SunTrust Reports Third Quarter Results

Results Reflect Continued Recessionary Pressures; Company Cites "Encouraging Business Trends"

22 Oct, 2009, 06:00 ET from SunTrust Banks, Inc.

ATLANTA, Oct. 22 /PRNewswire-FirstCall/ -- SunTrust Banks, Inc. (NYSE: STI) today reported a net loss available to common shareholders for the third quarter of 2009 of $377.1 million, compared to net income available to common shareholders of $304.4 million in the third quarter of 2008. Net loss per average common share was $0.76 compared to net income per average common diluted share of $0.87 in the third quarter of 2008. Included in the current quarter was $131.3 million, or $0.16 per common share, of mark-to-market losses on the Company's public debt and related hedges carried at fair value.

The decline in earnings compared to the third quarter of 2008 was primarily attributable to the $390.8 million after-tax increase in the provision for loan losses and a $292.8 million after-tax increase in valuation losses associated with the fair value of the Company's public debt. The net loss for the third quarter was $133.5 million higher than the previous quarter, driven primarily by a $106.5 million after-tax increase in provision for loan losses.

"Our third quarter bottom line results reflected the difficult operating environment for more traditional banks," said James M. Wells III, SunTrust Chairman and Chief Executive Officer. "Continued recession-related earnings pressures included higher credit costs, softer fee income and generally weak loan demand, as consumers de-leverage and businesses pay down existing credit lines and defer investments." Nevertheless, Mr. Wells added, "we are encouraged by some positive core business trends and the prospect of an improving economy."

Specific to business trends, Mr. Wells noted expanded net interest margin, lower operating expenses and, importantly, stable nonperforming loans and early stage loan delinquency levels. Mr. Wells said that while "tentatively optimistic" about the potential positive impact on SunTrust's businesses and clients from what appears to be an improving economy, he cautioned that "the strength and pace of economic recovery is uncertain and the resultant impact on credit losses, and thus earnings, will likely lag actual economic improvement."

Mr. Wells reiterated that with recent actions to bolster capital, liquidity, and reserves, "SunTrust possesses the resources necessary to successfully manage through sustained economic weakness should it occur." Looking to the balance of 2009 and into 2010, he said "the Company remains focused on risk-mitigation, efficiency and executing client-driven initiatives designed to deliver steadily improving results as the operating environment gets better."

Third Quarter 2009 Highlights


                                             3rd Quarter   3rd Quarter    %
                                                 2009         2008     Change

    Income Statement
     (Dollars in millions, except per
     share data) Net income /(loss)           $(316.9)      $312.4    (201.4)%
    Net income/(loss) available to
     common shareholders                       (377.1)       304.4    (223.9)
    Net income/(loss) per average
     common diluted share                       (0.76)        0.87    (187.4)
    Revenue - fully taxable-equivalent        1,943.2      2,460.9     (21.0)
    Revenue - fully taxable-equivalent,
     excluding net securities gains/losses    1,896.5      2,287.9     (17.1)
    Net interest income - fully
     taxable-equivalent                       1,168.2      1,175.7      (0.6)
    Provision for loan losses                 1,133.9        503.7     125.1
    Noninterest income                          775.1      1,285.2     (39.7)
    Noninterest expense                       1,428.8      1,665.3     (14.2)
    Net interest margin                          3.10%        3.07%

    Balance Sheet
    (Dollars in billions)
    Average loans                              $119.8       $125.6      (4.7)%
    Average consumer and commercial deposits    114.5        100.2      14.3

    Capital
    Tier 1 capital ratio (1)                    12.55%        8.15%
    Tier 1 common equity ratio (1)               7.45%        6.02%
    Total average shareholders' equity to
     total average assets                       13.03%       10.41%

    Asset Quality
    Net charge-offs to average loans
     (annualized)                                3.33%        1.24%
    Allowance for loan losses to period
     end loans                                   2.61%        1.54%
    Nonperforming loans to total loans           4.67%        2.60%


    (1) Current period Tier 1 capital and Tier 1 common equity ratios are
        estimated as of the earnings release date.
  • The net loss per share of $0.76 includes $0.16 of fair value debt charges and reflects the continued challenging economic and credit operating environment.
  • Overall revenue remained cyclically soft with stable net interest income and lower noninterest income.
  • Unchanged net interest income was due to an expanded net interest margin that was offset by a reduction in average earning assets. Margin expansion was due to a significant increase in client deposits, as well as an improved mix of deposits, that enabled a reduction in higher cost sources of funding.
  • Expenses continued to be well managed with compensation and other controllable expenses declining. Economically cyclical expenses, including FDIC and pension, continued to impact results.
  • Growth in consumer and commercial deposits was strong as compared to the third quarter of last year; however, the pace of growth moderated in the third quarter of 2009.
  • Average earning assets and loan balances declined as client demand remained weak, particularly in commercial lines of credit.
  • The capital position remained solid with an estimated Tier 1 common ratio of 7.45% and an estimated Tier 1 capital ratio of 12.55%.
  • Credit losses increased; however, early stage delinquency and nonperforming loans were stable and the allowance for loan losses to total loans was increased to 2.61%.

Revenue

Fully taxable-equivalent total revenue was $1,943.2 million for the third quarter of 2009, a decrease of 21.0% compared to the third quarter of 2008. Fully taxable-equivalent total revenue, excluding net securities gains and losses, declined 17.1%. The third quarter of 2008 included an $81.8 million gain on sale of a fuel card and fleet management subsidiary and a $172.8 million valuation reserve related to the expected purchase of auction rate securities ("ARS"). Also impacting the decline in fully taxable-equivalent total revenue was a $341.0 market valuation gain on public debt and related hedges carried at fair value recognized in the third quarter of 2008 compared to a $131.3 million market valuation loss in the current quarter. The remaining decline in fee-related income occurred in cyclically sensitive areas such as trust and investment income and service charge income. Fully taxable-equivalent net interest income declined 0.6% compared to the third quarter of 2008.

For the nine months, fully taxable-equivalent total revenue was $6,350.2 million, down 12.8% from prior year. The decline was driven by net gains from the sale and contribution of investment securities, sale of non-strategic businesses, and sale/leaseback of corporate real estate properties coupled with significant market valuation gains on the public debt and related hedges carried at fair value in 2008 compared to market valuation losses related to the public debt and related hedges recognized during 2009. The prior year also included approximately $309 million of market valuation losses on certain illiquid asset-backed securities that were previously acquired from subsidiaries, as well as the market valuation loss related to ARS. Mortgage and capital markets related fee income increased compared to 2008 but was partially offset by declines in trust and investment management income, retail investment services, and service charges. Fully taxable-equivalent net interest income declined 4.1%.

Net Interest Income

Fully taxable-equivalent net interest income was $1,168.2 million in the third quarter of 2009, an increase of 4.2% from the second quarter of 2009 and a decline of 0.6% compared to the same quarter last year. Net interest margin increased 16 basis points and 3 basis points, respectively, compared to the sequential quarter and third quarter of 2008. Net interest margin benefited from deposit volumes, mix, and lower rates, as well as repayment of certain long-term debt and hybrid capital instruments that has occurred throughout 2009. On a sequential quarter basis, rates earned on average earning assets declined 4 basis points while rates paid on interest-bearing liabilities declined 23 basis points. Average earning assets declined $3.6 billion and $2.7 billion, respectively, compared to the sequential quarter and prior year quarter due primarily to a decline in loan demand. However, the reduction in interest income from this decline in average earning assets was offset by a reduction in the Company's cost of funds due to a significant increase in consumer and commercial deposits, as well as an improved mix in client deposits, which enabled a significant reduction in higher cost long-term debt and brokered deposits. Net interest income and margin continue to be adversely affected the current level of nonperforming loans.

For the nine months, fully taxable-equivalent net interest income was $3,382.2 million, a decline of 4.1% from the prior year. Net interest margin declined 12 basis points as the repricing of deposits lagged the decline in yields on earning assets experienced during the first six months of 2009. Year-to-date rates earned on earning assets declined 109 basis points while rates paid on interest-bearing liabilities declined 104 basis points.

Noninterest Income

Total noninterest income was $775.1 million for the third quarter of 2009, down 39.7% from the third quarter of 2008. The decline was due to gains generated in 2008 of $183.4 million related to the contribution of The Coca-Cola Company ("Coke") stock to the SunTrust charitable foundation, a $81.8 million gain on the sale of the fuel card and fleet management subsidiary, and valuation gains of $341.0 million on the Company's public debt and related hedges carried at fair value compared to a loss on such debt of $131.3 million recognized in 2009. The third quarter of 2008 also included mark-to-market losses of $136.9 million on illiquid trading securities and loan warehouses and a valuation reserve of $172.8 million related to the expected purchase of ARS. Investment banking income increased significantly due to higher capital markets activity including strong debt and equity underwriting activity. However, the difficult operating environment was evident in the decline in many other fee-related sources of income. On a sequential quarter basis, noninterest income declined $296.6 million, or 27.7%. The decline was due to the $112.1 million second quarter gain related to the sale from the Visa shares, $156.9 million recovery in the second quarter of previously impaired mortgage servicing rights, and lower mortgage production income in the third quarter due to lower loan production and higher reserves related to the potential repurchase of certain mortgage loans which had previously been sold to third parties. Offsetting these declines were increases during the third quarter in most other fee-related categories, as well as a net increase in securities gains and losses of $71.6 million.

Mortgage production income was $28.1 million in the third quarter of 2009 compared to $50.0 million in the third quarter of 2008 and $165.4 million in the second quarter of 2009. Production was up 42% over the third quarter of 2008 but down 31% on a sequential quarter basis. Mortgage production income was adversely affected by $135.6 million in estimated losses related to the potential repurchase of certain mortgage loans that were sold in prior quarters under specified terms that could result in repurchase by the Company compared to $62.0 million recognized last quarter and $12.9 million recorded in the third quarter of 2008, as the volume of claims and anticipated loss severity has increased. Mortgage servicing related income for the current quarter was $60.2 million, down slightly from the third quarter of 2008 and down $79.5 million from the second quarter of 2009 which included a $156.9 million recovery of impairment on the mortgage servicing rights carried at the lower of cost or market. The decline was partially offset by lower amortization and less decay in fair value of mortgage servicing rights. As of September 30, 2009, SunTrust serviced $177.6 billion in mortgage loans, up 11.5% from a year ago.

Trading account profits and commissions were down $208.0 million from the third quarter of 2008 as the tightening of credit spreads in 2009 resulted in a mark-to-market valuation loss on the Company's public debt and related hedges carried at fair value of $131.3 million in the third quarter of 2009 compared to a gain of $341.0 million in 2008. The third quarter of 2008 also included mark-to-market losses of $136.9 million on illiquid trading securities and loan warehouses, as well as the valuation reserve of $172.8 million related to the purchase of ARS. As of September 30, 2009, the Company has completed the purchase of the majority of the ARS it expects to purchase, and most of these securities continue to cash flow, resulting in minimal realized losses. Since the third quarter of 2008, valuation losses on illiquid assets have diminished as liquidity in most of those markets has improved and the Company's holdings have been substantially reduced. Capital markets income, including core trading and investment banking income, increased compared to the third quarter 2008 due to increased trading activity and strong debt and equity underwriting deal flow. Service charges on deposits, trust and investment management income, and retail investment services declined 8.8%, 19.4%, and 29.4%, respectively, compared to the third quarter of 2008 due to the impact of economic conditions on these fee income items. On a sequential quarter basis, trading account profits and commissions declined primarily due to increased valuation losses from the tightening in spreads on the Company's public debt carried at fair value. Investment banking income and other fee-related income generally remained stable.

For the nine months, total noninterest income was $2,968.0 million, down $787.8 million, or 21.0% compared to the same period of 2008. The decline was largely due to 2008 net gains on sale and contribution of investment securities, primarily Coke stock, gains on sale of non-strategic businesses, and gains from the sale/leaseback of certain corporate real estate properties. The improvement in the Company's credit spreads during 2009 resulted in a charge of $114.9 million compared to a $478.5 million market valuation gain through the third quarter of 2008 recorded in trading account profits and commissions. However, in 2008, trading account profits and commissions included significant market valuation losses on previously acquired illiquid securities, as well as valuation reserves for ARS that did not recur in 2009. Mortgage-related income increased almost 125% due to a 42.8% increase in loan production, increased margins on the sale of loans, a larger servicing portfolio, and a $188.7 million recovery of impairment on the mortgage servicing rights carried at the lower of cost or market. Investment banking related income increased compared to 2008 but was partially offset by declines in trust and investment management income, retail investment services, and service charges.

Noninterest Expense

Total noninterest expense in the third quarter of 2009 was $1,428.8 million, a decline of 14.2% from the third quarter of 2008, which included the $183.4 million expense related to the contribution of Coke shares to the SunTrust charitable foundation as well as the Company's proportionate share of potential costs of litigation related to Visa of $20.0 million. Current quarter credit-related expenses decreased compared to the third quarter of 2008 primarily due to lower operating losses and mortgage reinsurance expense, partially offset by higher credit and collection services, unfunded commitment reserves, and other real estate losses. On a sequential quarter basis, noninterest expense declined 6.5% due to the FDIC special assessment and debt extinguishment losses recorded in the previous quarter and a decline in personnel expense in the current quarter, partially offset by increased credit-related expenses in the third quarter due to higher other real estate expenses and unfunded commitment reserves. Additionally, the third quarter of 2009 included $31.3 million of impairment related to affordable housing properties.

Total personnel expense decreased $30.2 million, or 4.3%, from the third quarter of 2008 as personnel decreased 4.9% from 29,447 as of September 30, 2008 to 28,015 as of September 30, 2009. Incentive expenses declined in order to align discretionary incentive compensation accruals with business performance; however, pension costs increased nearly $25.8 million due to an increase in the pension obligation as a result of 2009 market valuation assumptions. The decline in personnel expense was offset by a 10.9% increase in outside processing, as the Company contracted with a third party during the third quarter of 2008 to provide certain check and related processing operations. Regulatory assessments increased $26.4 million compared to the third quarter of 2008 due to higher FDIC insurance premiums but were down on a sequential quarter basis due to the special FDIC assessment of $78.2 million levied during second quarter. Broadly, disciplined expense management was evident across controllable operating expenses.

For the nine months, total noninterest expense was $5,108.8 million, an increase of 19.0% 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, partially offset by the $183.4 million charitable contribution expense recorded in the third quarter of 2008. Credit-related charges increased $85.0 million year-over-year despite the exclusion of credit-related losses associated with borrower misrepresentations from operating losses in 2009, as those charges are now considered in the provision for loan losses. FDIC insurance costs, including the special assessment, increased $207.2 million. The 23.5% 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 third quarter of 2009, the Company recognized a benefit for income taxes of $336.1 million compared to a benefit for income taxes of $52.8 million in the third quarter of 2008. The income tax provision in 2009 was impacted by discrete tax benefits recognized in the quarter totaling $47.1 million, primarily related to the settlement of examinations by certain taxing authorities, while the 2008 income tax provision was impacted primarily by the charitable contribution of Coke shares.

U.S. Treasury Preferred Dividends

For the third quarter and year-to-date periods of 2009, the Company recorded $66.4 million and $199.3 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 September 30, 2009, SunTrust had total assets of $172.7 billion and shareholders' equity of $22.9 billion, representing 13.3% of total assets. Book value per common share was $36.06 and tangible book value per common share was $23.35 as of September 30, 2009.

Loans

Average loans for the third quarter of 2009 were $119.8 billion, down 4.7% from the third quarter of 2008 and 3.5% from the second quarter of 2009. While the Company remains focused on extending credit to qualified borrowers, residential real estate and real estate construction loans declined as a result of the Company's efforts to reduce its exposure to these categories and the associated risk. Additionally, commercial loans have declined 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. Average loans held for sale increased 14.4% over the third quarter of 2008, as total mortgage loan production increased 42% to $11.6 billion in the third quarter of 2009.

Deposits

Average consumer and commercial deposits for the third quarter of 2009 totaled $114.5 billion, up 14.3% from the third quarter of 2008, as almost all deposit categories increased and demand deposits grew 17.4%. On a sequential quarter basis, average consumer and commercial deposits increased 0.8% and deposit mix improved due to growth in lower cost deposits and declines in time deposits. Deposit growth is the result of clients' increased preference for the security of insured deposit products, competitive pricing, and effective marketing. Further, through an intense focus on improved execution, the Company has been successful in improving product offerings and client satisfaction, acquisition, and retention. Average brokered and foreign deposits declined 67.1% from the third quarter of 2008, as the Company's deposit growth 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 September 30, 2009, were 7.45%, 12.55%, and 13.03%, respectively. The decline in Tier 1 common equity from the current period net loss was offset by a reduction in risk-weighted assets. 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 $3,024.0 million as of September 30, 2009, up $128.0 million from June 30, 2009, and represented 2.61% of period-end total loans, up 24 basis points from last quarter and up 107 basis points from one year ago. The increase in the allowance for loan and lease losses was attributable to further deterioration in the residential real estate market. While early stage delinquencies remained stable, loss severities related to underlying residential properties continued to increase. The $128.0 million increase in allowance for loan losses compares favorably to the $161.0 million, $384.0 million, and $410.0 million increase recognized over the previous three quarters. The provision for loan losses increased $171.7 million compared to the second quarter of 2009, primarily due to the increase in net charge-offs, partially offset by the reduced increase in the allowance for loan losses.

Net charge-offs totaled $1,005.9 million in the third quarter of 2009 compared to $801.2 million in the second quarter of 2009, an increase of $204.7 million with increases concentrated in construction, residential real estate, and commercial. The increase in net charge-offs during the quarter was largely driven by the resolution of loan workouts in the residential builder construction portfolio, residential mortgage charge-offs, and additional charge-offs related to larger corporate borrowers in cyclical industries. Annualized quarterly net charge-offs were 3.33% of average loans, up from 2.59% in the second quarter of 2009 and 1.24% in the third quarter of 2008. Compared to the third quarter of 2008, net charge-offs increased $613.9 million across most loan categories with the largest increase in residential mortgages, $254.3 million; commercial, $146.6 million; and construction, $106.7 million.

Nonperforming loans were $5,444.3 million, or 4.67% of total loans as of September 30, 2009, a decline of $59.6 million compared to June 30, 2009 representing the first quarterly decline since the credit crisis began in 2007 driven primarily by a reduction in nonaccrual commercial loans. The increase in nonaccrual residential mortgage loans was substantially less than the growth rate observed over the past four quarters. As of September 30, 2008, nonperforming loans totaled $3,289.5 million, or 2.60% of total loans.

Accruing restructured loans increased $418.6 million during the quarter to $1,343.6 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. The increase in loan modifications also impacted the moderation in nonperforming loan growth and early stage delinquencies. Early stage delinquencies declined compared to the second quarter of 2009 and the same quarter last year; however, the ratio remained stable at 1.52% as loan balances have declined.

Line of Business Results

The Company has included line of business financial tables as part of this release on their 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 expenses 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 October 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: 3Q09). Individuals calling from outside the United States should dial 1-517-308-9091 (Passcode: 3Q09). A replay of the call will be available one hour after the call ends on October 22, 2009, and will remain available until November 12, 2009, dialing 1-800-262-5125 (domestic) or 1-402-220-9716 (international).

Alternatively, individuals may listen to the live webcast of the presentation by visiting the SunTrust Web site at www.suntrust.com. The webcast will be hosted under "Investor Relations," located under "About SunTrust," or may be accessed directly from the SunTrust home page by clicking on the earnings-related link, "3rd Quarter Earnings Release." Beginning the afternoon of October 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, and trust and investment management services. Through various subsidiaries, the Company provides mortgage banking, insurance, brokerage, 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, FDIC and other regulatory expense, and income are forward-looking statements. Also, any statement that does not describe historical or current facts, including statements about beliefs and expectations, is a forward-looking statements. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "initiatives," "potentially," "probably," "projects," "outlook" or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Such statements are based upon the current beliefs and expectations of management and on information currently available to management. Such statements speak as of the date hereof, and we do not assume any obligation to update the statements made herein or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements can be found 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 Stabilization Act of 2008 and its implementing regulations, and actions by the FDIC, cannot be predicted at this time; credit risk; weakness in the economy and in the real estate market, including specific weakness within our geographic footprint, has adversely affected us and may continue to adversely affect us; weakness in the real estate market, including the secondary residential mortgage loan markets, has adversely affected us and may continue to adversely affect us; 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 to 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.

    Contact:
    Investors                Media
    Steve Shriner            Barry Koling
    (404) 827-6714           (404) 230-5268
    SunTrust Banks, Inc. and Subsidiaries
    FINANCIAL HIGHLIGHTS
    (Dollars in millions, except per share data) (Unaudited)

                                              Three Months Ended     %
                                                  September 30     Change
                                               2009         2008     (4)
                                               ----         ----   -------

    EARNINGS & DIVIDENDS
    Net income/(loss)                       ($316.9)      $312.4       NM   %
    Net income/(loss) available to
     common shareholders                     (377.1)       304.4       NM
    Net income/(loss) available to common
     shareholders excluding goodwill/
     intangible impairment charges other
     than MSRs (1)                           (377.1)       304.4       NM
    Total revenue - FTE (2)                 1,943.2      2,460.9    (21.0)
    Total revenue - FTE excluding
     securities (gains)/losses, net (1)     1,896.5      2,287.9    (17.1)
    Net income/(loss) per average common
     share
         Diluted                              (0.76)        0.87       NM
         Diluted excluding goodwill/
          intangible impairment charges
          other than MSRs (1)                 (0.76)        0.87       NM
         Basic                                (0.76)        0.87       NM
    Dividends paid per average common
     share                                     0.01         0.77    (98.7)

    CONDENSED BALANCE SHEETS
    Selected Average Balances
    -------------------------
    Total assets                           $172,463     $173,888     (0.8)%
    Earning assets                          149,579      152,320     (1.8)
    Loans                                   119,796      125,642     (4.7)
    Consumer and commercial deposits        114,486      100,200     14.3
    Brokered and foreign deposits             5,193       15,800    (67.1)
    Total shareholders' equity               22,468       18,097     24.2

    As of
    -----
    Total assets                            172,718      174,777     (1.2)
    Earning assets                          145,554      152,904     (4.8)
    Loans                                   116,488      126,718     (8.1)
    Allowance for loan and lease losses       3,024        1,941     55.8
    Consumer and commercial deposits        113,601      101,829     11.6
    Brokered and foreign deposits             5,730       14,083    (59.3)
    Total shareholders' equity               22,908       18,069     26.8

    FINANCIAL RATIOS & OTHER DATA
    Return on average total assets            (0.73)%       0.71%      NM%
    Return on average assets less net
     unrealized securities gains (1)          (0.83)        0.45       NM
    Return on average common
     shareholders' equity                     (8.52)        6.88       NM
    Return on average realized common
     shareholders' equity (1)                 (9.70)        4.45       NM
    Net interest margin (2)                    3.10         3.07      1.0
    Efficiency ratio (2)                      73.53        67.67      8.7
    Tangible efficiency ratio (1)             72.82        66.92      8.8
    Effective tax rate/(benefit)             (51.46)      (20.32)      NM
    Tier 1 common equity                       7.45 (3)     6.02     23.8
    Tier 1 capital                            12.55 (3)     8.15     54.0
    Total capital                             15.90 (3)    11.16     42.5
    Tier 1 leverage                           11.05 (3)     7.98     38.5
    Total average shareholders' equity
     to total average assets                  13.03        10.41     25.2
    Tangible equity to tangible assets (1)     9.96 (5)     6.47     53.9

    Book value per common share              $36.06       $49.64    (27.4)
    Tangible book value per common share (1)  23.35        29.18    (20.0)
    Market price:
         High                                 24.43        64.00    (61.8)
         Low                                  14.50        25.60    (43.4)
         Close                                22.55        44.99    (49.9)
    Market capitalization                    11,256       15,925    (29.3)

    Average common shares outstanding (000s)
         Diluted (6)                        494,169      350,970     40.8
         Basic                              494,169      349,916     41.2

    Full-time equivalent employees           28,015       29,447     (4.9)
    Number of ATMs                            2,807        2,506     12.0
    Full service banking offices              1,690        1,692     (0.1)



                                               Nine Months Ended      %
                                                 September 30      Change
                                               2009         2008     (4)
                                               ----         ----   -------

    EARNINGS & DIVIDENDS
    Net income/(loss)                     ($1,315.6)    $1,143.4       NM%
    Net income/(loss) available to
     common shareholders                   (1,417.0)     1,115.9       NM
    Net income/(loss) available to
     common shareholders excluding
     goodwill/intangible impairment
     charges other than MSRs (1)             (702.2)     1,142.9       NM
    Total revenue - FTE (2)                 6,350.2      7,284.2    (12.8)
    Total revenue - FTE excluding
     securities (gains)/losses, net (1)     6,325.0      6,622.0     (4.5)
    Net income/(loss) per average common
     share
         Diluted                              (3.41)        3.19       NM
         Diluted excluding goodwill/
          intangible impairment charges
          other than MSRs (1)                 (1.69)        3.27       NM
         Basic                                (3.41)        3.20       NM
    Dividends paid per average common
     share                                     0.21         2.31    (90.9)

    CONDENSED BALANCE SHEETS
    Selected Average Balances
    -------------------------
    Total assets                           $175,915     $175,446      0.3%
    Earning assets                          152,365      152,601     (0.2)
    Loans                                   123,064      124,702     (1.3)
    Consumer and commercial deposits        111,869      101,029     10.7
    Brokered and foreign deposits             6,398       15,447    (58.6)
    Total shareholders' equity               22,254       18,162     22.5

    As of
    -----
    Total assets
    Earning assets
    Loans
    Allowance for loan and lease losses
    Consumer and commercial deposits
    Brokered and foreign deposits
    Total shareholders' equity

    FINANCIAL RATIOS & OTHER DATA
    Return on average total assets            (1.00)%       0.87%      NM%
    Return on average assets less net
     unrealized securities gains (1)          (1.05)        0.53       NM
    Return on average common
     shareholders' equity                    (11.06)        8.44       NM
    Return on average realized common
     shareholders' equity (1)                (11.91)        5.43       NM
    Net interest margin (2)                    2.97         3.09     (3.9)
    Efficiency ratio (2)                      80.45        58.93     36.5
    Tangible efficiency ratio (1)             67.94        57.51     18.1
    Effective tax rate/(benefit)             (32.58)       17.45       NM
    Tier 1 common equity
    Tier 1 capital
    Total capital
    Tier 1 leverage
    Total average shareholders' equity
     to total average assets                  12.65        10.35     22.2
    Tangible equity to tangible assets (1)

    Book value per common share
    Tangible book value per common share (1)
    Market price:
         High                                 30.18        70.00    (56.9)
         Low                                   6.00        25.60    (76.6)
         Close                                22.55        44.99    (49.9)
    Market capitalization

    Average common shares outstanding (000s)
         Diluted 6                          415,444      349,613     18.8
         Basic                              415,444      348,409     19.2

    Full-time equivalent employees
    Number of ATMs
    Full service banking offices


    (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.
    (6) For earnings per share calculation purposes, the impact of dilutive
        securities are excluded from the diluted share count during periods
        that the Company has recognized a net loss available to common
        shareholders because the impact would be antidilutive.
    SunTrust Banks, Inc. and Subsidiaries
    FIVE QUARTER FINANCIAL HIGHLIGHTS
    (Dollars in millions, except per share data) (Unaudited)

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

    EARNINGS &
     DIVIDENDS
    Net income/
     (loss)         ($316.9)     ($183.5)     ($815.2)     ($347.6)    $312.4
    Net income/
     (loss)
     available
     to common
     shareholders    (377.1)      (164.4)      (875.4)      (374.9)     304.4
    Net income/
     (loss) available
     to common
     shareholders
     excluding
     goodwill/
     intangible
     impairment
     charges other
     than MSRs(1)    (377.1)      (164.4)      (160.6)      (374.9)     304.4
    Total revenue -
     FTE(2)         1,943.2      2,192.8      2,214.2      1,926.4    2,460.9
    Total revenue -
     FTE excluding
     securities
     (gains)/losses,
     Net(1)         1,896.5      2,217.7      2,210.8      1,515.3    2,287.9
    Net income/
     (loss)
     per average
     common share
         Diluted      (0.76)       (0.41)       (2.49)       (1.07)      0.87
         Diluted
          excluding
          goodwill/
          intangible
          impairment
          charges
          other
          than
          MSRs(1)     (0.76)       (0.41)       (0.46)       (1.07)      0.87
         Basic        (0.76)       (0.41)       (2.49)       (1.07)      0.87
    Dividends paid
     per average
     common
     share             0.01         0.10         0.10         0.54       0.77

    CONDENSED
     BALANCE
     SHEETS
    Selected Average
     Balances
    ----------------
    Total assets   $172,463     $176,480     $178,871     $177,047   $173,888
    Earning assets  149,579      153,177      154,390      153,188    152,320
    Loans           119,796      124,123      125,333      127,608    125,642
    Consumer and
     commercial
     deposits       114,486      113,528      107,515      102,238    100,200
    Brokered and
     foreign
     deposits         5,193        6,608        7,417       12,649     15,800
    Total
     shareholders'
     equity          22,468       21,926       22,368       19,891     18,097

    As of
    -----
    Total assets    172,718      176,735      179,116      189,138    174,777
    Earning assets  145,554      154,345      153,290      156,016    152,904
    Loans           116,488      122,816      123,893      126,998    126,718
    Allowance for
     loan and lease
     losses           3,024        2,896        2,735        2,351      1,941
    Consumer and
     commercial
     deposits       113,601      113,746      112,449      105,276    101,829
    Brokered and
     foreign
     deposits         5,730        5,055        6,523        8,053     14,083
    Total
     shareholders'
     equity          22,908       22,953       21,646       22,501     18,069

    FINANCIAL RATIOS
     & OTHER DATA
    Return on
     average total
     assets          (0.73)%      (0.42)%      (1.85)%      (0.78)%     0.71%
    Return on
     average assets
     less net
     unrealized
     securities
     gains(1)        (0.83)       (0.41)       (1.89)       (1.39)      0.45
    Return on
     average common
     shareholders'
     equity          (8.52)       (3.95)      (20.71)       (8.47)      6.88
    Return on
     average realized
     common
     shareholders'
     equity(1)       (9.70)       (4.02)      (22.08)      (15.33)      4.45
    Net interest
     margin(2)        3.10         2.94         2.87         3.14       3.07
    Efficiency
     Ratio(2)        73.53        69.68        97.22        82.34      67.67
    Tangible
     efficiency
     ratio(1)        72.82        69.05        62.97        81.44      66.92
    Effective tax
     rate/(benefit) (51.46)      (44.81)      (15.61)      (47.06)    (20.32)
    Tier 1 common
     equity           7.45 (3)     7.34         5.83         5.83       6.02
    Tier 1 capital   12.55 (3)    12.23        11.02        10.87       8.15
    Total capital    15.90 (3)    15.31        14.15        14.04      11.16
    Tier 1 leverage  11.05 (3)    11.02        10.14        10.45       7.98
    Total average
     shareholders'
     equity to total
     average
     assets          13.03        12.42        12.51        11.23      10.41
    Tangible equity
     to tangible
     assets(1)        9.96 (4)     9.75 (4)     8.85 (4)     8.46       6.47

    Book value per
     common share   $36.06       $36.16       $46.03       $48.74     $49.64
    Tangible book
     value per
     common
     share(1)        23.35        23.41        28.15        28.69      29.18
    Market price:
         High        24.43        20.86        30.18        57.75      64.00
         Low         14.50        10.50         6.00        19.75      25.60
         Close       22.55        16.45        11.74        29.54      44.99
    Market
     Capital-
     ization        11,256        8,205        4,188       10,472     15,925

    Average common
     shares
     outstanding
    (000s)
         Diluted
          (5)      494,169      399,242      351,352      350,439    350,970
         Basic     494,169      399,242      351,352      350,439    349,916

    Full-time
     equivalent
     employees      28,015       28,520       29,279       29,333     29,447
    Number of ATMs   2,807        2,695        2,673        2,582      2,506
    Full service
     banking
     offices         1,690        1,692        1,694        1,692      1,692


    (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.

    (5) For earnings per share calculation purposes, the impact of dilutive
        securities are excluded from the diluted share count during periods
        that the Company has recognized a net loss available to common
        shareholders because the impact would be antidilutive.
    SunTrust Banks, Inc. and Subsidiaries
    RECONCILEMENT OF NON-GAAP MEASURES
    APPENDIX A TO THE EARNINGS RELEASE
    (Dollars in thousands, except per share data)
    (Unaudited)

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

    NON-GAAP
     MEASURES
     PRESENTED
     IN THE
     EARNINGS
     RELEASE
    ---------
    Net income/
     (loss)     ($316,941)   ($183,460)   ($815,167)   ($347,587)    $312,444
    Securities
     (gains)/
     losses,
     net of
     tax          (28,949)      15,437       (2,094)    (254,853)    (107,289)
                  -------       ------       ------     --------     --------
    Net income/
     (loss)
     excluding
     net
     securities
     (gains)/
     losses,
     net of
     tax         (345,890)    (168,023)    (817,261)    (602,440)     205,155
    The Coca-Cola
     Company stock
     dividend,
     net of
     tax          (10,947)     (10,947)     (10,947)     (10,146)     (10,146)
                  -------      -------      -------      -------      -------
    Net income/
     (loss)
     excluding
     net securities
     (gains)/losses
     and The
     Coca-Cola
     Company stock
     dividend,
     net of tax  (356,837)    (178,970)    (828,208)    (612,586)     195,009
    Preferred
     dividends,
     Series A      (1,763)      (5,635)      (5,000)      (5,055)      (5,111)
    U.S. Treasury
     preferred
     dividends    (66,439)     (66,546)     (66,279)     (26,579)           -
    Dividends and
     undistributed
     earnings
     allocated to
     unvested
     shares         3,106        1,788       11,065        4,283       (2,936)
    Gain on purchase
     of Series A
     preferred
     stock          4,893       89,425            -            -            -
                    -----       ------          ---          ---          ---
    Net income/
     (loss)
     available to
     common
     shareholders
     excluding net
     securities
     (gains)/losses
     and The Coca-
     Cola Company
     stock
     dividend   ($417,040)   ($159,938)   ($888,422)   ($639,937)    $186,962
                =========    =========    =========    =========     ========

    Total average
     assets  $172,463,221 $176,480,470 $178,871,285 $177,047,258 $173,888,490
    Average net
     unrealized
     securities
     gains     (1,607,293)  (1,506,504)  (1,341,146)  (1,371,624)  (1,526,431)
               ----------   ----------   ----------   ----------    ----------
    Average
     assets
     less net
     unrealized
     securities
     gains   $170,855,928 $174,973,966 $177,530,139 $175,675,634 $172,362,059
             ============ ============ ============ ============ ============

    Total
     average
     common
     share-
     holders'
     equity   $17,556,380  $16,699,659  $17,144,179  $17,600,105  $17,597,380
    Average
     accumulated
     other
     comp-
     rehensive
     income      (504,018)    (745,189)    (824,314)    (996,955)    (871,413)
                 --------     --------     --------     --------     --------
    Total
     average
     realized
     common
     share-
     holders'
     equity   $17,052,362  $15,954,470  $16,319,865  $16,603,150  $16,725,967
              ===========  ===========  ===========  ===========  ===========

    Return on
     average
     total
     assets         (0.73)%      (0.42)%      (1.85)%      (0.78)%       0.71%
    Impact of
     excluding
     net
     realized
     and
     unrealized
     securities
     (gains)/
     losses
     and The
     Coca-
     Cola
     Company
     stock
     dividend       (0.10)        0.01        (0.04)       (0.61)       (0.26)
                    -----         ----        -----        -----        -----
    Return on
     average
     total
     assets
     less net
     unrealized
     securities
     gains (1)      (0.83)%      (0.41)%      (1.89)%      (1.39)%       0.45%
                    =====        =====        =====        =====         ====

    Return on
     average
     common
     share-
     holders'
     equity         (8.52)%      (3.95)%     (20.71)%      (8.47)%       6.88%
    Impact of
     excluding
     net realized
     and unrealized
     securities
     (gains)/
     losses and
     The Coca-Cola
     Company stock
     dividend       (1.18)       (0.07)       (1.37)       (6.86)       (2.43)
                    -----        -----        -----        -----        -----
    Return on
     average
     realized
     common
     share-
     holders'
     equity(2)      (9.70)%      (4.02)%     (22.08)%     (15.33)%       4.45%
                    =====        =====       ======       ======         ====

    Efficiency
     ratio(3)       73.53%       69.68%       97.22%       82.34%       67.67%
    Impact of
     excluding
     amortization/
     impairment of
     goodwill/
     intangible
     assets
     other than
     MSRs           (0.71)       (0.63)      (34.25)       (0.90)       (0.75)
                    -----        -----       ------        -----        -----
    Tangible
     efficiency
     ratio(4)       72.82%       69.05%       62.97%       81.44%       66.92%
                    =====        =====        =====        =====        =====

    Total
     Share-
     holders'
     equity   $22,908,284  $22,953,158  $21,645,626  $22,500,805  $18,069,378
    Goodwill,
     net of
     deferred
     taxes     (6,204,954)  (6,213,243)  (6,224,610)  (6,941,104)  (7,062,869)
    Other
     intangible
     assets
     including
     MSRs, net of
     deferred
     taxes     (1,559,765)  (1,468,209)  (1,049,155)    (978,211)  (1,328,055)
    MSRs        1,422,716    1,322,322      894,797      810,474    1,150,013
                ---------    ---------      -------      -------    ---------
    Tangible
     equity    16,566,281   16,594,028   15,266,658   15,391,964   10,828,467
    Preferred
     stock     (4,911,416)  (4,918,863)  (5,227,357)  (5,221,703)    (500,000)
               ----------   ----------   ----------   ----------     --------
    Tangible
     common
     equity   $11,654,865  $11,675,165  $10,039,301  $10,170,261  $10,328,467
              ===========  ===========  ===========  ===========  ===========

    Total
     assets  $172,717,747 $176,734,971 $179,116,402 $189,137,961 $174,776,760
    Goodwill   (6,314,382)  (6,314,382)  (6,309,431)  (7,043,503)  (7,062,869)
    Other
     intangible
     assets
     including
     MSRs      (1,604,136)  (1,517,483)  (1,103,333)  (1,035,427)  (1,389,965)
    MSRs        1,422,716    1,322,322      894,797      810,474    1,150,013
                ---------    ---------      -------      -------    ---------
    Tangible
     assets  $166,221,945 $170,225,428 $172,598,435 $181,869,505 $167,473,939
             ============ ============ ============ ============ ============

    Tangible
     equity
     to tangible
     assets(5)       9.96%        9.75%        8.85%        8.46%        6.47%
    Tangible book
     value per
     common
     share(7)      $23.35       $23.41       $28.15       $28.69       $29.18

    Net interest
     income    $1,137,458   $1,089,657   $1,062,098   $1,176,860   $1,146,213
    Taxable-
     equivalent
     adjustment    30,716       31,428       30,859       31,790       29,466
                   ------       ------       ------       ------       ------
    Net interest
     income -
     FTE        1,168,174    1,121,085    1,092,957    1,208,650    1,175,679
    Noninterest
     income       775,051    1,071,675    1,121,238      717,729    1,285,222
                  -------    ---------    ---------      -------    ---------
    Total revenue -
     FTE        1,943,225    2,192,760    2,214,195    1,926,379    2,460,901
    Securities
     (gains)/
     losses, net  (46,692)      24,899       (3,377)    (411,053)    (173,046)
                  -------       ------       ------     --------     --------
    Total revenue -
     FTE excluding
     net securities
     (gains)/
     Losses(6)  $1,896,533   $2,217,659   $2,210,818   $1,515,326  $2,287,855
                ==========   ==========   ==========   ==========  ==========


                              Nine Months Ended
                          Sept. 30       Sept. 30
                              2009           2008
                              ----           ----

    NON-GAAP MEASURES
     PRESENTED IN THE
     EARNINGS RELEASE
    -----------------

    Net income/
     (loss)            ($1,315,568)    $1,143,361
    Securities
     (gains)/losses,
     net of
     tax                   (15,605)      (410,593)
                           -------       --------
    Net income/
     (loss) excluding
     net securities
     (gains)/losses,
     net of
     tax                (1,331,173)       732,768
    The Coca-Cola
     Company stock
     dividend, net of
     tax                   (32,841)       (39,623)
                           -------        -------
    Net income/(loss)
     excluding net
     securities (gains)/
     losses and The
     Coca-Cola
     Company stock
     dividend, net of
     tax                (1,364,014)       693,145

    Preferred
     dividends,
     Series A              (12,398)       (17,200)
    U.S. Treasury
     preferred
     dividends            (199,264)             -
    Dividends and
     undistributed
     earnings
     allocated to
     unvested shares        15,959        (10,241)
    Gain on purchase
     of Series A
     preferred stock        94,318              -
                            ------            ---
    Net income/(loss)
     available to
     common shareholders
     excluding net
     securities
     (gains)/losses
     and The Coca-
     Cola Company
     stock
     dividend          ($1,465,399)      $665,704
                       ===========       ========

    Total average
     assets           $175,914,853   $175,445,683
    Average net
     unrealized
     securities
     gains              (1,485,956)    (2,090,050)
                        ----------     ----------
    Average assets
     less net
     unrealized
     securities
     gains            $174,428,897   $173,355,633
                      ============   ============

    Total average
     common
     shareholders'
     equity            $17,134,916    $17,661,553
    Average
     accumulated
     other
     comprehensive
     income               (690,000)    (1,296,159)
                          --------     ----------
    Total average
     realized common
     shareholders'
     equity            $16,444,916    $16,365,394
                       ===========    ===========

    Return on
     average total
     assets                  (1.00)%         0.87%
    Impact of excluding
     net realized and
     unrealized securities
     (gains)/losses
     and The Coca-
     Cola Company
     stock
     dividend               (0.05)         (0.34)
                             -----          -----
    Return on average
     total assets less
     net unrealized
     securities gains(1)    (1.05)%         0.53%
                             =====           ====

    Return on
     average common
     shareholders'
     equity                 (11.06)%         8.44%
    Impact of excluding
     net realized and
     unrealized
     securities (gains)/
     losses and The
     Coca-Cola
     Company stock
     dividend                (0.85)         (3.01)
                             -----          -----
    Return on
     average realized
     common
     shareholders'
     equity(2)              (11.91)%         5.43%
                            ======           ====

    Efficiency ratio(3)      80.45%         58.93%
    Impact of excluding
     amortization/
     impairment of
     goodwill/
     intangible assets
     other than
     MSRs                   (12.51)         (1.42)
                            ------          -----
    Tangible
     efficiency ratio(4)     67.94%         57.51%
                             =====          =====

    Total shareholders'
     equity
    Goodwill, net of
     deferred taxes
    Other intangible assets
     including MSRs, net of
     deferred taxes
    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             $3,289,213     $3,442,796
    Taxable-
     equivalent
     adjustment             93,003         85,697
                            ------         ------
    Net interest
     income -
     FTE                 3,382,216      3,528,493
    Noninterest
     income              2,967,964      3,755,734
                         ---------      ---------
    Total revenue -
     FTE                 6,350,180      7,284,227
    Securities
     (gains)/losses,
     net                   (25,170)      (662,247)
                           -------       --------
    Total revenue -
     FTE excluding
     net securities
     (gains)/losses(6) $6,325,010     $6,621,980
                        ==========     ==========


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

    Total noninterest
     expense        $1,428,847  $1,527,972  $2,152,023  $1,586,153  $1,665,295
    Goodwill/
     intangible
     impairment charges
     other than MSRs         -           -     751,156           -           -
                           ---         ---     -------         ---         ---
    Total noninterest
     expense excluding
     goodwill/
     intangible
     impairment charges
     other than
     MSRs(1)        $1,428,847  $1,527,972  $1,400,867  $1,586,153  $1,665,295
                    ==========  ==========  ==========  ==========  ==========


    Net income/
     (loss)          ($316,941)  ($183,460)  ($815,167)  ($347,587)   $312,444
    Goodwill/
     intangible
     impairment charges
     other than MSRs,
     after tax               -           -     723,853           -           -
                           ---         ---     -------         ---         ---
    Net income/(loss)
     excluding goodwill
     /intangible
     impairment charges
     other than MSRs,
     after tax(1)    ($316,941)  ($183,460)   ($91,314)  ($347,587)   $312,444
                     =========   =========    ========   =========    ========


    Net income/(loss)
     available to
     common
     shareholders    ($377,144)  ($164,428)  ($875,381)  ($374,938)   $304,397
    Goodwill/
     intangible
     impairment charges
     other than
     MSRs attributable
     to common
     shareholders,
     after tax               -           -     714,824           -           -
                           ---         ---     -------         ---         ---
    Net income/(loss)
     available to
     common
     shareholders
     excluding goodwill/
     intangible impairment
     charges other
     than MSRs, after
     tax(1)          ($377,144)  ($164,428)  ($160,557)  ($374,938)   $304,397
                     =========   =========   =========   =========    ========


    Net income/(loss)
     per average common
     share, diluted     ($0.76)     ($0.41)     ($2.49)     ($1.07)      $0.87
    Impact of excluding
     goodwill/intangible
     impairment charges
     other than MSRs
     attributable
     to common
     shareholders,
     after tax               -           -        2.03           -           -
                           ---         ---        ----         ---         ---
    Net income/(loss)
     per average diluted
     common share,
     excluding goodwill/
     intangible
     impairment charges
      other than MSRs,
      after tax(1)      ($0.76)     ($0.41)     ($0.46)     ($1.07)      $0.87
                        ======      ======      ======      ======       =====


    SUPPLEMENTAL INCOME
     STATEMENT
     RECONCILIATION
    ------------------

    Net income/
     (loss)          ($316,941)  ($183,460)  ($815,167)  ($347,587)   $312,444
    Preferred
     dividends, Series
     A                  (1,763)     (5,635)     (5,000)     (5,055)    (5,111)
    U.S. Treasury
     preferred
     dividends         (66,439)    (66,546)    (66,279)    (26,579)          -
    Dividends and
     undistributed
     earnings allocated
     to unvested shares  3,106       1,788      11,065       4,283     (2,936)
    Gain on purchase
     of Series A
     preferred stock     4,893      89,425           -           -           -
                         -----      ------         ---         ---         ---

    Net income/(loss)
     available to
     common
     shareholders    ($377,144)  ($164,428)  ($875,381)  ($374,938)   $304,397
                     =========   =========   =========   =========    ========



                             Nine Months Ended
                             -----------------
                           Sept. 30     Sept. 30
                             2009        2008
                             ----        ----
    NON-GAAP MEASURES
     PRESENTED IN THE
     EARNINGS
     RELEASE
    ------------------

    Total noninterest
     expense                $5,108,842  $4,292,870
    Goodwill/
     intangible
     impairment charges
     other than MSRs           751,156      45,000
                               -------      ------
    Total noninterest
     expense excluding
     goodwill/
     intangible
     impairment charges
     other than MSRs(1)     $4,357,686  $4,247,870
                            ==========  ==========


    Net income/(loss)      ($1,315,568) $1,143,361
    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)            ($591,715) $1,170,642
                              ========= ==========


    Net income/(loss)
     available to
     common
     shareholders          ($1,416,953) $1,115,920
    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)            ($702,129) $1,142,926
                             =========  ==========


    Net income/(loss)
     per average common
     share, diluted             ($3.41)      $3.19
    Impact of excluding
     goodwill/intangible
     impairment charges
     other than MSRs
     attributable
     to common
     shareholders,
     after tax                    1.72        0.08
                                  ----        ----
    Net income/(loss)
     per average diluted
     common share, excluding
     goodwill/intangible
     impairment charges
     other than MSRs,
     after tax(1)               ($1.69)      $3.27
                                ======       =====


    SUPPLEMENTAL INCOME
     STATEMENT RECONCILIATION
    -------------------------

    Net income/
     (loss)                ($1,315,568) $1,143,361
    Preferred
     dividends, Series A       (12,398)    (17,200)
    U.S. Treasury
     preferred
     dividends                (199,264)          -
    Dividends and
     undistributed
     earnings allocated
     to unvested shares         15,959     (10,241)
    Gain on purchase
     of Series A
     preferred stock            94,318           -
                                ------         ---

    Net income/(loss)
     available to
     common
     shareholders          ($1,416,953) $1,115,920
                           ===========  ==========


    (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.

SOURCE SunTrust Banks, Inc.



RELATED LINKS

http://www.suntrust.com