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SunTrust Reports Second Quarter Results

Company Managing from Position of Enhanced Strength While Looking to Post-Cycle Growth

PRNewswire-FirstCall
ATLANTA
Jul 22, 2009

SunTrust Banks, Inc. today reported a net loss available to common shareholders for the second quarter of 2009 of $164.4 million, compared to net income available to common shareholders of $530.0 million in the second quarter of 2008. Net loss per average common share was $0.41 compared to net income per average common diluted share of $1.52 in the second quarter of 2008. The decrease in earnings compared to 2008 is primarily attributable to increased credit costs in 2009 and the gain on the sale of shares of The Coca-Cola Company ("Coke") stock in the second quarter of 2008. During the second quarter of 2009, the core business generated solid fee income, expanded net interest margin, substantially grew low cost deposits, and continued strong expense management.

"Clearly, recession-related costs continue to impact our results," said James M. Wells III, Chairman and Chief Executive Officer of SunTrust. "Yet, when you step back and look at the second quarter, three points stand out beyond the near-term financial impact of recession-driven pressures. First, with enhanced capital, improved liquidity, and bolstered reserves, we have the resources necessary to continue to manage successfully through sustained economic weakness. Second, positive trends in several areas, notably solid deposit growth, increasing net interest margin, strong expense management, and lower early-stage delinquencies, are encouraging. Lastly, our balance of client-focused execution, risk mitigation, and the long-term economic prospects of our markets positions us well to deliver steadily improving returns as we come out of this cycle."

Completion of Capital Raise

During the second quarter, the Company successfully completed its capital plan and initiatives, generating $2.3 billion of capital and exceeding the target of $2.2 billion established by the Federal Reserve under the Supervisory Capital Assessment Program ("SCAP"). The Company's capital raising transactions increased Tier 1 common equity by $2.1 billion. The transactions utilized to raise the capital were (i) the issuance of common stock, (ii) the purchase of certain preferred stock and hybrid debt securities, and (iii) the sale of Visa Class B shares. The following is a brief description of each transaction:

  --  Issued 142 million common shares raising $1.8 billion in common
      equity, net of transaction costs;
  --  Extinguished $435.7 million in hybrid debt instruments, resulting in a
      net after-tax loss of $44.1 million and an increase in Tier 1 common
      equity of $120.8 million;
  --  Purchased $314.2 million of Series A preferred shares, resulting in an
      $89.4 million after-tax gain that is included in net loss available to
      common shareholders and a $91.0 million increase in Tier 1 common
      equity; and

  --  Sold remaining Class B Visa shares resulting in a $69.5 million
      after-tax gain.


Regulatory capital was further enhanced and remains well in excess of the capital standards for a well capitalized institution. Estimated Tier 1 common equity and Tier 1 capital as of June 30, 2009 were 7.35% and 12.25%, up 152 basis points and 123 basis points, respectively, from the prior quarter.

Loan Loss Provision

In the second quarter, the Company recorded $962.2 million in provision for loan losses, which exceeded net charge-offs of $801.2 million by $161.0 million compared to a provision for loan losses of $448.0 million during the second quarter of 2008. Provision for loan losses declined by $31.9 million during the current quarter as compared to the first quarter of 2009. Charge-offs increased $191.1 million compared to the first quarter of 2009 driven in large part by an anticipated $99.2 million increase in borrower misrepresentation charges now classified as charge-offs. The allowance for loan losses increased to $2.9 billion, or 2.37% of outstanding total loans, as of June 30, 2009.

Deposit Growth

Average total consumer and commercial deposits increased $6.0 billion, or 5.6%, over the first quarter of 2009 and $11.8 billion, or 11.6%, over the second quarter of 2008, further strengthening the Company's already strong liquidity position. The linked quarter growth was in all deposit categories, with the low cost deposit categories of demand deposits, NOW, and money market accounts increasing the most. The growth was driven by continued marketing campaigns, competitive pricing, and clients' increased preference for the security of insured deposit products. Further, through an intense focus on improved execution, the Company has been successful in improving client satisfaction, acquisition, and retention, which the Company also believes is contributing to the record level of deposits. Period-end consumer and commercial deposits were $113.7 billion, up 1.2% compared to March 31, 2009, indicating lower deposit growth toward the end of the quarter.

  Second Quarter 2009 Consolidated Highlights


                                           2nd Quarter 2nd Quarter
                                              2009        2008    % Change

  Income Statement
  (Dollars in millions, except per
   share data)
  Net income /(loss)                         $(183.5)    $540.4     (134.0)%
  Net income/(loss) available to common
   shareholders                               (164.4)     530.0     (131.0)
  Net income/(loss) per average common
   diluted share                               (0.41)      1.52     (127.0)
  Revenue - fully taxable-equivalent         2,192.8    2,598.0      (15.6)
  Revenue - fully taxable-equivalent,
   excluding securities gains/losses, net    2,217.7    2,048.2        8.3
  Net interest income - fully taxable
   -equivalent                               1,121.1    1,185.0       (5.4)
  Provision for loan losses                    962.2      448.0      114.8
  Noninterest income                         1,071.7    1,413.0      (24.2)
  Noninterest expense                        1,528.0    1,375.3       11.1
  Net interest margin                           2.94%      3.13%

  Balance Sheet
  (Dollars in billions)
  Average loans                               $124.1     $125.2       (0.9)%
  Average consumer and commercial deposits     113.5      101.7       11.6

  Capital
  Tier 1 capital ratio (1)                     12.25%      7.47%
  Tier 1 common equity ratio (1)                7.35%      5.42%
    Total average shareholders' equity
     to total average assets                   12.42%     10.37%

  Asset Quality
  Net charge-offs to average loans
   (annualized)                                 2.59%      1.04%
  Allowance for loan losses to period end
   loans                                        2.37%      1.46%
  Nonperforming loans to total loans            4.48%      2.09%

  (1) Current period Tier 1 capital and Tier 1 common equity ratios are
      estimated as of the earnings release date.


  --  A net loss available to common shareholders of $164.4 million was
      reported primarily due to higher provision for loan losses, the $48.4
      million after-tax FDIC special assessment levied against all insured
      depository institutions, $59.6 million in after-tax market valuation
      losses on the Company's public debt and related hedges carried at fair
      value, and $66.5 million of dividends paid on preferred stock held by
      the U.S. Treasury. These charges were partially offset by the $69.5
      million after-tax gain from the sale of Visa Class B shares and a
      $42.6 million after-tax net gain on the purchase of the Series A
      preferred stock and hybrid debt securities in connection with the
      tender offer executed during the current quarter.
  --  Fully taxable-equivalent total revenue decreased 15.6% compared to the
      second quarter of 2008 as the prior year quarter contained the gain on
      the sale of Coke stock of $548.8 million and a $29.6 million gain from
      the sale of a retirement services subsidiary, while the second quarter
      of 2009 included the $112.1 million gain on the sale of Visa shares
      and a $156.9 million recovery of impairment on mortgage servicing
      rights carried at the lower of cost or market.
  --  Fully taxable-equivalent net interest income declined 5.4% from the
      second quarter of 2008 as yields on average earning assets declined to
      a greater degree than rates paid on interest-bearing liabilities.  The
      increase in nonperforming loans was also a significant detriment to
      net interest income.  On a sequential quarter basis, fully
      taxable-equivalent net interest income increased 2.6%, or 10.3%
      annualized, and net interest margin increased 7 basis points to 2.94%.
      Earning assets remained relatively stable compared to the first
      quarter of 2009 and prior year.
  --  Noninterest income decreased 24.2% from the second quarter of 2008. 
      The decline is primarily driven by the aforementioned gains in the
      second quarter of 2008, partially offset in the current quarter by the
      gain on sale of Visa shares and the recovery of impairment on the
      mortgage servicing rights carried at the lower of cost or market. 
      Positively contributing to the variance from prior year are mortgage
      and capital markets related revenues, while trust and investment
      management, service charges, and retail investment income declined.
  --  Noninterest expense increased 11.1% from the second quarter of 2008 as
      FDIC insurance premiums, pension expense, and credit-related expenses
      increased while personnel expense and other operating costs decreased.
      Noninterest expense also includes a $38.9 million net loss primarily
      related to the extinguishment of the hybrid debt securities during the
      current quarter.
  --  Total average loans decreased 0.9% from the second quarter of 2008 and
      1.0% from the first quarter of 2009, principally due to reductions in
      real estate construction and residential mortgage loans.  These
      declines were offset by similar increases in loans held for sale.
  --  Average consumer and commercial deposits increased 11.6% over the
      second quarter of 2008.  The increase in average consumer and
      commercial deposits was driven mainly by growth in NOW and money
      market accounts in addition to demand deposits, which were up 15.1%. 
      On a sequential quarter basis, average consumer and commercial
      deposits increased 5.6%.
  --  The estimated Tier 1 common equity, Tier 1 capital, and total average
      shareholders' equity to total average assets ratios, were 7.35%,
      12.25%, and 12.42%, respectively, compared to 5.83%, 11.02%, and
      12.51% as of March 31, 2009.  The increase in the Tier 1 capital
      ratios was primarily due to the completion of the Company's capital
      raising initiatives.
  --  Annualized net charge-offs were 2.59% of average loans for the second
      quarter of 2009, up from 1.04% in the second quarter of 2008 and 1.97%
      in the first quarter of 2009.  The increase primarily reflects
      deterioration in residential real estate-related and larger commercial
      charge-offs.

  --  Nonperforming loans to total loans increased to 4.48% as of June 30,
      2009 from 3.75% as of March 31, 2009 and 2.09% as of June 30, 2008,
      due mainly to increased levels of residential real estate secured and
      larger commercial loans.

  CONSOLIDATED FINANCIAL PERFORMANCE

  Revenue

Fully taxable-equivalent total revenue was $2,192.8 million for the second quarter of 2009, a decrease of 15.6% compared to the second quarter of 2008. The decline was driven by the $548.8 million in securities gains from the sale of Coke stock and the $29.6 million gain on sale of a retirement services subsidiary, both recognized in 2008. The second quarter of 2009 included higher mortgage-related and capital markets-related income, the gain on the sale of Visa shares, and the recovery of impairment on the mortgage servicing rights carried at the lower of cost or market, partially offset by lower net interest income.

For the six months, fully taxable-equivalent total revenue was $4,407.0 million, down 8.6% from prior year. The decline was driven by significantly higher gains on securities and asset sales in 2008, and lower net interest income, investment management, and transaction based fees in 2009. Partially offsetting these items were lower market valuation losses on previously acquired illiquid securities in 2009, higher market valuation gains on the Company's public debt and related hedges carried at fair value in 2008, and higher mortgage-related and capital markets-related income.

Net Interest Income

Fully taxable-equivalent net interest income was $1,121.1 million in the second quarter of 2009, an increase of 2.6% from the first quarter of 2009 and a 5.4% decline compared to the same quarter last year. Net interest margin increased 7 basis points during the second quarter and declined 19 basis points compared to the second quarter of 2008. Net interest margin benefited from a partial normalization of the relationship between asset and liability yields as compared to the first quarter of 2009. Rates earned on average earning assets declined 10 basis points while rates paid on interest-bearing liabilities declined 17 basis points during the current quarter. Net interest income compared to the second quarter of 2008 declined, as earning asset yields, which declined 100 basis points, were more susceptible to market rate declines than rates paid on interest-bearing liabilities which declined 87 basis points. Average earning assets in the second quarter of 2009 did not change significantly compared to the first quarter of 2009 or the same quarter last year; however, net interest income benefited from the reduction in interest-bearing liabilities and the change in mix towards lower cost sources of funding. Net interest income and margin continue to be adversely affected by increased nonperforming loans.

For the six months, fully taxable-equivalent net interest income was $2,214.0 million, a decline of 5.9% from the prior year. Net interest margin declined 20 basis points. The same factors in the quarterly year over year comparison contributed to the six month decline in net interest income and margin.

Noninterest Income

Total noninterest income was $1,071.7 million for the second quarter of 2009, down 24.2% from the second quarter of 2008. The decrease was due to the $548.8 million gain from the sale of Coke stock, a $29.6 million gain from the sale of a retirement services subsidiary, both recognized in the second quarter of 2008, and partially offset by the $112.1 million gain from the sale of Visa shares in the second quarter of 2009. Market valuation losses on the Company's public debt and related hedges carried at fair value were relatively stable at $96.2 million in the second quarter of 2009 and $102.6 million in the second quarter of 2008. These losses were related to the improvement in the credit spread on the Company's public debt.

Mortgage production income was $165.4 million in the second quarter of 2009 compared to $63.5 million in the second quarter of 2008 driven by an almost 80% increase in loan production volume. Mortgage production income was adversely affected by a $49.0 million increase in reserves related to the probable repurchase of mortgage loans that were sold in prior quarters under specified terms that could result in recourse back to the Company. Mortgage servicing related income for the quarter was $139.7 million, an increase of $107.1 million over the second quarter of 2008. The second quarter of 2009 included a $156.9 million recovery of impairment on the mortgage servicing rights carried at the lower of cost or market partially offset by mark to market losses of $39.6 million on servicing rights carried at fair value, net of hedges. Securities losses of approximately $20 million recorded during the quarter related to repositioning the available for sale securities that economically hedge the mortgage servicing rights carried at the lower of cost or market. As of June 30, 2009, SunTrust serviced $173.1 billion in mortgage loans, up 9.0% from a year ago.

Trading account profits and commissions increased $19.3 million in the second quarter over the second quarter of 2008 due to higher derivatives activities and fixed income sales and trading. As previously noted, the market valuation loss recorded on the public debt and related hedges carried at fair value was $6.4 million higher in the second quarter of 2008 compared to the current quarter. Investment banking income increased 26.3% due to increased capital markets activities; however, trust and investment management income, retail investment services, and service charges on deposits declined, 25.6%, 24.9% and 8.7%, respectively, due to the adverse impact of economic conditions on financial markets and consumer spending.

For the six months, total noninterest income was $2,192.9 million, down 11.2% compared to the same period of 2008. The decline was largely due to net gains on sale of securities, primarily Coke stock, gains on sale of non-strategic businesses, gains from the sale/leaseback of certain corporate real estate properties, and the gain resulting from the Visa initial public offering, all recorded in 2008, that aggregated to $731.6 million. The 2008 items were only partially offset by the gain on the sale of Visa shares in the current quarter and a $188.2 million recovery of impairment on the mortgage servicing rights carried at the lower of cost or market. Additionally, trading account profits and commissions increased $98.4 million due to higher market valuation losses in 2008 related to acquired illiquid assets partially offset by higher gains on the Company's debt and related hedges carried at fair value in the first half of 2008.

Noninterest Expense

Total noninterest expense in the second quarter of 2009 was $1,528.0 million, up 11.1% from the second quarter of 2008, as the cost of FDIC insurance increased $137.8 million, credit-related expenses increased $45.2 million, our proportionate share of potential costs of litigation related to Visa increased $7.0 million, and debt extinguishment charges totaled $38.9 million. The increase in FDIC insurance premiums was primarily due to the $78.2 million special assessment required of all banks recorded in the second quarter of 2009. Credit-related expenses increased primarily due to higher credit and collection services costs and other real estate losses, as the Company aggressively modified and disposed of nonperforming loans. Mortgage reinsurance and operating losses, also included in credit-related expenses, have moderated. The debt extinguishment loss includes a $42.3 million loss from the purchase of hybrid debt securities in connection with the tender offer, a $4.4 million loss related to the extinguishment of $3.5 billion of FHLB advances, and a $7.8 million gain from the retirement of $70 million of debt issued under SunTrust's Global Bank Note program. Included in the net loss from the tender offer was a $164.9 million loss related to the extinguishment of the preferred stock forward sale agreement associated with the purchase of the Purchase Preferred Securities.

Total personnel expense decreased $8.2 million from the second quarter of 2008. Total personnel decreased from 31,602 as of June 30, 2008 to 28,520 as of June 30, 2009, and incentive expense declined due to an alignment of discretionary incentive compensation accruals with business performance. Total personnel expense declined 1.2% despite an increase in pension costs of nearly $30 million due to lower returns on pension assets and a decrease in the discount rate used to measure the pension obligation. The decline in personnel expense was offset by a 35.6% increase in outside processing as the Company contracted with a third party in the third quarter of 2008 to provide certain check and related processing operations. The second quarter of 2008 also included an impairment charge of $45.0 million related to a specific customer intangible asset.

For the six months, total noninterest expense was $3,680.0 million, an increase of 40.1% over the same period in 2008. The increase was primarily due to the $751.2 million non-cash goodwill impairment charge recorded in the first quarter of 2009 compared to a $45.0 million impairment charge related to a specific customer intangible asset recognized in the second quarter of 2008. Included in the first quarter of 2008 was $11.7 million in net costs from the retirement of debt and a $39.1 million reversal of a portion of the accrued liability associated with the Visa litigation. Credit-related charges increased $152.9 million year over year and FDIC insurance costs, including the special assessment, increased $180.8 million. The 31.1% increase in outside processing was primarily due to the check and related processing services contract beginning in the third quarter of 2008. The majority of the remaining expense categories declined in 2009 as the Company continued its focus on efficiency and expense management.

Income Taxes

For the second quarter and first half of 2009, the Company recognized a benefit for income taxes of $149.0 million and $299.7 million, respectively, as a result of the pre-tax losses, compared to a provision for income taxes of $202.8 million and $294.5 million, respectively, for the same periods in 2008.

U.S. Treasury Preferred Dividends

For the second quarter and year to date periods of 2009, the Company recorded $66.5 million and $132.8 million, respectively, in preferred dividends related to the $4.85 billion in preferred securities issued to the U.S. Treasury under the Capital Purchase Program. The 5.5% effective yield reflects the 5.0% dividend rate and the amortization of the discount recorded on the preferred stock at issuance.

Balance Sheet

As of June 30, 2009, SunTrust had total assets of $176.7 billion, and shareholders' equity of $23.0 billion, representing 13.0 % of total assets. Book value per common share was $36.16 as of June 30, 2009.

Loans

Average loans for the second quarter of 2009 were $124.1 billion, down 0.9% from the second quarter of 2008 and 1.0% from the first quarter of 2009. Compared to the second quarter of 2008, loans increased in all loan categories, except residential real estate, real estate construction, and consumer indirect as a result of the Company's efforts to reduce its exposure to these categories. During the second quarter of 2009, loans declined in most categories due to weak loan demand as a result of the recessionary environment and borrowers' desire to restrict capital spending and pay down existing debt facilities. The Company remains focused on extending credit to qualified borrowers as businesses and consumers work through the current economic downturn. The decline in the loan portfolio was offset by a similar increase in loans held for sale. Total mortgage loan production was $16.7 billion during the second quarter compared to $13.4 billion during the first quarter of 2009.

Deposits

Average consumer and commercial deposits for the second quarter of 2009 totaled $113.5 billion, up 11.6% from the second quarter of 2008, as growth in NOW, money market accounts, and demand deposits contributed to the overall increase. On a sequential quarter basis, average consumer and commercial deposits increased 5.6% with the majority of the increase in low cost deposits. Deposit growth is the result of marketing campaigns, competitive pricing, and client's increased preference for the security of insured deposit products. Further, through an intense focus on improved execution, the Company has been successful in improving client satisfaction, acquisition, and retention, which the Company also believes is contributing to the record level of deposit growth. Period-end consumer and commercial deposits were $113.7 billion, up 1.2% compared to March 31, 2009, indicating lower deposit growth towards the end of the quarter. Average total brokered and foreign deposits declined 56.1% from the second quarter of 2008, as the Company's deposit growth initiatives and longer term financing activities enabled a reduction in these wholesale funding sources.

Capital and Liquidity

The estimated Tier 1 common equity, Tier 1 capital, and total average shareholders' equity to total average assets ratios at June 30, 2009, were 7.35%, 12.25%, and 12.42%, respectively. Tier 1 common equity increased 152 basis points compared to March 31, 2009 primarily due to the capital raised during the quarter in response to the SCAP, as well as lower risk weighted assets from a reduction in unfunded lending commitments. The Company has substantial available liquidity as the inflows of high quality deposits and longer term financing sources have largely been retained in cash and invested in high quality government-backed securities.

Asset Quality

The allowance for loan and lease losses was $2,896.0 million as of June 30, 2009, up $161.0 million during the quarter and represented 2.37% of period-end total loans, as compared to 2.21% as of March 31, 2009. The increase in the allowance for loan and lease losses was attributable to further deterioration in the housing market and credit quality deterioration due to increasing economic stress in the commercial market. The majority of the increase in the allowance for loan losses related to home equity lines, specific reserves for residential developers, primarily construction, and specific reserves for larger corporate loans.

Net charge-offs totaled $801.2 million in the second quarter of 2009 compared to $610.1 million in the first quarter of 2009, an increase of $191.1 million. Contributing to the increase in net charge-offs was $116.2 million in charge-offs related to fraud and denied insurance claims during the current quarter. The first quarter of 2009 included $164.6 million of fraud and denied insurance claims that were written off against the fraud reserve during the first quarter, and therefore were not classified as net charge-offs due to the Company's practice of classifying these losses as operating losses prior to 2009. During the second quarter of 2009, $42.4 million of fraud related losses were recognized against the remaining fraud reserve. Net charge-offs increased in all loan categories, except consumer indirect, with the majority of the increase occurring in residential real estate related loans. The downturn in the economy has impacted the level of commercial loan net charge-offs, which increased $115.1 million compared to the second quarter of 2008. Commercial net charge-offs relate primarily to larger commercial borrowers in economically sensitive industries. Annualized net charge-offs were 2.59% of average loans, up from 1.97% in the first quarter of 2009, and 1.04 % in the second quarter of 2008. While net charge-offs remain elevated and continue to increase, early stage delinquencies have decreased in the prior two quarters relative to their peak at year-end.

Nonperforming loans were $5,504.0 million, or 4.48% of total loans, as of June 30, 2009, compared to $4,641.0 million, or 3.75% of total loans, as of March 31, 2009, and $2,625.3 million, or 2.09% of total loans, as of June 30, 2008. The increase in nonperforming loans was mainly due to an increase in residential mortgage and real estate construction loans, as well as larger commercial borrowers in economically sensitive industries. Accruing restructured loans increased $274.0 million during the quarter to $925.0 million, which demonstrates the proactive steps the Company is taking to responsibly modify loans in order to mitigate loss exposure to borrowers experiencing financial difficulty.

  LINE OF BUSINESS FINANCIAL PERFORMANCE

  Line of Business Results

The Company has included line of business financial tables as part of this release on its Web site at www.suntrust.com in the Investor Relations section located under "About SunTrust." The Company has four lines of business used to measure business activities: Retail and Commercial, Corporate and Investment Banking, Household Lending, and Wealth and Investment Management with the remainder in Corporate Other and Treasury. All revenue in the line of business tables is reported on a fully taxable-equivalent basis. For the lines of business, results include net interest income, which is computed using matched-maturity funds transfer pricing. Further, provision for loan losses is represented by net charge-offs. SunTrust also reports results for Corporate Other and Treasury, which includes the Treasury department as well as the residual expense associated with operational and support expense allocations. This segment also includes differences created between internal management accounting practices and generally accepted accounting principles, certain matched-maturity funds transfer pricing credits and charges, differences in provision for loan losses compared to net charge-offs, as well as equity and its related impact. A detailed discussion of the line of business results will be included in the Company's forthcoming quarterly report on Form 10-Q.

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 furnished with the Securities Exchange Commission today.

This news release contains certain non-U.S. GAAP financial measures to describe the Company's performance. The reconciliation of those measures to the most directly comparable U.S. 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 July 22, 2009, at 8:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Individuals may call beginning at 7:45 a.m. (Eastern Time) by dialing 1-888-972-7805 (Passcode: 2Q09). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 2Q09). A replay of the call will be available one hour after the call ends on July 22, 2009, and will remain available until August 15, 2009, dialing 1-866-359-6498 (domestic) or 1-203-369-0155 (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, "2nd Quarter Earnings Release." Beginning the afternoon of July 22, 2009, listeners may access an archived version of the webcast in the "Webcasts and Presentations" subsection found under "Investor Relations." 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 clients in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides mortgage banking, insurance, brokerage, investment management, equipment leasing and capital markets services. SunTrust's Internet address is www.suntrust.com.

Important Cautionary Statement About Forward-Looking Statements

This news release may contain forward-looking statements. Statements regarding future levels of net margin, charge-offs, provision expense, credit quality, and income are forward-looking statements. Also, any statement that does not describe historical or current facts, including statements about beliefs and expectations, is a forward-looking statements. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "initiatives," "potentially," "probably," "projects," "outlook" or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Such statements are based upon the current beliefs and expectations of management and on information currently available to management. Such statements speak as of the date hereof, and we do not assume any obligation to update the statements made herein or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements can be found beginning on page 6 of our 2008 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC), as supplemented from time to time in our other periodic reports filed with the SEC, all of which are available at the SEC's internet site (http://www.sec.gov/). Those factors include: difficult market conditions have adversely affected our industry; current levels of market volatility are unprecedented; the soundness of other financial institutions could adversely affect us; there can be no assurance that recently enacted legislation, or any proposed federal programs, will stabilize the U.S. financial system, and such legislation and programs may adversely affect us; the impact on us of recently enacted legislation, in particular the Emergency Economic Stability Act and its implementing regulations, and actions by the FDIC, cannot be predicted at this time; credit risk; weakness in the economy and in the real estate market, including specific weakness within our geographic footprint, has adversely affected us and may continue to adversely affect us; weakness in the real estate market, including the secondary residential mortgage loan markets, has adversely affected us and may continue to adversely affect us; weakness in the real estate market may adversely affect our reinsurance subsidiary; as a financial services company, adverse changes in general business or economic conditions could have a material adverse effect on our financial condition and results of operations; changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations, and the availability and cost of capital or liquidity; the fiscal and monetary policies of the federal government and its agencies could have a material adverse effect on our earnings; we may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain borrower defaults, which could harm our liquidity, results of operations, and financial condition; clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; consumers may decide not to use banks to complete their financial transactions, which could affect net income; we have businesses other than banking which subject us to a variety of risks; hurricanes and other natural disasters may adversely affect loan portfolios and operations and increase the cost of doing business; negative public opinion could damage our reputation and adversely impact our business and revenues; we rely on other companies to provide key components of our business infrastructure; we rely on our systems, employees, and certain counterparties, and certain failures could materially adversely affect our operations; we depend on the accuracy and completeness of information about clients and counterparties; regulation by federal and state agencies could adversely affect our business, revenue, and profit margins; competition in the financial services industry is intense and could result in losing business or reducing margins; future legislation could harm our competitive position; maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; we may not pay dividends on our common stock; our ability to receive dividends from our subsidiaries accounts for most of our revenue and could affect our liquidity and ability to pay dividends; significant legal actions could subject us to substantial uninsured liabilities; recently declining values of residential real estate, increases in unemployment, and the related effects on local economics may increase our credit losses, which would negatively affect our financial results; deteriorating credit quality, particularly in real estate loans, has adversely impacted us and may continue to adversely impact us; disruptions in our ability to access global capital markets may negatively affect our capital resources and liquidity; any reduction in our credit rating could increase the cost of our funding from the capital markets; we have in the past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to realize anticipated benefits; we depend on the expertise of key personnel, and if these individuals leave or change their roles without effective replacements, then operations may suffer; we may not be able to hire or retain additional qualified personnel and recruiting and compensation costs may increase as a result of turnover, both of which may increase costs and reduce profitability and may adversely impact our ability to implement our business strategy; our accounting policies and processes are critical to how we report our financial condition and results of operations, and these require us to make estimates about matters that are uncertain; changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition; our stock price can be volatile; our disclosure controls and procedures may not prevent or detect all errors or acts of fraud; our financial instruments carried at fair value expose us to certain market risks; our revenues derived from our investment securities may be volatile and subject to a variety of risks; we may enter into transactions with off-balance sheet affiliates or our subsidiaries; and we are subject to market risk associated with our asset management and commercial paper conduit businesses.

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


                         Three Months Ended         Six Months Ended
                              June 30                   June 30
                           --------------            --------------
                                           % Change                 % Change
                           2009      2008     (4)    2009      2008    (4)
                           ----      ----  --------  ----      ---- --------
  EARNINGS & DIVIDENDS
  Net income/(loss)       ($183.5)   $540.4    NM%  ($998.6)   $830.9    NM%
  Net income/(loss)
   available to common
   shareholders            (164.4)    530.0    NM  (1,039.8)    811.5    NM
  Net income/(loss)
   available to common
   shareholders excluding
      goodwill/intangible
       impairment charges
       other than MSRs (1) (164.4)    557.0    NM    (325.0)    838.5    NM
  Total revenue -
   FTE (2)                2,192.8   2,598.0 (15.6)  4,407.0   4,823.3  (8.6)
  Total revenue - FTE
   excluding securities
   (gains)/losses, net
   (1)                    2,217.7   2,048.2   8.3   4,428.5   4,334.1   2.2
  Net income/(loss) per
   average common share
       Diluted              (0.41)     1.52    NM     (2.77)     2.33    NM
       Diluted
        excluding
        goodwill/
        intangible
        impairment
        charges other
        than MSRs (1)       (0.41)     1.59    NM     (0.86)     2.40    NM
       Basic                (0.41)     1.52    NM     (2.77)     2.33    NM
  Dividends paid per
   average common share      0.10      0.77 (87.0)     0.20      1.54 (87.0)

  CONDENSED BALANCE
   SHEETS
  Selected Average
   Balances
  ----------------
  Total assets           $176,480  $175,549   0.5% $177,669  $176,233   0.8%
  Earning assets          153,177   152,483   0.5   153,780   152,743   0.7
  Loans                   124,123   125,192  (0.9)  124,725   124,228   0.4
  Consumer and commercial
   deposits               113,528   101,727  11.6   110,538   101,448   9.0
  Brokered and foreign
   deposits                 6,608    15,068 (56.1)    7,011    15,268 (54.1)
  Total shareholders'
   equity                  21,926    18,209  20.4    22,146    18,194  21.7

  As of
  -----
  Total assets            176,735   177,233  (0.3)
  Earning assets          154,345   154,716  (0.2)
  Loans                   122,816   125,825  (2.4)
  Allowance for loan and
   lease losses             2,896     1,829  58.3
  Consumer and commercial
   deposits               113,746   102,434  11.0
  Brokered and foreign
   deposits                 5,055    17,146 (70.5)
  Total shareholders'
   equity                  22,953    18,023  27.4

  FINANCIAL RATIOS &
   OTHER DATA
  Return on average total
   assets                   (0.42)%    1.24%   NM%    (1.13)%    0.95%   NM%
  Return on average
   assets less net
   unrealized
   securities gains (1)     (0.41)     0.42    NM     (1.15)     0.57    NM
  Return on average
   common
   shareholders'
   equity                   (3.95)    12.04    NM    (12.39)     9.22    NM
  Return on average
   realized common
   shareholders' equity
   (1)                      (4.02)     4.32    NM    (13.10)     5.95    NM
  Net interest margin (2)    2.94      3.13  (6.1)     2.90      3.10  (6.5)
  Efficiency ratio (2)      69.68     52.94  31.6     83.60     54.48  53.5
  Tangible efficiency
   ratio (1)                69.05     50.45  36.9     65.98     52.70  25.2
  Effective tax rate/
   (benefit)               (44.81)    27.29    NM    (23.09)   26.16 (188.2)
  Tier 1 common equity       7.35 (3)  5.41  35.9
  Tier 1 capital            12.25 (3)  7.47  64.0
  Total capital              15.3 (3) 10.85  41.0
  Tier 1 leverage           11.04 (3)  7.54  46.4
  Total average
   shareholders' equity
   to total average
   assets                   12.42     10.37  19.8     12.46     10.32  20.7
  Tangible equity to
   tangible assets (1)       9.75 (5)  6.34  53.8

  Book value per common
   share                   $36.16    $49.56 (27.0)
  Tangible book value per
   common share (1)         23.41     29.04 (19.4)
  Market price:
       High                 20.86     60.80 (65.7)    30.18     70.00 (56.9)
       Low                  10.50     32.34 (67.5)     6.00     32.34 (81.4)
       Close                16.45     36.22 (54.6)    16.45     36.22 (54.6)
  Market capitalization     8,205    12,805 (35.9)

  Average common shares
   outstanding (000s)
    Diluted               399,242   349,783  14.1   375,429   348,927   7.6
       Basic              399,242   348,714  14.5   375,429   347,647   8.0

  Full-time equivalent
   employees               28,520    31,602  (9.8)
  Number of ATMs            2,695     2,506   7.5
  Full service banking
   offices                  1,692     1,699  (0.4)


  -----------------------
  (1) See Appendix A 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 common equity, tier 1 capital, total capital and
      tier 1 leverage ratios are estimated as of the earnings release date.
  (4) "NM" - Not meaningful.  Those changes over 100 percent were not
      considered to be meaningful.
  (5) Current period calculation excludes deferred tax amount associated
      with goodwill in conjunction with Federal Reserve guidance issued in
      the fourth quarter of 2008.



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

                                          Three Months Ended
                         ---------------------------------------------------
                         June 30    March 31   Dec. 31    Sept. 30   June 30
                          2009       2009       2008       2008       2008
                          ----       ----       ----       ----       ----

  EARNINGS & DIVIDENDS
  Net income/(loss)     ($183.5)   ($815.2)   ($347.6)    $312.4     $540.4
  Net income/(loss)
   available to common
   shareholders          (164.4)    (875.4)    (374.9)     304.4      530.0
  Net income/(loss)
   available to common
   shareholders
   excluding goodwill/
   intangible impairment
   charges other than
   MSRs (1)              (164.4)    (160.6)    (374.9)     304.4      557.0
  Total revenue -
   FTE (2)              2,192.8    2,214.2    1,926.4    2,460.9    2,598.0
  Total revenue - FTE
   excluding securities
   (gains)/losses,
   net(1)               2,217.7    2,210.8    1,515.3    2,287.9    2,048.2
  Net income/(loss) per
   average common share
       Diluted            (0.41)     (2.49)     (1.07)      0.87       1.52
       Diluted excluding
        goodwill/
        intangible
        impairment
        charges other
        than MSRs (1)     (0.41)     (0.46)     (1.07)      0.87       1.59
       Basic              (0.41)     (2.49)     (1.07)      0.87       1.52
  Dividends paid per
   average common share    0.10       0.10       0.54       0.77       0.77

  CONDENSED BALANCE
   SHEETS
  Selected Average
   Balances
  ----------------
  Total assets         $176,480   $178,871   $177,047   $173,888   $175,549
  Earning assets        153,177    154,390    153,188    152,320    152,483
  Loans                 124,123    125,333    127,608    125,642    125,192
  Consumer and
   commercial deposits  113,528    107,515    102,238    100,200    101,727
  Brokered and
   foreign deposits       6,608      7,417     12,649     15,800     15,068
  Total shareholders'
   equity                21,926     22,368     19,891     18,097     18,209

  As of
  -----
  Total assets          176,735    179,116    189,138    174,777    177,233
  Earning assets        154,345    153,290    156,016    152,904    154,716
  Loans                 122,816    123,893    126,998    126,718    125,825
  Allowance for
   loan and
   lease losses           2,896      2,735      2,351      1,941      1,829
  Consumer and
   commercial deposits  113,746    112,449    105,276    101,829    102,434
  Brokered and
   foreign deposits       5,055      6,523      8,053     14,083     17,146
  Total shareholders'
   equity                22,953     21,646     22,501     18,069     18,023

  FINANCIAL RATIOS &
   OTHER DATA
  Return on average total
   assets                 (0.42)%    (1.85)%    (0.78)%     0.71%      1.24%
  Return on average
   assets less net
   unrealized
   securities gains (1)   (0.41)     (1.89)     (1.39)      0.45       0.42
  Return on average common
   shareholders' equity   (3.95)    (20.71)     (8.47)      6.88      12.04
  Return on average
   realized common
   shareholders'
   equity (1)             (4.02)    (22.08)    (15.33)      4.45       4.32
  Net interest margin (2)  2.94       2.87       3.14       3.07       3.13
  Efficiency ratio (2)    69.68      97.22      82.34      67.67      52.94
  Tangible efficiency
   ratio (1)              69.05      62.97      81.44      66.92      50.45
  Effective tax
   rate/(benefit)        (44.81)    (15.61)    (47.06)    (20.32)     27.29
  Tier 1 common equity     7.35 (3)   5.83       5.83       6.02       5.41
  Tier 1 capital          12.25 (3)  11.02      10.87       8.15       7.47
  Total capital           15.30 (3)  14.15      14.04      11.16      10.85
  Tier 1 leverage         11.04 (3)  10.14      10.45       7.98       7.54
  Total average
   shareholders'
   equity to total
   average assets         12.42      12.51      11.23      10.41      10.37
  Tangible equity to
   tangible assets (1)     9.75 (4)   8.85 (4)   8.46       6.47       6.34

  Book value per
   common share          $36.16     $46.03     $48.74     $49.64     $49.56
  Tangible book
   value per
   common share (1)       23.41      28.15      28.69      29.18      29.04
  Market price:
       High               20.86      30.18      57.75      64.00      60.80
       Low                10.50       6.00      19.75      25.60      32.34
       Close              16.45      11.74      29.54      44.99      36.22
  Market capitalization   8,205      4,188     10,472     15,925     12,805

  Average common shares
   outstanding (000s)
       Diluted          399,242    351,352    350,439    350,970    349,783
       Basic            399,242    351,352    350,439    349,916    348,714

  Full-time equivalent
   employees             28,520     29,279     29,333     29,447     31,602
  Number of ATMs          2,695      2,673      2,582      2,506      2,506
  Full service
   banking offices        1,692      1,694      1,692      1,692      1,699


  --------------------------
  (1) See Appendix A 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 common equity, tier 1 capital, total capital and
      tier 1 leverage ratios are estimated as of the earnings release date.
  (4) Calculation excludes deferred tax amount associated with goodwill in
      conjunction with Federal Reserve guidance issued in the fourth quarter
      of 2008.



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

                                   Three Months Ended
              ------------------------------------------------------------
               June 30     March 31      Dec. 31     Sept. 30     June 30
                2009         2009         2008         2008        2008
               -------     --------      -------     --------     -------
  NON-GAAP
   MEASURES
   PRESENTED
   IN THE
   EARNINGS
   RELEASE
  Net income/
   (loss)    ($183,460)   ($815,167)   ($347,587)    $312,444    $540,362
  Securities
   (gains)/
   losses,
   net of tax   15,437       (2,094)    (254,853)    (107,289)   (345,807)
          ------------ ------------ ------------ ------------ ------------
  Net income/
   (loss)
   excluding
   net
   securities
   (gains)/
   losses,
   net of tax (168,023)    (817,261)    (602,440)     205,155     194,555
  The Coca-Cola
   Company
   stock
   dividend,
   net of tax  (10,947)     (10,947)     (10,146)     (10,146)    (14,738)
          ------------ ------------ ------------ ------------ ------------
  Net income/
   (loss)
   excluding net
   securities
   (gains)/
   losses and
   The Coca-Cola
   Company stock
   dividend, net
   of tax     (178,970)    (828,208)    (612,586)     195,009     179,817

  Preferred
   dividends,
   Series A     (5,635)      (5,000)      (5,055)      (5,111)     (5,112)
  U.S. Treasury
   preferred
   dividends   (66,546)     (66,279)     (26,579)           -           -
          ------------ ------------ ------------ ------------ ------------
  Dividends and
   undistributed
   earnings
   allocated
   to unvested
   shares        1,788       11,065        4,283       (2,936)     (5,282)
  Gain on
   purchase of
   Series A
   preferred
   stock        89,425            -            -            -           -
          ------------ ------------ ------------ ------------ ------------
  Net income/
   (loss)
   available to
   common
   shareholders
   excluding net
   securities
   (gains)/
   losses and
   The
   Coca-Cola
   Company
   stock
   dividend  ($159,938)   ($888,422)   ($639,937)    $186,962    $169,423
          ============ ============ ============ ============ ============
  Total
   average
   assets $176,480,470 $178,871,285 $177,047,258 $173,888,490 $175,548,768
  Average
   net
   unrealized
   securities
   gains    (1,506,504)  (1,341,146)  (1,371,624)  (1,526,431) (2,295,932)
          ------------ ------------ ------------ ------------ ------------
  Average
   assets
   less net
   unrealized
   securities
   gains  $174,973,966 $177,530,139 $175,675,634 $172,362,059 $173,252,836
          ============ ============ ============ ============ ============
  Total
   average
   common
   shareholders'
   equity  $16,699,659  $17,144,179  $17,600,105  $17,597,380 $17,709,264
  Average
   accumulated
   other
   comprehensive
   income     (745,189)    (824,314)    (996,955)    (871,413) (1,488,305)
          ------------ ------------ ------------ ------------ ------------
  Total
   average
   realized
   common
   shareholders'
   equity  $15,954,470  $16,319,865  $16,603,150  $16,725,967 $16,220,959
          ============ ============ ============ ============ ============

  Return on
   average
   total
   assets        (0.42)%      (1.85)%      (0.78)%       0.71%       1.24%
  Impact of
   excluding
   net realized
   and
   unrealized
   securities
   (gains)/
   losses and
   The Coca-Cola
   Company stock
   dividend       0.01        (0.04)       (0.61)       (0.26)      (0.82)
          ------------ ------------ ------------ ------------ ------------
  Return on
   average total
   assets less net
   unrealized
  securities
   gains (1)     (0.41)%      (1.89)%      (1.39)%       0.45%       0.42%
          ============ ============ ============ ============ ============
  Return on
   average
   common
   shareholders'
   equity        (3.95)%     (20.71)%      (8.47)%       6.88%      12.04%
  Impact of
   excluding net
   realized and
   unrealized
   securities
   (gains)/
   losses and
   The Coca-Cola
   Company stock
   dividend      (0.07)       (1.37)       (6.86)       (2.43)      (7.72)
          ------------ ------------ ------------ ------------ ------------
  Return on
   average
   realized
   common
   shareholders'
   equity (2)    (4.02)%     (22.08)%     (15.33)%       4.45%       4.32%
          ============ ============ ============ ============ ============

  Efficiency
   ratio (3)     69.68%       97.22%       82.34%       67.67%      52.94%
  Impact of
   excluding
   amortization/
   impairment of
   goodwill/
   intangible
   assets other
   than MSRs     (0.63)      (34.25)       (0.90)       (0.75)      (2.49)
          ------------ ------------ ------------ ------------ ------------
  Tangible
   efficiency
   ratio (4)     69.05%       62.97%       81.44%       66.92%      50.45%
          ============ ============ ============ ============ ============
  Total
   shareholders'
   equity  $22,953,158  $21,645,626  $22,500,805  $18,069,378 $18,023,095
  Goodwill  (6,213,243)  (6,224,610)  (6,941,104)  (7,062,869) (7,056,015)
  Other
   intangible
   assets
   including
   MSRs     (1,468,209)  (1,049,155)    (978,211)  (1,328,055) (1,394,941)
  MSRs       1,322,322      894,797      810,474    1,150,013   1,193,450
          ------------ ------------ ------------ ------------ ------------
  Tangible
   equity   16,594,028   15,266,658   15,391,964   10,828,467  10,765,589
  Preferred
   stock    (4,918,863)  (5,227,357)  (5,221,703)    (500,000)   (500,000)
          ------------ ------------ ------------ ------------ ------------
  Tangible
   common
   equity  $11,675,165  $10,039,301  $10,170,261  $10,328,467 $10,265,589
          ============ ============ ============ ============ ============
  Total
   assets $176,734,971 $179,116,402 $189,137,961 $174,776,760 $177,232,727
  Goodwill  (6,314,382)  (6,309,431)  (7,043,503)  (7,062,869) (7,056,015)
  Other
   intangible
   assets
   including
   MSRs     (1,517,483)  (1,103,333)  (1,035,427)  (1,389,965) (1,442,056)
  MSRs       1,322,322      894,797      810,474    1,150,013   1,193,450
          ------------ ------------ ------------ ------------ ------------
  Tangible
   assets $170,225,428 $172,598,435 $181,869,505 $167,473,939 $169,928,106
          ============ ============ ============ ============ ============
  Tangible
   equity to
   tangible
   assets (5)     9.75%        8.85%        8.46%        6.47%       6.34%
  Tangible
   book value
   per common
   share (7)    $23.41       $28.15       $28.69       $29.18      $29.04

  Net interest
   income   $1,089,657   $1,062,098   $1,176,860   $1,146,213  $1,156,716
  Taxable
   -equivalent
   adjustment   31,428       30,859       31,790       29,466      28,256
          ------------ ------------ ------------ ------------ ------------
  Net interest
   income
   - FTE     1,121,085    1,092,957    1,208,650    1,175,679   1,184,972
  Noninterest
   income    1,071,675    1,121,238      717,729    1,285,222   1,413,010
          ------------ ------------ ------------ ------------ ------------
  Total
   revenue
   - FTE     2,192,760    2,214,195    1,926,379    2,460,901   2,597,982
  Securities
   (gains)/
   losses, net  24,899       (3,377)    (411,053)    (173,046)   (549,787)
          ------------ ------------ ------------ ------------ ------------
  Total
   revenue
   - FTE
   excluding
   net
   securities
   (gains)/
   losses
   (6)      $2,217,659   $2,210,818   $1,515,326   $2,287,855  $2,048,195
          ============ ============ ============ ============ ============


                                                     Six Months Ended
                                                 ------------------------
                                                  June 30        June 30
                                                    2009           2008
                                                  -------        -------

  NON-GAAP MEASURES PRESENTED IN
   THE EARNINGS RELEASE
  Net income/(loss)                              ($998,627)      $830,917
  Securities (gains)/losses, net of tax             13,344       (308,244)
                                              ------------   ------------
  Net income/(loss) excluding net
   securities (gains)/losses, net of tax          (985,283)       522,673
  The Coca-Cola Company stock dividend,
   net of tax                                      (21,894)       (29,477)
                                              ------------   ------------
  Net income/(loss) excluding net securities
   (gains)/losses and The
  Coca-Cola Company stock dividend, net of tax  (1,007,177)       493,196

  Preferred dividends, Series A                    (10,635)       (12,089)
  U.S. Treasury preferred dividends               (132,825)             -
  Dividends and undistributed earnings
   allocated to unvested shares                     12,853         (7,305)
  Gain on purchase of Series A preferred stock      89,425              -
                                              ------------   ------------
  Net income/(loss) available to common
   shareholders excluding net securities
   (gains)/losses and The Coca-Cola Company
   stock dividend                              ($1,048,359)      $473,802
                                              ============   ============

  Total average assets                        $177,669,274   $176,232,836
  Average net unrealized securities gains       (1,424,282)    (2,374,957)
                                              ------------   ------------
  Average assets less net unrealized
   securities gains                           $176,244,992   $173,857,879
                                              ============   ============
  Total average common shareholders' equity    $16,920,691    $17,693,992
  Average accumulated other comprehensive
   income                                         (784,533)    (1,510,866)
                                              ------------   ------------
  Total average realized common shareholders'
   equity                                      $16,136,158    $16,183,126
                                              ============   ============

  Return on average total assets                     (1.13)%         0.95%
  Impact of excluding net realized and
   unrealized securities
   (gains)/losses and The Coca-Cola Company
   stock dividend                                    (0.02)         (0.38)
                                              ------------   ------------
  Return on average total assets less net
   unrealized securities gains (1)                   (1.15)%         0.57%
                                              ============   ============

  Return on average common shareholders' equity     (12.39)%         9.22%
  Impact of excluding net realized and
   unrealized securities (gains)/
  losses and The Coca-Cola Company stock dividend    (0.71)         (3.27)
                                              ------------   ------------
  Return on average realized common
   shareholders' equity (2)                         (13.10)%         5.95%
                                              ============   ============

  Efficiency ratio (3)                               83.60%         54.48%
  Impact of excluding amortization/impairment
   of goodwill/intangible assets
  other than MSRs                                   (17.62)         (1.78)
                                              ------------   ------------
  Tangible efficiency ratio (4)                      65.98%         52.70%
                                              ============   ============

  Total shareholders' equity
  Goodwill
  Other intangible assets including MSRs
  MSRs
  Tangible equity
  Preferred stock
  Tangible common equity

  Total assets
  Goodwill
  Other intangible assets including MSRs
  MSRs
  Tangible assets

  Tangible equity to tangible assets (5)
  Tangible book value per common share (7)

  Net interest income                           $2,151,755     $2,296,583
  Taxable-equivalent adjustment                     62,287         56,231
                                              ------------   ------------
  Net interest income - FTE                      2,214,042      2,352,814
  Noninterest income                             2,192,913      2,470,512
                                              ------------   ------------
  Total revenue - FTE                            4,406,955      4,823,326
  Securities (gains)/losses, net                    21,522       (489,201)
                                              ------------   ------------
  Total revenue - FTE excluding net
   securities (gains)/losses (6)                $4,428,477     $4,334,125
                                              ============   ============

  -----------------------------------------------
  (1) SunTrust presents a return on average assets less net unrealized gains
      on securities.  The foregoing numbers primarily reflect adjustments to
      remove the effects of the securities portfolio which includes the
      ownership by the Company of common 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, net of tax, by average assets less net unrealized
      securities gains.
  (2) SunTrust believes that the return on average realized common
      shareholders' equity is more indicative of the Company's return on
      equity because the excluded equity relates primarily to the holding of
      a specific security.  The return on average realized common
      shareholders' equity is computed by dividing annualized net income
      available to common shareholders, excluding securities gains/losses
      and The Coca -Cola Company dividend, net of tax, by average realized
      common shareholders' equity.
  (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
      amortization/impairment of intangible assets other than MSRs.  The
      Company believes this measure is useful to investors because, by
      removing the effect of these intangible asset costs (the level of
      which may vary from company to company), it allows investors to more
      easily compare the Company's efficiency to other companies in the
      industry.  This measure is utilized by management to assess the
      efficiency of the Company and its lines of business.
  (5) SunTrust presents a tangible equity to tangible assets ratio that
      excludes the after-tax impact of purchase accounting intangible
      assets.  The Company believes this measure is useful to investors
      because, by removing the effect of intangible assets that result from
      merger and acquisition activity (the level of which may vary from
      company to company), it allows investors to more easily compare the
      Company's capital adequacy to other companies in the industry.  This
      measure is used by management to analyze capital adequacy.
  (6) SunTrust presents total revenue- FTE excluding net realized securities
      (gains)/losses.  The Company believes noninterest income without net
      securities (gains)/losses is more indicative of the Company's
      performance because it isolates income that is primarily customer
      relationship and customer transaction driven and is more indicative of
      normalized operations.
  (7) SunTrust presents a tangible book value per common share that excludes
      the after-tax impact of purchase accounting intangible assets and also
      excludes preferred stock from tangible equity.  The Company believes
      this measure is useful to investors because, by removing the effect of
      intangible assets that result from merger and acquisition activity as
      well as preferred stock (the level of which may vary from company to
      company), it allows investors to more easily compare the Company's
      book value on common stock to other companies in the industry.



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

                                    Three Months Ended
                   -----------------------------------------------------
                    June 30   March 31    Dec. 31   Sept. 30    June 30
                     2009       2009       2008       2008       2008
                    -------   --------    -------   --------    -------
  NON-GAAP MEASURES
   PRESENTED IN THE
   EARNINGS RELEASE

  Total noninterest
   expense        $1,527,972 $2,152,023 $1,586,153 $1,665,295 $1,375,342
  Goodwill/
   intangible
   impairment
   charges other
   than MSRs               -    751,156          -          -     45,000
                  ---------- ---------- ---------- ---------- ----------
  Total noninterest
   expense
   excluding
   goodwill/
   intangible
   impairment
   charges other
   than MSRs(1)   $1,527,972 $1,400,867 $1,586,153 $1,665,295 $1,330,342
                  ========== ========== ========== ========== ==========

  Net income/
   (loss)          ($183,460) ($815,167) ($347,587)  $312,444   $540,362
  Goodwill/
   intangible
   impairment
   charges other
   than MSRs,
   after tax               -    723,853          -          -     27,281
                  ---------- ---------- ---------- ---------- ----------
  Net income/
   (loss)
   excluding
   goodwill/
   intangible
   impairment
   charges other
   than MSRs, after
   tax(1)          ($183,460)  ($91,314) ($347,587)  $312,444   $567,643
                  ========== ========== ========== ========== ==========

  Net income/(loss)
   available to
   common
   shareholders    ($164,428) ($875,381) ($374,938)  $304,397   $529,968
  Goodwill/
   intangible
   impairment
   charges other
   than MSRs
   attributable to
   common
   shareholders,
   after tax               -    714,824          -          -     27,006
                  ---------- ---------- ---------- ---------- ----------
  Net income/(loss)
   available to
   common
   shareholders
   excluding
   goodwill/
   intangible
   impairment
   charges other
   than MSRs,
   after tax(1)    ($164,428) ($160,557) ($374,938)  $304,397   $556,974
                  ========== ========== ========== ========== ==========

  Net income/
   (loss) per
   average common
   share, diluted     ($0.41)    ($2.49)    ($1.07)     $0.87      $1.52
  Impact of
   excluding
   goodwill/
   intangible
   impairment
   charges other
   than MSRs
   attributable
   to common
   shareholders,
   after tax               -       2.03          -          -       0.07
                  ---------- ---------- ---------- ---------- ----------
  Net income/
   (loss) per
   average diluted
   common share,
   excluding
   goodwill/
   intangible
   impairment
   charges other
   than MSRs,
   after tax(1)       ($0.41)    ($0.46)    ($1.07)     $0.87      $1.59
                  ========== ========== ========== ========== ==========


  SUPPLEMENTAL
   INCOME STATEMENT
   RECONCILIATION

  Net income/
   (loss)          ($183,460) ($815,167) ($347,587)  $312,444   $540,362
  Preferred
   dividends,
   Series A           (5,635)    (5,000)    (5,055)    (5,111)    (5,112)
  U.S. Treasury
   preferred
   dividends         (66,546)   (66,279)   (26,579)         -          -
  Dividends and
   undistributed
   earnings
   allocated to
   unvested shares     1,788     11,065      4,283     (2,936)    (5,282)
  Gain on purchase
   of Series A
   preferred stock    89,425          -          -          -          -
                  ---------- ---------- ---------- ---------- ----------
  Net income/(loss)
   available to
   common
   shareholders    ($164,428) ($875,381) ($374,938)  $304,397   $529,968
                  ========== ========== ========== ========== ==========


                                                     Six Months Ended
                                                 ------------------------
                                                  June 30        June 30
                                                    2009           2008
                                                  -------        -------
  NON-GAAP MEASURES PRESENTED IN THE
   EARNINGS RELEASE

  Total noninterest expense                     $3,679,995     $2,627,575
  Goodwill/intangible impairment charges
   other than MSRs                                 751,156         45,000
                                                ----------     ----------
  Total noninterest expense excluding
   goodwill/intangible impairment charges
   other than MSRs(1)                           $2,928,839     $2,582,575
                                                ==========     ==========

  Net income/(loss)                              ($998,627)      $830,917
  Goodwill/intangible impairment charges
   other than MSRs, after tax                      723,853         27,281
                                                ----------     ----------
  Net income/(loss) excluding goodwill/
   intangible impairment charges other than
   MSRs, after tax(1)                            ($274,774)      $858,198
                                                ==========     ==========
  Net income/(loss) available to common
   shareholders                                ($1,039,809)      $811,523
  Goodwill/intangible impairment charges
   other than MSRs attributable to common
   shareholders, after tax                         714,824         27,006
                                                ----------     ----------
  Net income/(loss) available to common
   shareholders excluding goodwill/intangible
  impairment charges other than MSRs,
   after tax(1)                                  ($324,985)      $838,529
                                                ==========     ==========

  Net income/(loss) per average common
   share, diluted                                   ($2.77)         $2.33
  Impact of excluding goodwill/intangible
   impairment charges other than MSRs
   attributable to common shareholders,
   after tax                                          1.91           0.07
                                                ----------     ----------
  Net income/(loss) per average diluted
   common share, excluding goodwill/intangible
  impairment charges other than MSRs,
   after tax(1)                                    ($0.86)          $2.40
                                                ==========     ==========


  SUPPLEMENTAL INCOME STATEMENT RECONCILIATION

  Net income/(loss)                              ($998,627)      $830,917
  Preferred dividends, Series A                    (10,635)       (12,089)
  U.S. Treasury preferred dividends               (132,825)             -
  Dividends and undistributed earnings
   allocated to unvested shares                     12,853         (7,305)
  Gain on purchase of Series A preferred stock      89,425              -
                                                ----------     ----------
  Net income/(loss) available to common
   shareholders                                ($1,039,809)      $811,523
                                                ==========     ==========

  -----------------------------------------------
  (1) SunTrust presents noninterest expense, net income/(loss), net
      income/(loss) available to common shareholders, and net income/(loss)
      per average common diluted share that excludes the portion of the
      impairment charges on goodwill and intangible assets other than MSRs
      allocated to the common shareholders.  The Company believes this
      measure is useful to investors, because removing the non-cash
      impairment charges provides a more representative view of normalized
      operations and the measure also allows better comparability with peers
      in the industry who also provide a similar presentation when
      applicable.  In addition, management uses this measure internally to
      analyze performance.

First Call Analyst: Putnam, Eugene
FCMN Contact: michael.mccoy@suntrust.com

SOURCE: SunTrust Banks, Inc.

CONTACT: Investors, Steve Shriner, +1-404-827-6714, or Media, Barry
Koling, +1-404-230-5268, both of SunTrust Banks, Inc.


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