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SunTrust Reports First Quarter Earnings of $0.81 Per Share

Credit Costs Impact Results as Company Points to Underlying Progress and Financial Strength

PRNewswire-FirstCall
ATLANTA
Apr 22, 2008

SunTrust Banks, Inc. today reported net income available to common shareholders for the first quarter of 2008 of $283.6 million, or $0.81 per average common diluted share, compared to $513.9 million, or $1.44 per average common diluted share, in the first quarter of 2007. Growth in the balance sheet and core business revenues coupled with disciplined expense management were more than offset by increased credit costs associated with the continued deterioration in the housing market, as well as net mark-to-market valuation losses related to certain asset-backed securities. Positively impacting the quarter were gains from the Company's interest in Visa, Inc. ("Visa") and prior decisions to sell its remaining interest in Lighthouse Investment Partners and certain bank-owned real estate.

"Growth in credit costs associated with the residential real estate correction continued to take a toll in the first quarter; further, the backdrop of emerging recession fears clouds the near-term outlook. However, SunTrust is financially strong, with ample liquidity, adequate capital, and a solid balance sheet, and we are effectively managing through this difficult economic environment. Perhaps most importantly, we are encouraged by underlying progress in key business lines, good deposit and some modest loan growth, and the positive impact of improved expense discipline. Given the success we are achieving in our E2 Efficiency and Productivity program, we have increased our 2008 savings estimate to $500 million, up $150 million from our previous estimate. Economic uncertainty notwithstanding, we remain confident in the validity of our strategies, our execution of those strategies, and the growth potential within our existing businesses and markets," said James M. Wells III, President and Chief Executive Officer of SunTrust.

As the deterioration of residential real estate markets continued in the first quarter of 2008, the Company increased its provision for loan losses to $560 million, increasing the ratio of allowance to total loans outstanding to 1.25% as of March 31, 2008. Annualized net charge-offs for the quarter of 0.97% of average loans were principally related to loans secured by residential real estate. The increase in the allowance for loan and lease losses was also attributable to an increase in expected losses in the existing residential mortgage, home equity lines of credit, and residential construction portfolios.

During the quarter, the Company also recognized approximately $163.7 million in net valuation losses. The losses pertained primarily to mark-to- market valuation adjustments on trading assets and loan warehouses, as well as certain asset-backed securities that are classified as available for sale, net of gains on the Company's public debt carried at fair value and related hedges. The unrealized loss on certain available for sale securities was recognized through earnings, as the assets were deemed to be other-than-temporarily impaired, thus triggering an accounting recognition of the losses. The after- tax earnings impact of the net valuation losses was $101.5 million, or $0.29 per diluted common share. Through sales, maturities and pay downs, the Company has reduced its exposure to these distressed assets by over $1.0 billion since the end of 2007, leaving the quarter-end exposure at approximately $1.6 billion. The Company continues to actively evaluate its holdings of these specific securities with an objective of continuing to lower its exposure to such assets.

  First Quarter 2008 Consolidated Highlights:

                                      1st Quarter   1st Quarter       %
                                          2008          2007        Change
  Income Statement
  (Dollars in millions, except
   per share data)
  Net income available to
   common shareholders                   $283.6        $513.9       (44.8)%
  Net income per average
   common diluted share                    0.81          1.44       (43.8)%
  Revenue - fully taxable-
   equivalent                           2,225.3       2,067.2         7.6%
  Net interest income -
   fully taxable equivalent             1,167.8       1,188.3        (1.7)%
  Provision for loan losses               560.0          56.4       892.2%

  Noninterest income                    1,057.5         878.9        20.3%
  Noninterest expense                   1,255.1       1,236.0         1.5%
  Net interest margin                      3.07%         3.02%
  Efficiency ratio                        56.40%        59.79%

  Balance Sheet
  (Dollars in billions)
  Average loans                          $123.3        $121.5         1.4%
  Average consumer and
   commercial deposits                    101.2          97.8         3.5%

  Capital
  Tier 1 capital ratio (1)                 7.25%         7.60%
  Total average shareholders'
   equity to total average assets         10.21%         9.76%
  Tangible equity to tangible assets       6.53%         5.97%

  Asset Quality
  Net charge-offs to average
   loans (annualized)                      0.97%         0.21%
  Nonperforming loans to total loans       1.67%         0.57%

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



  -- Net income available to common shareholders decreased 44.8% and net
     income per average common diluted share decreased 43.8% from the first
     quarter of 2007 primarily due to higher provision for loan losses.
  -- Fully taxable-equivalent revenue increased 7.6% compared to the first
     quarter of 2007, as growth in noninterest income more than offset a
     decline in net interest income.
  -- Fully taxable-equivalent net interest income declined 1.7% from the
     first quarter of 2007, despite a five basis point improvement in margin,
     as earning assets declined 4.1% due to a reduction in interest earning
     trading assets.  Both the increase in margin and the decrease in
     interest earning trading assets were a result of balance sheet
     management strategies.
  -- Noninterest income increased 20.3% from the first quarter of 2007,
     driven by double digit growth in service charges on deposit accounts,
     retail investment services, investment banking, and card fees.  Net
     market valuation losses were offset by gains related to the Company's
     interest in Visa, gain on the sale of its remaining 24.9% interest in
     Lighthouse Investment Partners, and the gain on the sale/leaseback of
     certain bank-owned branches and office buildings.
  -- Noninterest expense increased 1.5% from the first quarter of 2007 and
     declined 13.8% compared to the fourth quarter of 2007.  During the
     first quarter of 2008, the Company reversed $39.1 million of Visa
     litigation expense that was recorded in the fourth quarter of 2007 and
     incurred $11.7 million in debt extinguishment costs.  Year-over-year
     core expense growth remained well controlled and would have declined if
     not for $35.9 million in higher credit-related expenses.
  -- The effective income tax rate for the first quarter of 2008 was 24.0%
     due to lower pre-tax income and the release of tax reserves in
     conjunction with the settlement of certain tax positions.
  -- Total average loans increased 1.4% from the first quarter of 2007.  The
     increase in average loans was due to growth in the commercial (C&I)
     loan portfolio, partially offset by declines in real estate 1-4 family
     and construction loans as a result of loan sales in the second quarter
     of 2007 associated with specific balance sheet management strategies
     and risk management tactics, respectively.  Average consumer and
     commercial deposits increased 3.5% over the first quarter of 2007.  The
     increase in average consumer and commercial deposits was driven mainly
     by growth in NOW and money market account balances.
  -- The estimated Tier 1 capital, total average shareholders' equity to
     total average assets, and tangible equity to tangible asset ratios were
     7.25%, 10.21%, and 6.53%, respectively.  The Company maintains a Tier 1
     capital ratio target of 7.5%.
  -- Annualized net charge-offs were 0.97% of average loans for the first
     quarter of 2008, up from 0.21% in the first quarter of 2007 and 0.55%
     in the fourth quarter of 2007.  The increase reflects deterioration in
     consumer credit, particularly in residential real estate secured loans.
  -- Nonperforming loans to total loans increased to 1.67% as of March 31,
     2008, from 1.19% as of December 31, 2007 and 0.57% as of March 31, 2007,
     due mainly to increased levels of residential real estate secured loans
     and residential real estate construction loans.


  CONSOLIDATED FINANCIAL PERFORMANCE

  Revenue

Fully taxable-equivalent revenue was $2,225.3 million for the first quarter of 2008, an increase of 7.6% compared to the first quarter of 2007, driven by gains from the Company's interest in Visa, gains on the sale of certain non-strategic assets, and double digit growth in many of the fee- related core business products. These gains more than offset a slight decline in net interest income and net mark-to-market valuation losses.

Net Interest Income

Fully taxable-equivalent net interest income was $1,167.8 million in the first quarter of 2008, a decrease of 1.7% from the first quarter of 2007, despite a five basis point improvement in margin, as earning assets declined 4.1% due to a reduction in interest earning trading assets. Both the increase in margin and the decrease in interest earning trading assets were a result of balance sheet management strategies. On a sequential quarter basis, net interest margin was down six basis points. The decline was driven by the impact of benchmark interest rate reductions on earning asset yields that exceeded reductions in rates paid on interest-bearing deposits.

Noninterest Income

Total noninterest income was $1,057.5 million for the first quarter of 2008, up $178.6 million, or 20.3%, from the first quarter of 2007. Included in the first quarter of 2008 were the following transaction-related gains:

  -- $89.4 million from the gain on sale of Lighthouse Investment Partners
  -- $86.3 million from the Visa initial public offering
  -- $37.0 million from the sale/leaseback of corporate owned real estate


During the quarter, the Company also recorded approximately $287 million in market valuation losses related primarily to investments in asset-backed securities that were acquired in late 2007 and other trading and securitization activities. These losses were recorded primarily in trading account profits and commissions, which declined $62.0 million, or 68.7%, from first quarter of 2007 and also included approximately $240 million of valuation gains recorded on the Company's publicly-traded debt net of associated hedges carried at fair value. In the first quarter of 2007, trading account profit and commissions income included $81.0 million in market valuation gains related to trading assets and liabilities and related hedges that the Company elected to record at fair value. Underlying growth in trading account profit and commissions income in the first quarter of 2008 as compared to the first quarter of 2007 was due to increased core client activity, primarily in derivative sales. Securities gains/losses in the first quarter of 2008 included $64.1 million in market value impairment related primarily to certain asset-backed securities that were classified as available for sale and estimated to be other-than-temporarily impaired at quarter end, triggering accounting recognition of the unrealized loss in current period earnings.

Mortgage production income was $85.5 million in the first quarter of 2008 compared to a loss of $8.7 million in the first quarter of 2007. The increase was due to higher margins on current mortgage production, as well as certain changes in accounting methodologies. Specifically, application of Staff Accounting Bulletin 109 (SAB 109) accelerated the recognition of servicing value to the date of the interest rate lock commitment in 2008, and in connection with the Company's second quarter of 2007 election to record at fair value certain newly-originated mortgage loans held for sale, the recognition of loan fees were accelerated in 2008 to the date of closing. The first quarter of 2008 included $52.6 million in market value declines in mortgages held for sale, while the first quarter of 2007 included $42.2 million of income reductions related to the Company's adoption of the fair value accounting standards and $26.6 million of losses related to Alt-A loan valuations.

In the first quarter of 2008, the Company experienced strong growth in the following noninterest income categories: service charges on deposit accounts increased 12.1%, retail investment services increased 13.8%, card fees increased 14.9%, and investment banking income increased 10.5%. Trust and investment management income decreased 7.6% compared to the first quarter of 2007, which reflects the sale of Lighthouse Investment Partners on January 2, 2008. The first quarter of 2007 results included a $32.3 million gain on sale upon merger of Lighthouse Partners.

Noninterest Expense

Total noninterest expense in the first quarter of 2008 was $1,255.1 million, up $19.1 million, or 1.5%, from the first quarter of 2007 and down $200.2 million, or 13.8%, on a sequential quarter basis as the Company recognized the benefits of its cost savings from the E2 Efficiency and Productivity program. Personnel expenses in the first quarter of 2008 increased $16.1 million, or 2.3%, from the same period in 2007; however, personnel expenses would have declined if not for a $34.5 million impact related to loan origination costs that were deferred prior to the Company's election to record at fair value certain newly-originated mortgage loans held for sale. Total personnel declined from 33,397 as of March 31, 2007 to 31,745 as of March 31, 2008. Compared to the fourth quarter of 2007, personnel expense increased $32.3 million, or 4.7%, primarily due to the seasonal increase in Company paid payroll taxes and 401(k) matching contributions. Other expenses included in the first quarter of 2008 included an $11.7 million net cost of early retirement of debt and a $35.9 million increase in credit- related expenses such as collection services, valuation losses on other real estate owned, and mortgage fraud related losses. The first quarter of 2008 also included a $39.1 million reversal of a portion of the accrued liability associated with Visa litigation for which the Company recorded $76.9 million in the fourth quarter of 2007.

Balance Sheet

As of March 31, 2008, SunTrust had total assets of $179.0 billion. Shareholders' equity of $18.4 billion as of March 31, 2008, represented 10.3% of total assets. Book value per common share was $51.26 as of March 31, 2008.

Loans

Average loans for the first quarter of 2008 were $123.3 billion, up $1.7 billion, or 1.4%, from the first quarter of 2007. The increase was primarily in commercial loans, as average residential real estate and consumer loans declined as a result of balance sheet management strategies, while construction declined due to slowing residential building activity and Company efforts to reduce exposure. Compared to the fourth quarter of 2007, average loans were up $2.2 billion, or 7.2%, on a sequential annualized basis, primarily driven by commercial loan growth.

Deposits

Average consumer and commercial deposits for the first quarter of 2008 were $101.2 billion, up 3.5% from the first quarter of 2007, as increases in NOW and money market deposits were partially offset by declines in demand deposit and savings account balances. Average total brokered and foreign deposits declined 42.1% from the first quarter of 2007, as the Company strategically reduced the size of its earning assets, thereby enabling the reduction of these higher cost funding sources and substantially improving the Company's liquidity position.

On a sequential annualized basis, average consumer and commercial deposits increased 6.1% from the fourth quarter of 2007, driven by growth in NOW and money market account balances as a result of marketing campaigns and customers' increased preference for the safety of insured deposit products. This growth offset declines in demand and savings deposit balances.

Capital

The estimated Tier 1 capital, total average shareholders' equity to total average assets, and tangible equity to tangible asset ratios at March 31, 2008, were 7.25%, 10.21%, and 6.53%, respectively. Tier 1 capital decreased 35 basis points compared to March 31, 2007, while the total average shareholders' equity to total average assets and tangible equity to tangible asset ratios increased 45 and 56 basis points, respectively. Compared to December 31, 2007, Tier 1 capital increased 32 basis points due to the issuance of Tier 1 qualifying enhanced trust preferred securities which primarily replaced securities retired in the third and fourth quarters of 2007. The Company's regulatory capital ratios are in excess of the regulatory requirements for well capitalized status. The Company maintains its established Tier 1 capital ratio target of 7.5%.

The Company's current Tier 1 capital level does not include the benefit of the equity value of its common stock holdings in The Coca-Cola Company ("Coke"), as SunTrust does not receive regulatory credit for the equity value of this position. As SunTrust has stated, the Company anticipates completing transactions related to this position in the second quarter of 2008 which will generate approximately $1 billion of Tier 1 capital or approximately 65 basis points of capital. The process that the Company embarked upon in 2007 is designed to result in a regulatory capital benefit from the holdings. In addition, as SunTrust management has indicated, this process is entirely focused on increasing the capital efficiency of this position and does not relate to SunTrust's view of the current value of the Coke stock, nor its positive view of the long-term prospects of the company.

Asset Quality

Annualized net charge-offs in the first quarter of 2008 were 0.97% of average loans, up from 0.21% in the first quarter of 2007 and 0.55% in the fourth quarter of 2007. Net charge-offs were $297.2 million in the first quarter of 2008, as compared to $62.9 million in the first quarter of 2007 and $168.0 million in the fourth quarter of 2007. The increase in net charge-offs over the first quarter of 2007 reflects deterioration in consumer credit, particularly in residential real estate secured loans. The increase in net charge-offs in 2008 was most pronounced in home equity and residential mortgages.

Nonperforming loans were $2,068.7 million, or 1.67%, of total loans, as of March 31, 2008, compared to $1,460.3 million, or 1.19%, of total loans, as of December 31, 2007, and $665.1 million, or 0.57%, of total loans, as of March 31, 2007. The increase in nonperforming loans was mainly due to an increase in residential mortgage and real estate construction loans as the overall weakening of the housing markets and economy continued to increase delinquencies.

The allowance for loan and lease losses increased $262.8 million from December 31, 2007, to $1,545.3 million as of March 31, 2008. The increase in the allowance for loan and lease losses was attributable to the deterioration in certain segments of the consumer and residential real estate market, and contributed to the $203.2 million increase in provision for loan losses compared to the fourth quarter of 2007. The allowance for loan and lease losses as of March 31, 2008, represented 1.25% of period-end total loans compared to 1.05% as of December 31, 2007. The allowance for loan and lease losses as of March 31, 2008 represented 75% of period-end nonperforming loans of which over 63% were mortgages secured by residential real estate.

LINE OF BUSINESS FINANCIAL PERFORMANCE

The following discussion details results for SunTrust's four business lines: Retail and Commercial Banking, Wholesale Banking, Mortgage, and Wealth and Investment Management. All revenue is reported on a fully taxable-equivalent basis. Previously, the Company had five business segments. The segment reporting structure was adjusted to align with the recently modified organizational structure that better aligns with serving clients' needs. For the lines of business, results include net interest income which is computed using matched-maturity funds transfer pricing. Further, provision for loan losses is represented by net charge-offs.

SunTrust also reports results for Corporate Other and Treasury, which includes the Treasury department as well as the residual expense associated with operational and support expense allocations. This segment also includes differences created between internal management accounting practices and Generally Accepted Accounting Principles, certain matched-maturity funds transfer pricing credits and charges, differences in provision expense compared to net charge-offs, as well as equity and its related impact.

  Retail and Commercial Banking

  Three Months Ended March 31, 2008 vs. 2007

Retail and Commercial Banking net income for the first quarter of 2008 was $96.7 million, a decrease of $107.3 million, or 52.6%, compared to the first quarter of 2007. This decrease was primarily the result of higher provision expense due to home equity related charge-offs, lower net interest income driven by a continued shift in deposit mix and decreased spreads, partially offset by higher noninterest income driven by an increase in service charges on deposits.

Net interest income decreased $81.0 million, or 11.4%, mainly driven by the continued shift in deposit mix and decreased spreads as deposit competition and the interest rate environment encouraged customers to migrate into higher yielding interest-bearing deposits. Average loan balances declined $1.0 billion, or 1.9%, with the movement of Middle Market clients to the Wholesale Banking segment decreasing loans by approximately $2.0 billion. Remaining loan growth was driven by commercial loans and equity lines.

Provision for loan losses increased $129.1 million over the same period in 2007. The provision increase was most pronounced in home equity lines and loans reflecting the negative impact from the current deterioration in certain segments of the consumer portfolio, primarily related to the residential real estate market.

Total noninterest income increased $25.7 million, or 8.8%, from the first quarter of 2007. This increase was driven primarily by an $18.9 million, or 11.4%, increase in service charges on deposits related to both consumer and business accounts.

Total noninterest expense declined $13.2 million, or 2.1%, from the first quarter of 2007 with the transfer of the Middle Market business to Wholesale Banking being responsible for $5.5 million of the decline. The remainder of the decline reflects the continuing impact of expense savings initiatives, offset primarily by investments in the branch distribution network.

  Wholesale Banking

  Three Months Ended March 31, 2008 vs. 2007

Wholesale Banking reported net income of $86.2 million for the first quarter of 2008, a decrease of $6.3 million, or 6.8%, compared to the first quarter of 2007. An increase in net income due to the movement of Middle Market clients into Wholesale Banking was offset by lower net interest income and higher provision for loan losses.

Net interest income decreased $5.7 million, or 4.0%. Average loan balances increased $3.1 billion, or 10.5%, while the corresponding net interest income was virtually unchanged due to a decline in the higher spread residential builder portfolio and increased levels of real estate related nonaccrual loans. The increase in average loan balances includes an approximate $2.0 billion impact from the migration of Middle Market balances to Wholesale Banking. The remainder of Wholesale Banking's loan growth of approximately $1.2 billion, or 4.0%, was despite a $1.9 billion structured asset sale of corporate loans in the first quarter of 2007. The additional loan growth was driven by corporate banking, partially offset by declining loan balances in the residential builder portfolio. Total average deposits were up $3.7 billion, or 79.2%; however, net interest income decreased $3.2 million. Higher cost corporate money market balances increased $3.1 billion while the resulting net interest income increased $1.8 million. Interest income from demand deposits was down $4.6 million due to slightly lower balances and the impact of the lower rate environment on the value of these deposits.

Provision for loan losses was $12.3 million, an increase of $9.5 million from the same period in 2007, driven primarily by higher residential builder related charge-offs.

Total noninterest income increased $4.8 million, or 2.8%. The migration of Middle Market clients into Wholesale Banking accounted for $4.4 million of the growth while the remaining Wholesale Banking increased $0.4 million, or 0.2%. Solid performances in fixed income sales and trading, derivatives, bond originations, structured leasing, and equity capital markets were offset, in part, by lower revenues from securitization and loan syndications, as well as lower income related to the structured asset sale in the first quarter of 2007.

Total noninterest expense increased $8.9 million, or 4.7%. Expense associated with Middle Market relationship management accounted for $5.6 million, or over 60% of the noninterest expense increase. The remaining $3.4 million was driven by higher incentive-based compensation expenses primarily related to increased fixed income and equity sales and trading revenue, increased Affordable Housing related expenses, and higher outside processing costs.

  Mortgage

  Three Months Ended March 31, 2008 vs. 2007

Mortgage reported a net loss of $31.4 million for the first quarter of 2008, a decrease in income of $38.3 million compared to the first quarter of 2007. The decrease resulted from higher credit related costs that were partially offset by the impact of adopting new accounting standards and by higher margins in secondary marketing in the first quarter of 2008.

Net interest income for the first quarter increased $0.9 million, or 0.7%, due to higher income from mortgage loans held for sale, mortgage backed securities and deposits offset by lower income on loans held for investment and increased funding cost of nonearning assets. Total average loans, principally residential mortgage and residential construction loans, decreased $0.4 billion, or 1.2%. The decline in average loans was partially due to the Company's balance sheet management strategies that included the transfer of $4.1 billion of portfolio loans to loans held for sale at the end of first quarter 2007. The effect of the transfer has been substantially offset by new loan originations. Lower loan portfolio balances, declining spreads, and increased nonaccrual loans resulted in lower loan-related net interest income of $15.4 million. Average nonearning assets increased $0.7 billion over the first quarter of 2007. Funding of these assets lowered net interest income by $6.7 million. Average loans held for sale declined $4.3 billion, or 43.4%. However, higher spreads increased net interest income by $14.6 million. Additionally, average investment securities, which were up $3.6 billion, contributed $8.7 million to net interest income, and deposits, which were up $0.3 billion, contributed $1.2 million to net interest income.

Provision for loan losses increased $88.0 million, driven by higher residential mortgage and residential construction charge-offs.

Total noninterest income increased $93.6 million. This increase was driven by the adoption of new accounting standards, which impacted the timing of recognizing origination fees and servicing value and improved secondary marketing margins. The increases were partially offset by valuation adjustments on loans held for sale and lower servicing income. Loan production of $11.7 billion was down $3.1 billion, or 20.9%; however, mortgage production income was up $104.4 million. In 2007, income was reduced by $42.2 million resulting from the adoption of SFAS 157. Additionally, loan fees increased $32.9 million in the first quarter of 2008 due to the recognition of loan fees that were previously deferred prior to the May 2007 fair value election under SFAS 159 for certain newly-originated loans. Newly adopted accounting standards related to the recognition of loan servicing value at the time of interest rate lock commitment in the first quarter of 2008 contributed $18.3 million to production income during the quarter. Servicing income declined $6.0 million, principally due to higher MSR amortization that was only partially offset by higher fees resulting from an increased servicing portfolio. Total loans serviced at March 31, 2008 were $155.5 billion, up 12.1% from March 31, 2007. Noninterest income was also impacted by $8.5 million of net securities losses related to market value impairment on asset-backed securities deemed to be other-than-temporarily impaired.

Total noninterest expense increased $67.9 million, or 44.6%. Drivers of the increase were higher loan origination costs, higher operating losses and increased credit costs related to collections and other real estate. Loan origination expense was up $37.0 million due to recognition of loan origination costs on certain newly originated mortgage loans that were previously deferred. Operating losses recorded in the first quarter of 2008 were higher due to loan application fraud from customer misstatements of income or assets primarily on Alt-A products originated in prior periods.

  Wealth and Investment Management

  Three Months Ended March 31, 2008 vs. 2007

Wealth and Investment Management's net income for the first quarter of 2008 was $104.2 million, an increase of $36.2 million, or 53.1%, compared to the first quarter of 2007. The increase was driven by approximately $33 million of incremental net income generated by the sale of the Company's investment in Lighthouse Partners. In the first quarter of 2007, the Company's investment in Lighthouse Partners generated $22.4 million of net income, which included a $20.1 million after-tax gain resulting from the gain on sale upon merger of Lighthouse Partners into Lighthouse Investment Partners, the entity that was serving as the sub-advisor to the Lighthouse funds. This transaction resulted in the Company maintaining a 24.9% minority interest in the combined entity. In the first quarter 2008, SunTrust recorded a $55.4 million after tax gain on the merger of Lighthouse Investment Partners with HFA Holdings, an Australian fund manager, in exchange for the Company's 24.9% minority interest in the firm. Additional increases in net income primarily resulted from lower noninterest expense and higher retail investment and trust income, offset by lower net interest income primarily from deposits.

Net interest income decreased $10.2 million, or 11.3%, primarily due to a continued shift in deposit mix to higher cost deposits. Average deposits were practically unchanged as declines in demand deposit and certain money market accounts were offset by increases in higher-cost NOW accounts and time deposits. This shift in deposit mix coupled with compressed spreads due to increased competition for deposits resulted in a $7.9 million decrease in net interest income. Average loans decreased $306.1 million, or 3.7%, reducing net interest income $0.4 million. The decline in average loans was driven by lower consumer and commercial real estate balances.

Provision for loan losses increased $4.1 million primarily due to higher home equity, personal credit line and consumer mortgage net charge-offs.

Total noninterest income increased $45.7 million, or 16.0%, compared to the first quarter of 2007 driven by $39.0 million of incremental revenue from the sale of the Company's Lighthouse Partners investment. Retail investment income increased $7.7 million, or 12.4%, due to strong annuity sales and higher recurring managed account fees. Trust income, excluding Lighthouse Partners, increased $4.3 million, or 2.7%. As of March 31, 2008, assets under management were approximately $140.4 billion compared to $137.2 billion as of March 31, 2007. Assets under management include individually managed assets, the Ridgeworth Funds, institutional assets managed by Ridgeworth Capital Management, and participant-directed retirement accounts as of March 31, 2008. SunTrust's total assets under advisement were approximately $248.3 billion, which includes $140.4 billion in assets under management, $63.9 billion in non-managed trust assets, $39.3 billion in retail brokerage assets, and $4.7 billion in non-managed corporate trust assets.

Total noninterest expense decreased $25.4 million, or 9.5%, driven by lower salaries, discretionary expense, and allocated overhead and operations costs, as well as lower structural expense resulting from the sale of Lighthouse Partners.

  Corporate Other and Treasury

  Three Months Ended March 31, 2008 vs. 2007

Corporate Other and Treasury's net income for the first quarter of 2008 was $34.7 million, a decrease of $115.1 million, or 76.8%, compared to the first quarter of 2007 driven by an increased provision for loan losses and securities losses. This decreases was partially offset by an increase in net interest income due to favorable net gains on hedges, an increase in noninterest income due to a gain on the Visa initial public offering, gains from the sale/leaseback of corporate real estate properties, and a decrease in noninterest expenses due to the reversal of a portion of the accrued liability associated with the Visa litigation.

Net interest income in the first quarter of 2008 increased $75.6 million, or 66.1%, over the same period in 2007 mainly due to interest rate hedging activities and an increase in net interest income due to balance sheet management strategies executed in the second quarter of last year. These strategies improved the yield on the securities portfolio and delevered the balance sheet, thereby reducing reliance on higher-cost wholesale funding. Total average assets decreased $8.4 billion, or 26.7%, mainly due to the reduction in size of the investment portfolio. Total average deposits decreased $11.6 billion, or 42.8%, mainly due to a decrease in brokered and foreign deposits, as the Company reduced its reliance on wholesale funding sources.

Provision for loan losses, which predominantly represents the difference between consolidated provision for loan losses and net charge-offs for the lines of business, increased $272.9 million in conjunction with an increase in the allowance for loan losses due to the further deterioration in the residential real estate market and consumer credit quality.

Total noninterest income increased $8.8 million, or 9.4%, in the first quarter of 2008 compared to the same period in 2007. In the first quarter of 2008, the Company recognized approximately $240 million of valuation gains recorded on the Company's publicly traded debt carried at fair value. The Company also realized an $86.3 million gain from the Visa initial public offering and $37.0 million gain from the sale/leaseback of real estate properties. These gains were offset by securities gains/losses in the first quarter of 2008 which included $55.6 million in market value impairment related primarily to certain asset-backed securities that were classified as available for sale and estimated to be other-than-temporarily impaired, triggering accounting recognition of the unrealized loss in current period earnings. There were also an additional $239 million in trading losses in the first quarter of 2008 versus a $74.3 million gain in the first quarter of 2007. These mark-downs reflect the lack of liquidity in the market for these securities and deterioration in the credit quality of some of the underlying assets.

Total noninterest expense decreased $19.1 million compared to the first quarter of 2007. The decrease in expenses was mainly due to a $39.1 million reversal of a portion of the accrued liability associated with the Visa litigation. This decrease was partially offset by the recognition of $11.7 million of net cost related to the early retirement of debt and an increase of $9.8 million in advertising cost related to the "My Cause" advertisement campaign.

Corresponding Financial Tables and Information

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

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

Conference Call

SunTrust management will host a conference call on April 22, 2008, 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: 1Q08). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 1Q08). A replay of the call will be available beginning April 22, 2008, and ending May 6, 2008, by dialing 1-800-333-1859 (domestic) or 1-402-220-0205 (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, "1st Quarter Earnings Release." Beginning the afternoon of April 22, 2008, listeners may access an archived version of the webcast in the "Webcasts and Presentations" subsection found under "Investor Relations." This webcast will be archived and available for one year. A link to the Investor Relations page is also found in the footer of the SunTrust home page.

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

Forward-Looking Statements

This news release may contain forward-looking statements. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These statements often include the words "may," "could," "will," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "initiatives," "targets," "potentially," "probably," "projects," "outlook" or similar expressions. Such statements are based upon the current beliefs and expectations of SunTrust's management, and on information currently available to management, and speak as of the date hereof. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause SunTrust's results to differ materially from those described in the forward-looking statements can be found in the Company's 2007 Annual Report on Form 10-K, in the Quarterly Reports on Form 10-Q and in the Current Reports filed on Form 8-K with the Securities and Exchange Commission and available at the Securities and Exchange Commission's internet site (http://www.sec.gov/). Those factors include: (1) adverse changes in general business or economic conditions could have a material adverse effect on our financial condition and results of operations; (2) changes in market interest rates or capital markets could adversely affect our revenues and expenses, the value of assets and obligations, costs of capital, or liquidity; (3) the fiscal and monetary policies of the federal government and its agencies could have a material adverse effect on our earnings; (4) changes in securities markets or markets for commercial or residential real estate could harm our revenues and profitability; (5) customers could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; (6) customers may decide not to use banks to complete their financial transactions, which could affect net income; (7) we have businesses other than banking, which subjects us to a variety of risks; (8) hurricanes and other natural disasters may adversely affect loan portfolios and operations and increase the cost of doing business; (9) negative public opinion could damage our reputation and adversely impact our business; (10) we rely on other companies for key components of our business infrastructure; (11) we rely on our systems, employees and certain counterparties, and certain failures could materially adversely affect our operations; (12) we depend on the accuracy and completeness of information about clients and counterparties; (13) regulation by federal and state agencies could adversely affect our business, revenues, and profit margins; (14) competition in the financial services industry is intense and could result in losing business or reducing profit margins; (15) future legislation could harm our competitive position; (16) maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; (17) our ability to receive dividends from our subsidiaries accounts for most of our revenues and could affect our liquidity and ability to pay dividends; (18) significant legal actions could subject us to substantial uninsured liabilities; (19) we have in the past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to realize anticipated benefits; (20) we depend on the expertise of key personnel without whom our operations may suffer; (21) we may be unable to hire or retain additional qualified personnel and recruiting and compensation costs may increase as a result of turnover, both of which may increase costs and reduce profitability and may adversely impact our ability to implement our business strategy; (22) our accounting policies and methods are key to how we report financial condition and results of operations, and may require management to make estimates about matters that are uncertain; (23) changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition; (24) our stock price can be volatile; (25) our disclosure controls and procedures may fail to prevent or detect all errors or acts of fraud; (26) our trading assets and financial instruments carried at fair value expose the Company to certain market risks; (27) weakness in residential property values and mortgage loan markets could adversely affect us; (28) we may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain borrower defaults, which could harm our liquidity, results of operations and financial condition; and (29) we may enter into transactions with off-balance sheet entities affiliated with SunTrust or its subsidiaries which may cause us to recognize current or future losses.

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

                                           Three Months Ended
                                                March 31             %
                                            2008         2007      Change

  EARNINGS & DIVIDENDS
  Net income                               $290.6       $521.2     (44.2)%
  Net income available to common
   shareholders                             283.6        513.9     (44.8)
  Total revenue - FTE (2)                 2,225.3      2,067.2       7.6
  Net income per average common share
       Diluted                               0.81         1.44     (43.8)
       Basic                                 0.82         1.45     (43.4)
  Dividends paid per average common share    0.77         0.73       5.5

  CONDENSED BALANCE SHEETS
  Selected Average Balances
  Total assets                           $176,917     $181,506      (2.5)%
  Earning assets                          153,004      159,474      (4.1)
  Loans                                   123,263      121,515       1.4
  Consumer and commercial deposits        101,168       97,792       3.5
  Brokered and foreign deposits            15,469       26,714     (42.1)
  Total shareholders' equity               18,062       17,720       1.9

  As of
  Total assets                            178,987      186,385      (4.0)
  Earning assets                          152,715      163,299      (6.5)
  Loans                                   123,713      116,913       5.8
  Allowance for loan and lease losses       1,545        1,034      49.4
  Consumer and commercial deposits        103,432       99,875       3.6
  Brokered and foreign deposits            12,747       23,563     (45.9)
  Total shareholders' equity               18,431       17,969       2.6

  FINANCIAL RATIOS & OTHER DATA
  Return on average total assets             0.66 %       1.16 %   (43.1)%
  Return on average assets less net
   unrealized securities gains (1)           0.72         1.15     (37.4)
  Return on average common
   shareholders' equity                      6.49        12.10     (46.4)
  Return on average realized common
   shareholders' equity (1)                  7.69        12.54     (38.7)
  Net interest margin (2)                    3.07         3.02       1.7
  Efficiency ratio (2)                      56.40        59.79      (5.7)
  Tangible efficiency ratio (1)             55.47        58.65      (5.4)
  Effective tax rate                        23.98        30.59     (21.6)
  Tier 1 capital ratio                       7.25 (3)     7.60      (4.6)
  Total capital ratio                       11.00 (3)    10.94       0.5
  Tier 1 leverage ratio                      7.20 (3)     7.24      (0.6)
  Total average shareholders' equity to
   total average assets                     10.21         9.76       4.6
  Tangible equity to tangible assets (1)     6.53         5.97       9.4

  Full-time equivalent employees           31,745       33,397      (4.9)
  Number of ATMs                            2,509        2,543      (1.3)
  Full service banking offices              1,678        1,691      (0.8)
       Traditional                          1,343        1,338       0.4
       In-store                               335          353      (5.1)

  Book value per common share              $51.26       $49.00       4.6
  Market price:
       High                                 70.00        87.43     (19.9)
       Low                                  52.94        80.76     (34.4)
       Close                                55.14        83.04     (33.6)
  Market capitalization                    19,290       29,604     (34.8)

  Average common shares
   outstanding (000s)
       Diluted                            348,072      357,214      (2.6)
       Basic                              346,581      353,448      (1.9)

  (1) See Appendix A and Appendix B for reconcilements of non-GAAP
      performance measures.
  (2) Total revenue, net interest margin, and efficiency ratios are
      presented on a fully taxable-equivalent ("FTE") basis. The FTE basis
      adjusts for the tax-favored status of net interest income from certain
      loans and investments. The Company believes this measure to be the
      preferred industry measurement of net interest income and it enhances
      comparability of net interest income arising from taxable and tax-
      exempt sources. Total revenue - FTE equals net interest income on a
      FTE basis plus noninterest income.
  (3) Current period tier 1 capital, total capital and tier 1 leverage
      ratios are estimated as of the earnings release date.



  SunTrust Banks, Inc. and Subsidiaries
  FIVE QUARTER FINANCIAL HIGHLIGHTS
  (Dollars in millions, except per share data) (Unaudited)

                                                Three Months Ended
                                          March 31  December 31 September 30
                                            2008        2007        2007

  EARNINGS & DIVIDENDS
  Net income                               $290.6       $11.1      $420.2
  Net income available to common
   shareholders                             283.6         3.3       412.6
  Total revenue - FTE (2)                 2,225.3     1,770.8     2,038.3
  Net income per average common share
       Diluted                               0.81        0.01        1.18
       Basic                                 0.82        0.01        1.19
  Dividends paid per average common
   share                                     0.77        0.73        0.73

  CONDENSED BALANCE SHEETS
  Selected Average Balances
  Total assets                           $176,917    $175,130    $174,653
  Earning assets                          153,004     151,541     152,328
  Loans                                   123,263     121,094     119,559
  Consumer and commercial deposits        101,168      99,649      96,708
  Brokered and foreign deposits            15,469      15,717      21,140
  Total shareholders' equity               18,062      18,033      17,550

  As of
  Total assets                            178,987     179,574     175,857
  Earning assets                          152,715     154,397     151,229
  Loans                                   123,713     122,319     120,748
  Allowance for loan and lease losses       1,545       1,283       1,094
  Consumer and commercial deposits        103,432     101,870      98,834
  Brokered and foreign deposits            12,747      15,973      17,026
  Total shareholders' equity               18,431      18,053      17,907

  FINANCIAL RATIOS & OTHER DATA
  Return on average total assets             0.66 %      0.03 %      0.95 %
  Return on average assets less net
   unrealized securities gains (1)           0.72       (0.01)       0.93
  Return on average common shareholders'
   equity                                    6.49        0.07        9.60
  Return on average realized common
   shareholders' equity (1)                  7.69       (0.33)       9.86
  Net interest margin (2)                    3.07        3.13        3.18
  Efficiency ratio (2)                      56.40       82.19       63.35
  Tangible efficiency ratio (1)             55.47       80.86       62.13
  Effective tax rate                        23.98     (116.22)      26.68
  Tier 1 capital ratio                       7.25 (3)    6.93        7.44
  Total capital ratio                       11.00 (3)   10.30       10.72
  Tier 1 leverage ratio                      7.20 (3)    6.90        7.28
  Total average shareholders' equity to
   total average assets                     10.21       10.30       10.05
  Tangible equity to tangible assets (1)     6.53        6.28        6.32

  Full-time equivalent employees           31,745      32,323      32,903
  Number of ATMs                            2,509       2,507       2,518
  Full service banking offices              1,678       1,682       1,683
       Traditional                          1,343       1,343       1,339
       In-store                               335         339         344

  Book value per common share              $51.26      $50.38      $50.01
  Market price:
       High                                 70.00       78.76       90.47
       Low                                  52.94       60.02       73.61
       Close                                55.14       62.49       75.67
  Market capitalization                    19,290      21,772      26,339

  Average common shares
   outstanding (000s)
       Diluted                            348,072     348,072     349,592
       Basic                              346,581     345,917     346,150


                                                     Three Months Ended
                                                 June 30          March 31
                                                  2007              2007

  EARNINGS & DIVIDENDS
  Net income                                     $681.4            $521.2
  Net income available to common
   shareholders                                   673.9             513.9
  Total revenue - FTE (2)                       2,374.6           2,067.2
  Net income per average common share
       Diluted                                     1.89              1.44
       Basic                                       1.91              1.45
  Dividends paid per average common share          0.73              0.73

  CONDENSED BALANCE SHEETS
  Selected Average Balances
  Total assets                                 $179,996          $181,506
  Earning assets                                157,594           159,474
  Loans                                         118,165           121,515
  Consumer and commercial deposits               97,927            97,792
  Brokered and foreign deposits                  23,983            26,714
  Total shareholders' equity                     17,928            17,720

  As of
  Total assets                                  180,314           186,385
  Earning assets                                157,095           163,299
  Loans                                         118,788           116,913
  Allowance for loan and lease losses             1,050             1,034
  Consumer and commercial deposits               97,822            99,875
  Brokered and foreign deposits                  25,069            23,563
  Total shareholders' equity                     17,369            17,969

  FINANCIAL RATIOS & OTHER DATA
  Return on average total assets                   1.52 %            1.16 %
  Return on average assets less net
   unrealized securities gains (1)                 1.18              1.15
  Return on average common shareholders'
   equity                                         15.51             12.10
  Return on average realized common
   shareholders' equity (1)                       12.71             12.54
  Net interest margin (2)                          3.10              3.02
  Efficiency ratio (2)                            52.69             59.79
  Tangible efficiency ratio (1)                   51.64             58.65
  Effective tax rate                              31.45             30.59
  Tier 1 capital ratio                             7.49              7.60
  Total capital ratio                             10.67             10.94
  Tier 1 leverage ratio                            7.11              7.24
  Total average shareholders' equity to
   total average assets                            9.96              9.76
  Tangible equity to tangible assets (1)           5.85              5.97

  Full-time equivalent employees                 33,241            33,397
  Number of ATMs                                  2,533             2,543
  Full service banking offices                    1,685             1,691
       Traditional                                1,338             1,338
       In-store                                     347               353

  Book value per common share                    $48.33            $49.00
  Market price:
       High                                       94.18             87.43
       Low                                        78.16             80.76
       Close                                      85.74             83.04
  Market capitalization                          29,928            29,604

  Average common shares outstanding (000s)
       Diluted                                  356,008           357,214
       Basic                                    351,987           353,448

  (1) See Appendix A and Appendix B for reconcilements of non-GAAP
      performance measures.
  (2) Total revenue, net interest margin, and efficiency ratios are
      presented on a fully taxable-equivalent ("FTE") basis. The FTE basis
      adjusts for the tax-favored status of net interest income from certain
      loans and investments. The Company believes this measure to be the
      preferred industry measurement of net interest income and it enhances
      comparability of net interest income arising from taxable and tax-
      exempt sources. Total revenue - FTE equals net interest income on a
      FTE basis plus noninterest income.
  (3) Current period tier 1 capital, total capital and tier 1 leverage
      ratios are estimated as of the earnings release date.



  SunTrust Banks, Inc. and Subsidiaries
  CONSOLIDATED STATEMENTS OF INCOME
  (Dollars in thousands, except per share data) (Unaudited)

                                        Three Months Ended
                                    March 31       Increase/(Decrease) (2)
                                2008        2007      Amount      %

  Interest income            $2,258,332  $2,528,057  ($269,725)  (10.7)%
  Interest expense            1,118,465   1,363,498   (245,033)  (18.0)
  NET INTEREST INCOME         1,139,867   1,164,559    (24,692)   (2.1)
  Provision for loan losses     560,022      56,441    503,581      NM
  NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES    579,845   1,108,118   (528,273)  (47.7)

  NONINTEREST INCOME
  Service charges on deposit
   accounts                     211,839     189,035     22,804    12.1
  Trust and investment
   management income            161,102     174,318    (13,216)   (7.6)
  Retail investment services     72,300      63,543      8,757    13.8
  Other charges and fees        127,231     118,137      9,094     7.7
  Investment banking income      55,420      50,157      5,263    10.5
  Trading account profits
   and commissions               28,218      90,201    (61,983)  (68.7)
  Card fees                      73,761      64,195      9,566    14.9
  Mortgage production
   related income/(loss)         85,549      (8,655)    94,204      NM
  Mortgage servicing related
   income                        29,098      35,403     (6,305)  (17.8)
  Gain on Visa IPO               86,305           -     86,305      NM
  Net gain on sale or merger
   of Lighthouse interests       89,390      32,340     57,050      NM
  Net gain on sale/leaseback
   of premises                   37,039           -     37,039      NM
  Other noninterest income       60,836      70,212     (9,376)  (13.4)
  Securities gains/(losses),
   net                          (60,586)         20    (60,606)     NM
       Total noninterest
        income                1,057,502     878,906    178,596    20.3

  NONINTEREST EXPENSE
  Employee compensation and
   benefits                     715,083     699,000     16,083     2.3
  Net occupancy expense          86,441      86,257        184     0.2
  Outside processing and
   software                     109,165      99,676      9,489     9.5
  Equipment expense              52,395      49,409      2,986     6.0
  Marketing and customer
   development                   55,703      45,705      9,998    21.9
  Amortization of intangible
   assets                        20,715      23,542     (2,827)  (12.0)
  Net loss on extinguishment
   of debt                       11,723           -     11,723      NM
  Visa litigation               (39,124)          -    (39,124)     NM
  Other noninterest expense     243,043     232,408     10,635     4.6
       Total noninterest
        expense               1,255,144   1,235,997     19,147     1.5

  INCOME BEFORE PROVISION
   FOR INCOME TAXES             382,203     751,027   (368,824)  (49.1)
  Provision for income taxes     91,648     229,731   (138,083)  (60.1)
       Net income               290,555     521,296   (230,741)  (44.3)
  Preferred dividends             6,977       7,363       (386)   (5.2)
  NET INCOME AVAILABLE TO
   COMMON SHAREHOLDERS         $283,578    $513,933  ($230,355)  (44.8)

  Net interest income -
   FTE (1)                   $1,167,842  $1,188,272   ($20,430)   (1.7)

  Net income per average
   common share
    Diluted                        0.81        1.44      (0.63)  (43.8)
    Basic                          0.82        1.45      (0.63)  (43.4)

  Cash dividends paid per
   common share                    0.77        0.73       0.04     5.5
  Average common shares
   outstanding (000s)
    Diluted                     348,072     357,214     (9,142)   (2.6)
    Basic                       346,581     353,448     (6,867)   (1.9)

  (1) Net interest income includes the effects of FTE adjustments using a
      federal tax rate of 35% and state income taxes where applicable to
      increase tax-exempt interest income to a taxable-equivalent basis.
  (2) "NM" - Not meaningful.  Those changes over 100 percent were not
      considered to be meaningful.



   SunTrust Banks, Inc. and Subsidiaries
   FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME
   (Dollars in thousands, except per share data) (Unaudited)

                                             Three Months Ended
                                        March 31  December 31 September 30
                                          2008        2007        2007

   Interest income                     $2,258,332  $2,448,701  $2,515,292
   Interest expense                     1,118,465   1,281,188   1,323,104
   NET INTEREST INCOME                  1,139,867   1,167,513   1,192,188
   Provision for loan losses              560,022     356,781     147,020
   NET INTEREST INCOME AFTER
    PROVISION FOR LOAN LOSSES             579,845     810,732   1,045,168

   NONINTEREST INCOME
   Service charges on deposit accounts    211,839     222,213     213,939
   Trust and investment management
    income                                161,102     170,854     175,242
   Retail investment services              72,300      71,650      71,064
   Other charges and fees                 127,231     121,849     120,730
   Investment banking income               55,420      55,041      47,688
   Trading account profits/(losses)
    and commissions                        28,218    (437,162)    (31,187)
   Card fees                               73,761      77,481      70,450
   Mortgage production related income      85,549      22,366      12,950
   Mortgage servicing related income       29,098      57,364      57,142
   Gain on Visa IPO                        86,305           -           -
   Net gain on sale or merger of
    Lighthouse interests                   89,390           -           -
   Net gain on sale/leaseback of
    premises                               37,039     118,840           -
   Other noninterest income                60,836      89,827      80,130
   Securities gains/(losses), net         (60,586)      5,694         991
        Total noninterest income        1,057,502     576,017     819,139

   NONINTEREST EXPENSE
   Employee compensation and benefits     715,083     682,810     677,765
   Net occupancy expense                   86,441      92,705      87,626
   Outside processing and software        109,165     105,407     105,132
   Equipment expense                       52,395      51,734      51,532
   Marketing and customer development      55,703      59,115      46,897
   Amortization of intangible assets       20,715      23,414      24,820
   Net loss on extinguishment of debt      11,723           -       9,800
   Visa litigation                        (39,124)     76,930           -
   Other noninterest expense              243,043     363,226     287,673
        Total noninterest expense       1,255,144   1,455,341   1,291,245

   INCOME/(LOSS) BEFORE
    PROVISION/(BENEFIT)
    FOR INCOME TAXES                      382,203     (68,592)    573,062
   Provision/(benefit) for income
    taxes                                  91,648     (79,716)    152,898
        Net income                        290,555      11,124     420,164
   Preferred dividends                      6,977       7,867       7,526
   NET INCOME AVAILABLE TO
    COMMON SHAREHOLDERS                  $283,578      $3,257    $412,638

   Net interest income - FTE (1)       $1,167,842  $1,194,757  $1,219,243

   Net income per average common share
     Diluted                                 0.81        0.01        1.18
     Basic                                   0.82        0.01        1.19

   Cash dividends paid per common
    share                                    0.77        0.73        0.73
   Average common shares outstanding
    (000s)
     Diluted                              348,072     348,072     349,592
     Basic                                346,581     345,917     346,150


                                                   Three Months Ended
                                                June 30           March 31
                                                 2007              2007

   Interest income                            $2,543,870        $2,528,057
   Interest expense                            1,348,586         1,363,498
   NET INTEREST INCOME                         1,195,284         1,164,559
   Provision for loan losses                     104,680            56,441
   NET INTEREST INCOME AFTER
    PROVISION FOR LOAN LOSSES                  1,090,604         1,108,118

   NONINTEREST INCOME
   Service charges on deposit accounts           196,844           189,035
   Trust and investment management income        164,620           174,318
   Retail investment services                     71,785            63,543
   Other charges and fees                        118,358           118,137
   Investment banking income                      61,999            50,157
   Trading account profits/(losses) and
    commissions                                   16,437            90,201
   Card fees                                      68,580            64,195
   Mortgage production related income             64,322            (8,655)
   Mortgage servicing related income              45,527            35,403
   Gain on Visa IPO                                    -                 -
   Net gain on sale or merger of
    Lighthouse interests                               -            32,340
   Net gain on sale/leaseback of premises              -                 -
   Other noninterest income                      109,738            70,212
   Securities gains/(losses), net                236,412                20
        Total noninterest income               1,154,622           878,906

   NONINTEREST EXPENSE
   Employee compensation and benefits            710,613           699,000
   Net occupancy expense                          84,650            86,257
   Outside processing and software               100,730            99,676
   Equipment expense                              53,823            49,409
   Marketing and customer development             43,326            45,705
   Amortization of intangible assets              24,904            23,542
   Net loss on extinguishment of debt                  -                 -
   Visa litigation                                     -                 -
   Other noninterest expense                     233,148           232,408
        Total noninterest expense              1,251,194         1,235,997

   INCOME/(LOSS) BEFORE PROVISION/(BENEFIT)
    FOR INCOME TAXES                             994,032           751,027
   Provision/(benefit) for income taxes          312,601           229,731
        Net income                               681,431           521,296
   Preferred dividends                             7,519             7,363
   NET INCOME AVAILABLE TO
    COMMON SHAREHOLDERS                         $673,912          $513,933

   Net interest income - FTE (1)              $1,219,952        $1,188,272

   Net income per average common share
     Diluted                                        1.89              1.44
     Basic                                          1.91              1.45

   Cash dividends paid per common share             0.73              0.73
   Average common shares outstanding (000s)
     Diluted                                     356,008           357,214
     Basic                                       351,987           353,448

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



  SunTrust Banks, Inc. and Subsidiaries
  CONSOLIDATED BALANCE SHEETS
  (Dollars in thousands) (Unaudited)

                                 As of March 31      Increase/(Decrease) (3)
                               2008          2007         Amount      %

  ASSETS
  Cash and due from banks    $3,994,267    $3,867,957     $126,310    3.3 %
  Interest-bearing
   deposits in other banks       21,283        21,974         (691)  (3.1)
  Funds sold and securities
   purchased under
   agreements to resell       1,247,495       883,833      363,662   41.1
  Trading assets             10,932,251    21,545,502  (10,613,251) (49.3)
  Securities available for
   sale (1)                  15,882,088    13,163,036    2,719,052   20.7
  Loans held for sale
   (loans at fair value:
   $5,097,410 and
   $4,033,083 as of
   March 31, 2008 and
   2007, respectively)        6,977,289    14,067,788   (7,090,499) (50.4)
  Loans:
    Commercial               37,306,872    33,484,170    3,822,702   11.4
    Real estate:
      Home equity lines      15,134,297    14,039,685    1,094,612    7.8
      Construction           12,980,917    14,175,478   (1,194,561)  (8.4)
      Residential mortgages
       (loans at fair
       value: $282,760
       and $0 as of
       March 31, 2008 and
       2007, respectively)   33,092,433    30,248,543    2,843,890    9.4
      Commercial real
       estate                12,893,708    12,454,475      439,233    3.5
    Consumer:
      Direct                  4,192,168     4,293,308     (101,140)  (2.4)
      Indirect                7,305,213     7,840,962     (535,749)  (6.8)
    Credit card                 807,587       375,938      431,649     NM
        Total loans         123,713,195   116,912,559    6,800,636    5.8
  Allowance for loan and
   lease losses              (1,545,340)   (1,033,939)     511,401   49.5
      Net loans             122,167,855   115,878,620    6,289,235    5.4
  Goodwill                    6,923,033     6,896,723       26,310    0.4
  Other intangible assets     1,430,268     1,293,457      136,811   10.6
  Other real estate owned       244,906        74,645      170,261     NM
  Other assets                9,166,212     8,691,306      474,906    5.5
        Total assets (2)   $178,986,947  $186,384,841  ($7,397,894)  (4.0)

  LIABILITIES
  Noninterest-bearing
   consumer and commercial
   deposits                 $22,325,750   $22,765,045    ($439,295)  (1.9)%
  Interest-bearing
   consumer and commercial
   deposits:
       NOW accounts          22,292,330    20,802,207    1,490,123    7.2
       Money market
        accounts             25,843,396    22,070,587    3,772,809   17.1
       Savings                3,990,007     5,102,312   (1,112,305) (21.8)
       Consumer time         16,876,836    17,044,783     (167,947)  (1.0)
       Other time            12,104,125    12,089,882       14,243    0.1
         Total consumer
          and commercial
          deposits          103,432,444    99,874,816    3,557,628    3.6
  Brokered deposits (CDs
   at fair value: $317,578
   and $229,884 as of
   March 31, 2008 and
   2007, respectively)       11,034,332    18,203,295   (7,168,963) (39.4)
  Foreign deposits            1,712,504     5,360,164   (3,647,660) (68.1)
         Total deposits     116,179,280   123,438,275   (7,258,995)  (5.9)
  Funds purchased             3,795,641     6,433,195   (2,637,554) (41.0)
  Securities sold under
   agreements to
   repurchase                 5,446,204     6,851,863   (1,405,659) (20.5)
  Other short-term
   borrowings                 3,061,003     1,958,438    1,102,565   56.3
  Long-term debt (debt at
   fair value: $7,784,744
   and $6,896,790 as of
   March 31, 2008 and
   2007, respectively)       23,602,919    19,007,959    4,594,960   24.2
  Trading liabilities         2,356,037     1,642,958      713,079   43.4
  Other liabilities           6,114,415     9,083,615   (2,969,200) (32.7)
         Total liabilities  160,555,499   168,416,303   (7,860,804)  (4.7)

  SHAREHOLDERS' EQUITY
  Preferred stock, no par
   value                        500,000       500,000            -      -
  Common stock, $1.00 par
   value                        370,578       370,578            -      -
  Additional paid in
   capital                    6,682,828     6,688,660       (5,832)  (0.1)
  Retained earnings          10,661,250    10,325,246      336,004    3.3
  Treasury stock, at cost,
   and other                 (1,692,117)   (1,101,172)     590,945   53.7
  Accumulated other
   comprehensive income,
   net of tax                 1,908,909     1,185,226      723,683   61.1
       Total shareholders'
        equity               18,431,448    17,968,538      462,910    2.6

       Total liabilities
        and shareholders'
        equity             $178,986,947  $186,384,841  ($7,397,894)  (4.0)

       Common shares
        outstanding         349,832,264   356,504,563   (6,672,299)  (1.9)
       Common shares
        authorized          750,000,000   750,000,000            -      -
       Preferred shares
        outstanding               5,000         5,000            -      -
       Preferred shares
        authorized           50,000,000    50,000,000            -      -
       Treasury shares of
        common stock         20,746,134    14,073,835    6,672,299   47.4

  (1) Includes net
       unrealized
       gains of              $2,835,823    $2,333,896     $501,927   21.5 %
  (2) Includes earning
       assets of            152,714,700   163,299,162  (10,584,462)  (6.5)

  (3) "NM" - Not meaningful.  Those changes over 100 percent were not
      considered to be meaningful.



  SunTrust Banks, Inc. and Subsidiaries
  FIVE QUARTER CONSOLIDATED BALANCE SHEETS
  (Dollars in thousands) (Unaudited)

                                                     As of
                                      March 31    December 31   September 30
                                        2008          2007          2007

  ASSETS
  Cash and due from banks            $3,994,267    $4,270,917    $4,162,456
  Interest-bearing deposits in
   other banks                           21,283        24,355        29,684
  Funds sold and securities
   purchased under agreements
   to resell                          1,247,495     1,347,329       968,553
  Trading assets                     10,932,251    10,518,379     9,566,806
  Securities available for sale (1)  15,882,088    16,264,107    15,243,133
  Loans held for sale                 6,977,289     8,851,695     8,675,427
  Loans:
    Commercial                       37,306,872    35,929,400    34,969,714
    Real estate:
      Home equity lines              15,134,297    14,911,598    14,598,774
      Construction                   12,980,917    13,776,651    14,358,990
      Residential mortgages          33,092,433    32,779,744    31,603,884
      Commercial real estate         12,893,708    12,609,543    12,487,309
    Consumer:
      Direct                          4,192,168     3,963,869     4,419,290
      Indirect                        7,305,213     7,494,130     7,642,099
    Credit card                         807,587       854,059       668,353
        Total loans                 123,713,195   122,318,994   120,748,413
  Allowance for loan and lease
   losses                            (1,545,340)   (1,282,504)   (1,093,691)
        Net loans                   122,167,855   121,036,490   119,654,722
  Goodwill                            6,923,033     6,921,493     6,912,110
  Other intangible assets             1,430,268     1,362,995     1,327,060
  Other real estate owned               244,906       183,753       156,106
  Other assets                        9,166,212     8,792,420     9,161,172
        Total assets (2)           $178,986,947  $179,573,933  $175,857,229

  LIABILITIES
  Noninterest-bearing consumer and
   commercial deposits              $22,325,750   $21,083,234   $20,857,240
  Interest-bearing consumer and
   commercial deposits:
       NOW accounts                  22,292,330    22,558,374    20,319,435
       Money market accounts         25,843,396    24,522,640    24,011,524
       Savings                        3,990,007     3,917,099     4,376,155
       Consumer time                 16,876,836    17,264,208    17,037,866
       Other time                    12,104,125    12,524,470    12,231,832
            Total consumer and
             commercial deposits    103,432,444   101,870,025    98,834,052
  Brokered deposits                  11,034,332    11,715,024    14,188,886
  Foreign deposits                    1,712,504     4,257,601     2,836,775
       Total deposits               116,179,280   117,842,650   115,859,713
  Funds purchased                     3,795,641     3,431,185     1,512,054
  Securities sold under agreements
   to repurchase                      5,446,204     5,748,277     5,548,486
  Other short-term borrowings         3,061,003     3,021,358     2,971,761
  Long-term debt                     23,602,919    22,956,508    22,661,381
  Trading liabilities                 2,356,037     2,160,385     1,906,002
  Other liabilities                   6,114,415     6,361,052     7,490,585
       Total liabilities            160,555,499   161,521,415   157,949,982

  SHAREHOLDERS' EQUITY
  Preferred stock, no par value         500,000       500,000       500,000
  Common stock, $1.00 par value         370,578       370,578       370,578
  Additional paid in capital          6,682,828     6,707,293     6,709,002
  Retained earnings                  10,661,250    10,646,640    10,897,059
  Treasury stock, at cost, and
   other                             (1,692,117)   (1,779,142)   (1,821,360)
  Accumulated other comprehensive
   income, net of tax                 1,908,909     1,607,149     1,251,968
       Total shareholders' equity    18,431,448    18,052,518    17,907,247

       Total liabilities and
        shareholders' equity       $178,986,947  $179,573,933  $175,857,229

       Common shares outstanding    349,832,264   348,411,163   348,073,971
       Common shares authorized     750,000,000   750,000,000   750,000,000
       Preferred shares
        outstanding                       5,000         5,000         5,000
       Preferred shares authorized   50,000,000    50,000,000    50,000,000
       Treasury shares of common
        stock                        20,746,134    22,167,235    22,504,427

  (1) Includes net unrealized
       gains of                      $2,835,823    $2,724,643    $2,391,606
  (2) Includes earning assets of    152,714,700   154,397,231   151,228,575


                                                         As of
                                               June 30           March 31
                                                 2007              2007

  ASSETS
  Cash and due from banks                     $4,254,430        $3,867,957
  Interest-bearing deposits in other banks        25,991            21,974
  Funds sold and securities purchased
   under agreements to resell                  1,143,995           883,833
  Trading assets                              13,044,972        21,545,502
  Securities available for sale (1)           14,725,957        13,163,036
  Loans held for sale                         12,474,932        14,067,788
  Loans:
    Commercial                                34,362,837        33,484,170
    Real estate:
      Home equity lines                       14,303,659        14,039,685
      Construction                            14,417,949        14,175,478
      Residential mortgages                   30,759,216        30,248,543
      Commercial real estate                  12,416,329        12,454,475
    Consumer:
      Direct                                   4,391,739         4,293,308
      Indirect                                 7,739,369         7,840,962
    Credit card                                  396,624           375,938
        Total loans                          118,787,722       116,912,559
  Allowance for loan and lease losses         (1,050,362)       (1,033,939)
      Net loans                              117,737,360       115,878,620
  Goodwill                                     6,897,050         6,896,723
  Other intangible assets                      1,290,460         1,293,457
  Other real estate owned                        100,973            74,645
  Other assets                                 8,618,252         8,691,306
        Total assets (2)                    $180,314,372      $186,384,841

  LIABILITIES
  Noninterest-bearing consumer and
   commercial deposits                       $22,725,654       $22,765,045
  Interest-bearing consumer and
   commercial deposits:
       NOW accounts                           20,255,930        20,802,207
       Money market accounts                  21,645,616        22,070,587
       Savings                                 4,698,516         5,102,312
       Consumer time                          16,745,010        17,044,783
       Other time                             11,751,246        12,089,882
            Total consumer and
             commercial deposits              97,821,972        99,874,816
  Brokered deposits                           16,659,978        18,203,295
  Foreign deposits                             8,408,752         5,360,164
       Total deposits                        122,890,702       123,438,275
  Funds purchased                              3,405,459         6,433,195
  Securities sold under agreements to
   repurchase                                  6,081,096         6,851,863
  Other short-term borrowings                  2,083,518         1,958,438
  Long-term debt                              20,604,933        19,007,959
  Trading liabilities                          2,156,279         1,642,958
  Other liabilities                            5,723,532         9,083,615
       Total liabilities                     162,945,519       168,416,303

  SHAREHOLDERS' EQUITY
  Preferred stock, no par value                  500,000           500,000
  Common stock, $1.00 par value                  370,578           370,578
  Additional paid in capital                   6,589,387         6,688,660
  Retained earnings                           10,739,449        10,325,246
  Treasury stock, at cost, and other          (1,751,449)       (1,101,172)
  Accumulated other comprehensive
   income, net of tax                            920,888         1,185,226
       Total shareholders' equity             17,368,853        17,968,538

       Total liabilities and
        shareholders' equity                $180,314,372      $186,384,841

       Common shares outstanding             349,052,800       356,504,563
       Common shares authorized              750,000,000       750,000,000
       Preferred shares outstanding                5,000             5,000
       Preferred shares authorized            50,000,000        50,000,000
       Treasury shares of common stock        21,525,598        14,073,835

  (1) Includes net unrealized gains of        $2,035,623        $2,333,896
  (2) Includes earning assets of             157,094,873       163,299,162

First Call Analyst:
FCMN Contact: michael.mccoy@suntrust.com
FIRST AND FINAL ADD -- ADDITIONAL TABULAR MATERIAL -- TO FOLLOW

SOURCE: SunTrust Banks, Inc.

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