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SunTrust Reports Third Quarter 2006 Earnings

PRNewswire-FirstCall
ATLANTA
Oct 17, 2006

SunTrust Banks, Inc. today reported net income for the third quarter of 2006 of $535.6 million, up 5% from $510.8 million in the third quarter of 2005. Net income per average common diluted share was $1.47, up 5% from $1.40 in the third quarter of 2005.

"Despite a challenging environment, which included a flat to inverted yield curve throughout the quarter, we were able to post solid results. We undertook a number of initiatives this quarter that, combined with our intense sales focus, strong credit quality and diversified business model, should provide momentum going into 2007," L. Phillip Humann, Chairman and Chief Executive Officer of SunTrust noted. Despite strong year-over-year loan growth, the rate of revenue growth was slower than in prior quarters due to the challenging operating environment. The Company was able to offset the slower revenue growth by reducing the rate of expense growth through effective cost control initiatives, posting lower loan provision expense that resulted from improved credit loss experience, and realizing a lower provision for income taxes.

  Third Quarter 2006 Consolidated Highlights

                                 3rd Quarter      3rd Quarter
                                    2006             2005        % Change
  Income Statement
  (Dollars in millions,
   except per share data)
  Net income                       $535.6           $510.8          5%
  Net income per average
   common diluted share              1.47             1.40          5%
  Revenue - fully
   taxable-equivalent             2,032.8          2,008.1          1%
  Noninterest expense             1,205.5          1,177.1          2%

  Balance Sheet
  (Dollars in billions)
  Average loans                    $120.7           $110.8          9%
  Average consumer and
   commercial deposits               97.6             94.1          4%

  Asset Quality
  Net charge-offs to average
   loans (annualized)                0.12%            0.27%
  Nonperforming loans to total
   loans                             0.48%            0.29%

  -- Net income and net income per diluted share both increased 5% from the
     third quarter of 2005, driven by improved expense control, better
     credit loss experience as evidenced by lower loan provision expense and
     realizing a lower provision for income taxes.
  -- Fully taxable-equivalent revenue increased 1% from the third quarter of
     2005.  Noninterest income growth was 3% and fully taxable-equivalent
     net interest income was nearly unchanged.
  -- A significant portion of the increase in noninterest income resulted
     from a $113 million gain, net of related expenses, on the sale of the
     Bond Trustee business.  The Company also restructured part of the
     investment portfolio in the third quarter, accounting for substantially
     all of the $92 million in security losses reported for the quarter.
     Growth in card fees, trust and investment management income, and retail
     investment services income also contributed to the growth.
  -- Effective cost control initiatives helped noninterest expense decline
     by 3% on a sequential annualized basis compared to the second quarter
     of 2006.  Noninterest expense was up 2% from the third quarter of 2005.
  -- Total average loans increased 9% and total average consumer and
     commercial deposits increased 4% from the third quarter of 2005.
  -- Annualized net charge-offs were 0.12% of average loans in the third
     quarter of 2006, down from 0.27% of average loans in the third quarter
     of 2005, a continuation of the historically low credit loss trend.
  -- Provision expense of $62 million exceeded net charge-offs of $36
     million by $26 million in the third quarter of 2006.
  -- Nonperforming loans to total loans increased from 0.29% as of September
     30, 2005 to 0.48% as of September 30, 2006, mainly due to the
     previously disclosed large commercial loan being placed on
     nonperforming status during the third quarter.

  CONSOLIDATED FINANCIAL PERFORMANCE

  Revenue

Fully taxable-equivalent revenue was $2,032.8 million for the third quarter of 2006, up 1% from the third quarter of 2005. On a sequential annualized basis, fully taxable-equivalent revenue decreased 6% in the third quarter of 2006 from the second quarter of 2006.

For the nine months ended September 30, 2006, fully taxable-equivalent revenue was $6,149.1 million, up 6% from $5,804.5 million for the same period in 2005.

Net Interest Income

Fully taxable-equivalent net interest income was $1,173.9 million in the third quarter of 2006, nearly unchanged from the third quarter of 2005. The lack of growth was mainly the result of the flat to inverted yield curve that has persisted over this timeframe, as well as the continued shift in deposit mix away from lower-cost deposit products to certificates of deposit. On a sequential annualized basis, fully taxable-equivalent net interest income decreased 5% in the third quarter of 2006 from the second quarter of 2006 for similar reasons. The net interest margin of 2.93% for the third quarter of 2006 was down 7 basis points from the second quarter of 2006. The margin decline was mainly attributable to the continued shift in deposit mix towards higher cost products and the negative impact the flat to inverted yield curve has had on the spread between incremental earning asset growth and the increased cost of funding the growth.

For the nine months ended September 30, 2006, fully taxable-equivalent net interest income was $3,563.3 million, up 3% from $3,447.4 million for the same period in 2005. Loan growth was the main factor driving the increase.

Noninterest Income

Total noninterest income was $858.9 million for the third quarter of 2006, up 3% from the third quarter of 2005. A significant portion of the increase resulted from the $113 million gain, net of related expenses, on the sale of the Bond Trustee business. The Company also restructured a portion of the investment portfolio in the third quarter of 2006 that accounted for substantially all of the $92 million in securities losses for the quarter. Growth in card fees, trust and investment management income and retail investment services income was offset primarily by declines in trading account profits and commissions, investment banking income, other charges and fees and service charges on deposit accounts. The increase in mortgage servicing- related income experienced during the third quarter is an indication of the increased income created from a larger servicing portfolio and the realization of the value embedded in the mortgage servicing rights through the sale of a portion of the servicing rights that resulted in a $23.9 million gain. On a sequential annualized basis, noninterest income decreased 8% in the third quarter of 2006 from the second quarter of 2006. Aside from the aforementioned net gain on the sale of the Bond Trustee business and the securities losses incurred by the investment portfolio restructuring, the decrease was driven mainly by a decline in trading account profits and commissions and investment banking income, offset by increases in other noninterest income, card fees and service charges on deposits.

For the nine months ended September 30, 2006, noninterest income was $2,585.8 million, up 10% from $2,357.1 million for the same period in 2005. Aside from the aforementioned net gain on the sale of the Bond Trustee business and the securities losses incurred by the investment portfolio restructuring, the growth was driven mainly by mortgage-related income, card fees, trust and investment management income and retail investment services income.

Noninterest Expense

Total noninterest expense in the third quarter of 2006 was $1,205.5 million, up 2% from the third quarter of 2005. The increase in expense reflects certain investments in revenue producing divisions of the Company, including the addition of offices and employees and investment in the infrastructure of the organization to gain greater efficiencies in the future. These increases were offset by lower amortization of intangible assets, impairment charges on affordable housing properties, and no merger expense incurred in 2006. On a sequential annualized basis, noninterest expense declined 3% in the third quarter of 2006 from the second quarter of 2006. The decrease largely resulted from a decline in employee compensation and benefits and marketing and customer development expenses, offset by net occupancy, equipment and other expenses.

For the nine months ended September 30, 2006, total noninterest expense was $3,646.1 million, up 5% from $3,483.8 million for the same period of 2005. The factors causing this increase were similar to those noted for the third quarter growth over the same quarter of the previous year with the exception of lower equipment expense, higher marketing and customer development expense, and no merger expense incurred in 2006.

Balance Sheet

As of September 30, 2006, SunTrust had total assets of $183.1 billion. Shareholders' equity of $18.6 billion as of September 30, 2006 represented 10% of total assets. Book value per common share was $49.71 as of September 30, 2006, up from $47.85 as of June 30, 2006.

Loans

Average loans for the third quarter of 2006 were $120.7 billion, up 9% from the third quarter of 2005. The rate of growth was slowed by the sale of approximately $3 billion in residential real estate and student loans late in the second and early in the third quarters of 2006. Areas contributing to the strong loan growth were residential real estate, real estate construction, commercial and home equity lines. On a sequential annualized basis, average loans grew 2% in the third quarter of 2006 from the second quarter of 2006. The aforementioned sale of loans substantially slowed the growth rate between quarters. Areas contributing to the loan growth were similar to those noted for the third quarter growth over the same quarter of the previous year with the exception of residential real estate due to the impact of the loan sales.

Deposits

Average consumer and commercial deposits for the third quarter of 2006 were $97.6 billion, up 4% from the third quarter of 2005. On a sequential annualized basis, average consumer and commercial deposits grew 2% compared to the second quarter of 2006. The growth in deposits both year-over-year and on a sequential annualized basis was driven by growth in certificates of deposit. Given market conditions and the higher rate environment, customer preference is for higher-yielding products, which is reflected in the continued deposit mix shift toward higher-rate products, such as certificates of deposit. Furthermore, the third quarter is typically the slowest growth quarter of the year due to seasonality. The Company continues to pursue deposit growth initiatives aimed at product promotions, as well as increasing our presence in specific markets within our footprint.

Asset Quality

Annualized net charge-offs in the third quarter of 2006 were 0.12% of average loans, up from 0.10% in the second quarter of 2006 and down from 0.27% in the third quarter of 2005. Net charge-offs were $36.1 million in the third quarter of 2006 compared to $29.1 million in the second quarter of 2006 and $76.7 million in the third quarter of 2005. Nonperforming assets were $633.8 million, or 0.52% of loans, other real estate owned and other repossessed assets as of September 30, 2006 compared to $369.8 million, or 0.31% of loans, other real estate owned and other repossessed assets as of June 30, 2006. The increase in nonperforming assets from the second quarter of 2006 was mainly driven by the previously disclosed large commercial loan being placed on nonperforming status during the third quarter.

The allowance for loan and lease losses increased $25.5 million to $1,087.3 million as of September 30, 2006 from $1,061.9 million as of June 30, 2006 primarily due to the build-out of the specific reserve allocated to the large commercial loan placed on nonperforming status during the third quarter. Provision expense increased from $51.8 million in the second quarter of 2006 to $61.6 million in the third quarter of 2006. The allowance for loan and lease losses as of September 30, 2006 represented 0.90% of period-end loans, up two basis points from 0.88% of period-end loans as of June 30, 2006. The allowance for loan and lease losses as of September 30, 2006 represented 186% of period-end nonperforming loans.

  LINE OF BUSINESS FINANCIAL PERFORMANCE

  Retail

  preliminary data             3rd Quarter      3rd Quarter
  (in millions)                    2006             2005        % Change
  Net income                      $189.7           $169.7          12%
  Revenue - fully
   taxable-equivalent              860.2            819.2           5%
  Average total loans           30,832.2         30,846.4           0%
  Average total deposits        69,660.0         65,861.2           6%

  Three Months Ended September 30, 2006 vs. 2005

Retail's net income for the third quarter of 2006 was $189.7 million, an increase of $19.9 million, or 12%. The increase was primarily the result of deposit growth, widening deposit spreads and lower net charge-offs partially offset by higher noninterest expense.

Fully taxable-equivalent net interest income increased $34.1 million, or 6%. The increase was attributable to deposit growth and widening deposit spreads due to deposit rate increases that have been slower relative to market rate increases as well as the increasing value of lower cost deposits in a higher rate environment. Average loans decreased $14.1 million, or 0%, while average deposits increased $3.8 billion, or 6%. The loan decrease was driven primarily by student loan sales, which totaled approximately $3.0 billion since September 30, 2005, and a decline in consumer indirect loans partially offset by growth in home equity loans and lines. Deposit growth was driven primarily by certificates of deposit while money market and NOW accounts drove the increase in spreads.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $10.0 million, or 27%, primarily due to a decline in consumer indirect net charge-offs.

Total noninterest income increased $6.9 million, or 3%. The increase was driven primarily by interchange income due to increased volumes and gains on student loan sales.

Total noninterest expense increased $23.0 million, or 4%, from the third quarter of 2005. The increase was driven primarily by increases in personnel expense and operation costs related to investments in the branch distribution network and technology. 52 net new branches have been added over the past year.

Nine Months Ended September 30, 2006 vs. 2005

Retail's net income for the nine months ended September 30, 2006 was $583.0 million, an increase of $104.9 million, or 22%. The increase was primarily the result of loan and deposit growth and widening deposit spreads, lower net charge-offs and higher noninterest income partially offset by higher noninterest expense.

Fully taxable-equivalent net interest income increased $173.5 million, or 11%. The increase was attributable to loan and deposit growth and widening deposit spreads due to deposit rate increases that have been slower relative to market rate increases as well as the increasing value of lower cost deposits in a higher rate environment. Average loans increased $715.1 million, or 2%, and average deposits increased $4.0 billion, or 6%. The loan growth was driven by home equity loans and lines offset by student loan sales. Deposit growth was driven primarily by certificates of deposit while money market and NOW accounts drove the increase in spreads.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $33.6 million, or 34%, primarily due to a decline in consumer indirect net charge-offs.

Total noninterest income increased $37.5 million, or 5%. The increase was driven primarily by interchange income due to increased volumes, ATM fees and gains on student loan sales.

Total noninterest expense increased $88.1 million, or 6%. The increase was driven by increases in personnel expense and operation costs related to investments in the branch distribution network and technology.

  Commercial

  preliminary data             3rd Quarter      3rd Quarter
  (in millions)                    2006             2005        % Change
  Net income                      $108.7            $90.4          20%
  Revenue - fully
   taxable-equivalent              303.3            296.7           2%
  Average total loans           32,888.3         30,978.1           6%
  Average total deposits        13,583.3         13,195.1           3%

  Three Months Ended September 30, 2006 vs. 2005

Commercial's net income for the third quarter of 2006 was $108.7 million, an increase of $18.3 million, or 20%. The increase was driven primarily by loan and deposit growth and lower net charge-offs.

Fully taxable-equivalent net interest income increased $8.2 million, or 4%. The increase was attributable to increased loan and deposit growth. Average loans increased $1.9 billion, or 6%, with the strongest growth in construction lending. Average deposits increased $388.1 million, or 3%, driven by an increase in institutional and government deposits partially offset by decreases in demand deposits and money market accounts.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $13.8 million, or 89%. The decrease was driven primarily by lower net charge-offs in the Core Commercial and Real Estate Finance Group ("REFG") sub-lines of business.

Total noninterest income decreased $1.7 million, or 2%. The decrease resulted from lower sales and referral credits and trading account profits and was partially offset by increases in deposit sweep income and other income in affordable housing.

Total noninterest expense decreased $7.3 million, or 4%. A decrease in affordable housing expense was in part offset by an increase in personnel expense.

Nine Months Ended September 30, 2006 vs. 2005

Commercial's net income for the nine months ended September 30, 2006 was $325.3 million, an increase of $43.2 million, or 15%. The increase was driven primarily by net interest income and noninterest income growth and lower net charge-offs, partially offset by higher noninterest expenses.

Fully taxable-equivalent net interest income increased $44.7 million, or 7%. The increase was driven primarily by loan growth and increased deposit spreads. Average loans increased $1.7 billion, or 6%, with the strongest growth in construction lending. Average deposits increased $363.8 million, or 3%, driven by an increase in institutional and government deposits and partially offset by decreases in demand deposits and money market accounts.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $11.1 million, or 61%. The decrease was driven primarily by lower net charge-offs in the Core Commercial and REFG sub-lines of business.

Total noninterest income increased $16.8 million, or 9%. The increase resulted from higher affordable housing revenues, sweep income and sales and referral credits.

Total noninterest expense increased $17.4 million, or 4%. Increases in personnel expense and operations cost were in part offset by a decrease in affordable housing expense.

  Corporate and Investment Banking

  preliminary data             3rd Quarter      3rd Quarter
  (in millions)                    2006             2005        % Change
  Net income                       $52.7            $63.1         (16)%
  Revenue - FTE                    198.8            237.7         (16)%
  Average total loans           16,793.3         15,959.9           5%
  Average total deposits         2,903.1          3,134.8          (7)%

  Three Months Ended September 30, 2006 vs. 2005

Corporate and Investment Banking's net income for the third quarter of 2006 was $52.7 million, a decrease of $10.4 million, or 16%. The decrease, driven by narrowing corporate banking loan spreads and lower capital markets income, was slightly offset by a decrease in noninterest expense.

Fully taxable-equivalent net interest income decreased $14.0 million, or 21%. The decrease was primarily due to narrowing corporate banking loan spreads. Average loans increased $833.4 million, or 5%, driven by increased usage of committed facilities.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $12.2 million, or 68%.

Total noninterest income decreased $24.9 million, or 15%. Increased operating lease revenue, along with stronger M&A advisory fees and merchant banking gains, were offset by lower derivative revenue as well as weaker performance due to deal timing in structured leasing and syndications.

Total noninterest expense decreased $9.5 million, or 8%. Lower personnel expense associated with the decreased capital markets revenue growth was the primary driver.

Nine Months Ended September 30, 2006 vs. 2005

Corporate and Investment Banking's net income for the nine months ended September 30, 2006 was $186.8 million, a decrease of $18.6 million, or 9%. Adjusting net income by $15.7 million for the March 2005 divestiture of Receivables Capital Management ("RCM") assets, net income decreased 2%. The decrease in net income was driven by weakness in net interest income and capital markets revenue.

Fully taxable-equivalent net interest income decreased $12.7 million, or 7%. The decrease was primarily due to narrowing corporate banking loan spreads. In addition, the divestiture of RCM assets in the first quarter of 2005 negatively impacted growth in fully taxable-equivalent net interest income. Average loans increased $1.5 billion, or 10%, and average deposits increased $20.8 million, or 1%. Loan growth was due to increased usage of committed facilities and corporate demand.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $12.3 million, or 71%.

Total noninterest income decreased $36.9 million, or 7%, driven primarily by the divestiture of RCM assets in the first quarter of 2005. Growth in debt capital markets, primarily driven by securitization, derivatives and structured leasing, was partially offset by weakness in merger and acquisition and merchant banking fees.

Total noninterest expense decreased $5.7 million, or 2%, primarily due to lower personnel expense associated with the decreased capital markets revenue growth.

  Mortgage

  preliminary data             3rd Quarter      3rd Quarter
  (in millions)                    2006             2005        % Change
  Net income                       $65.4            $54.5          20%
  Revenue - fully
   taxable-equivalent              254.0            222.8          14%
  Average total loans           31,619.8         24,862.3          27%
  Average total deposits         1,998.8          1,937.4           3%

  Three Months Ended September 30, 2006 vs. 2005

Mortgage's net income for the third quarter of 2006 was $65.4 million, an increase of $10.9 million, or 20%. Gains from the sale of mortgage servicing rights and loan growth drove the increase, partially offset by decreased secondary marketing income and higher expense related to growth of the business.

Fully taxable-equivalent net interest income increased by $16.3 million, or 12%, principally due to growth in loans and increased deposit spreads, partially offset by lower income on loans held for sale. Average loans increased $6.8 billion, or 27%. This growth primarily came from residential mortgage and residential construction loans which contributed $21.7 million to the net fully taxable-equivalent net interest income increase. Average loans held for sale increased $1.6 billion, or 21%. However, compressed spreads resulting from increased short-term interest rates reduced income on loans held for sale by $8.8 million, or 20%. Average deposits were up $61.4 million, or 3%, due to escrow balances associated with higher servicing balances. The higher balances combined with a higher credit for funds rate contributed $6.6 million to the increase.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $2.2 million, or 75%.

Total noninterest income increased $14.9 million, or 18%. Production income was down $15.7 million, or 24%, due to lower loan production and narrower margins. Loan production was $13.7 billion, down $1.0 billion, or 7%. Loan sales to investors were $9.9 billion, up $1.9 billion, or 24%. Servicing income increased $31.6 million due to $23.9 million in gains from the sale of mortgage servicing rights and increased fee income due to higher servicing balances. Slightly higher MSR amortization partially offset these increases. At September 30, 2006 total loans serviced were $124.8 billion compared with $97.4 billion the prior year, an increase of $27.4 billion, or 28%.

Total noninterest expense increased $17.0 million, or 12%, from the third quarter of 2005. Increased investments in production and servicing capabilities were the primary drivers of the higher expense.

Nine Months Ended September 30, 2006 vs. 2005

Mortgage's net income for the nine months ended September 30, 2006 was $208.5 million, an increase of $79.9 million, or 62%. This increase was principally a result of higher production driving higher fee and secondary marketing income, and sales of mortgage servicing rights, partially offset by higher expense related to growth of the business.

Fully taxable-equivalent net interest income increased $57.7 million, or 15%, principally due to growth in loans and increased deposit spreads offset by lower income on loans held for sale. Average loans increased $7.6 billion, or 33%, contributing $72.3 million to the increase. The growth primarily came from residential mortgage and residential construction loans. Average loans held for sale were up $2.1 billion, or 32%; however, compressed spreads resulting from increased short-term interest rates reduced income by $27.3 million, or 22%. Average deposits increased $151.3 million, or 9%, due to escrow balances associated with higher servicing balances. These balances combined with a higher credit for funds rate contributed $18.8 million to the increase.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $1.1 million, or 16%.

Total noninterest income increased $139.6 million, or 78%. Production income of $171.0 million was up $58.3 million, or 52%, driven by higher loan production and increased secondary marketing deliveries. Year-to-date loan production was $40.3 billion compared with $34.5 billion, an increase of $5.8 billion, or 17%. Loan sales to investors were $30.9 billion, up $10.6 billion, or 52%. Servicing income of $111.2 million was up $84.4 million due to gains from the sale of mortgage servicing assets of $66.0 million and increased fees from higher servicing balances.

Total noninterest expense increased $73.5 million, or 20%. Increased volume and investments in production and servicing capabilities were the primary drivers of the increase.

  Wealth and Investment Management

  preliminary data             3rd Quarter      3rd Quarter
  (in millions)                    2006             2005        % Change
  Net income                      $117.9            $53.0          122%
  Net income excluding net
   gain on sale of Bond
   Trustee business                 48.0             53.0          (10)%
  Revenue - FTE                    447.7            325.0           38%
  Revenue - FTE excluding
    net gain on sale of
    Bond Trustee business          335.0            325.0            3%
  Average total loans            8,128.0          7,896.1            3%
  Average total deposits         9,534.1          9,654.0           (1)%

  Three Months Ended September 30, 2006 vs. 2005

Wealth and Investment Management's net income for the third quarter of 2006 was $117.9 million, an increase of $64.8 million, or 122%. The growth was primarily driven by the $69.9 million after-tax net gain on the sale of the Bond Trustee business. Excluding the net gain on the sale of the Bond Trustee business, net income was down $5.1 million, or 10%.

Fully taxable-equivalent net interest income increased $4.7 million, or 5%, due primarily to higher deposit spreads. Average loans increased $0.2 billion, or 3%, driven primarily by commercial loan demand. Average deposits decreased $0.1 billion, or 1 %, due to declines in demand deposits, money market deposits, and NOW deposits, partially offset by increased certificates of deposit and savings deposits.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $1.1 million, or 61%.

Total noninterest income increased $118.0 million, or 50%, attributable largely to the $112.8 million pre-tax net gain on the sale of the Bond Trustee business. Noninterest income excluding the net gain increased 2%. Trust income increased as a result of higher assets under management and retail investment services income. Noninterest income growth was somewhat offset by a decline in insurance revenue, due in part to the December 31, 2005 sale of Carswell Insurance, and the funds flowing out of certain products whose investment strategies have been out of favor in the marketplace.

End of period assets under management were approximately $138.6 billion compared to $133.6 billion in the same period last year. Assets under management include individually managed assets, the STI Classic Funds, institutional assets managed by Trusco Capital Management and participant- directed retirement accounts. SunTrust's total assets under advisement were approximately $238.5 billion, which includes $138.6 billion in assets under management, $53.2 billion in non-managed trust assets, $36.7 billion in retail brokerage assets and $10.0 billion in non-managed corporate trust assets. Approximately $21.2 billion in corporate trust non-managed assets were transferred to the buyer of the Bond Trustee business.

Total noninterest expense increased $20.7, or 9%. The growth was primarily driven by continuing efforts to build-out the line of business including higher structural, staff and operations expenses.

Nine Months Ended September 30, 2006 vs. 2005

Wealth and Investment Management's net income for the nine months ended September 30, 2006 was $216.5 million, an increase of $71.8 million, or 50%. The growth was driven primarily by the $69.9 million after-tax net gain on the sale of the Bond Trustee business. Excluding the net gain on the sale of the Bond Trustee business, net income increased $1.8 million, or 1%.

Fully taxable-equivalent net interest income increased $28.6 million, or 12%, and was attributable to a combination of increased loan volumes and widening deposit spreads. Average loans increased $0.4 billion, or 5%, mainly due to growth in consumer mortgages, commercial real estate and commercial loans. Average deposits decreased $0.3 billion, or 3%, due to declines in demand deposits, NOW deposits and money market deposits, partially offset by increases in certificates of deposit.

Provision for loan losses, which represents net charge-offs for the lines of business, decreased $1.4 million, or 45%.

Total noninterest income increased $142.3 million, or 20%, primarily due to the $112.8 million pre-tax net gain on the sale of the Bond Trustee business. Noninterest income excluding the net gain increased 4%. Trust income increased due to growth in assets under management. Retail investment income increased due to increases in annuity, managed account and new business revenues. Noninterest income growth was somewhat offset by a decline in insurance revenue, due in part to the December 31, 2005 sale of Carswell Insurance, and the funds flowing out of certain products whose investment strategies have been out of favor in the marketplace.

Total noninterest expense increased $58.1 million, or 8%. Growth was primarily driven by continuing efforts to build-out the line of business including higher structural, staff and operations expenses.

  Corporate Other and Treasury

  preliminary data             3rd Quarter      3rd Quarter
  (in millions)                    2006             2005        % Change
  Net income                        $1.2            $80.0         (98)%
  Net income excluding
   securities (gains)/losses,
   net                              57.9             81.2         (29)%
  Securities available for
   sale                         23,841.4         25,824.2          (8)%

  Three Months Ended September 30, 2006 vs. 2005

Corporate Other and Treasury's net income for the third quarter of 2006 was $1.2 million, a decrease of $78.7 million, or 98%, mainly due to an increase in net securities losses due to the investment portfolio restructuring, a decline in fully taxable-equivalent net interest income and an increase in provision for loan losses.

Fully taxable-equivalent net interest income decreased $51.2 million, or 53%. The main drivers for reduction were a $2.0 billion decrease in average securities available for sale and a decrease in income on receive fixed/pay floating interest rate swaps used to extend the duration of the commercial loan portfolio. Short-term borrowing costs also increased due to the need to fund earning asset growth, as well as the significant rise in short-term interest rates over the past year.

Total average deposits increased $9.7 billion, or 53%, mainly due to growth in brokered and foreign deposits.

Provision for loan losses, which represents the difference between net charge-offs for the lines of business and total provision for loan losses, increased $30.5 million. The increase in provision expense was primarily due to the build-out of the specific reserve allocated to the large commercial loan placed on nonperforming status during the third quarter.

Total noninterest income decreased $86.7 million mainly due to an increase in securities losses of $89.5 million related to the investment portfolio restructuring.

Total noninterest expense decreased $15.4 million mainly due to a reduction in merger-related expenses.

Nine Months Ended September 30, 2006 vs. 2005

Corporate Other and Treasury's net income for the nine months ended September 30, 2006 was $91.1 million, a decrease of $138.9 million, or 60%, mainly due to a decline in fully taxable-equivalent net interest income, an increase in provision for loan losses and an increase in securities losses partially offset by a decrease in merger-related expenses.

Fully taxable-equivalent net interest income decreased $175.9, or 53%. The main drivers were a $2.0 billion decrease in average securities available for sale and a decrease in income on receive fixed/pay floating interest rate swaps used to extend the duration of the commercial loan portfolio. Short- term borrowing costs also increased due to the need to fund earning asset growth, as well as the significant rise in short-term interest rates over the past year.

Total average deposits increased $10.6 billion, or 67%, mainly due to growth in brokered and foreign deposits.

Provision for loan losses, which represents the difference between net charge-offs for the lines of business and total provision for loan losses, increased $77.4 million. The increase in provision expense was primarily due to loan growth generated during the period and the build-out of the specific reserve allocated to the large commercial loan placed on nonperforming status during the third quarter.

Total noninterest income decreased $70.5 million mainly due to an increase in securities losses of $76.6 million related to the investment portfolio restructuring in the third quarter of 2006.

Total noninterest expense decreased $69.1 million mainly due to a reduction in merger-related expenses.

Corresponding Financial Tables and Information

This news release contains certain non-US GAAP financial measures to describe our 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.

Investors are encouraged to review the foregoing summary and discussion of SunTrust's earnings and financial condition in conjunction with the detailed financial tables and information which SunTrust has also published today and SunTrust's forthcoming quarterly report on Form 10-Q. Detailed financial tables and other information are available on our Web site at www.suntrust.com in the Investor Relations section located under "About SunTrust" and may be directly accessed via the quick link entitled "3rd Quarter Earnings Release" on the SunTrust homepage. This information is also included in a current report on Form 8-K filed with the SEC today.

Conference Call

SunTrust management will host a conference call on October 17, 2006 at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals are encouraged to call in beginning at 7:45 a.m. (Eastern Time) by dialing 1-888-972-7805 (Passcode: 3Q06; Leader: Greg Ketron). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 3Q06; Leader: Greg Ketron). A replay of the call will be available beginning October 17, 2006 and ending October 31, 2006 by dialing 1-866-486-4651 (domestic) or 1-203-369-1640 (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, "3rd Quarter Earnings Release." Beginning the afternoon of October 17, 2006, listeners may access an archived version of the webcast in the "Webcasts and Presentations" subsection found under "Investor Relations." This webcast will be archived and available for one year. A link to the Investor Relations page is also found in the footer of the SunTrust home page.

SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. The Company operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The Company also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides credit cards, mortgage banking, insurance, brokerage, equipment leasing and capital markets services. SunTrust's Internet address is www.suntrust.com.

Forward Looking Statements

This news release may contain forward-looking statements, including statements about credit quality and future prospects of the Company and credit quality. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These statements often include the words "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions. Such statements are based upon the current beliefs and expectations of SunTrust's management and are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause SunTrust's results to differ materially from those described in the forward-looking statements can be found in the Company's 2005 Annual Report on Form 10-K, in the Quarterly Reports on Form 10-Q and in the Current Reports filed on Form 8-K with the Securities and Exchange Commission and available at the Securities and Exchange Commission's internet site (http://www.sec.gov/). Those factors include changes in interest rates; changes in general business or economic conditions or the competitive banking environment; changes in credit conditions including customers' ability to repay debt obligations; competitive pressures among local, regional, national, and international banks, thrifts credit unions, and other financial institutions; increases in the cost of funds resulting from customers pursuing alternatives to bank deposits or shifting from demand deposits to higher-cost products; significant changes in legislation or regulatory requirements, or the fiscal and monetary policies of the federal government and its agencies; significant changes in securities markets or markets for commercial or residential real estate; the Company's success in managing its costs, including costs associated with the expansion of distribution channels and developing new ones; the potential that the Company may acquire other institutions or may be acquired by other institutions; the potential that the Company may divest certain portions of its business; hurricanes and other natural disasters; litigation; and changes in accounting principles, policies, or guidelines. The forward-looking statements in this news release speak only as of this date, and SunTrust does not assume any obligation to update such statements or to update the reasons why actual results could differ from those contained in such statements.

   SunTrust Banks, Inc. and Subsidiaries
   RECONCILEMENT OF NON-GAAP MEASURES
   APPENDIX A TO THE EARNINGS RELEASE
   (Dollars in thousands) (Unaudited)

                                           Three Months Ended
                               September 30      June 30        March 31
                                   2006           2006            2006

  NON-GAAP MEASURES
  PRESENTED IN THE EARNINGS
  RELEASE

  Net income                     $535,588       $544,002        $531,527
  Securities (gains)/losses,
   net of tax                      56,926         (3,632)            (64)
  Net income excluding
   securities gains and
   losses                         592,514        540,370         531,463
  The Coca-Cola Company
   dividend, net of tax           (13,317)       (13,316)        (13,317)
  Net income excluding
   securities (gains)/losses
   and The Coca-Cola Company
   dividend                      $579,197       $527,054        $518,146

  Total average assets       $180,500,921   $180,744,146    $177,618,283
  Average net unrealized
   securities gains            (1,374,648)    (1,528,041)     (1,612,808)
  Average assets less net
   unrealized securities
   gains                     $179,126,273   $179,216,105    $176,005,475

  Total average common
   shareholders' equity       $17,558,581    $17,304,451     $17,051,805
  Average accumulated other
   comprehensive income          (821,317)      (915,885)       (963,683)
  Total average realized
   common shareholders'
   equity                     $16,737,264    $16,388,566     $16,088,122

  Return on average total
   assets                            1.18%          1.21%           1.21%
  Impact of excluding net
   realized and unrealized
   securities (gains)/
   losses and The Coca-Cola
   Company dividend                  0.10          (0.03)          (0.02)
  Return on average total
   assets less net
   unrealized securities
   gains (1)                         1.28%          1.18%           1.19%

  Return on average common
   shareholders' equity             12.10%         12.61%          12.64%
  Impact of excluding net
   realized and unrealized
   securities (gains)/
    losses and The Coca-Cola
     Company dividend                1.63           0.29            0.42
  Return on average realized
   common shareholders'
   equity (2)                       13.73%         12.90%          13.06%

  Efficiency ratio (3)              59.30%         58.78%          59.80%
  Impact of excluding
   amortization of
   intangible assets                (1.27)         (1.25)          (1.33)
  Tangible efficiency
   ratio (4)                        58.03%         57.53%          58.47%

  Total shareholders' equity  $18,589,307    $17,423,920     $17,157,448
  Goodwill                     (6,903,001)    (6,900,222)     (6,897,105)
  Other intangible assets
   including mortgage
   servicing rights ("MSRs")   (1,120,102)    (1,141,346)     (1,123,463)
  Mortgage servicing rights       724,323        720,374         680,837
  Tangible equity             $11,290,527    $10,102,726      $9,817,717

  Total assets               $183,104,553   $181,143,444    $178,876,476
  Goodwill                     (6,903,001)    (6,900,222)     (6,897,105)
  Other intangible assets
   including MSRs              (1,120,102)    (1,141,346)     (1,123,463)
  Mortgage servicing rights       724,323        720,374         680,837
  Tangible assets            $175,805,773   $173,822,250    $171,536,745

  Tangible equity to
   tangible assets (5)               6.42%          5.81%           5.72%

  Noninterest income             $858,931       $875,369        $851,506
  Securities (gains)/losses,
   net                             91,816         (5,858)           (104)
  Net gain on sale of RCM
   assets                               -              -               -
  Net gain on sale of Bond
   Trustee business              (112,759)             -               -
  Total noninterest income
   excluding securities
   (gains)/losses, net gain
   on sale of RCM assets
   and net gain on sale of
   Bond Trustee business (6)     $837,988       $869,511        $851,402

  Net interest income          $1,151,392     $1,168,743      $1,179,041
  Taxable-equivalent
   adjustment                      22,468         21,283          20,338
  Net interest income - FTE     1,173,860      1,190,026       1,199,379
  Noninterest income              858,931        875,369         851,506
  Total revenue - FTE           2,032,791      2,065,395       2,050,885
  Securities (gains)/losses,
   net                             91,816         (5,858)           (104)
  Net gain on sale of RCM
   assets                               -              -               -
  Net gain on sale of Bond
   Trustee business              (112,759)             -               -
  Total revenue - FTE
   excluding securities
   (gains)/losses, net gain
   on sale of RCM assets and net
   gain on sale of Bond
   Trustee business (6)        $2,011,848     $2,059,537      $2,050,781

                                                 Three Months Ended
                                            December 31       September 30
                                                2005              2005

  NON-GAAP MEASURES PRESENTED IN THE
  EARNINGS RELEASE

  Net income                                  $518,471          $510,774
  Securities (gains)/losses, net of tax           (372)            1,283
  Net income excluding securities gains
   and losses                                  518,099           512,057
  The Coca-Cola Company dividend, net
   of tax                                      (12,027)          (12,028)
  Net income excluding securities
   (gains)/losses and The Coca-Cola
   Company dividend                           $506,072          $500,029

  Total average assets                    $175,769,140      $169,933,960
  Average net unrealized securities
   gains                                    (1,871,230)       (2,102,257)
  Average assets less net unrealized
   securities gains                       $173,897,910      $167,831,703

  Total average common shareholders'
   equity                                  $16,875,645       $16,822,919
  Average accumulated other
   comprehensive income                     (1,126,701)       (1,331,103)
  Total average realized common
   shareholders' equity                    $15,748,944       $15,491,816

  Return on average total assets                  1.17%             1.19%
  Impact of excluding net realized and
   unrealized securities (gains)/losses
   and The Coca-Cola Company dividend            (0.02)            (0.01)
  Return on average total assets less
   net unrealized securities gains (1)            1.15%             1.18%

  Return on average common
   shareholders' equity                          12.19%            12.05%
  Impact of excluding net realized and
   unrealized securities (gains)/
   losses and The Coca-Cola Company
   dividend                                       0.56              0.76
  Return on average realized common
   shareholders' equity (2)                      12.75%            12.81%

  Efficiency ratio (3)                           60.20%            58.62%
  Impact of excluding amortization of
   intangible assets                             (1.41)            (1.49)
  Tangible efficiency ratio (4)                  58.79%            57.13%

  Total shareholders' equity               $16,887,395       $16,717,750
  Goodwill                                  (6,835,168)       (6,841,631)
  Other intangible assets including
   mortgage servicing rights ("MSRs")       (1,122,967)       (1,112,873)
  Mortgage servicing rights                    657,604           613,467
  Tangible equity                           $9,586,864        $9,376,713

  Total assets                            $179,712,841      $172,416,096
  Goodwill                                  (6,835,168)       (6,841,631)
  Other intangible assets including
   MSRs                                     (1,122,967)       (1,112,873)
  Mortgage servicing rights                    657,604           613,467
  Tangible assets                         $172,412,310      $165,075,059

  Tangible equity to tangible assets (5)          5.56%             5.68%

  Noninterest income                          $797,923          $832,398
  Securities (gains)/losses, net                  (600)            2,069
  Net gain on sale of RCM assets                     -            (3,508)
  Net gain on sale of Bond Trustee
   business                                          -                 -
  Total noninterest income excluding
   securities (gains)/losses, net gain
   on sale of RCM assets and net gain
   on sale of Bond Trustee business (6)       $797,323          $830,959

  Net interest income                       $1,187,036        $1,156,661
  Taxable-equivalent adjustment                 20,025            19,081
  Net interest income - FTE                  1,207,061         1,175,742
  Noninterest income                           797,923           832,398
  Total revenue - FTE                        2,004,984         2,008,140
  Securities (gains)/losses, net                  (600)            2,069
  Net gain on sale of RCM assets                     -            (3,508)
  Net gain on sale of Bond Trustee
   business                                          -                 -
  Total revenue - FTE excluding
   securities (gains)/losses, net gain
   on sale of RCM assets and net
   gain on sale of Bond Trustee
   business (6)                             $2,004,384        $2,006,701


                                                   Nine Months Ended
                                            September 30      September 30
                                                 2006              2005

  NON-GAAP MEASURES PRESENTED IN THE
   EARNINGS RELEASE

  Net income                                  $1,611,117        $1,468,768
  Securities (gains)/losses, net of tax           53,229             4,808
  Net income excluding securities gains
   and losses                                  1,664,346         1,473,576
  The Coca-Cola Company dividend, net
   of tax                                        (39,950)          (36,083)
  Net income excluding securities
   (gains)/losses and The Coca-Cola
   Company dividend                           $1,624,396        $1,437,493

  Total average assets                      $179,631,675      $165,500,517
  Average net unrealized securities
   gains                                      (1,504,293)       (1,975,791)
  Average assets less net unrealized
   securities gains                         $178,127,382      $163,524,726

  Total average common shareholders'
   equity                                    $17,306,802       $16,408,550
  Average accumulated other
   comprehensive income                         (899,774)       (1,252,121)
  Total average realized common
   shareholders' equity                      $16,407,028       $15,156,429

  Return on average total assets                    1.20%             1.19%
  Impact of excluding net realized and
   unrealized securities (gains)/losses
   and The Coca-Cola Company dividend               0.02             (0.01)
  Return on average total assets less
   net unrealized securities gains (1)              1.22%             1.18%

  Return on average common
   shareholders' equity                            12.45%            11.97%
  Impact of excluding net realized and
   unrealized securities (gains)/
   losses and The Coca-Cola Company
   dividend                                         0.79              0.71
  Return on average realized common
   shareholders' equity (2)                        13.24%            12.68%

  Efficiency ratio (3)                             59.29%            60.02%
  Impact of excluding amortization of
   intangible assets                               (1.28)            (1.57)
  Tangible efficiency ratio (4)                    58.01%            58.45%

  Total shareholders' equity
  Goodwill
  Other intangible assets including
   mortgage servicing rights ("MSRs")
  Mortgage servicing rights
  Tangible equity

  Total assets
  Goodwill
  Other intangible assets including
   MSRs
  Mortgage servicing rights
  Tangible assets

  Tangible equity to tangible assets (5)

  Noninterest income                          $2,585,806        $2,357,121
  Securities (gains)/losses, net                  85,854             7,755
  Net gain on sale of RCM assets                       -           (23,382)
  Net gain on sale of Bond Trustee
   business                                     (112,759)                -
  Total noninterest income excluding
   securities (gains)/losses, net gain
   on sale of RCM assets and net gain
   on sale of Bond Trustee business (6)       $2,558,901        $2,341,494

  Net interest income                         $3,499,176        $3,391,930
  Taxable-equivalent adjustment                   64,089            55,467
  Net interest income - FTE                    3,563,265         3,447,397
  Noninterest income                           2,585,806         2,357,121
  Total revenue - FTE                          6,149,071         5,804,518
  Securities (gains)/losses, net                  85,854             7,755
  Net gain on sale of RCM assets                       -           (23,382)
  Net gain on sale of Bond Trustee
   business                                     (112,759)                -
  Total revenue - FTE excluding
   securities (gains)/losses, net gain
   on sale of RCM assets and net gain on
   sale of Bond Trustee business (6)          $6,122,166        $5,788,891


                                         Three Months Ended
                                                                  Sequential
                                 September 30    June 30     %    Annualized
                                     2006         2006     Change     % (7)

  AVERAGE LOW COST CONSUMER AND
   COMMERCIAL DEPOSIT
   RECONCILEMENT

  Noninterest-bearing deposits    $22,933,390  $23,857,990  (3.9)%  (15.5)%
  NOW accounts                     16,596,201   16,811,236  (1.3)    (5.1)
  Savings                           5,591,162    5,160,986   8.3     33.3
  Total average low cost consumer
   and commercial deposits        $45,120,753  $45,830,212  (1.5)%   (6.2)%

                                             Three Months Ended
                                        September 30  September 30     %
                                            2006          2005      Change

  AVERAGE LOW COST CONSUMER AND
   COMMERCIAL DEPOSIT RECONCILEMENT

  Noninterest-bearing deposits           $22,933,390   $24,521,452   (6.5)%
  NOW accounts                            16,596,201    16,853,139   (1.5)
  Savings                                  5,591,162     5,865,099   (4.7)
  Total average low cost consumer and
   commercial deposits                   $45,120,753   $47,239,690   (4.5)%

  (1) SunTrust presents a return on average assets less net unrealized gains
      on securities. The foregoing numbers reflect primarily adjustments to
      remove the effects of the Company's securities portfolio which
      includes the ownership by the Company of 48.3 million shares of The
      Coca-Cola Company. 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, by average assets less net unrealized
      securities gains.
  (2) The Company also 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 long term
      holding of a specific security. The return on average realized common
      shareholders' equity is computed by dividing annualized net income,
      excluding securities gains/losses and The Coca-Cola Company dividend,
      by average realized common shareholders' equity.
  (3) Computed by dividing noninterest expense by total revenue - FTE. The
      efficiency ratios are presented on an FTE basis. The FTE basis adjusts
      for the tax-favored status of net interest income from certain loans
      and investments. The Company believes this measure to be the preferred
      industry measurement of net interest income and it enhances
      comparability of net interest income arising from taxable and tax-
      exempt sources.
  (4) SunTrust presents a tangible efficiency ratio which excludes the cost
      of intangible assets. The Company believes this measure is useful to
      investors because, by removing the effect of intangible asset costs
      (the level of which may vary from company to company) it allows
      investors to more easily compare the Company's efficiency to other
      companies in the industry. This measure is utilized by management to
      assess the efficiency of the Company and its lines of business.
  (5) SunTrust presents a tangible equity to tangible assets ratio that
      excludes the impact of purchase accounting intangible assets. The
      Company believes this measure is useful to investors because, by
      removing the effect of intangible assets that result from merger and
      acquisition activity (the level of which may vary from company to
      company) it allows investors to more easily compare the Company's
      capital adequacy to other companies in the industry. This measure is
      used by management to analyze capital adequacy.
  (6) SunTrust presents total noninterest income and total revenue excluding
      realized securities gains/losses, the net gain on the sale of RCM
      assets and the net gain on the sale of the Bond Trustee business. The
      Company believes total noninterest income and total revenue without
      securities gains/losses is more indicative of the Company's
      performance because it isolates income that is primarily customer
      relationship and customer transaction driven. SunTrust further
      excludes the net gain on the sale of RCM assets and the net gain on
      the sale of the Bond Trustee business because the Company believes the
      exclusion of the net gains are more indicative of normalized
      operations.
  (7) Multiply percentage change by 4 to calculate sequential annualized
      change.


  SunTrust Banks, Inc. and Subsidiaries
  RECONCILEMENT OF NON-GAAP MEASURES
  APPENDIX A TO THE EARNINGS RELEASE, continued
  (Dollars in thousands) (Unaudited)

                                              Three Months Ended
                                  September 30     June 30       March 31
                                      2006           2006          2006

  SELECTED NON-GAAP MEASURES
  PRESENTED IN THE EARNINGS
  RELEASE (1)

  Noninterest expense              $1,205,499    $1,214,093    $1,226,491
  Merger expense                            -             -             -
  Noninterest expense excluding
   merger expense                  $1,205,499    $1,214,093    $1,226,491

  Noninterest expense              $1,205,499    $1,214,093    $1,226,491
  Amortization of intangible
   assets                             (25,792)      (25,885)      (27,245)
  Noninterest expense excluding
   amortization of intangible
   assets                          $1,179,707    $1,188,208    $1,199,246

  Return on average total assets         1.18%         1.21%         1.21%
  Impact of excluding merger
   expense                                  -             -             -
  Return on average total assets
   excluding merger expense (2)          1.18%         1.21%         1.21%

  Return on average common
   shareholders' equity                 12.10%        12.61%        12.64%
  Impact of excluding merger
   expense                                  -             -             -
  Return on average common
   shareholders' equity excluding
   merger expense (3)                   12.10%        12.61%        12.64%

  Efficiency ratio (4)                  59.30%        58.78%        59.80%
  Impact of excluding merger
   expense                                  -             -             -
  Efficiency ratio excluding
   merger expense                       59.30         58.78         59.80
  Impact of net gain on sale of
   RCM assets                               -             -             -
  Impact of securities
   gains/(losses), net                  (2.56)         0.17          0.01
  Impact of net gain on sale of
   Bond Trustee business                 3.18             -             -
  Efficiency ratio excluding
   merger expense, net gain on
   sale of RCM assets, securities
   gains/(losses) and net gain
   on sale of Bond Trustee business     59.92%        58.95%        59.81%

  Tangible efficiency ratio (5)         58.03%        57.53%        58.47%
  Impact of excluding merger
   expense                                  -             -             -
  Tangible efficiency ratio
   excluding merger expense             58.03         57.53         58.47
  Impact of net gain on sale of
   RCM assets                               -             -             -
  Impact of securities
   gains/(losses), net                  (2.50)         0.16          0.01
  Impact of net gain on sale of
   Bond Trustee business                 3.11             -             -
  Tangible efficiency ratio
   excluding merger expense, net
   gain on sale of RCM
   assets, securities
   gains/(losses) and net
   gain on sale of Bond
   Trustee business                     58.64%        57.69%        58.48%

                                              Three Months Ended
                                           December 31       September 30
                                                2005              2005

  SELECTED NON-GAAP MEASURES PRESENTED
  IN THE EARNINGS RELEASE (1)

  Noninterest expense                       $1,206,927        $1,177,071
  Merger expense                                (6,538)          (12,104)
  Noninterest expense excluding merger
   expense                                  $1,200,389        $1,164,967

  Noninterest expense                       $1,206,927        $1,177,071
  Amortization of intangible assets            (28,192)          (29,737)
  Noninterest expense excluding
   amortization of intangible assets        $1,178,735        $1,147,334

  Return on average total assets                  1.17%             1.19%
  Impact of excluding merger expense              0.01              0.02
  Return on average total assets
   excluding merger expense (2)                   1.18%             1.21%

  Return on average common
   shareholders' equity                          12.19%            12.05%
  Impact of excluding merger expense              0.09              0.17
  Return on average common
   shareholders' equity excluding
   merger expense (3)                            12.28%            12.22%

  Efficiency ratio (4)                           60.20%            58.62%
  Impact of excluding merger expense             (0.33)            (0.61)
  Efficiency ratio excluding merger
   expense                                       59.87             58.01
  Impact of net gain on sale of RCM
   assets                                            -              0.10
  Impact of securities gains/(losses),
   net                                            0.02             (0.06)
  Impact of net gain on sale of Bond
   Trustee business                                  -                 -
  Efficiency ratio excluding merger
   expense, net gain on sale of RCM
   assets, securities gains/(losses) and
   net gain on sale of Bond Trustee business     59.89%            58.05%

  Tangible efficiency ratio (5)                  58.79%            57.13%
  Impact of excluding merger expense             (0.33)            (0.60)
  Tangible efficiency ratio excluding
   merger expense                                58.46             56.53
  Impact of net gain on sale of RCM
   assets                                            -              0.10
  Impact of securities gains/(losses),
   net                                            0.02             (0.06)
  Impact of net gain on sale of Bond
   Trustee business                                  -                 -
  Tangible efficiency ratio excluding
   merger expense, net gain on sale of
   RCM assets, securities gains/(losses)
   and net gain on sale of Bond Trustee
   business                                      58.48%            56.57%


                                                   Nine Months Ended
                                           September 30      September 30
                                                2006              2005

  SELECTED NON-GAAP MEASURES PRESENTED
  IN THE EARNINGS RELEASE (1)

  Noninterest expense                       $3,646,083        $3,483,802
  Merger expense                                     -           (92,104)
  Noninterest expense excluding merger
   expense                                  $3,646,083        $3,391,698

  Noninterest expense                       $3,646,083        $3,483,802
  Amortization of intangible assets            (78,922)          (90,772)
  Noninterest expense excluding
   amortization of intangible assets        $3,567,161        $3,393,030

  Return on average total assets                  1.20%             1.19%
  Impact of excluding merger expense                 -              0.04
  Return on average total assets
   excluding merger expense (2)                   1.20%             1.23%

  Return on average common
   shareholders' equity                          12.45%            11.97%
  Impact of excluding merger expense                 -              0.46
  Return on average common
   shareholders' equity excluding
   merger expense (3)                            12.45%            12.43%

  Efficiency ratio (4)                           59.29%            60.02%
  Impact of excluding merger expense                 -             (1.59)
  Efficiency ratio excluding merger
   expense                                       59.29             58.43
  Impact of net gain on sale of RCM
   assets                                            -              0.24
  Impact of securities gains/(losses),
   net                                           (0.83)            (0.08)
  Impact of net gain on sale of Bond
   Trustee business                               1.10                 -
  Efficiency ratio excluding merger
   expense, net gain on sale of RCM
   assets, securities gains/(losses) and
   net gain on sale of Bond Trustee business     59.56%            58.59%

  Tangible efficiency ratio (5)                  58.01%            58.45%
  Impact of excluding merger expense                 -             (1.59)
  Tangible efficiency ratio excluding
   merger expense                                58.01             56.86
  Impact of net gain on sale of RCM
   assets                                            -              0.24
  Impact of securities gains/(losses),
   net                                           (0.81)            (0.08)
  Impact of net gain on sale of Bond
   Trustee business                               1.07                 -
  Tangible efficiency ratio excluding
   merger expense, net gain on sale of
   RCM assets, securities gains/(losses)
   and net gain on sale of Bond Trustee
   business                                      58.27%            57.02%

  (1) SunTrust presents selected financial data on a basis that excludes
      merger expense, which represents incremental costs to integrate the
      operations of National Commerce Financial ("NCF"). The Company also
      presents selected financial data that further excludes the net gain
      related to the sale of RCM assets and the net gain on the sale of the
      Bond Trustee business. The Company believes the exclusion of these
      measures is more reflective of normalized operations. In addition, the
      Company presents measures that exclude realized securities
      gains/losses. Management believes it is more indicative of the
      Company's performance because it isolates income that is primarily
      customer relationship and customer transaction driven.
  (2) Computed by dividing annualized net income excluding merger expense
      by average total assets.
  (3) Computed by dividing annualized net income excluding merger expense
      by average common shareholders' equity.
  (4) 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.
  (5) SunTrust presents a tangible efficiency ratio which excludes the cost
      of intangible assets. The Company believes this measure is useful to
      investors because, by removing the effect of 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.

FIRST AND FINAL ADD -- TABULAR INFORMATION -- TO FOLLOW
FCMN Contact: michael.mccoy@suntrust.com

SOURCE: SunTrust Banks, Inc.

CONTACT: Investors: Greg Ketron, +1-404-827-6714, or Media: Barry Koling,
+1-404-230-5268


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