Suntrust Banks 8-K SunTrust Reports Second Quarter Earnings of $1.53 Per Share

SunTrust Banks, Inc.

2Q 2008 Earnings Presentation

July 22, 2008

Exhibit 99.2

The

following

should

be

read

in

conjunction

with

the

financial

statements,

notes

and

other

information

contained

in

the

Company’s

2007

Annual

Report

on

Form

10-K,

Quarterly

Reports

on

Form

10-Q,

and

Current

Reports

on

Form

8-K.

This

presentation

includes

non-GAAP

financial

measures

to

describe

SunTrust’s

performance.

The

reconciliation

of

those

measures

to

GAAP

measures

are

provided

within

this

presentation.

In

this

presentation,

net

interest

income

and

net

interest

margin

are

presented

on

a

fully

taxable-equivalent

(“FTE”)

basis,

and

ratios

are

presented

on

an

annualized

basis.

The

FTE

basis

adjusts

for

the

tax-favored

status

of

income

from

certain

loans

and

investments.

The

Company

believes

this

measure

to

be

the

preferred

industry

measurement

of

net

interest

income

and

provides

relevant

comparison

between

taxable

and

non-taxable

amounts.

The

information

in

this

presentation

may

contain

forward-looking

statements.

Statements

that

do

not

describe

historical

or

current

facts,

including

statements

about

beliefs

and

expectations

are

forward-looking

statements.

These

statements

often

include

the

words

“may,”

“could,”

“will,”

“should,”

“believes,”

“expects,”

“anticipates,”

“estimates,”

“intends,”

“plans,”

“targets,”

“initiatives,”

“potentially,”

“probably,”

“projects,”

“outlook”

or

similar

expressions.

Such

statements

are

based

upon

the

current

beliefs

and

expectations

of

SunTrust's

management

and

on

information

currently

available

to

management.

The

forward

looking

statements

are

intended

to

be

subject

to

the

safe

harbor

provided

by

Section

27A

of

the

Securities

Act

of

1933

and

Section

21E

of

the

Securities

Exchange

Act

of

1934.

Such

statements

speak

as

of

the

date

hereof,

and

SunTrust

does

not

intend

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

SunTrust’s

results

to

differ

materially

from

those

described

in

the

forward-looking

statements

can

be

found

in

the

Company's

2007

Annual

Report

on

Form

10-K,

in

the

Company’s

Quarterly

Reports

on

Form

10-Q,

and

in

the

Current

Reports

on

Form

8-K

filed

with

the

Securities

and

Exchange

Commission

and

available

at

the

Securities

and

Exchange

Commission's

internet

site

(http://www.sec.gov).

Those

factors

include:

(1)

adverse

changes

in

general

business

or

economic

conditions

could

have

a

material

adverse

effect

on

our

financial

condition

and

results

of

operations;

(2)

changes

in

market

interest

rates

or

capital

markets

could

adversely

affect

our

revenues

and

expenses,

the

value

of

assets

and

obligations,

costs

of

capital,

or

liquidity;

(3)

the

fiscal

and

monetary

policies

of

the

federal

government

and

its

agencies

could

have

a

material

adverse

effect

on

our

earnings;

(4)

changes

in

securities

markets

or

markets

for

commercial

or

residential

real

estate

could

harm

our

revenues

and

profitability;

(5)

customers

could

pursue

alternatives

to

bank

deposits,

causing

us

to

lose

a

relatively

inexpensive

source

of

funding;

(6)

customers

may

decide

not

to

use

banks

to

complete

their

financial

transactions,

which

could

affect

net

income;

(7)

we

have

businesses

other

than

banking,

which

subjects

us

to

a

variety

of

risks;

(8)

hurricanes

and

other

natural

disasters

may

adversely

affect

loan

portfolios

and

operations

and

increase

the

cost

of

doing

business;

(9)

negative

public

opinion

could

damage

our

reputation

and

adversely

impact

our

business;

(10)

we

rely

on

other

companies

for

key

components

of

our

business

infrastructure;

(11)

we

rely

on

our

systems,

employees

and

certain

counterparties,

and

certain

failures

could

materially

adversely

affect

our

operations;

(12)

we

depend

on

the

accuracy

and

completeness

of

information

about

clients

and

counterparties;

(13)

regulation

by

federal

and

state

agencies

could

adversely

affect

our

business,

revenues,

and

profit

margins;

(14)

competition

in

the

financial

services

industry

is

intense

and

could

result

in

losing

business

or

reducing

profit

margins;

(15)

future

legislation

could

harm

our

competitive

position;

(16)

maintaining

or

increasing

market

share

depends

on

market

acceptance

and

regulatory

approval

of

new

products

and

services;

(17)

our

ability

to

receive

dividends

from

our

subsidiaries

accounts

for

most

of

our

revenues

and

could

affect

our

liquidity

and

ability

to

pay

dividends;

(18)

significant

legal

actions

could

subject

us

to

substantial

uninsured

liabilities;

(19)

we

have

in

the

past

and

may

in

the

future

pursue

acquisitions,

which

could

affect

costs

and

from

which

we

may

not

be

able

to

realize

anticipated

benefits;

(20)

we

depend

on

the

expertise

of

key

personnel

without

whom

our

operations

may

suffer;

(21)

we

may

be

unable

to

hire

or

retain

additional

qualified

personnel

and

recruiting

and

compensation

costs

may

increase

as

a

result

of

turnover,

both

of

which

may

increase

costs

and

reduce

profitability

and

may

adversely

impact

our

ability

to

implement

our

business

strategy;

(22)

our

accounting

policies

and

methods

are

key

to

how

we

report

financial

condition

and

results

of

operations,

and

may

require

management

to

make

estimates

about

matters

that

are

uncertain;

(23)

changes

in

our

accounting

policies

or

in

accounting

standards

could

materially

affect

how

we

report

our

financial

results

and

condition;

(24)

our

stock

price

can

be

volatile;

(25)

our

disclosure

controls

and

procedures

may

fail

to

prevent

or

detect

all

errors

or

acts

of

fraud;

(26)

our

trading

assets

and

financial

instruments

carried

at

fair

value

expose

the

Company

to

certain

market

risks;

(27)

weakness

in

residential

property

values

and

mortgage

loan

markets

could

adversely

affect

us;

(28)

we

may

be

required

to

repurchase

mortgage

loans

or

indemnify

mortgage

loan

purchasers

as

a

result

of

breaches

of

representations

and

warranties,

borrower

fraud,

or

certain

borrower

defaults,

which

could

harm

our

liquidity,

results

of

operations

and

financial

condition;

and

(29)

we

may

enter

into

transactions

with

off-balance

sheet

entities

affiliated

with

SunTrust

or

its

subsidiaries

which

may

cause

us

to

recognize

current

or

future

losses.

Table of Contents

I.

HIGHLIGHTS

II.

CAPITAL

III.

FINANCIAL PERFORMANCE

IV.

E2

V.

CREDIT PERSPECTIVE

VI.

SUMMARY

VII.

APPENDIX

3

•

Completed Coca-Cola stock transactions approved by Federal

Reserve to receive Tier 1 capital treatment

•

Substantially improved capital levels: estimated 2Q Tier 1 capital of

7.47% and proforma Tier 1 of 7.95%¹

•

Credit continued to deteriorate, but at a slower pace

•

Core revenue growth soft, primarily due to a decline in core

mortgage-related income; however, net interest margin improved

and steady growth in other fee categories continued

•

Core expenses remain tightly managed

•

Maintaining our current dividend is supported by our solid capital

position, credit outlook, and core earnings

•

Current operating environment remains challenging

Highlights

1.

Coke related transactions completed in July, 2008 contribute 48 bps of Tier 1 capital         

I. HIGHLIGHTS

4

Completed Coke Transactions Augment Estimated Tier 1 Capital of 7.47%

to 7.95% on a Proforma Basis

2Q 2008

2Q 2008

1Q 2008 

Proforma¹

Estimate

Actual         

Tier 1 Capital Ratio

7.95%

7.47%

7.23%

Total Capital Ratio

10.97%

10.86%

10.97%

Total Avg. Equity to Total Avg. Assets

10.29%    

10.31%

10.21%

Tangible Equity to Tangible Assets        

6.21%     

6.23%

6.53%

•

Solid capital foundation enhanced with Coke-related transactions

•

Given current level of economic uncertainty, maintaining Tier 1 in excess of our stated

goal of 7.50% is appropriate

1.

Proforma

ratios

include

estimated

impact

to

June

2008

estimated

capital

ratios

of

additional

capital

generated

from

transactions

completed

in

July

2008.

Estimated

Tier

1

capital

of

$12.5

billion

+

3Q

2008

incremental

transaction-related

capital

of

$797

million

Capital Ratios

II. CAPITAL

5

2Q

Complete

10 Million

Share Sale

30 Million Share

Tier 1

Transaction

3.6 Million

Share

Charitable

Foundation

Contribution

Coca-Cola Stock Transactions

Resolution of 43.6 Million Share Holdings Involves Three

Separate Transactions

Action

Timing                  Results

Rationale                         Implications

3Q (July)  

Complete       

3Q (July)  

Complete       

•

$549 million proceeds

•

After-tax gain = $345

million

•

Tier 1 capital = 20 bps

•

2Q EPS impact = $0.99

•

Maximize current

capital contribution for

this portion of the

shares

•

Forgone dividend income

of $0.04 in annual EPS

•

$183 million gain and

equal offsetting expense

•

Tax benefit of $69 million

= $0.20 EPS impact

•

4 bps Tier 1 addition

•

Maximize tax benefit

•

Long-term community

support

•

Lower future annual

charitable contribution

expense

•

Forgone dividend income

of $0.01 in annual EPS

•

Ongoing $10 million

expense reduction

•

$1,160 million in cash

proceeds and $728 million

Tier 1 capital

•

44 bps Tier 1 addition

•

Maximize shareholder

value via tax deferral,

retained dividend, and

price appreciation

potential

•

Retain dividend income

of $0.12 annual EPS

•

Collar on KO stock

provides upside to ~$66

and downside to ~$39

II. CAPITAL

6

•

Received Federal Reserve approval to increase Tier 1 capital by a fixed amount of $728 million,

and Tier 1 Ratio increases by 44 bps

•

Provides Tier 2 capital credit for 45% of the difference between

the Tier 1 credit amount and the

market value of the KO share holding, up to the cap

•

Defers payment of taxes until the shares are actually sold

•

KO shares remain in SunTrust’s AFS securities and are hedged by the derivatives

•

OCI will reflect the net of changes in value of the KO shares and the derivatives on a quarterly

basis

•

Retains dividends and Dividend Received Deduction until the shares are actually sold

•

Retains upside in KO share price appreciation to ~$66 per share

•

At maturity, the KO shares are expected to be sold and the applicable gain recognized in earnings

Impact on

Financial

Statements &

Ratios

Coca-Cola Stock Transactions

Substantial Incremental Tier 1 Capital Generated from Tier 1

Transaction Involving 30 Million Shares of The Coca-Cola Company

Transaction

Structure

•

Tier 1 transaction involving 30 million KO shares maturing in approximately 7 years

•

At transaction conclusion, the floor price is ~$39 and the cap price is ~$66 per share

•

Includes the issuance of $1,160 million in senior notes directly

to the counterparty in exchange

for unrestricted cash proceeds

II. CAPITAL

7

($ in millions, except per share data)

$1,185.0

1%               -3%             $2,352.8             -2%

448.0           -20%

328%               1,008.0          526% 

1,413.0

34%              22%               2,470.5            21%

2,598.0

17%                 9%               4,823.3              9%

1,378.5            10%              10%       

2,633.7              6%

202.8          121%             -35%                  294.5           -46%

535.3            89%             -21%                  818.8           -31%

$    1.53            89%             -19%             $     2.35           -29%

EPS Impacted by Provision Expense, Securities Gains and Non-Core

Expenses

Income Statement Summary

III. FINANCIAL PERFORMANCE

2Q 2008

1Q 2008

2Q 2007

YTD 2008

YTD 2007

% Change

% Change

% Change

Net Interest Income (FTE)

Provision for Loan Losses

Noninterest Income

Total Revenue (FTE)

Total Noninterest Expense

Provision for Income Taxes

Net Income Available to

Common Shareholders

Net Income Per Average

Common Diluted Share

8

3.10%

3.18%

3.13%

3.13%

3.07%

2Q 2007

3Q 2007

4Q 2007

1Q 2008

2Q 2008

Margin Increased to 3.13%, Up 6 bps from 1Q 2008

Margin expansion driven by improved 

deposit pricing, volume and mix

Growing NPAs

continue to exert pressure

on margin

We expect stable to slightly expanded

margins during the rest of 2008, as positive

loan and deposit trends offset growing

NPAs

Net Interest Margin

III. FINANCIAL PERFORMANCE

9

$448.0            $560.0          $356.8          $147.0

$322.7            $297.2          $168.0          $103.7

1.04%              0.97%          0.55%           0.34%

$284.1           $262.8           $188.8          $  43.3

1.46%             1.25%           1.05%           0.91%

2Q 2008

1Q 2008

4Q 2007

3Q 2007

($ in millions)

Provision Declined as Growth in Charge-offs and Delinquency Slowed;

Allowance Increased to 1.46%

1.

Increase in ALLL in 2Q 2008 is greater than provision less charge-offs due to acquisition of GB&T      

Provision

III. FINANCIAL PERFORMANCE

Provision

Net Charge-offs

Net Charge-off Ratio

Net ALLL Increase¹

Allowance to Loan Ratio

10

($ in millions)

Core Noninterest Income Growth Slowed in 2Q 2008, Driven by a Decline in

Mortgage-Related Income

%

2Q 2008

2Q 2007

Change

Noninterest Income

$1,413

$1,155

22%

Net Adjustments¹

458

206

Adjusted Noninterest Income      $   955

$   949

1%

Reported noninterest income up 22% versus 2Q 2007 driven primarily by the incremental gain

on sales of Coke stock

Adjusting both years’

results for net non-core gains results in a 1% increase

Positive results in most fee categories were largely offset by soft mortgage banking fees in 2Q

2008, and private equity gains and MSR sales in 2Q 2007

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

Noninterest Income

III. FINANCIAL PERFORMANCE

11

Aggressively Managing Trading Assets; During 2Q, 53% Additional

Reduction in Exposure at a Small Net Gain

•

Exposure reduced with no

additional net write-down

•

Exposure reduced during 2Q

via approximately $630

million in sales and $225

million in payments

•

Reduction will slow given the

market environment and

uncertain outcome of SIV

restructurings

1.  Grand Horn CLO is a AAA-rated security arising from the securitization of a commercial leveraged loan warehouse

Carrying

Carrying         Acquisition

Value

Value                 Value

2Q 2008

1Q 2008

Q4 2007

SIV

$  425

$  685            $1,478

RMBS

151                 242              1,042

CDO

68                 287                 429

Other ABS

31                   46                 148

CLO

-

39                    47

__

__                    __

Sub-total                     675             1,299              3,144

Grand Horn CLO¹   

93

323

359

Total

$  768           $ 1,622            $3,503

($ in millions)

Acquired Securities Portfolio

III. FINANCIAL PERFORMANCE

12

Core Expenses in 2Q 2008 Up Slightly, Driven by Credit-Related Costs

Year-over-year adjusted expense growth of $39 million includes $69 million

in increased credit costs²

Sequential quarter adjusted expense growth of $43 million includes $51 million of increased credit 

costs²

1. Adjustment detail included in appendix

2. Includes

operating

losses,

credit

and

collections,

other

real

estate

expense,

and

additions

to

mortgage

re-insurance

reserves

Noninterest Expense

$1,379             $1,255

$1,251

10%            10%

Net Adjustments¹

54

-26                   -34

Adjusted Noninterest Expense             $1,325   

$1,281

$1,285  

Change          Change

2Q 2008

1Q 2008

2Q 2007

1Q 2008

2Q 2007

%

%

($ in millions)

3%         3%

Noninterest Expense

III. FINANCIAL PERFORMANCE

13

E²

Results

($ in millions)

E²

Program Continues to Deliver Results with Gross Savings in 2Q 2008 of

$135 Million

•

Annualized 2Q 2008 savings

level of $540 million

•

Key contributors to achieving

remaining goals include

supplier management,

outsourcing, and process

reengineering

$500 2008 Goal

$248 YTD Savings

500

400

300

200

100

IV. E²

14

Asset Quality Metrics

V. CREDIT PERSPECTIVE

Asset Quality Continued to Weaken, Although at a Slower Pace

1. Ratio excludes NPLs at fair market value and LOCOM

Difference from

Difference from

$ Millions

06/30/2008

03/31/2008

12/31/2007

Total Loans

$125,824.8

$123,713.2

$122,319.0

$2,111.6

$3,505.8

Allowance for Loans & Lease Losses

1,829.4

1,545.3

1,282.5

284.1

546.9

Net Charge-offs

322.7

297.2

168.0

25.5

154.7

Provision Expense

448.0

560.0

356.8

-112.0

91.2

NPAs

3,136.4

2,320.0

1,655.5

816.4

1,480.9

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ;---------------------------

NPLs

to Total Loans

2.22%

1.67%

1.19%

0.55%

1.03%

NPAs

to Total Loans + OREO and Other

Repossessed Assets

2.49%

1.87%

1.35%

0.62%

1.14%

ALLL to NPLs

1

72.0%

81.6%

99.5%

-9.6%

-27.5%

ALLL to Loans

1.46%

1.25%

1.05%

0.21%

0.41%

NCOs (annualized to Average Loans)

1.04%

0.97%

0.55%

0.07%

0.49%

30-89 Days Past Due

1.48%

1.52%

1.53%

-0.04%

-0.05%

March 2008

December 2007

15

Credit Perspective

V. CREDIT PERSPECTIVE

Commercial and Consumer Portfolios Comprise 52% of Loans and are

Performing Well Overall

Balance

% of

C/O Ratio

C/O Ratio

30-89 DLQ%

30-89 DLQ%

($ millions)

06/30/2008

Portfolio

2Q08

1Q08

2Q08

1Q08

Commercial

$38,801

31%

0.42%

0.35%

0.36%

0.37%

Commercial Real Estate

13,694

11%

0.02%

0.00%

0.91%

0.55%

Consumer

12,551

10%

1.05%

1.22%

2.82%

2.52%

Real Estate: Home-Equity Lines

15,727

12%

2.40%

2.65%

1.19%

1.25%

Real Estate: 1-4 Family

32,509

26%

1.49%

1.29%

1.90%

1.74%

Real Estate: Construction

12,543

10%

1.16%

0.72%

3.52%

4.59%

Total

$125,824

100%

1.04%

0.97%

1.48%

1.52%

16

Nonaccruals

V. CREDIT PERSPECTIVE

Nonaccrual Loans by Product

June 30, 2008

0

500

1,000

1,500

2,000

2,500

3,000

Q4-2007

Q1-2008

Q2-2008

($ millions)

Residential Mortgages1

Construction

Commercial Real Estate

Commercial

Consumer

GB&T

Residential Mortgages Represent 52% of Nonaccrual Loans; Construction

NPLs are Rising

1. Residential Mortgages includes 1-4 family mortgages, home equity credit line and home equity loans

17

1. Excludes $51.2 million of Commercial loans secured by residential real estate and $140.8 million of mark-to-market loans HFS

2. Does not include nonaccruals

Residential Mortgages $32,509 million

($ millions)

1.68%

7.00

6.26

3.63

1.48

0.57

1.42%

06/30/08    

60+ DLQ²

1.58%

7.67

6.71

3.41

1.35

0.50

1.29%

03/31/08    

60+ DLQ²

$1,165

58

206

157

119

50    

$  575

Total                    

$ Nonaccruals¹

Credit Quality Metrics

79%

$ 33,092

$32,509

Total

97

470

458

Alt-A 2nd

77

1,085

1,002

Alt-A 1st

84

1,575

1,520

Lot Loans

92

4,080

4,032

Prime 2nd

Insured

75

3,625

3,020

Home Equity Loans

77%

$ 22,257

$22,477

Core Portfolio

Orig

WACLTV

03/31/08   

Balance

06/30/08

Balance

Loan Type

Portfolio Profile

Residential Mortgages

V. CREDIT PERSPECTIVE

Overall, NPLs and Delinquencies are Up, While Alt-A Balances are Declining

and Alt-A Credit Performance is Improving

18

(As of 06/30/08, $ millions)

1. Nonaccruals not requiring write-downs include well-secured loans and loans with claims in process for individual and pool PMI policies

2. Excludes Home Equity nonaccruals of $49.7 million, $51.2 million of Commercial loans secured by residential real estate and $140.8 million of

mark-to-market loans HFS

+

$323.4

6.5

41.6

31.9

111.4

$132.0

Nonaccruals

not requiring

write-down1

Nonaccruals that have been through the specific write-

down process

Loan Type

Balance before

write-down

-

Amount of

write-down

=

Nonaccruals

with      

write-down

+

Nonaccruals

without

specific write-

down  

=

Total

Nonaccruals²

% Loss

Severity

Core

Portfolio

$ 333.4

$ (68.9)

$  264.5

$ 178.3

$ 574.9

14.8%

Prime 2nd

Insured

26.5

(19.2)

7.3

0.0

118.7

--

Lot Loans

129.0

(44.1)

84.9

40.0

156.8

27.4%

Alt-A 1st

144.6

(23.4)

121.2

43.5

206.3

12.6 %  

Alt-A 2nd

148.4

(118.6)

29.6

22.2

58.3

76.6%

Total

$ 781.9

$ (274.3)

$ 507.6

$ 284.0

$1,115.0

Residential Mortgages

Nonaccrual Balances are up, But 75% of Nonaccruals are Carried at

Expected Recoverable Value

V. CREDIT PERSPECTIVE

19

Home Equity Lines $15,727 million

1.  Excludes

3rd

party

originated

2.  Excludes

3rd

party

originated

and

CLTV

90+%

3.  Excludes

3rd

party

originated,

CLTV

90+%

and

Florida

(81-90%)

4.  Annualized quarterly rate

2.40%

0.90%

3.83%

3.19%

7.22%

Q2

Charge-off

4

%

$15,727

10,096.5

1,159.7

2,553.2

$1,917.6

6/30/08

Balance

1.28%

1.38%

2.65%

74%

$15,134

Total

0.87%

2.21%

1.58%

3.37%

Q2

Nonaccrual

%

0.94%

4.24%

3.34%

9.11%

Q1

Charge-off

4

%

Credit Quality Metrics

0.75%

65%

9,409.5

All Other ³

2.04%

86%

1,162.2

Florida ²

(81-

90% LTV)

1.54%

95%

2,705.2

CLTV > 90%¹

2.87%

86%

$1,857.1

3rd

Party

Originated

Q1

Nonaccrual

%

Orig

WACLTV

03/31/08

Balance

Type

Portfolio Profile

Home Equity Lines

V. CREDIT PERSPECTIVE

($ millions)

Charge-offs Moderated in 2Q and are Expected to Return to Q1 Levels

20

1.  Annualized second quarter charge-off ratio

($ millions)

Legacy SunTrust Balances Declined 6.5% vs 1Q 2008; Charge-offs and

NPLs Increasing

Construction $12,543 million

4.22

39

219.0

1.23

427

29

20

2,456

Construction

7.28

71

60.4

0.58

818

39

5

565

Residential Land

9.65

0

68.6

0.00

0

3

395

GB&T

Commercial

0.66

11

7.2

0.00

1, 639

26

27

3,423

Construction

1.04

5

9.2

0.40

810

27

4

559

Commercial A&D

41%

16

51

41%

FL

NPL

%

$ 12,543

447

2,140

$ 2,558

06/30/08

Balance

4.67%

$772.2

1.16%

28%

100%

Total

5.7

198.2

$203.9

$

NPL

0.19

0.35

3.77%

Q2

C/O1

%

Credit Quality Metrics

1.67

858

28

4

Commercial Land

4.06

679

26

17

Residential A&D

Residential

11.93%

492

25%

20%

Construction Perm

%

30 +

DLQ

Avg.

Size

$000’s

%

FL

%

of

Portfolio

Type

Portfolio Profile

Construction

V. CREDIT PERSPECTIVE

21

Construction Portfolio Trends

V. CREDIT PERSPECTIVE

Aggressive Management of Construction Exposure has Significantly

Reduced Risk

Availability down 35% in Construction and 50% in

A&D; outstandings down 25% in Construction and

13% in A&D over the last 12 months

More than 60% of the reductions have been in Florida

and the Atlanta market

Availability down 60%; outstandings down 30% over

the last 12 months

20% of Construction-to-Perm outstandings originated

since September 2007 under more restrictive

underwriting standards

Construction-to-Perm Decrease over Time

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

6/07

9/07

12/07

3/08

6/08

Availability

Outstanding

Residential Construction and A&D Decrease over Time

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6/07

9/07

12/07

3/08

6/08

Construction Availability

Construction Outstanding

A&D Availability

A&D Outstanding

22

Credit Summary

V. CREDIT PERSPECTIVE

•

Asset quality continued to weaken, although at a slower pace

•

Commercial and Consumer portfolios comprise 52% of loans and

are performing well overall

•

52% of nonaccruals are residential mortgages, and approximately

75% have been written down to expected recoverable values

•

We expect 3Q charge-offs to increase 15% -

20% over 2Q. This is

consistent with our previous guidance for 2Q and 3Q total charge-

offs. We do not expect 4Q to be dramatically higher or lower

•

We have minimal or no exposure to:

•

Unsyndicated leveraged loans

•

Option ARMs

•

Sub-prime mortgages

•

Unsecured consumer credit

23

VI. SUMMARY

Presentation Summary

•

Completed Coke transactions

•

Improved Tier 1 capital level

•

Core earnings approximated quarterly dividend

•

Expanded margin, steady fee income, and well managed expenses

•

Asset quality has deteriorated, but at a slower pace; allowance

increased

to

1.46%

•

Managing construction exposure well, but expect residential

construction charge-offs to increase over next several quarters

•

Expect 3Q 2008 portfolio charge-offs to increase 15% -

20% from 2Q

levels

Appendix

*

*

*

*

*

*

*

*

25

($ in millions)

%                  %

Change        Change

2Q 2008

1Q 2008

2Q 2007

1Q 2008

2Q 2007

Total

Noninterest

Income

$1,413

$1,058

$1,155

34%

22%

Securities

Gains/(Losses)

550

-60

236            

Visa

IPO

Gain

-

86

-

Lighthouse

Gain

-

89

-

First

Mercantile

Gain

30

-

-

Corporate

Real

Estate

Gain

-

37

-

Fair

Market

Write-downs

–

Trading

-2

-282

-

STI

Debt

Valuation

–

Trading

-103

240

-

Coke

Derivatives

Cost

-

Trading

-12

-

-

Fair

Value

Write-downs

-

-53

-

–

Mortgage Production

FAS

91

–

Mortgage

Production¹

-

-

-30

SAB

109

–

Mortgage

Production

-

18

-

Fair

Value

Write-downs

-5

-5

-

–

Other Income

Net

Adjustments

458

70

206

Adjusted

Noninterest

Income

$

955

$

987

$

949

-3%

1%

1. FAS 91 deferral elimination adjustment is reflected as an increase to 2Q 2007 to make comparable to future quarters

Noninterest Income Reconciliation

VII. APPENDIX

26

1. FAS

91

deferral

elimination

increased

expenses

beginning

in

2Q

2007.

2Q

2007

expenses

adjusted

upward

to

provide

comparability

to

subsequent quarters

Noninterest Expense

$1,379            $1,255          $1,251             

10%             10%

Net E²

Nonrecurring

9

5                   -1

Customer Intangible Impairment

45                     -

-

FAS 91 Deferral¹

-

-

-33

Visa Litigation Accrual

-

-39                     -

Debt Retirement

-

12

-

Tax Reserve Release

-

-4                     0

Net Adjustments

54                  -26                 -34

Adjusted Noninterest Expense              $1,325           $1,281           $1,285                    3%              3%

Change        Change

2Q 2008

1Q 2008

2Q 2007

1Q 2008

2Q 2007

%

%

($ in millions)

Noninterest Expense Reconciliation

VII. APPENDIX

27

Financial Statement effects of Coca-Cola Stock Transactions

VII. APPENDIX

10 Million

Foundation

Tier 1

Maturity of

(millions)

Share Sale

1

Contribution

Transaction

2

Tier 1 Transaction

Balance Sheet

AFS Securities

$

(549)

$

(183)

$

-

$

(2,042)

Cash

549

-

1,160

2,042

Long Term Debt

-

-

1,160

-

AOCI Unrealized Gain

(345)

(114)

-

(1,287)

Tier 1 Capital

345

69

728

552

3

Tier 1 Ratio (bps)

20

4

44

Income Statement

One-Time Impact:

Gain on Disposal

$

549

$

183

$

-

$

2,042

Trading Income

-

-

(12)

1

-

Contribution Expense

-

(183)

-

-

Tax (Expense) / Benefit

(204)

69

-

(755)

4

Net Income Impact

$

345

$

69

$

(12)

$

1,287

Notes:

1

Recognized in Q2

2

Expect debt issued as part of this transaction to offset current or future liabilities

3

Assume KO stock reaches cap level at maturity

4

Estimated

28

2Q 2008 Non-Core Items

VII. APPENDIX

(in thousands, except per share data)

Diluted

Before

After

EPS

Tax

Tax

Gain on sale of 10 million Coke shares

$0.99

$548,758

$345,169

Gain on sale of First Mercantile

$0.05

29,648

18,382

Mark to market adjustment on securities and public debt

($0.17)

(96,570)

(59,873)

Impairment of customer intangible

($0.08)

(45,000)

(27,900)

Coke derivative cost

($0.02)

(11,852)

(7,348)

E

2

expenses

($0.02)

(9,123)

(5,656)

Total non-operating items

$0.75

$415,861

$262,774