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                              WACHOVIA CORPORATION
--------------------------------------------------------------------------------
                (Name of Registrant as Specified In Its Charter)


                              SUNTRUST BANKS, INC.
--------------------------------------------------------------------------------
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THE FOLLOWING PRESS RELEASE WAS ISSUED BY SUNTRUST

News


SunTrust

Press Release

For Immediate Release:
Contact: Gary Peacock, Jr. (404) 658-4879

SunTrust Reports Record Net Income and Earnings Per Share

Earnings Per Share Up 13%

ATLANTA, July 6, 2001 – SunTrust Banks, Inc. today reported record net income for the second quarter of 2001 of $347.1 million, up 9% from the second quarter of 2000. Net income per diluted share was $1.19, up 13% from the $1.05 per diluted share earned in the second quarter of 2000. For the quarter, reported return on assets was 1.38% and return on average realized equity was 22.43%.

“We’re pleased to deliver another quarter of solid earnings growth despite a softening economy,” said L. Phillip Humann, Chairman, President and Chief Executive Officer of SunTrust. “During the second quarter, we experienced strong revenue growth of 9% with effective cost management, continued to build on our core earnings momentum, and demonstrated superior credit quality. We believe our second quarter performance further underscores the financial strength supporting our proposal to merge with Wachovia.”

For the first six months of 2001, net income was $684.7 million, up 8% from the $636.9 million earned in the first six months of 2000. Net income per diluted share was $2.33, up 11% from the first six months of 2000.

Fully taxable net interest income was $834.1 million in the second quarter, up 7% from the second quarter of 2000. The net interest margin for the quarter was 3.61%, up 4 basis points from the first quarter. For the first six months of 2001, fully taxable net interest income was $1,649.4 million, up 5% from the first six months of 2000.

Average loans for the second quarter were $69.9 billion and average earning assets were $92.6 billion. Adjusting for recent securitizations, average loans were up 4% from the second quarter of last year. Average deposits for the second quarter were $56.3 billion (excluding foreign and brokered deposits), up an annualized 13% from the first quarter.

During the strong quarter, the Company reinvested revenues to improve its risk profile. The Company repositioned its balance sheet to reduce risk to rising interest rates. In doing so, the Company recorded $27.4 million of securities gains as it shortened the average life of its investment portfolio. These gains were offset by a $27.4 million loss ($17.8 million after-tax) as the Company repaid long-term debt in order to lengthen the maturity of its market borrowings. In accordance with generally accepted accounting principles, the loss on the early extinguishment of debt was reported as an extraordinary item and reflected separately on the income statement on an after-tax basis. To enhance

News


SunTrust

its credit risk profile, the Company sold the assets and liabilities of SunTrust Credit Corp. at an $11.3 million after-tax loss. SunTrust Credit Corp. made higher yielding loans to small businesses with limited access to credit.

Noninterest income, excluding securities gains and losses, was $494.1 million in the quarter, up 12% from the second quarter of 2000. Total noninterest income, including net securities gains, was $521.8 million for the quarter, up 18% from the second quarter of 2000. Noninterest income represented 38% of total revenue or 37% without net securities gains. For the first six months of 2001, noninterest income, excluding securities gains and losses, was $962.9 million, up 10% from the first six months of 2000.

Total noninterest expense in the quarter was $763.8 million. During the quarter, the Company spent $14.7 million ($9.6 million after-tax) or $.03 per diluted share on its One Bank initiative for enhancements to customer based systems that will yield operating efficiencies in the future. For the first six months of 2001, the Company spent $21.7 million ($14.1 million after-tax) or $.05 per diluted share on this initiative. Also included in the noninterest expenses for the second quarter was $17.4 million ($11.3 million after-tax) or $.04 per diluted share in expenses associated with the SunTrust Credit Corp. sale. These expenses were comprised of $12.7 million in additional goodwill amortization and $4.7 million in other expenses. The Company’s efficiency ratio was 56.33%, an improvement from the 58.87% reported in the second quarter of 2000. For the first six months of 2001, total noninterest expenses were $1,506.5 million, up 6% from the first six months of 2000.

The Company maintained its standards for high credit quality with net charge-offs in the second quarter of $38.8 million or .22% of average loans down from .38% in the first quarter. The provision for loan losses was $39.6 million for the second quarter. For the first six months of 2001, annualized net charge-offs were .30% of average loans, well below industry peers.

Nonperforming assets were $431.4 million at quarter end or .63% of loans and foreclosed properties. Total nonperfoming assets were up 17% from the first quarter end, and despite continued signs of weakness in the overall economy, nonperforming assets were only slightly higher than the Company’s yearend 2000 total of $428.3 million. The Company continues to sell nonperforming assets in the secondary loan market as opportunities permit. Nonperforming assets at June 30, 2001 included $411.2 million in nonperforming loans and $20.3 million in net other real estate owned. The allowance for loan losses at June 30, 2001 was $866.1 million and represented 1.26% of loans and 211% of nonperforming loans.

At June 30, 2001, SunTrust had total assets of $100.8 billion. Equity capital of $7.9 billion represented 7.81% of total assets. Book value per share was $27.29, up 9% from the second quarter 2000.

News


SunTrust

Please refer to the Investor Relations section of our website at www.suntrust.com for the corresponding financial tables and information.

SunTrust Banks, Inc., based in Atlanta, Georgia, is the nation’s 9th largest commercial banking organization. The Company provides a wide range of services to meet the financial needs of its growing customer base in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia, and the District of Columbia. Its primary businesses include traditional deposit and credit services as well as trust and investment services. Through various subsidiaries the Company provides credit cards, mortgage banking, insurance, brokerage and investment services.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, (i) statements about the benefits of a merger between SunTrust and Wachovia Corporation, including future financial and operating results, cost savings and accretion to reported and cash earnings that may be realized from such merger; (ii) statements with respect to SunTrust's plans, objectives, expectations and intentions and other statements that are not historical facts; and (iii) other statements identified by words such as "believes", "expects", "anticipates", "estimates", "intends", "plans", "targets", "projects" and similar expressions. These statements are based upon the current beliefs and expectations of SunTrust's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the businesses of SunTrust and Wachovia may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (2) expected revenue synergies and cost savings from the merger may not be fully realized or realized within the expected time frame; (3) revenues following the merger may be lower than expected; (4) deposit attrition, operating costs, customer loss and business disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers, may be greater than expected following the merger; (5) the regulatory approvals required for the merger may not be obtained on the proposed terms or on the anticipated schedule; (6) the failure of SunTrust's and Wachovia's stockholders to approve the merger; (7) competitive pressures among depository and other financial institutions may increase significantly and may have an effect on pricing, spending, third-party relationships and revenues; (8) the strength of the United States economy in general and the strength of the local economies in which the combined company will conduct operations may be different than expected, resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on the combined company's loan portfolio and allowance for loan losses; (9) changes in the U.S. and foreign legal and regulatory framework; and (10) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) and the impact of such conditions on the combined company's capital markets and asset management activities. Additional factors that could cause SunTrust's results to differ materially from those described in the forward-looking statements can be found in SunTrust's reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission and available at the SEC's Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to SunTrust or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. SunTrust does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

On May 14, 2001, SunTrust delivered a merger proposal to the Board of Directors of Wachovia. Subject to future developments, SunTrust intends to file with the SEC a registration statement at a date or dates subsequent hereto to register the SunTrust shares to be issued in its proposed merger with Wachovia. Investors and security holders are urged to read the registration statement (when available) and any other relevant documents filed or to be with the SEC, as well as any amendments or supplements to those documents, because they contain (or will contain) important information. Investors and security holders may obtain a free copy of the registration statement (when available) and such other documents at the SEC's Internet web site at www.sec.gov. The registration statement (when available) and such other documents may also be obtained free of charge from SunTrust by directing such request to: SunTrust Banks, Inc., 303 Peachtree Street, N.E., Atlanta, GA 30308, Attention: Gary Peacock (404-658-4753).

SunTrust Banks, Inc. and Subsidiaries                              
FINANCIAL HIGHLIGHTS                              
  Three Months Ended
    %     Six Months Ended
  %  
  2001   2000     Change     2001     2000   Change  
EARNINGS & DIVIDENDS                              
Period Ended June 30                              
(Dollars in millions except per share data)                              
                               
Net income $347.1   $317.5     9.3 %   $684.7     $636.9   7.5 %
                               
Earnings per share                              
     Diluted $1.19   $1.05     13.3     $2.33     $2.09   11.5  
     Basic 1.21   1.06     14.2     2.36     2.11   11.8  
Dividends paid per common share 0.40   0.37     8.1     0.80     0.74   8.1  
Average shares outstanding (000s)                              
     Diluted 291,677   302,141     (3.5)     293,743     304,440   (3.5)  
     Basic 287,878   298,986     (3.7)     289,831     301,224   (3.8)  
KEY RATIOS                              
Return on average assets 1.38 % 1.34 %   3.0 %   1.37 %   1.36 % 0.7 %
Return on average realized equity (4) 22.43   21.46     4.5     22.14     21.40   3.5  
Return on average total equity 17.68   17.74     (0.3)     17.30     17.46   (0.9)  
Net interest margin(1) 3.61   3.55     1.7     3.59     3.63   (1.1)  
Efficiency ratio 56.33   58.87     (4.3)     55.85     58.09   (3.9)  
Period Ended June 30                              
Book value per share 27.29   25.10     8.7                  
Equity to assets 7.81   7.58     3.0                  
Tier 1 capital ratio 6.95 (3) 6.95     -                  
Total capital ratio 10.75 (3) 10.82     (0.6)                  
Tier 1 leverage ratio 6.84 (3) 7.00     (2.3)                  

CONDENSED BALANCE SHEET (Dollars in millions)                    
Average Balances                              
Securities available for sale $19,774   $16,970     16.5 %   $19,508     $17,430   11.9 %
Loans held for sale 2,830   1,280     121.1     2,411     1,358   77.5  
Loans 69,900   69,831     0.1     70,773     68,430   3.4  
Allowance for loan losses (869)   (874)     (0.6)     (883)     (874)   1.0  
Intangible assets 818   796     2.8     817     798   2.4  
Other assets 10,741
  9,494
    13.1     10,584
    9,313
  13.6  
Total assets $103,194
  $97,497
    5.8
 
    $103,210
    $96,455
  7.0
 
 
                               
Deposits $56,344   $53,941     4.5     $55,446     $53,651   3.3  
Purchased liabilities(2) 21,752   24,740     (12.1)     23,083     24,399   (5.4)  
Long-term debt 12,486   8,071     54.7     12,090     7,512   60.9  
Other liabilities 4,739
  3,549
    33.5     4,610
    3,557
  29.6  
Total liabilities 95,321   90,301     5.6     95,229     89,119   6.9  
Realized shareholders' equity 6,209   5,949     4.4     6,237     5,986   4.2  
Accumulated other comprehensive income 1,664
  1,247
    33.4     1,744
    1,350
  29.2  
Total liabilities and shareholders' equity $103,194
  $97,497
    5.8     $103,210
    $96,455
  7.0  
                               
                               
Period Ended June 30                          
Securities available for sale $18,578   $17,382     6.9                  
Loans held for sale 3,127   1,346     132.3                  
Loans 68,938   71,450     (3.5)                  
Allowance for loan losses (866)   (874)     (0.9)                  
Intangible assets 849   801     6.0                  
Other assets 10,197
  9,853
    3.5                  
Total assets $100,823
  $99,958
    0.9                  
                               
Deposits $57,038   $54,613     4.4                  
Purchased liabilities(2) 19,073   25,644     (25.6)                  
Long-term debt 12,443   8,250     50.8                  
                               
Other liabilities 4,395
  3,872
    13.5                  
Total liabilities 92,949   92,379     0.6                  
Realized shareholders' equity 6,245   6,112     2.2                  
Accumulated other comprehensive income 1,629
  1,467
    11.0                  
Total liabilities and shareholders' equity $100,823
  $99,958
    0.9                  
 
CREDIT DATA ($ in thousands)                              
Allowance for loan losses - beginning $871,964   $874,034     (0.2) %   $874,547     $871,323   0.4 %
Allowance from acquisitions and other activity -
     net
(6,660)   -     (100.0)     (10,210)     -   (100.0)  
Provision for loan losses 39,615   27,693     43.1     106,915     49,985   113.9  
Net charge-offs                              
     Credit card (62)   397     (115.6)     (15)     41   (136.6)  
     Other consumer 13,307   5,768     130.7     25,576     13,968   83.1  
     Residential 2,867   2,172     32.0     4,665     2,254   107.0  
     Commercial 22,708
  18,906
    20.1     74,927
    30,561
  145.2  
Allowance for loan losses - ending $866,099
  $874,484
    (1.0)     $866,099
    $874,484
  (1.0)  
Total net charge-offs $38,820   $27,243     42.5     $105,153     $46,824   124.6  
Net charge-offs to average loans 0.22 % 0.16 %   37.5     0.30 %   0.14 % 114.3  
                               
Period Ended June 30                              
     Nonperforming loans $411,166   $282,491     45.6                  
     Other real estate owned 20,265
  23,212
    (12.7)                  
Total nonperforming assets $431,431
  $305,703
    41.1                  
                               
Allowance to loans 1.26 % 1.22 %   3.3                  
Nonperforming assets to total loans plus other
     real estate owned
0.63   0.43     46.5                  
Allowance to nonperforming loans 210.6   309.6     (32.0)                  
                               
(1) Net interest income and net interest margin include the effects of taxable-equivalent adjustments.
(2) Purchased liabilities include foreign and brokered deposits, funds purchased and other short-term borrowings.
(3) Current period tier 1 capital, total capital and tier 1 leverage ratios are estimated as of the press release date.
(4) SunTrust presents a return on average realized shareholders' equity, as well as a return on total shareholders' equity. The return on realized shareholders' equity excludes net unrealized security gains.
SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
    As of June 30
  Increase/(Decrease)
 
    2001    2000   Amount   %  
ASSETS            
Cash and due from banks   $  3,658,087   $   2,847,699   $  810,388     28.5 %
Interest-bearing deposits in other banks     98,461     8,109     90,352   1,114.2
Trading account   932,246    875,543     56,703    6.5
Securities available for sale (1)    18,578,244     17,382,207   1,196,037    6.9
Funds sold   928,994    1,613,080     (684,086)   (42.4)
Loans held for sale   3,126,942    1,345,694   1,781,248   132.4
Loans    68,938,242     71,450,408     (2,512,166)     (3.5)
Allowance for loan losses    (866,099)
    (874,484)
   8,385
    (1.0)
     Net loans    68,072,143     70,575,924     (2,503,781)     (3.5)
Intangible assets   849,161    800,728     48,433    6.0
Other assets   4,578,256
   4,508,660
    69,596
   1.5
     Total Assets (2)   $ 100,822,534
  $ 99,957,644
  $  864,890
   0.9
       
LIABILITIES
Noninterest-bearing deposits   $   13,568,864   $ 13,719,684   $    (150,820)     (1.1)
Interest-bearing deposits    49,770,813
    54,956,751
    (5,185,938)
    (9.4)
     Total deposits    63,339,677     68,676,435     (5,336,758)     (7.8)
Funds purchased    10,841,435     10,159,988   681,447    6.7
Other short-term borrowings   1,929,964    1,419,499   510,465     36.0
Long-term debt    12,443,044    8,250,459   4,192,585     50.8
Other liabilities   4,395,259
   3,872,309
  522,950
    13.5
     Total liabilities    92,949,379
    92,378,690
  570,689
   0.6
SHAREHOLDERS' EQUITY
Preferred stock, no par value      -    -      -    - 
Common stock, $1.00 par value   294,163    323,163    (29,000)     (9.0)
Additional paid in capital   1,265,738    1,272,178   (6,440)     (0.5)
Retained earnings   5,019,324    5,873,963     (854,639)   (14.5)
Treasury stock and other    (333,912)
    (1,357,018)
  1,023,106
  (75.4)
     Realized shareholders' equity   6,245,313    6,112,286   133,027    2.2
Accumulated other comprehensive income   1,627,842
   1,466,668
  161,174
    11.0
     Total shareholders' equity   7,873,155
   7,578,954
  294,201
   3.9
     Total Liabilities and Shareholders' Equity   $ 100,822,534
  $ 99,957,644
  $  864,890
   0.9
     Common shares outstanding     288,511,505   301,931,828   (13,420,323)     (4.4)
     Common shares authorized     750,000,000   750,000,000      -    - 
     Treasury shares of common stock   5,651,252     21,230,929   (15,579,677)   (73.4)
                   
(1) Includes net unrealized gains of:   2,546,677    2,371,237   175,440    7.4
(2) Includes earning assets of:    90,056,452     90,303,804     (247,352)     (0.3)
SunTrust Banks, Inc. and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Dollars in thousands, except per share data)
  Three Months Ended
  June 30 

  Increase/
(Decrease)

  Six Months Ended
  June 30 

  Increase/(Decrease)
 
    2001    2000   Amount   %     2001    2000   Amount   %  
Interest income $  1,634,658 $  1,672,049   $   (37,391) (2.2) % $ 3,378,532   $3,282,878   $    95,654 2.9%    
Interest expense 810,755
903,019
(92,264)
(10.2) 1,749,772
1,731,255
18,517
1.1
NET INTEREST INCOME 823,903 769,030 54,873 7.1 1,628,760 1,551,623 77,137 5.0
Provision for loan losses 39,615
27,693
11,922
43.1 106,915
49,985
56,930
113.9
NET INTEREST INCOME      AFTER  PROVISION FOR      LOAN LOSSES

784,288
741,337
42,951
5.8

1,521,845
1,501,638
20,207
1.3

NONINTEREST INCOME
Trust income 124,785 123,751 1,034 0.8 249,094 252,351 (3,257) (1.3)
Service charges on deposit      accounts 125,588 112,589 12,999 11.5 245,611 223,855 21,756 9.7
Other charges and fees 57,531 50,372 7,159 14.2 113,070 99,509 13,561 13.6
Mortgage production related      income 52,961 20,474 32,487 158.7 84,697 39,167 45,530 116.2
Mortgage servicing related      income (2,685) 7,692 (10,377) (134.9) 4,039 15,414 (11,375) (73.8)
Credit card and other fees 29,968 24,378 5,590 22.9 55,556 46,469 9,087 19.6
Retail investment services 27,260 30,550 (3,290) (10.8) 52,043 61,348 (9,305) (15.2)
Investment banking income 19,414 35,321 (15,907) (45.0) 33,503 54,992 (21,489) (39.1)
Trading account profits and      commissions 24,895 (1,442) 26,337 1,826.4 54,589 10,571 44,018 416.4
Other noninterest income 34,367 38,754 (4,387) (11.3) 70,684 68,753 1,931 2.8
Securities gains  27,728
1,531
26,197
1,711.1 84,845
8,393
76,452
910.9
Total noninterest income 521,812
443,970
77,842
17.5 1,047,731
880,822
166,909
18.9
NONINTEREST EXPENSE
Personnel expense 431,566 406,662 24,904 6.1 864,577 834,671 29,906 3.6
Net occupancy expense 51,769 49,890 1,879 3.8 101,782 99,950 1,832 1.8
Equipment expense 44,344 50,667 (6,323) (12.5) 88,889 102,305 (13,416) (13.1)
Outside processing and software 45,339 44,388 951 2.1 90,483 85,999 4,484 5.2
Marketing and customer      development 22,955 27,855 (4,900) (17.6) 45,988 50,157 (4,169) (8.3)
Amortization of intangible assets 20,994 8,777 12,217 139.2 29,284 17,771 11,513 64.8
Merger-related expenses (2)   - 18,183 (18,183) (100.0)    - 31,816 (31,816) (100.0)
Other noninterest expense 146,871
113,362
33,509
29.6 285,532
201,430
84,102
41.8
Total noninterest expense 763,838
719,784
44,054
6.1 1,506,535
1,424,099
82,436
5.8
INCOME BEFORE INCOME      TAXES AND      EXTRAORDINARY LOSS 542,262 465,523 76,739 16.5 1,063,041 958,361 104,680 10.9
Provision for income taxes 177,292
148,054
29,238
19.7 360,546
321,453
39,093
12.2
INCOME BEFORE      EXTRAORDINARY LOSS 364,970 317,469 47,501 15.0 702,495 636,908 65,587 10.3
Extraordinary loss, net of
      taxes(3) 


17,824
    -
17,824

100.0
17,824
    -
17,824
100.0

NET INCOME 347,146
317,469
29,677
9.3  $  684,671
 $  636,908
 $  47,763
7.5
Net interest income (taxable-     equivalent)(1) 834,142 778,658 55,484 7.1 1,649,369 1,570,800 78,569 5.0
                  
Earnings per share
    Diluted
         Income before          extraordinary loss 1.25 1.05 0.20 19.0 2.39 2.09 0.30 14.4
    Extraordinary loss 0.06
-
0.06
100.0 0.06

0.06
100.0
    Net income 1.19 1.05 0.14 13.3 2.33 2.09 0.24 11.5
                   
Basic
    Income before extraordinary          loss 1.27 1.06 0.21 19.8 2.42 2.11 0.31 14.7
    Extraordinary loss 0.06

0.06
100.0 0.06

0.06
100.0
    Net income 1.21 1.06 0.15 14.2 2.36 2.11 0.25 11.8
                  
Cash dividends paid per common      share 0.40 0.37 0.03 8.1 0.80 0.74 0.06 8.1
Average shares outstanding      (000s)
     Diluted 291,677 302,141 (10,464) (3.5) 293,743 304,440 (10,697) (3.5)
     Basic 287,878 298,986 (11,108) (3.7) 289,831 301,224 (11,393) (3.8)
                               



(1) Net interest income includes the effects of taxable-equivalent adjustments using a federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis.  
(2) 2000 results include merger-related expenses, net of tax, of $11.8 million and $20.7 million for the three months and six months ended June 30, 2000, respectively.  
(3) Second quarter 2001 results include an extraordinary loss of $17.8 million, net of tax, for the early extinguishment of debt.  
SunTrust Banks, Inc. and Subsidiaries
SELECTED FINANCIAL INFORMATION
Six Months Ended
2nd QTR. 1st QTR. 4th QTR. 3rd QTR. 2nd QTR.   June 30 
2001 2001 2000 2000 2000   2001  2000
RESULTS OF OPERATIONS
(in thousands, except per share data)
Net interest income $  823,903 $  804,857 $  785,365 $ 771,450 $  769,030 $  1,628,760 $  1,551,623
Provision for loan      losses

39,615
67,300
53,449
30,540
27,693
106,915
49,985
Net credit income 784,288 737,557 731,916 740,910 741,337 1,521,845 1,501,638
Securities gains            (losses) 27,728 57,117 (1,191) (586) 1,531 84,845 8,393
Other noninterest      income

494,084
468,802
446,761
447,819
442,439
962,886
872,429
Net credit and noninterest      income 1,306,100 1,263,476 1,177,486 1,188,143 1,185,307 2,569,576 2,382,460
Noninterest expense 763,838
742,697
697,864
706,570
719,784
1,506,535
1,424,099
Income before income      taxes and extraordinary      loss 542,262 520,779 479,622 481,573 465,523 1,063,041 958,361
Provision for income      taxes

177,292
183,254
149,250
154,753
148,054
360,546
321,453
Income before       extraordinary loss    364,970   337,525    330,372   326,820   317,469   702,495   636,908
Extraordinary loss, net of      taxes

  17,824
-  
-  
-  
-  
17,824
-  
Net Income $  347,146
$  337,525
$ 330,372
$ 326,820
$  317,469
$  684,671
$  636,908
Net interest income (taxable-      equivalent)   834,142   815,227   796,090   781,536 778,658    1,649,369   1,570,800
 
Earnings per share
Diluted
   Income before           extraordinary loss $  1.25 $  1.14 $  1.11 $ 1.10 $ 1.05 $ 2.39 $ 2.09
   Extraordinary loss
   0.06
-  
-  
-  
-  
0.06
  -  
   Net income 1.19 1.14 1.11   1.10 1.05 2.33 2.09
Basic
   Income before           extraordinary loss 1.27   1.16   1.13   1.11   1.06   2.42   2.11
   Extraordinary loss
  0.06
  -  
  -  
  -  
-  
0.06
-  
   Net income 1.21 1.16 1.13   1.11 1.06 2.36   2.11
                                     
Dividends paid per      common share 0.40   0.40   0.37   0.37   0.37   0.80   0.74
Average shares      outstanding(000s)
     Diluted    291,677   295,832    296,461   298,558   302,141   293,743   304,440
       Basic       287,878 291,805   293,390   295,575   298,986   289,831   301,224  

SELECTED AVERAGE BALANCES
(in millions)
Total assets $ 103,194 $  103,225 $ 101,246 $  99,392 $  97,497 $ 103,210 $  96,455
Earning assets   92,571   92,554   90,680   89,664   88,201   92,562   87,029
Unrealized gains on securities      available for sale   2,562   2,868   2,681    2,365 2,016   2,714   2,183
Loans   69,900   71,654   71,775   71,507   69,831 70,773   68,430
Interest-bearing      liabilities   77,090   77,518   75,548 74,914   73,501 77,303 72,462
Total deposits   64,361 65,409   67,182 67,158   66,866 64,882 66,208
Shareholders' equity     7,873   8,089     7,844     7,487     7,196     7,981     7,336  

SELECTED RATIOS
Net interest margin   3.61  %   3.57  %   3.49  % 3.47  %   3.55 %   3.59 %   3.63  %
Return on average      assets   1.38   1.36    1.33   1.34   1.34    1.37   1.36
Return on average realized      equity   22.43   21.85   21.40   21.62   21.46   22.14   21.40
Return on average total      equity     17.68 16.92       16.75   17.36   17.74   17.30   17.46  

CREDIT DATA
(Dollars in thousands)
Allowance for loan losses -      beginning $  871,964 $  874,547 $ 874,490 $874,484 $ 874,034 $ 874,547 $ 871,323
Allowance from acquisitions and      other activity - net   (6,660) (3,550) - - - (10,210)   -
Provision for loan      losses   39,615 67,300 53,449 30,540 27,693 106,915 49,985
Net charge-offs   38,820
66,333
53,392
30,534
27,243
105,153
46,824
Allowance for loan losses -      ending
866,099
871,964
874,547
874,490
874,484
866,099
874,484
Net charge-offs to average      loans 0.22 % 0.38 % 0.30 % 0.17 % 0.16 % 0.30 % 0.14 %
                                   
Period Ended
Nonperforming loans $411,166 $348,652 $405,270 $ 380,942 $282,491
Other real estate owned 20,265
20,646
  23,004
23,586
23,212
Nonperforming assets $431,431
$369,298
$ 428,274
$ 404,528
$305,703
                
Allowance to period-end      loans 1.26 % 1.24 % 1.21 % 1.21 % 1.22 %
Nonperforming assets to      total loans plus other real      estate 0.63 0.52 0.59 0.56 0.43
Allowance to      nonperforming loans 210.6 250.1 215.8 229.6 309.6
SunTrust Banks, Inc. and Subsidiaries
APPENDIX TO THE PRESS RELEASE
(Dollars in thousands)
2nd QTR. 1st QTR.   2nd QTR.
2001   2001   2000
                       
The following table reflects adjustments for unusual transactions for trend analysis purposes:
                       
ADJUSTED NONINTEREST EXPENSE
                       
Reported noninterest expense   $   763,838   $  742,697   $   719,784
Adjustments:
    Sale of STI Credit Corporation business (1)   17,400 - -
    One Bank Initiative (2)   14,700    7,000    -
    Merger-related expenses    -
     -
  18,183
Total adjusted noninterest expense   $   731,738
  $  735,697
  $   701,601

EXTRAORDINARY LOSS (3)
                       
Pre-tax extraordinary loss   $  27,422
Provision for income taxes     9,598
Total extraordinary loss, net of taxes   $  17,824
  (1) Comprised of approximately $12.7 million in additional goodwill amortization and $4.7 million in other expenses.
Additionally, as part of the sale of this business, $6.6 million in allowance for loan losses was transferred.
  (2) Expenses included in personnel expense and other noninterest expense.
  (3) The extraordinary loss on early extinguishment of debt was recorded as part of the balance sheet
repositioning which also resulted in securities gains of the same amount.