAP measures are provided within or in the appendix of

this presentation. In this presentation, the Company presents net interest income and net interest margin on a fully taxable-equivalent (“FTE”) basis, and ratios 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 net interest margin, future levels of and rates of change in delinquencies, future levels of

nonperforming loans and charge-offs, the future level of service charge income, the impact of legislative and regulatory changes, the level of future losses from repurchase requests, the size of

future reserve additions, future levels of litigation related costs, and future levels of the allowance for loan losses are forward-looking statements. Also, any statement that does not describe

historical or current facts, 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.” Forward-looking 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 Item 1A of Part I

of our 10-K and in other periodic reports that we file with the SEC. Those factors include: difficult market conditions have adversely affected our industry; recent levels of market volatility are

unprecedented; we are subject to capital adequacy guidelines and, if we fail to meet these guidelines, our financial condition would be adversely affected; recently enacted legislation, or legislation

enacted in the future, or any proposed federal programs subject us to increased regulation and may adversely affect us; we have not yet received permission to repay TARP funds; emergency

measures designed to stabilize the U.S. banking system are beginning to wind down; we are subject to 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; we may continue to suffer increased losses in our loan portfolio despite enhancement of our underwriting policies;

depressed market values for our stock may require us to write down goodwill; 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 business and revenues; we rely on other companies to provide key components of our business infrastructure; the soundness of other financial institutions could adversely affect

us; 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; we are subject to certain litigation, and our expenses related to this litigation may adversely affect our results; regulation by federal and state agencies

could adversely affect the 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

your 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 real estate, increases in unemployment, and the related effects on local economies 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; our allowance for loan

losses may not be adequate to cover our eventual losses; we will realize future losses if the proceeds we receive upon liquidation of nonperforming assets are less than the carrying value of such

assets; disruptions in our ability to access global capital markets may negatively affect our capital resources and liquidity; in 2009 and 2010, credit rating agencies downgraded the credit ratings of

SunTrust Bank and SunTrust Banks, Inc., and these downgrades and any subsequent downgrades could adversely impact the price and liquidity of our securities and could have an impact on our

businesses and results of operations; 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, and if these individuals leave or change their roles without effective replacements, operations may suffer; 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 processes are critical to how we report our financial condition and results of operations, and require management 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; and we may enter into transactions with off-balance sheet affiliates or our subsidiaries.

2

I.    HIGHLIGHTS

II.   CAPITAL

III.  FINANCIAL PERFORMANCE

Table of Contents

IV.  RISK REVIEW

V.   APPENDIX

3

Third Quarter Highlights

I. HIGHLIGHTS

•

Earnings of $0.17 per share improved significantly compared to last year and last quarter

•

Estimated Tier 1 common ratio of 8.00%, up 8 basis points sequentially

•

Asset quality continued to improve

•

Favorable deposit volume, mix and rate trends continued and loan

portfolio stabilized

•

Revenue increased sequentially with higher net interest income and strong mortgage and

investment banking revenue

•

Core expenses remain well managed, though sequentially higher

•

Increasingly pleased with operational execution and resultant impact on client

satisfaction, retention and revenue

•

Environmental factors include weak economy with expectation that

improvement will

continue slowly 

•

Manageable legislative/regulatory impacts based on current knowledge

4

Regulatory and Legislative Update

I. HIGHLIGHTS

Impacts Appear Manageable

Comments

Potential Impact

Regulation E

SunTrust Fee Change

•

Client “opt-in”

for  

overdrafts

•

No charge < $5.00 items

•

$80-$120 million annual

•

$40-$50 million annual

Derivatives (Volcker)

$100 million 2009 revenue

Minimal

Debit Interchange (Durbin)

•

$250 million in 2009

revenue

•

55% Signature

•

45% Pin

Unknown

Deposit Insurance

•

Change in assessment

base methodology

•

$25-$35 billion estimated

increase in base

1

Unknown

Capital Standards (Collins)

$2.3 billion TRUPS affected

~175 basis point

cumulative Tier 1 capital

reduction over 3 years

beginning 2013

1.  Estimate prepared using current SunTrust balance sheet and SunTrust’s interpretation of the definitional language included in the Dodd-Frank Bill

5

3Q 2010

2Q 2010

1Q 2010

4Q 2009

Estimate

Actual                 Actual

Actual

Increasing Capital Position Enhanced with Earnings

Tier 1 Common Ratio

Tangible Common Equity Ratio

1

Tier 1 Capital Ratio

Tier 1 Capital Ratio (Excl TARP)

2

Total Capital Ratio

Book Value per Share                          

Tangible Common Book Value

per Share

1

Capital Ratio Trend

II. CAPITAL

1.

Please refer to the appendix to this presentation for a reconcilement to the most directly comparable GAAP financial measure

2.

TARP

preferred

included

in

Tier

1

ratio

contributes

an

estimated

3.65%

to

the

9/30/10

Tier

1

capital

ratio,

3.67%

at

6/30/10,

3.57%

at

3/31/10,

and

3.48%

at

12/31/09

7.67%

6.73%

12.96%

9.48%

16.43%

$35.29

$22.59

7.70%

6.88%

13.13%

9.56%

16.68%

$35.40

$22.76

7.92%

7.18%

13.51%

9.84%

16.96%

$36.19

$23.58

8.00%

7.26%

13.60%

9.95%

16.55%

$37.01

$24.42

6

8.0%

4.5%

2.5%

3Q 2010 Estimated

Basel III

7.0%

Strong Estimated Tier 1 Common Ratio Compared to Regulatory Standards; $10.7 Billion of Capital

Tier 1 Common

II. CAPITAL

$1.3B

Excess

1.

2019 is the effective date for Basel III requirement; does not include counter-cyclical buffer

2.

Basel III capital limitations related to mortgage servicing rights (MSR) and deferred tax assets (DTA) are expected to have an immaterial impact on SunTrust’s Tier capital ratios

$3.3B

Buffer

1,2

7

($ in millions, except per share data)

Earnings Per Share of $0.17 and Net Income of $153 Million Before Preferred Dividends

Income Statement Highlights

III.

FINANCIAL

PERFORMANCE

Net Interest Income (FTE)

Provision for Credit Losses

Noninterest Income

Total Revenue (FTE)

Total Noninterest Expense

Pre-Tax Income/(Loss)

Provision/(Benefit) for Income Taxes

Net Income/(Loss)

Preferred Dividends

Net Income/(Loss) Available to Common Shareholders

Net Income/(Loss) Per Average Common Diluted Share

% Change          % Change         

% Change

3Q 2010               2Q 2010             3Q 2009         YTD 2010         YTD 2009

$1,266

615

1,047

2,313

1,499

167

14

153

69

84

$0.17

$3,676

2,139

2,697

6,373

4,362

(225)

(230)

5

206

(201)

$(0.41)

5%

(7)%

10%

7%

0%

NM

NM

NM

0%

NM

NM

8%

(46)%

35%

19%

5%

NM

NM

NM

0%

NM

NM

9%

(31)%

(9)%

0%

(15)%

NM

64%

NM

(3)%

86%

88%

NM –

not meaningful; changes over 100% or where results change from negative to positive or vice versa

8

0%

(1)%

1%

2%                              

(6)%

6%

12%

(1)%           

0%

4%                              

(6)%        

6%

0%         

(3)%      

(6)%

1%       

3%       

1%

($ 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

1

Noninterest-Bearing Deposits

NOW Accounts

Money Market Accounts

Savings

Consumer Time

Other Time

Total Consumer and Commercial Deposits       

Brokered and Foreign Deposits

Total Deposits

3Q 2010

2Q 2010

2Q 2010

3Q 2009

Annualized

% Change

III. FINANCIAL PERFORMANCE

1.

Excludes $6.7 billion of nonaccrual and restructured loans

Loan Portfolio Stabilized; Deposit Volumes, Mix and Rates Improved Slightly

$32,480

14,785

3,292

27,266                              

14,134

5,872

7,770

1,049           

$106,648

$26,511                              

23,514        

39,839

4,074         

14,381     

8,914

117,233       

2,740       

$119,973

0%

(5)%

2%

7%

(25)%

24%

47%

(6)%           

2%

16%

(23)%        

23%

(2)%         

(11)%      

(22)%

3%       

10%       

3%

(8)%

(5)%

(39)%

(4)%            

(11)%

16%

17%

6%           

(6)%

8%            

(2)%        

23%

9%         

(14)%      

(32)%

2%       

(47)%       

0%

9

U.S. Treasury

U.S. Agency

MBS –

Agency

U.S. States and Subdivisions

MBS –

Private

Corporate & Other

Asset –

Backed Securities

Other Equity

Total AFS

3Q 2010                 2Q 2010                $ Change

Securities

Available for Sale

($ in millions, period-end balances)

Securities Portfolio

III. FINANCIAL PERFORMANCE

$6.4

1.9

17.0

0.7

0.4

0.5

0.9

2.6

$30.3

$5.4

1.0

16.2

0.9

0.4

0.5

0.9

2.4

$27.6

$1.0

0.9

0.8

(0.2)

-

-

-

0.2

$2.7

High-Quality Securities Portfolio Increased with Early 3Q 2010 Treasury and Agency Purchases

Note:  Columns may not foot due to rounding

10

3.10%

3.27%

3.32%

3.41%

3.33%

3Q 2009

4Q 2009

1Q 2010

2Q 2010

3Q 2010

Margin Expanded from Lower Funding Costs

•

Margin expanded due to

favorable deposit trends and

stable earning asset yields

•

Margin expected to remain

roughly stable sequentially

•

Risks to margin include impacts

of prolonged low rate

environment, a shift in deposit

volume and mix, and loan

pricing

•

Opportunities include continued

deposit re-pricing and lower

NPAs

Net Interest Margin

III. FINANCIAL PERFORMANCE

11

($ in millions)

Provision Expense Declined Due to Modest Reserve Release and Small Decline in Charge-offs

Provision For Credit Losses

III. FINANCIAL PERFORMANCE

Provision for Credit Losses

1

Net Charge-offs

Net Charge-off Ratio

Net ALLL Incr/(Decr)

2

Allowance to Loan Ratio

2

3Q 2010       2Q 2010       1Q 2010       4Q 2009        3Q 2009

$1,134

$1,006

3.33%

$128

2.61%             

1.  Includes impacts of $5 million, $40 million and $15 million reductions in unfunded commitment reserves in 3Q 2010, 2Q 2010 and 1Q 2010, respectively. 4Q 2009 includes $57 million in

provision for unfunded commitments . This expense was recorded in Other Expense prior to 4Q 2009 (see appendix for prior period amounts)

2.  Does not include unfunded commitment reserves

$974

$821

2.83%

$96

2.76%

$862

$821

2.91%

$56

2.80%

$662

$722

2.57%

$(20)

2.81%

$615

$690

2.42%

$(70)

2.69%

12

Noninterest Income   

Net

Adjustments

1

Adjusted Noninterest Income

Sequential Quarter Drivers

Mortgage Production

Mortgage Servicing

Investment Banking

($ in millions)

Strong Quarter for Mortgage and Investment Banking Income

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

Noninterest Income

III. FINANCIAL PERFORMANCE

$952

121 

$831

$(16)

88

58

10%

19%

$149

44

38

35%

17%

$775

(70) 

$845

$1,047

59 

$988

$133

132

96

Change

3Q 2010          2Q 2010          3Q 2009

2Q 2010

3Q 2009

$                       

Change

3Q 2010          2Q 2010

13

0

20

40

60

80

100

120

140

1Q 2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

New Requests (4Q 2008 = 100)

Pending requests (4Q 2008 = 100)

Repurchase requests from older vintages

remain

high …

…and more recent production has a lower risk profile

Losses

and

new

request

volume

declined,

but

remain

volatile

0%

10%

20%

30%

40%

50%

60%

70%

80%

2Q 2009

3Q 2009

4Q 2009

1Q 2010

2Q 2010

3Q 2010

2006 & Prior

2007

2008 & 2009

1.

Indexed view of quarterly new repurchase requests and quarter-end pending request population with 4Q 2008 values equal to 100

2.

Percent of each quarter’s repurchase request by vintage; totals 100% each quarter

3.

Percent of outstanding unpaid balance by vintage; totals 100% and excludes loans originated by SunTrust but serviced by others.

III. FINANCIAL PERFORMANCE

Mortgage Repurchase Trends

Unpaid

Bal

3

%

Alt-A

%

Avg

FICO

Full Doc

%

Avg

Orig

LTV %

2006 & prior

23%

25%

711

66%

74%

2007

22%

5%

715

77%

77%

2008 & 2009

2010

46%

9%

0%

0%

762

773

96%

100%

68%

68%

3Q 2009   4Q 2009   1Q 2010   2Q 2010   3Q 2010  

Repurchase Reserves             

($ in millions)

Beginning Balance

92

123

200

210

256

Reserve Additions

136

220

128

148

95

Charge-Offs

(105)

(143)

(118)

(102)

(81)

Ending Balance

123

200

210

256

270

1

2

14

Noninterest Expense   

Net Adjustments

Adjusted

Noninterest

Expense

1

Sequential

Quarter

Drivers

Employee Compensation and

Benefits

Other

Non-Interest

Expense

1,2

Credit

Related

Costs

3

($ in millions)

Sequentially Higher Expenses Driven by Revenue-Related Compensation and Legal-Related Expenses

1.  Adjustment detail included in appendix

2.  Excludes adjustments above and certain credit related expenses. Detail included in appendix

3.  Includes operating losses, credit and collections, other real estate expense, additions to mortgage re-insurance reserves but does not include additional personnel expense related to

credit administration or default management

Noninterest Expense

III. FINANCIAL PERFORMANCE

$1,503

68 

$1,435

$682

163

177

0%

4%

$26

17

3

5%

7%

$1,429

34 

$1,395

$1,499

12 

$1,487

$709

180

180

Change

3Q 2010          2Q 2010          3Q 2009

2Q 2010

3Q 2009

Expense Results

$                       

Change

3Q 2010          2Q 2010

1

15

Asset Quality Metrics

IV. RISK REVIEW

Asset Quality Continued to Improve

1.

Excludes reserve for unfunded commitments of $55 million in 3Q 2010, $60 million in 2Q 2010 and $100 million in 1Q 2010

2.

Includes $(5) million provision for unfunded commitment reserves

in 3Q 2010,  $(40) million in 2Q 2010, and $(15) million in 1Q 2010

3.

1Q 2010 includes $160 million in LHFS nonaccruals

($ in millions)

3Q 2010

2Q 2010

1Q 2010

3Q10 vs

2Q10

2Q10 vs

1Q10

Total Loans at End of Period

$115,055

$112,925

$113,979

$2,130

($1,054)

Allowance for Loans & Lease Losses

1

3,086

3,156

3,176

(70)

(20)

Net Charge-offs

690

722

821

(32)

(99)

Provision Expense

2

615

662

862

(47)

(200)

NPAs

3

5,069

5,463

6,043

(394)

(580)

NPLs

to Total Loans

3.80%

4.16%

4.55%

(0.36)

(0.39)

NPAs

to Total Loans + OREO/OA

3

4.38%

4.81%

5.26%

(0.43)

(0.45)

ALLL to Loans

2.69%

2.81%

2.80%

(0.12)

0.01

NCOs (Annualized to Average Loans)

2.42%

2.57%

2.91%

(0.15)

(0.34)

30-89 Days Past Due

1.24%

1.26%

1.19%

(0.02)

0.07

30-89 Days Past Due

(excluding federally

guaranteed student loans and GNMA

repurchases)

0.96%

0.98%

1.04%

(0.02)

(0.06)

16

Loan Portfolio

IV. RISK REVIEW

1.  Approximately 91% of the student loan portfolio was government-guaranteed at September  30 and  90% at June 30, 2010

Asset Quality Issues Remain Concentrated in Real Estate Secured Portfolios

($ in millions)

Balance

% of

Balance

% of

C/O Ratio

C/O Ratio

30-89 DLQ%

30-89 DLQ%

3Q 2010

Portfolio

2Q 2010

Portfolio

3Q 2010

2Q 2010

3Q 2010

2Q 2010

Commercial

$32,847

29%

$32,523

29%

0.77%

1.06%

0.21%

0.21%

Commercial Real Estate

14,813

13%

15,134

13%

1.09%

0.33%

0.62%

0.81%

Consumer Direct -

Student Loans

1

4,437

4%

3,723

3%

0.33%

0.51%

8.14%

9.09%

Consumer Direct -

Other

2,055

2%

1,989

2%

0.84%

1.59%

0.62%

0.48%

Total Consumer -

Direct 

6,492

6%

5,711

5%

0.54%

0.87%

5.76%

6.09%

Consumer -

Indirect

8,165

7%

6,953

6%

0.56%

0.51%

0.80%

0.84%

Credit Cards

1,002

1%

1,031

1%

6.81%

7.92%

2.38%

2.44%

Real Estate Home Equity Lines

15,292

13%

15,443

14%

3.24%

3.55%

1.36%

1.25%

Real Estate 1-4 Family

32,003

28%

31,126

28%

3.89%

3.81%

1.74%

1.79%

Real Estate Construction

4,440

4%

5,004

4%

10.21%

13.05%

0.92%

1.08%

Total SunTrust 

$115,055

100%

$112,925

100%

2.42%

2.57%

1.24%

1.26%

Total SunTrust -

excluding federally guaranteed

student loans and GNMA repurchases 

$110,406

100%

$109,018

100%

2.48%

2.66%

0.96%

0.98%

17

1.  Excludes $12 million of mark-to-market loans held for sale in 3Q 2010 and $14 million for 2Q 2010

2.  Does not include nonaccruals   

3.  GNMA  repurchases are FHA/VA guaranteed loans that were repurchased from GNMA securities

Residential Mortgages $32,003

Residential Mortgages

IV. RISK REVIEW

Core Portfolio Asset Quality Improved; Continued Runoff of Stressed Portfolios

($ in millions)

Portfolio Profile

Credit Quality Metrics

Loan Type

09/30/10

Balance

06/30/10

Balance

09/30/2010          

$ Nonaccruals

1

06/30/2010            09/30/10    

$ Nonaccruals

1

60+ DLQ

2

06/30/10    

60+ DLQ

2

Core Portfolio

$25,582

$24,412

$1,438

$1,570

1.40%

1.44%

Home Equity Loans

1,701

1,798

60

62

0.69

1.00

Prime 2

nd

2,529

2,648

65

68

2.31

2.23

Lot Loans

867

935

192

214

2.58

3.18

Alt-A 1

st

552

588

143

176

4.33

3.61

Alt-A 2

nd

164

175

19

24

5.95

6.28

GNMA Repurchases

3

609

570

-

-

-

-

Total

$32,003

$31,126

$1,916

$2,114

1.51%

1.58%

18

Home Equity Lines $15,292 

1.

Excludes

3  

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

09/30/10

Balance

% of

Total

06/30/10

Balance

3Q 10

Charge-off

4

%

2Q 10

Charge-off

4

%

3Q 10

Nonaccrual

%

2Q 10

Nonaccrual

%

3

rd

Party

Originated

$1,394

9%

$1,446

9.63%

10.50%

3.93%

3.80%

CLTV > 80%

1

(Florida)

1,642

11

1,684

7.02

7.87

3.31

3.34

CLTV > 90%

2

1,439

9

1,481

3.79

3.69

1.77

1.75

Core Portfolio

3

10,817

71

10,832

1.66

1.85

1.48

1.44

Total

$15,292

100%

$15,443

3.24%

3.55%

1.91%

1.88%

Home Equity Lines

IV. RISK REVIEW

Balances Declined; Asset Quality Stable

($ in millions)

rd

19

1. Annualized quarterly net charge-off ratio

($ in millions)

Charge-offs Decreased; Balances and NPLs Continued to Decline

Construction $4,440

Portfolio Profile

Credit Quality Metrics

Type

09/30/10

Balance

06/30/10

Balance

3Q 10

%

FL

3Q 10

C/O

1

%

$

NPLs

FL

NPLs

%

3Q 10

30 +

DLQ

2Q 10

30 +

DLQ

Construction Perm

$546

$591

23%

7.70%

$133

33%

3.87%

3.52%

Residential

Construction

712

868

26

19.87

308

37

2.25

2.72

Residential A&D

818

948

20

28.74

413

24

2.12

1.98

Residential Land

377

426

37

9.66

192

46

2.74

1.09

Commercial

Construction

1,220

1,375

23

2.77

131

42

0.64

0.29

Commercial A&D

308

324

23

2.38

64

39

0.74

1.15

Commercial Land

459

472

27

6.39

57

27

1.43

1.54

Total

$4,440

$5,004

25%

10.21%

$1,297

34%

1.83%

1.66%

IV. RISK REVIEW

Construction

20

86% of Accruing TDRs are Current on Principal and Interest Payments, and 71% of Total TDRs

are Current

IV. RISK REVIEW

TDR Composition

($ in millions)

Troubled Debt Restructures $3,504

09/30/2010

% of

09/30/2010

% of

09/30/2010

% of

Balance

Total

Balance

Total

Balance

Total

Current

$2,165

86%

$328

33%

$2,493

71%

30 DPD

              198

8%

                55

6%

              253

7%

60 DPD

                93

4%

                57

6%

              150

4%

90 DPD

                51

2%

                43

4%

                94

3%

120+ DPD

                  9

<1

              505

51%

              514

15%

Total

$2,516

100%

$988

100%

$3,504

100%

Total TDRs

Payment Status

   Nonaccruing TDRs

Accruing TDRs

21

Credit Summary

IV. RISK REVIEW

•

Overall, asset quality continued to improve

•

Delinquencies were stable to down, except in the federally guaranteed loan portfolios; non-

performing loans and non-performing assets declined.  We expect the delinquency ratios to

fluctuate in a narrow range until general economic conditions improve

•

Charge-offs declined overall, while commercial real estate related charge-offs increased

•

Consumer and mortgage asset quality metrics were stable or improved

•

Construction balances continued to decline; delinquencies and non-performing loans were down

but remain at elevated levels

•

Accruing TDR balances increased to $2.5 billion, with 86% current for interest and principal

payments at 3Q 2010

•

Overall, credit quality is expected to improve in 4Q.  NPLs and charge-offs in the fourth quarter

are expected to decline modestly.  Charge-offs on real estate secured portfolios are anticipated

to remain elevated

•

We expect ALLL levels to trend downward at a pace that is consistent with improvements in

credit quality

22

Appendix

23

($ in millions)

Total Noninterest Income

Securities Gains/(Losses)

Fair

Market

Adjustments

–

Trading                   

STI

Debt

Valuation-Trading

Fair

Value

Adjustments

–

Mortgage

Production   

Auction

Rate

Securities

–

Trading      

Net Adjustments

Adjusted Noninterest Income

Noninterest Income Reconciliation

V. APPENDIX

%                   %

Change        Change

3Q 2010     2Q 2010       3Q 2009       2Q 2010       3Q 2009

10%

19%

35%

17%

$952

57

1

63

2

(2)

121

$831

$775

47

14

(131)

(11)

11

(70)

$845

$1,047

69

17

(22)

(6)

1

59

$988

24

Total Noninterest Expense

Net Loss/(Gain) on Debt Extinguishment

AHG Write-down (Other Exp)

Net Adjustments

Adjusted Noninterest Expense

Change

3Q 2010        2Q 2010        3Q 2009

2Q 2010

3Q 2009

%

($ in millions)

Noninterest Expense Reconciliation

V. APPENDIX

$1,503

63

5

68

$1,435

0%

4%

5%

7%

$1,429

2

31

34

$1,395

$1,499

12

-

12

$1,487

25

Credit Related Expense

Unfunded

Commitment

Reserve

(Other

Exp)

1

Mortgage Reinsurance

Operating Losses

Credit & Collections (Other Exp)

Other Real Estate (Other Exp)

Total Credit Related

Other Expense

Reported

Adjustments

2

Credit Related (Other Exp)

Adjusted Other Expense

Additional Noninterest Expense Disclosures

V. APPENDIX

$

Change 

3Q 2010         2Q 2010        3Q 2009          2Q 2010

3Q 2009

($ in millions)

Totals may not foot due to rounding

1.  Unfunded commitment reserve expense recorded in provision expense prospectively beginning in 4Q 2009

2.  From appendix slide 24

$ -

7

27

69

77

$180

326

-

146

180

$ -

9

16

66

86

$177

320

5

152

163

$29

10

18

69

88

$214

356

31

186

139

$ -

(2)

11

3

(9)

$3

6

(5)

(6)

17

$(29)

(3)

9

-

(11)

$(34)

(30)

(31)

(40)

41

26

(As of 09/30/10, $ in 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 are loans that are well-secured

3. Excludes Home Equity nonaccruals of $60 million, $11 million of mark-to-market loans held for sale and $82 million of residential real estate loans managed on commercial  system

Nonaccruals that have been through the specific

write-down process

Loan

Type

Balance

before

write-

down

-

Amount  

of write-

down

=

Non-

accruals with              

write-down

+

+

Non-

accruals

without   

specific

write-down  

=

Total

non-

accruals

3

% Loss

severity

Core

Portfolio

$1,295

$(520)

$774

$162

$420

$1,356

35.7%

Prime 2

nd

408

(408)

--

--

65                

65

100.0%

Lot

Loans

297

(174)

123

34

35

192

52.6%

Alt-A 1

st

145

(57)

88

6

50

143

38.0%  

Alt-A 2

nd

92

(84)

9

--

10

19

90.5%

Total

$2,237

$(1,243)

$994

$202

$579

$1,775

Residential Mortgage

Nonaccrual

Balances

Decreased;

67%

of

Nonaccruals

Have

Been

Through

the

Write-Down

Process

1

V. APPENDIX

write-down

2

Non-

accruals not 

requiring

27

Reconciliation of Non GAAP Measures

V. APPENDIX

($ in millions, except per share data)

September 30

June 30

March 31

December 31

September 30

2010

2010

2010

2009

2009

Total shareholders' equity               

$23,438

$23,024

$22,620

$22,531

$22,908

Goodwill, net of deferred taxes                    

(6,192)

(6,197)

(6,202)

(6,204)

(6,205)

Other intangible assets including MSRs, net of deferred taxes

(1,174)

(1,409)

(1,761)

(1,671)

(1,560)

MSRs

1,072

1,298

1,641

1,539

1,423

Tangible equity             

17,144

16,716

16,298

16,195

16,566

Preferred stock

(4,936)

(4,929)

(4,923)

(4,917)

(4,911)

Tangible common equity

$12,208

$11,787

$11,375

$11,278

$11,655

Total assets                

$174,703

$170,668

$171,796

$174,165

$172,718

Goodwill                

(6,323)

(6,323)

(6,323)

(6,319)

(6,314)

Other intangible assets including MSRs

(1,204)

(1,443)

(1,800)

(1,711)

(1,604)

MSRs

1,072

1,298

1,641

1,539

1,423

Tangible assets                

$168,248

$164,200

$165,314

$167,674

$166,223

Tangible equity to tangible assets              

10.19

%

10.18

%

9.86

%

9.66

%

9.96

%

Tangible common equity to tangible assets

7.26

%

7.18

%

6.88

%

6.73

%

7.01

%

Tangible book value per common share

$24.42

$23.58

$22.76

$22.59

$23.35

Three Months Ended