SunTrust 2005 Annual Report Download - page 86

SUNTRUST  ANNUAL REPORT84
Principal amounts due for the next five years on long-term debt are: 
– ,. million;  – . million;  – ,. million; 
– ,. million;  – . million; and thereafter – ,. mil-
lion. Restrictive provisions of several long-term debt agreements prevent
the Company from creating liens on, disposing of, or issuing (except to
related parties) voting stock of subsidiaries. Further, there are restrictions
on mergers, consolidations, certain leases, sales or transfers of assets, mini-
mum shareholders’ equity, and maximum borrowings by the Company. As of
December , , the Company was in compliance with all covenants and
provisions of long-term debt agreements. Long-term debt of ,. mil-
lion and ,. million as of December ,  and , respectively,
qualified as Tier  capital. As currently defined by federal bank regulators,
long-term debt of ,. million and ,. million as of December ,
 and , respectively, qualified as Tier  capital.
Effective December , , as a result of the adoption of FIN (R),
the Company deconsolidated certain wholly-owned trusts which had been
formed for the sole purpose of issuing trust preferred securities. The proceeds
from the trust preferred securities issuances were invested in junior subor-
dinated debentures of the Parent Company and Bank Parent Company. The
obligations of these debentures constitute a full and unconditional guaran-
tee by the Parent Company and Bank Parent Company of the trust preferred
securities. The junior subordinated debentures held by the trusts included in
the Company’s long-term debt were ,. million and ,. million
as of December ,  and , respectively.
NOTE  • Capital
The Company is subject to various regulatory capital requirements which involve quantitative measures of the Company’s assets.
Substantially all of the Company’s retained earnings are undistributed earn-
ings of the Bank, which are restricted by various regulations administered
by federal and state bank regulatory authorities. Retained earnings of the
Bank available for payment of cash dividends to the Bank Parent Company
under these regulations totaled approximately  million and  mil-
lion at December ,  and , respectively. The Company also has
amounts of cash reserves required by the Federal Reserve. As of December
,  and , these reserve requirements totaled . million and
. million, respectively.
In the calculation of basic and diluted EPS, net income is identi-
cal. Shares of . million, . million, and . million for the years ended
December , , , and , respectively, were excluded in the
computation of average potential shares because they would have been
antidilutive. Below is a reconciliation for the three years ended December
, , of the difference between average basic common shares out-
standing and average diluted common shares outstanding.
(Shares in thousands)   
Average common shares – basic , , ,
Effect of dilutive securities
Stock options , , ,
Performance and restricted stock , , ,
Average common shares – diluted , , ,
 
(Dollars in millions) Amount Ratio Amount Ratio
SunTrust Banks, Inc.
Tier  capital , .% , .%
Total capital , . , .
Tier  leverage . .
SunTrust Bank
Tier  capital , . , .
Total capital , . , .
Tier  leverage . .
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued